Are Consumers Really Giving up on Home Fitness?

Digital connected fitness is showing serious signs of weakness, with Peloton earlier this month lowering its expectations for subscription growth and revenue for the 2022 fiscal year. And while gym memberships are simultaneously on the rise, the question remains whether fitness can have as strong a hold on consumers when they aren’t restricted primarily to their homes.

Read more: Peloton’s Fall, Planet Fitness’ Rise Suggest Connected Fitness Boom Is Over

To Helaine Knapp, founder and CEO of fitness platform CITYROW, the answer is a resounding yes. As she told PYMNTS, the pandemic made many people realize the importance of health and fitness, making them hesitant to give up their workout routines.

In her view, Peloton’s slowing growth isn’t a sign that digital connected fitness was a temporary phenomenon — rather, it indicates that the market is “recalibrating” to balance in-person and online options. For 18 months, the only option was digital fitness, and with gyms reopened, “people can go back into the gold standard,” she said.

That isn’t to say that digital fitness was just a fad — like many pandemic-era patterns, such as curbside pickup and remote work, at-home workouts are here to stay because they make things more efficient for the consumer. Knapp noted that consumers and platforms are just working to find the right balance, leading to a landscape that’s “a little bit bumpy” in the short term.

“People are going to continue to do that add-on day,” Knapp said. “So, the categories — both boutique fitness and digital at-home fitness — are continuing to grow, and it’s all about meeting the customer where they are, which is really between the two of them.”

Carl Daikeler, co-founder, chairman and CEO of The Beachbody Company, recently told PYMNTS that he also sees consumers adopting a “hybrid model” of exercising at the gym when they have time and at home otherwise. “The best way to stay consistent with your health and fitness is to make it as convenient as being in your living room,” he said.

Also see: Hybrid Home, Gym Experience May Be the Future of Connected Fitness

An Omnichannel Approach

Though CITYROW was founded in 2014 as a boutique fitness studio, the company quickly adopted a more connected approach, launching a digital platform in 2018 to provide at-home workouts that complement in-person classes.

“We are continuing to march toward this omnichannel brand, wanting to meet people in studios across the country for the in-person experience, but also be able to meet them at home if they couldn’t get there for location reasons or calendar reasons,” Knapp said.

Digital capabilities have also extended CITYROW’s reach beyond its seven studios, allowing the company to gauge interest in new locations and provide a seamless experience for customers. “For us, it’s about how to move people through digital and in-studio for what works for them and their schedule,” Knapp said.

Earlier this week, for example, CITYROW launched live online classes, allowing for a more interactive and engaging experience. All of the 30-plus live classes each week will also be available on-demand.

“When you’re at home, it’s great to be able to talk on social media and engage, but there’s [an element of] accountability and connection that live classes provide the digital at-home consumer,” Knapp said.

Live classes also enable CITYROW instructors to quickly tailor their content based on customer feedback, whereas previously new content was pushed out every few weeks or months.

“The whole point of digital fitness is trying to come close to that amazing gold standard of in-person,” Knapp noted, such as when an instructor praises someone for their effort or notices when a person skips a class. “People are craving … an emotional connection with a brand and a community. These elements of digital community are a good step in continuing that.”