Fitness product manufacturers are achieving tremendous success building new products. Especially leading fitness brands such as Hammer, Life Fitness, and Parabody. As a result, these companies have a virtual stronghold in both strength and cardiovascular oriented products sold into commercial (primarily direct sales) and customer (primarily specialty retailer) markets.
Like most businesses today, the fitness product marketplace – and specifically the premium product segment - is exposed to a number of discontinuities that are having profound implications for new product entrants and the overall fitness product competitive landscape.
Direct selling efficiency has improved as health club consolidation continues, yet this channel approach makes for difficult and expensive coverage of smaller chains and independent “B” and “C” clubs.
Direct selling efficiency has improved as health club consolidation continues, yet this channel approach makes for difficult and expensive coverage of smaller chains and independent “B” and “C” clubs.
Retailers targeting the customer marketplace are blurring “class of trade” distinctions by moving aggressively into wholesale sales to health clubs and other commercial accounts.
Chain fitness product retailers (e.g., Busy Body/Fitness Warehouse) are gaining strength and trying to leverage their increased power and influence over product manufacturers (e.g., demanding product exclusives, territory protection, merchandising support, etc.).
Strong “vertical” commercial markets are emerging that require unique value propositions and raise similar coverage issues as are found in the health club marketplace.
Customers are increasingly starved for time and are putting greater emphasis on convenience, raising the specter of non-traditional fitness product channels playing a greater role in attracting future shoppers.
Customers are increasingly starved for time and are putting greater emphasis on convenience, raising the specter of non-traditional fitness product channels playing a greater role in attracting future shoppers.
Upstream manufacturers such as New product manufacturers are under increasing pressure by retailers to offer broader and deeper offerings across core cardiovascular and strength product categories.
Overall channel sophistication in the customer marketplace is relatively low, with only a small number of large regional or national players.As a result, new product manufacturers must create a overall go to market roadmap for both commercial and customer markets by developing new distribution channel approaches and improved customer experiences
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