Although Peloton gained high recognition during the COVID-19 period, it is not a clear powerhouse in the home training market. Existing traditional exercise equipment brands can also enter the home training market. It is also difficult to confirm the evidence that the home training market will grow tremendously in the future. I looked up various materials to write about Peloton. Eventually, I removed it from my interest.
When you think of home fitness/home training, the first word that comes to mind is ‘boring’. Peloton broke the stereotype of boredom with its live class. While watching the live class, you can interact with the instructor in real time and receive feedback while working out. In other words, there is no time to be bored. In order for hot exercise fever to be created in the online live class, the competence of the instructor is important. Peloton is selecting live class instructors through a thorough verification process. ※ The name of Peloton’s company is Peloton Interactive in the Kiwoom Securities hero text. The ticker is the same as PTON. Is it a temporary trend created by COVID-19? Is it the emergence of new fitness?<펠로톤 / 바이크+ 얼티밋 패키지><Peloton Financial Information / Capture Kiwoom Securities> Sales grew rapidly in 2021 during the height of COVID-19 and have fallen since then.Exercise equipment is expensive. You have to spend at least 2 million won (approx. One can buy an exercise machine only if one explains the reasons for the price.Peloton (PELOTON/Tiker:PTON) is a company whose main business is home fitness equipment and exercise content incorporated with technology. Indoor bicycles and treadmills are the main fitness equipment products. Treadmills are commonly called treadmills in Korea. Peloton’s exercise equipment is basically equipped with a tablet screen. Consumers can exercise while watching the exercise content they have subscribed to on the screen. You can watch exercise content on devices that have Peloton applications, such as smartphones. The monthly subscription fee is $44.Most of the sales are concentrated in the United States. Because of the large land mass in the United States, the space generally used by one household is much larger than that of one household in Asian countries. There is enough space for home training facilities. In Korea, most of the population lives in apartments. The living room is narrow to do home training based on a family of 35 pyeong and there are no spare rooms for exclusive use. It is a popular home training in the United States, but cultural or environmental differences are likely to occur in Asia. Risk<Capture the Peloton homepage> To use the exercise content provided by Peloton, it is not necessary to purchase exercise equipment sold by Peloton. However, customers who purchase Peloton exercise equipment can receive more services than customers who use simple video content. The monthly subscription fee of $44 seems expensive by my standards. However, in another article, the monthly subscription fee for Peloton is okay compared to the 50,000 won per face-to-face PT class. The subscription cost will feel different depending on each standard.COVID-19 has brought many changes to our daily lives. Fitness/training also changed during COVID-19. During the height of COVID-19, the operation of fitness centers was suspended or only a limited number of people were allowed to enter. Real workout enthusiasts were undaunted by COVID-19 and continued to train at home. This new trend is called “home workouts.” Home workouts mean home fitness or home workouts. Peloton (ticker: PTON), who are you?<Peloton Live Class>Stock price charts are also moving to respond to changes in sales. When sales performance was good in 2021, the stock price also rose, but after that, as sales failed to continue to rise and fall, the stock price collapsed sharply. Based on the simple sales flow, it seems too early to judge that home training will become a new trend. With the advent of smartphones, the trend quickly changed from phone to smartphone without congestion. Home training does not feel like a smartphone. In addition, it is personally questionable whether it is possible to determine the size of the home training market in the entire fitness/training market.<Peloton and its competitors><Peloton Stock Price Chart / Capture Kiwoom Securities>A new form of sports consumption called home training is interesting. However, in order for a company’s stock price to rise, sales must continue to rise by creating new trends and not just by giving interest. The emergence of automobiles and smartphones is a typical trend. Home training is likely to share a share with the existing training market, and it is questionable whether it will occupy a large portion of the existing training market.
