Will TikTok Help Peloton Flex Its Comeback Muscles?
In its quest for increased consumer relevance, exercise equipment and media firm Peloton is turning its attention to TikTok.
Can this strategic shift propel the company back into the spotlight, akin to its prominence during the COVID-19 era? The question arises given TikTok’s exponential growth and its ongoing role as a platform that showcases brands and creators, resonating with users through engaging content.
The Peloton x TikTok News
Peloton has collaborated with TikTok to provide its workout content to users in the United States, the United Kingdom and Canada.
This partnership will establish a new fitness hub on the short-form mobile video platform, designated as #TikTokFitness. In this dedicated, co-branded hub, Peloton will host its content, according to a Thursday (Jan. 4) press release.
“We collectively recognize the way people engage with fitness is constantly changing,” said Oli Snoddy, vice president of consumer marketing at Peloton, in the release. “Our team is excited to complement TikTok’s already burgeoning fitness content by introducing the magic of Peloton to new audiences, and in completely new ways.”
The Peloton hub will encompass a variety of offerings. This includes live Peloton classes, both with and without the need for equipment, original instructor series, continuous collaborations with creators, snippets from Peloton classes and partnerships with celebrities.
According to the announcement, this partnership marks the first time Peloton will create customized content for another platform.
Read more: Peloton Creates New Hub for Fitness Content on TikTok
The Power of TikTok
Last month, PYMNTS reported that TikTok had netted $10 billion in consumer spending, making it the first non-gaming mobile app to accomplish such a feat.
Per consumer and market data provider data.ai, the social video app secured $3.8 billion in funding in 2023, marking an increase from the $3.3 billion reported in 2022.
TikTok users primarily spent on TikTok coins, which are used to purchase virtual gifts for content creators on the platform. Creators can then convert these coins into cash. TikTok retains 50% of the payout amount.
It’s important to note that the $10 billion does not encompass the app’s additional revenue streams, such as in-app advertising and, as of September, eCommerce sales within the newly introduced TikTok Shop.
Read more: TikTok Surpasses $10 Billion in Consumer Spending
And this week, PYMNTS reported that TikTok is hoping to to grow its U.S. eCommerce business to $17.5 billion in 2024. This tenfold expansion would position the company to emerge as a more substantial competitor against eCommerce rivals like Amazon, Shein and Temu.
Read more: Report: TikTok Targets $17 Billion in US eCommerce Volume
Peloton’s Other Play to Relevancy
In September, Peloton and Lululemon announced a five-year partnership to marry fitness content and athletic apparel, aiming to establish a cohesive community comprising over 20 million loyal consumers.
As part of this collaboration, Peloton became the sole supplier of digital fitness content for Lululemon, while Lululemon became Peloton’s main partner for athletic apparel.
Through the partnership, the brands are reaching out to consumers in the United States, Canada, the United Kingdom, Germany and Australia, offering technical athletic apparel, specialized programming and original content.
Consumers in the U.S., U.K. and Canada can also buy co-branded apparel across Lululemon’s products at Peloton’s physical and online stores, with availability for these products expanding to all five of Peloton’s global markets by March.
Additionally, Lululemon rolled out access to Peloton classes for its Studio All-Access Members in November, with regularly updated content on their Studio device and companion app from both Peloton and Lululemon.
See also: Peloton and Lululemon Partner to Create 20 Million-Strong Community
The post Will TikTok Help Peloton Flex Its Comeback Muscles? first appeared on PYMNTS.com.