This past year Peloton has become an increasingly popular choice for at-home fitness, as the Covid-19 pandemic forced people to retreat inside and rethink their workouts.
While many businesses have been negatively impacted, Peloton has benefitted from the pandemic. Online searches for Peloton nearly tripled in February 2020. By May 2020, quarterly revenue soared 66%, and paid digital subscribers increased by 64%.
The demand for Peloton has become so high that the company is struggling to keep up.
Some have been skeptical about whether Peloton’s success will survive the pandemic; however, their announcement last fall shows that they’re in it for the long haul.
On November 10, 2020, Peloton announced a multi-year partnership with Beyonce Knowles to produce themed workouts for its members. The partnership would commemorate the Homecoming season at Historically Black Colleges and Universities (HBCU).
The programs are inspired by Beyonce’s 2019 Homecoming film and live album, based on her 2018 Coachella performance, which celebrated her long career and the culture of HBCUs.
Peloton and Beyonce also gave away 2-year digital memberships to students at ten HBCUs. Further, the brand announced that they’ be building relationships with each of these schools to “pursue long-term recruiting partnerships at the internships and undergraduate levels.”
The announcement saw immediate success, as Peloton’s shares rose 8.6%.Consumers were equally as excited.
One follower on Peloton’s Instagram commented, “This is so powerful. My personal trainer [...] is a Howard student and he taught me how to use Peloton. This campaign is making me feel so seen and valued as a current Howard student and Peloton user. Thank you.”; Another wrote, “You market to ME, you get me! Peloton purchased.”
The Peloton and Beyonce collaboration is a win on all fronts. According to Peloton, Beyonce was the most-requested artist by their 3.6 million global members. This isn’t surprising, given that millions already have Beyonce’s music on their workout playlists. Beyonce’s music is genre-blending, with songs spanning from bombastic anthems to emotional ballads that motivate, inspire, and advocate for female empowerment. Pop, R&B, hip-hop, rock, country. She. Does. It. All.
But it’s not only her music that makes this partnership perfect. Beyonce is a global superstar, businesswoman, and activist with a massive fanbase. She currently has 166 million Instagram followers.
According to D’Marie Analytics, a social media analytics company, one post from Beyonce is worth $1 million in advertising. She is a social media master who understands how to connect to her fans, ignite conversations about everything, and sell (just take a look at her first Ivy Park collection with Adidas that sold out in a weekend).
Beyonce is also recognized for her high production quality, elevating and pushing how consumers experience music and media.
On top of that, Beyonce is a performer known for her fitness and endurance. She frequently talks about the importance of prioritizing her health to achieve her goals and be the best version of herself. She is hard work and excellence embodied – everything Peloton and its followers strive to be.
In partnering with Beyonce, a Black female artist, and building relationships with HBCUs, Peloton is taking steps to make the health and wellness industry more inclusive.
This is important now more than ever in light of recent events of various
companies such as the New York Times, Crossfit, and Conde Nast being ousted for toxic workplaces, systemic racism, and sexism.
Consumers are becoming more aware and have higher expectations from companies to be inclusive and mindful about their business practices. With more inclusive practices and partnerships, Peloton will certainly attract new subscribers that they may not have had access to before.
This partnership is equally beneficial for Beyonce. She collaborates with powerful businesses where she can profit massively and make a big impact.
Working with Peloton allows Beyonce to continue her mission to celebrate and promote Black culture to a global audience.
To date, Beyonce’s themed workouts have launched and are accessible through its app. And Peloton’s sales continue to climb: They now expect to bring in more than $3.9 million in total revenue in 2021 – exceeding initial forecasts of $3.5 to $3.65 million. With its business partnerships and sales trajectory, there is no doubt Peloton is one to watch.