Sections

ideals
Business Essentials for Professionals

Boom In Home Fitness Trend To Be Tapped By Fitness Equipment Maker Technogym


10/24/2020


Boom In Home Fitness Trend To Be Tapped By Fitness Equipment Maker Technogym
In order to offset a drop in sales to gyms and studios because of the restrictions imposed due to the novel coronavirus pandemic, Italian fitness equipment maker Technogym is creating infrastructure to be able to supply more of its exercise machines and virtual trainers to homes of customers.
 
Many people have been prompted to give up training at their local gym because of restrictions imposed by authorities to contain the new coronavirus, or even just because of fears of contagion. Closing down of gyms and swimming pools again to prevent the spread of eh disease has not been ruled out by Italian authorities.
 
"We are seeing a strong acceleration in the home fitness segment," Technogym founder and Chief Executive Nerio Alessandri said in an interview to the media.
 
The company has previously been the official supplier of fitness equipment to the last seven Olympic games and several top soccer clubs are included in its list of clients.
 
Fitness equipment to professional athletes stuck at home had been sold by the company, Alessandri said.
 
An order form a big company that purchased its "Technogym package" for its employees and offering them training programmes and equipment as they were working from home has also been received by it, Technogym said.
 
"We think that the Home & Consumer segment could come to represent around 50% of our total revenues in four years from now. And profit margins match those of the professional segment," added Alessandri.
 
With people stuck at home but trying to stay fit during the lockdowns, there are many fitness equipment making companies such as exercise bike business Peloton that have been successful to take benefit of the new trend.
 
Home friendly products can be offered to people and clients by Technogym. The company provides equipment to gyms, hotels and spas in about 100 countries around the world.
 
An "entry level" treadmill from the company is priced at 3,250 euros ($3,850) while an exercise bike costs 2,950 euros.
 
The first half revenues of Technogym had dropped to 222 million euros from 295 million in the same period a year earlier, the company had reported in September. In comparison, a jump in sales of its home fitness equipment has been recorded by the group.
 
In the first half, the company reported a 50 per cent rise in demand and sale of its exercise machines and online training programmes that it sells directly to customers, which now amounts to about 30 per cent of the total revenues of the group which is twice the amount that the company had achieved in the same period in 2019.
 
Investments would be made by the company to support growth at its home fitness division, Alessandri said, and added that this would be achieved by using savings made in its budget because of the cancellations of trade fairs and business trips forced upon because of the pandemic.
 
The importance of keeping fit in their lives has been realised by people because of the pandemic, he said while pointing out to a significant growth in medical fitness centres where healthcare and gym facilities are offered in combination.
 
"We see new markets opening up," he said. "People are increasingly aware that good health is the true luxury."
 
(Source:www.usnews.com)