The shares of Peloton have fallen by 6.6 % on Tuesday after research had pointed to the flaws which existed in the business model of the exercise company and a management team which was overtly promotional that had been trying to justify their unrealistic valuations.
This report had also reiterated the points that had been made by Peloton’s other short-sellers which included comparisons to Fitbit and GoPro, the records of the products in the marketplace and the dependence on fitness fads and other trends.
Citron, the company which had done the research, has credited Peloton of creating a product which can incorporate interactive classes in the hardware of the product but has also noted that the company is not the innovator of the product in a meaningful manner after the introduction of the bike.
There are competitors that have been beginning to catch up and also start similar products which are a lot more affordable.
While a lot of money has been spent by Peloton on its marketing and has targeted the customers who have high-income levels, the hardware sales of the company might begin slow with the lower-priced options coming into the market as per the note.
The cycles by Peloton have started at an amount of $2,245 which does not include the membership fees digitally that is going to be priced at a minimum of $19.49 in a month.
The competition that is emerging has also used the digital app of Peloton to advantage by the selling of attachments of iPhone and iPad which may be used on the cycles that are less expensive, however, may still utilize the digital platform of Peloton.
Charles is a Chief Marketing Manager at our company. He is good at content marketing, his job duties include all social media-related marketing, blogging, and publishing related operations. Charles is with us from last 5 Years and has pursued a post-graduate diploma in marketing management. In his free time, he guides team-mates regarding business and share thoughts on media-related content.