Peloton Targets Europe in International Push
The fitness brand has expanded into its fifth overseas market, Austria, following its recent partnership with a European equipment retailer
Peloton has officially expanded into Austria with its Bike, Bike+ and select accessories available to purchase via Amazon. Peloton’s entry into Austria follows its international expansion goals, marking the company’s fifth overseas market after Canada, the United Kingdom, Australia and Germany.
In addition to Amazon, Sport-Tiedje, a home fitness equipment retailer in Europe, will sell Peloton Bike, Bike+, Tread, and select accessories to consumers overseas.
“Our goal is to make Peloton accessible to as many people as possible,” said Dion Camp Sanders, Peloton’s chief emerging business officer. “Expanding our third-party relationships and introducing the magic of Peloton to Austria is a natural progression as we continue to support our members’ fitness ambitions in markets around the world. Through our expanded relationships with Amazon and Sport-Tiedje, we are excited to enter Austria, an important fitness market on the world stage.”
In addition to Peloton’s equipment and app, Austrian consumers will have access to thousands of classes spanning cycling, running, yoga, meditation and strength, including over 5,000 classes in German taught by German-speaking instructors and thousands of German-subtitled classes.
The brand has planned special class content featuring the music Falco to commemorate its debut in Austria.
Around the World
Peloton has made no secret of its overseas ambitions. The U.K., in particular, shows some promise. While hardware sales in its U.K. division have slowed, Peloton’s subscription revenue increased 89% over the prior year across the pond.
Peloton CEO Barry McCarthy told investors on a recent earnings call that international would be a growth opportunity for the company, with plans to lean “aggressively” into growth in existing markets with new product launches and co-branded partnerships, as seen with Liverpool FC. The multiyear partnership crowned Peloton the Premier League club’s first digital fitness partner, with the two collaborating on exclusive LFC content for Peloton’s platform with promises of “unforgettable experiences” for Reds fans and Peloton members.
McCarthy also indicated that the co-branding experience would be replicated stateside and hopefully fuel growth.
“They’ll be multiyear, they’ll be global, they’ll be exclusive,” he said. “There’ll be collaboration on content creation, and there’ll be co-marketing and social media components.”
At a recent Goldman Sachs conference, Peloton CFO Liz Coddington indicated that the company is eyeing new adjacent markets in Europe for the second half of FY24.
“We don’t expect them to be a very large contributor to our subscriber growth or our revenue in fiscal ’24,” Coddington said. “But we see them as good opportunities, and we’re excited about pursuing them. But our main focus was really about growing our existing international markets.”
Time will tell if Peloton’s rebrand, B2B deals, recently announced partnership with Lululemon and its international endeavors will pay off. The fitness company’s next earnings report is expected in the first week of November.
