Peloton: Fitness trend from the USA conquers Europe - Founded in New York in 2012 - Market entry in Germany in 2019 - Over 1.6 million users worldwide - Price per bike: from € 2,290.00 - Montl. course fee: € 39.00 p. household.
The fitness industry is booming, because physical fitness is important to more and more people: yet fitness nowadays no longer just means training and muscle building. The sporty activity should be a genuine experience, which costs little time and increases the quality of life. Martin Richter, Country Manager at Peloton Germany, and Nils Thiesen, Managing Director Sales and Market Development at Rhenus, want to ensure that the premium fitness bike Peloton from the USA also conquers the German market.
Mr. Richter, Peloton is already very successful, especially in the USA and Great Britain. Who exactly are the buyers of your fitness bike?
Richter: We are specifically targeting private individuals. Many are in the middle of life with demanding jobs and families, so sport often gets short shrift. What unites the Peloton community is that our members take their fitness seriously and have a desire to be active.
In Germany, many people already train in clubs or go to the gym. Can your product still be successful here?
Richter: Certainly. In Europe, Germany is the country where fitness is writ large. Eleven million Germans are members of a gym, but there are also a lot of people who don't go as regularly as they would like. For them, Peloton is a new option.
Mr. Thiesen, how did Rhenus Home Delivery actually become aware of Peloton?
Thiesen: We follow the trends and developments in the fitness industry very closely. Peloton offers a great product and has very high standards for the customer experience. That fits very well with us. In addition, we have wanted to expand our product range for a long time to include a premium service for end customers.
The Peloton bike currently costs 2,290 euros, plus a fee for the virtual courses. That sounds pretty expensive. What makes the product so special?
Richter: Peloton stands for a completely new fitness concept that offers its members the ultimate cardio workout at home. Peloton produces the courses with well-known trainers in its own studios in New York and London. Members can watch them via live stream or access them after the fact. Our growing range of courses is highly motivating and a rousing training experience!
Rhenus Home Delivery: new logistics product for the premium fitness segment. When it comes to transporting furniture, electronic goods or sports equipment to the end customer, Rhenus Home Delivery is there. The specialist delivers around 2.5 million consignments in Europe every year. In addition, there are numerous services relating to the assembly and connection of the goods as well as the disposal of old equipment. Since the beginning of 2020, Rhenus Home Delivery has been offering a logistics solution specifically for premium products that focuses on the experience in the customer's own four walls.
After all, Rhenus Home Delivery already has decades of experience in the delivery of large sports equipment. Can you tell us a little more about your new premium service, Mr. Thiesen?
Thiesen: It's true that we at Rhenus already have a lot of experience in the fitness segment. Not only through Rhenus Home Delivery deliveries in the B2C sector, but also through Rhenus Sports Tech warehousing, deliveries and pre-assembly of equipment in fitness studios. With our premium service, the focus is very much on the customer experience.
So how exactly do you achieve a positive customer experience?
Thiesen: We already assemble the bikes almost entirely in our central warehouse, so our on-site delivery teams can focus entirely on the customer with their wishes and questions. Accordingly, the soft skills of our employees are particularly important. Since we also give the customer extensive instruction in the Peloton app and integrate it into the WLAN, technical understanding is also essential.
Those are high expectations for your employees. How have you trained your delivery teams for the tasks?
Thiesen: There were three training sessions. We developed the first one together with an external institute. The state-of-the-art training concept promotes soft skills and teaches communication, problem-solving skills and empathy using various methods such as case studies and role plays. It was also useful for our employees to train on the peloton bike themselves.
What were the other training sessions about?
Thiesen: In the second training session, we learned about the technology of the bike and the app, as well as the customer promise. The final training session took place on the Tour. Here, our project managers were on the road with the trainers from Peloton - over several weeks in all regions of Germany.
Mr. Richter, why did you choose Rhenus as your logistics partner in Germany?
Richter: The Rhenus Group is one of the leading logistics service providers and fits perfectly with Peloton with its corporate philosophy that teamwork and passion are the prerequisites for success. In addition, it is extremely important to us that our customers have a premium-level experience with our brand at all times. This ranges from the coordination of the delivery date in the smallest possible time window, to the assembly, to the explanation and adjustment of the bike at the customer. Then there is the in-depth training of staff and continuous measurement of customer satisfaction.
How many Peloton bikes could be delivered in Germany in the next few years?
Thiesen: The launch at the end of 2019 was very promising. We will already deliver several thousand bikes this year. And there is also potential in other European countries.
Could Rhenus Home Delivery also take over logistics across Europe if needed?
Thiesen: Of course. With our experience in Germany, distribution in other countries would certainly be easier for us than for a newcomer. In addition to Germany, Rhenus Home Delivery is already active in Great Britain, the Benelux countries, Italy, Poland, Bulgaria, the Czech Republic and Slovakia, as well as in many other countries with professional partners.
Many fitness bikes sooner or later gather dust in the attic or basement. Why is Peloton more than a short-term fitness hype?
Richter: Peloton has an extremely low unsubscribe rate because the training is very motivating. After a year, 94 percent of our members are still training regularly on their bikes. So Peloton is not a dust collector, but a real sweat driver!