January 21, 2024
Pic Credit: @gymshark via Instagram
In the fitness industry with big players like Nike, Adidas etc. the ONE brand which is making ALL THE NOISE on social media these days is: Gymshark! Lets take a look into the workings of this BILLION DOLLAR fitnesswear brand to understand its meteoric rise to success.
Origins
Started by two 19 year olds Ben Francis and Lewis Morgan, Gymshark was founded in 2012 as an e-commerce company offering fitness supplements combining Ben's interest in fitness and his passion for building apps and websites. In the early years of the company, it used to DROPSHIP supplements technically acting as MIDDLEMEN. Then in an effort to increase the profit margins, they made the switch into fitnesswear industry. Starting with a screen printer and a sewing machine, Ben and Morgan literally designed and stitched each outfit by hand before taking them to trade shows where they were a RESOUNDING success, prompting them to expand their operations and transform into the BEHEMOTH they are today.
Stats
Starting with $400 a day from trade shows the brand quickly started to make over $42000 in a single day by going online thus enabling the scaling of the company.With an annual sales rise of 193% over three years Gymsharks's pre tax profits were $1.5 million alone on revenues of $12.8 million in 2016 followed by sales over $30 million in 2017, the brand has been on the upward trajectory ever since expanding into various product ranges in 131 countries with over 20 million followers on social media and with a valuation of over $1 BILLION.
Product Design
They design HIGH QUALITY, PERFORMANCE DRIVEN apparel infused with STYLISH designs all at AFFORDABLE price points. Their products resonate with their customers needs of wanting not only functional clothing but also the desire to look good while working out. Thus with SUPERIOR quality and EXCEPTIONAL fabric choice the brand has bolstered their customers to be CONFIDENT in their fitness journey. They offer a wide range of products like vests, tshirts, hoodies, leggings etc. which are specifically tailored for different workouts be it weightlifting, yoga or running each featuring the brand's SIGNATURE SHARK LOGO which is hard to miss.
Business Model
The success behind the business model can be accredited to a WELL DEFINED customer base with a target audience of teenagers and young adults whose lives revolve around FITNESS and FASHION. The success lies in launching Gymshark as a MOVEMENT as opposed to just a brand. The Business model is super flexible and very easy to adapt which enabled the brand which started initially as catering to only mens category to successfully transition into the womens fitness category as well where they have quickly dominated the market. One of the best attributes of their business model is their SUPPLY CHAIN and LOGISTICS> They research and develop their own technical fabrics which they then outsource for manufacturing to China and ensure that their items go from DESIGN to MARKET within 3 months thereby giving them a competitive advantage of REACTING to FASHION TRENDS QUICKLY> With the aim of having a very TIGHT CONTROL over supply chain and logistics, they have bought a 100,000 sq ft warehouse in UK which allows them to quickly service their growing distribution demands from source to delivery. They have a logistics service which is EXCEPTIONALLY AGILE and ADAPTABLE to the growing distribution needs while at the same time focussing on quick delivery to create a wonderful customer experience.
Influencer Marketing
The brand was one of the first ones to encash on influencer marketing by working with fitness influencers on Youtube, Instagram, Tiktok etc. They choose their ambassadors carefully and collaborate with them in the form of sponsored posts, workout videos etc. thereby successfully targeting the audiences of the influencers. One example is their collaboration with RENOWNED fitness influencer Whitney Simmons who is an INSPIRATONAL figure for many fitness enthusiasts. By showcasing their latest collections in promotional videos featuring her workout routines they could successfully leverage her influence and increasing the brand credibility.
Harnessing Power of User Generated Content UGC
UGC's are another signature Gymshark strategy. By ENCOURAGING customers to showcase their workout routines using their products, by subtly nudging them to share their fitness progress, they promote BODY POSITIVITY and act as a source of INSPIRATION thereby AMPLIFYING their reach through ORGANIC CONTENT SHARING.
Bulding a Brand Community And Customer Experience
It is noteworthy that they do not generate direct sales through social media channels instead choosing to focus on building BRAND AWARENESS and providing their customers with VALUE CONTENT. Thus by SHOWCASING their cutomers fitness stories they generate VALIDATION for the customers which helps them forge a DEEP and LOYAL customer base. Their COMMUNITY CENTRIC approach also includes contests and challenges thereby boosting their customer engagement over their social media channels. For example, their brand community TRAIN FOR LIFE series connects aspiring fitness enthusiasts with Gymshark athletes thus CEMENTING the brand in the lives of their customers. As Ben who was recently featured in FORBES 30 UNDER 30 succinctly put it, IT IS A MOVEMENT AND NOT JUST A BRAND.
Innovative Product Launches
By using teasers and sneakpeeks before their new launches they build ANTICIPATION and DEMAND for their customers thereby giving the product the hype which enables its success. They gauge the market interest and refine their products according to their customer feedbacks. By doing LIMITED EDITION releases with unique collabs and limited quantity, they successfully encash on the customers FOMO ( fear of missing out) thereby increasing a sense of urgency and desirability among their customers towards their products leading to quick SELL OUTS>
Black Friday Marketing And Checkout Line Strategy
By not offering regular sales Gymshark builds up the anticipation of their customers for their huge blowout week long BLACK FRIDAY SALE thereby increasing the brand VISIBILITY and ATTRACTING new customers through social media advertisements and by switching from their usually bright pictures to powerful black and white images. Another great strategy they implement during black friday is CHECKOUT LINE strategy wherein the customers have to queue for two minutes before proceeding to checkout on their page only to find a lot of SOLD OUT products in their carts thereby increasing the brand's AURA OF EXCLUSIVITY and thus driving more sales.
Power Of Hashtags
They were one of the early adopters of the viral hashtags which every brand uses these days. Case in point, their #Gymshark66 which went viral in no time. Their 66 days CHANGE YOUR LIFE campaign encouraged their customers to post before and after photos of themselves on social media thereby inspiring others and increasing the brand's reach to wider audiences.
Spotify Playlists
By adopting a unique collaboration strategy they share playlists of fitness influencers so that their audience can listen to it while working hard at gym. By harnessing the power of FITNESS, FASHION and MUSIC they are able to connect with their customers on a deeper and more personal level.
Blogs And Newsletters
They also connect with their customers by curating personalized newsletters and blogs containing diverse informative topics related to fitness like supplements, workouts, and even recipes which are INFORMATIVE and ENGAGING at the same time ensuring a constant brand presence in their customers lives.
Humanising The Brand
In order to cement their AUTHENTICITY they released a MENATL HEALTH campaign DELOAD BARBERSHOP with no relevance to sportswear thereby generating further interest. They incorporated mental health trained barbers to encourage people to stop and talk about their feelings and donating the proceeds to CALM campaign. All this has HUMANISED the brand in the eyes of their customers as something they can CONNECT to and who CARES for their well being thereby DIFFERENTIATING them from the other big players in the fitness industry.
Last but not the least, here are some of our favourite Gymshark products.
Pic Credit: Gymshark
Pic Credit: Gymshark
Pic Credit: Gymshark
Pic Credit: Gymshark
Pic Credit: Gymshark
Pic Credit: Gymshark
Pic Credit: Gymshark
Pic Credit: Gymshark
Pic Credit: Gymshark
Pic Credit: Gymshark
We hope you found the success story of one of UK's FAST RISING brands inspiring and enlightening. With this post we aimed to shed light on the inner workings of one of the MOST LOVED fitness brands. Hope you found it a good read!
xoxo