With news circulating that the dreaded “COVID 19 pounds” many Americans have packed on during the pandemic may be closer to 29 pounds, people increasingly have movement on their minds.
Considering pandemic barriers to fitness, real or imagined, a muscular fourth quarter 2021 earnings report from Planet Fitness showing healthy new member growth indicates that people want to get moving again and they’re planning to, one way or another. Contrast that with drama recently surrounding Peloton’s earnings, and the mixed picture may cause you to reach for some comfort food.
Don’t do that.
Subscribe to a class package. Download a jogging app and go for a run. Take an online Pilates class — or, as many denizens of the connected economy have done, heed the virtual coxswain’s call and picture yourself rowing.
CITYROW founder and CEO Helaine Knapp sees Peloton’s problems and the Planet Fitness progress as indicative of a connected fitness industry, of which physical gyms are part, “still in early days.”
“We’re at like $130 billion,” Knapp said. “There’s actually still incredible untapped opportunity.”
With beloved fitness routines coming out of mothballs after two years, Knapp said, “I call this the big recalibration. Every single person is different. Everyone has brought their experience of COVID, whether they were super conservative, they had it early, they have kids, everyone is coming at this recalibration as a result of their own experiences.”
Back in February 2021, a survey by the American Psychological Association found that 42% of U.S. adults reported undesired weight gain since the start of the pandemic, putting it at an average of 29 pounds.
Speaking with PYMNTS’ Karen Webster a year afterward, Knapp said, “I talk about a fitness maturity curve. We are probably at the very bottom” of that curve after two years, but change is floating in.
“As you go through that [maturity curve], you learn more,” Knapp added. “At some point you might join a 24 Hour Fitness or an Anytime Fitness. As you grow from there, you see why boutique is gaining market share from big box. I think part of why we’re seeing this massive boom in connected fitness is people trying to think about ‘how do I do this every day?’”
For some, those experiences will lead back to the gym. Others are sticking with connected fitness cycles and their favorite virtual trainers. There’s no one way to shed the “COVID 29.”
“The macro trend here is that health and wellness is still in its infancy, which is frustrating to talk about because every single American has to figure out what solution is best for them,” Knapp added.
See also: Peloton and the Amazon Effect on Fitness
Rocking and Rowing
Knapp’s own hike to rowing guru and CEO was of the hardcore variety, where years of high-impact workouts left her with multiple herniated discs at 25 and needing a new form of fitness.
“I“m spending a lot of money. I am sweating. I was like, ‘check, check — and why am I wearing a back brace?’” she said. “That“s what pushed me to [discover] a better way to move my body because there“s a million ways out there, but is anything going to give me results and also keep my body safe because I realized we’re not invincible?”
Settling on the full-body workout rowing provides, CITYROW launched its first rowing app on iOS and Android in 2018 and, aside from COVID disruption, the concept is working.
“We’re a mission-driven business,” she said. “My goal in life is to show people that there’s a really smart way to move your body for life. We’re able to meet customers in a studio if they want, at home on our machines or with our app. We’re the only open system where you can take a CITYROW class on any rower. That’s what we mean by open system and omnichannel.”
CITYROW also sells its own rowing machines, one connected with a screen and the other at a lower price point that syncs personal devices with video exercise rides via Bluetooth.
“It’s so much easier to talk about rowing today than it was eight years ago,” she told Webster. “Awareness is just so much higher. Part of the reason that we picked Water Rower as a manufacturer and a partner is because they have been producing rowers for 40 years and they’ve nailed the at-home assembly. I didn’t want to tackle that.”
Related: Young Users Help Fuel Planet Fitness Growth
Move It to Lose It
Knapp sees Peloton’s current troubles are both cautionary tale and inspiring business story, depending of course on how it all shakes out. Asked where Peloton took a wrong turn, Knapp spoke of “some major management missteps” while maintaining that the top connected stationary bike is far from finished.
Noting the business is growing with 4.5 million members now, Knapp said for Peloton, “Their biggest mistake was not realizing that there was going to be this recalibration.”
“People are going to start going back into studios and we’re going to see just the demand pull back a little bit. It’s still there,” Knapp said. “They are growing, they are doing well, but they have to right size for a more appropriate level of growth.”
Webster noted that one of Peloton’s greatest assets are engaging trainers who can garner large global followings. Knapp agreed, saying that’s another aspect of “connected” fitness.
“We are all still the humans. We crave connectivity and we’re going to get it wherever we possibly can,” she said. “We are hanging our hat on the fact that that’s not always enough and people really need in-person experiences … that you can only get when that live instructor is there.”
And gear, she contended, is still a poor substitute for the encouragement that comes when you’re working out in the same room with people. On that front, CITYROW currently has 11 locations, and that’s set to change. The company is moving aggressively to add more locations through franchises — as well as “a couple” of corporate locations that allow users both demo products and take classes.
“You’re going to see a ton of hyper growth from CITYROW, both on the digital side as well as the retail side,” she said. “The piece that nobody else has is this open app system where we connect with any rower. That makes CITYROW incredibly accessible, no matter where you are in the funnel.”
See also: Peloton Operations, Supply Chain Execs Exit
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