Monday, March 4, 2024
HomeUncategorizedPeloton may borrow IKEA's most successful strategy

Peloton may borrow IKEA's most successful strategy

Peloton exercise bike retail shop

Peloton exercise bike retail shop ThomasAFink/Shutterstock

Peloton is currently in poor shape, in large part due to the The effects subsided, demand plummeted, and height was publicly recalled after multiple reports of injuries. That hasn’t stopped the company from launching new products, though — just recently, for example, it finally unveiled the Guide camera, which enhances home fitness by leveraging artificial intelligence and customers’ own TVs.

While Peloton is undoubtedly a household name among fitness enthusiasts these days, In the U.S. at least, it faces a growing market of competing products designed for people who want to continue working out at home. For example, Google may be planning to compete with Guide with a similar product of its own, although the product will reportedly involve Android TV and the Wear OS platform for wearables. Despite these challenges, Peloton isn’t ready to throw in the towel, and it plans to release a new exercise machine in the form of a rower later this year. However, this won’t be the only major change we’ll see in the coming months, as it will also introduce a drastic bike design update to keep costs down.

The IKEA effect may save Peloton

BrandonKleinPhoto/Shutterstock

Peloton plans through the Take a page out of the book to bounce back — that is, it plans to let customers assemble their own fitness gear. In an interview with Bloomberg, CEO Barry McCarthy mentioned that Peloton will design its exercise bikes so that customers can unbox and assemble them with an instruction manual at hand, eliminating the need for experts to operate at home.

The Peloton chief added that the company has been planning for some time. “We’re going to continue to lower the cost of the hardware, and we’re going to design it so you can assemble it so we can ship it with FedEx,” McCarthy explained. The plan to self-assemble sports gear to cut costs comes as Peloton is considering raising prices on its current portfolio. Whether Peloton will pass on the economics of letting customers assemble the gear themselves is unclear. Notably, Peloton’s CEO has yet to reveal when the brand’s first self-assembled sports gear will hit store shelves. At the same time, the company is also targeting the holiday season debut of its rowing machine and hopes to bring back the premium Tread+ after an ugly recall.

While the Peloton CEO made it clear that cost reduction is a design customer One of the core elements of self-assembled fitness equipment, but it may have other benefits, too. As documented in a research paper published in the Journal of Consumer Psychology, IKEA’s easy-to-assemble furniture catalyzes a phenomenon known as the IKEA effect. The point is that when a customer invests their time and effort in assembling an item, the value of that item goes up in their eyes.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

LAST NEWS

Featured NEWS