Last updated on 09/10/2022
Gymshark is a sportswear brand based in the UK. It was founded by Ben Francis and Lewis Morgan in 2012.
The problem at the time
When Ben developed Gymshark, he was only 20 years old at the time. He learned how to sew from his grandmother, who was at the time creating curtains, and he launched his brand at a fitness show in Birmingham.
Ben was dissatisfied with the selection of athletic wear that was available at the time and wanted to design the ideal athletic wear to complement his way of life. At the time, numerous manufacturers of athletic wear were available on the market.
Gymshark now provides clothing and accessories for both men and women. Additionally, the company sponsors hundreds of athletes who compete online and identify themselves as Gymshark athletes.
The brand has grown each year phenomenally and has a total net worth of $1.45 billion by 2021.
Gymshark’s target audience
gymshark.com‘s audience is interested in Lifestyle > Fashion & Apparel & Shopping.
Athlete enthusiasts, women and men between the ages of 16 and 25 who go to the gym frequently, and those who are searching for attractive and comfortable athletic gear that they can wear every day while studying or running errands are the target demographic for this brand.
Elite athletes who show up on social media as ‘influencers’ who already have an audience.
Competition
Other brands purchased by the Gymshark audience:
- Nike
- Asos
- alphaleteathletics
SWOT
Strengths
A strong brand image with perfect execution of social media marketing and vision on how users will buy on social media in the next years. (influencer marketing, live shopping, native content).
A community of athletes ready to defend them with body and soul on social media while asserting themselves loud and clear as GYMSHARK athletes.
Athletes who wear Gymshark products are unquestionably dedicated and clearly exemplify the lifestyle that the business is trying to communicate. Because of this, the company is able to effectively communicate with its target demographic and reach a large number of people.
Daily interaction with its community of ten million followers.
The brand knows how to reward its customers with reposts on social media once the #gymshark is mentioned, giving visibility to the apprentice-athletes via social media pages that have several million followers.
Investors are becoming increasingly interested in the brand as a potential investment opportunity due to the expansion of the fitness and wellness industry. In recent years (2021), Gary Vee has joined the company as a consultant.
They still maintain a flexible mentality despite the fact that they have grown into a large company, and because they handle all aspects of product creation in-house, they are able to rapidly develop new ideas that they can introduce to the market in a short amount of time and display to their millions of loyal customers.
A perfectly executed marketing and branding governed by Ben Francis himself until 2021 when he became the CEO of his own brand, previously Head Of Brand.
Weaknesses
Although this tends to change in the coming months, until recently, Gymshark only sold its products online through gymshark.com. Calling themselves a Digital Native Vertical Brand.
They were closing themselves off to people who don’t buy clothes online for fear of size issues. Unlike Nike, Lululemon, Fabletics…
Update: https://www.youtube.com/watch?v=Z3O6X3T-FIc&feature=emb_title
The sportswear industry is ultra-competitive and includes one of the biggest brands in history: Nike. An emblem in the United States with a market share that is difficult for Gymshark to regain.
Male athletes have fewer opportunities to choose from than female athletes do. Gymshark has made the decision to target its attention on women who purchase more frequently online. Men are looking for a wider variety of options and are shifting their attention to other companies.
Opportunity
Customers from all over the world who learned about the brand through social media are a potential market for Gymshark’s products, and the establishment of its own stores in various countries is a fantastic opportunity to bring those products to a wider audience. This is especially true given that Gymshark is increasingly using TikTok, which has a global audience.
Using more traditional marketing methods such as television advertising (smart), localized subway advertising, and billboard advertising to acquire greater exposure in the market and compete with companies such as Nike, Adidas, and Rebook..
Update: This happened the first campaign in January 2021, also on TV for the North American audience.
Gymshark | United We Sweat
For now, Gymshark only offers sportswear.
Expand its product range to sports shoes for athletes and sports accessories around fitness such as sports bags, yoga mats, etc.
In order to strengthen market share in sectors where Nike is little present. However, the brand has to compete with major players such as Lululemon and Aloyoga.
Threats
The prices offered by the industry’s top three sportswear manufacturers—Nike, Lululemon, and Adidas—are extremely competitive.
They are continually seeking ways to lower prices while simultaneously raising quality or giving great quality at rates that are becoming more reasonable.
Customers of Gymshark should not let the company’s pricing structure dissuade them from making purchases from them.
In the same vein, the company must allot funds to research and development in order to enhance the quality of the product’s components in order to maintain its position at the forefront of the industry and avoid falling behind its rivals.
The entry of new competitors ultra-specialized in the fitness disciplines, taking market shares to Gymshark, which remains an actor clothing for the sport rather global in the fitness universe.
Producers who offer similar products for less money and focus on local markets.
The relocation of a part of the manufacturing in order to decrease the risks of price rises from suppliers and carriers.
Since the company’s inception, all of Gymshark’s products have been manufactured in China. In recent years, the company created an office in Hong Kong to handle product imports.
Since the year 2020, the cost of carrying goods has significantly increased, which has caused the margins and prices of the company’s products to shift as a result.
If Gymshark were to manage its manufacturing and logistics on a more local level, not only would this provide the company greater value, but it would also eliminate the possibility of an increase in transportation costs or information being leaked about creative production techniques.
Because of the higher tax burden that Brexit in 2021 has placed on British businesses operating in Europe, which is Gymshark’s primary market, the company has diversified its operations into the American and Australian markets by establishing subsidiaries in Denver and Sydney.
Conclusion
The sportswear brands Nike and Adidas are Gymshark’s primary competitors. However, Gymshark also faces competition from Lululemon, Fabletics, Boohoo, and Alo yoga. One of the most significant advantages that Gymshark possesses is its audience, which was a segment of the market that was not being addressed at the time but is now booming.
The problem is that the brand is not keeping up with the competition in terms of global retail distribution. When it comes to purchasing apparel, the vast majority of individuals do not choose to shop online due to concerns about uncomfortable sizes and materials. They need to feel the product on their skin.
The company has a significant opportunity to improve its visibility by opening official outlets in major cities and expanding its specialized product line to include its own brand of athletic shoes.
One of the most significant challenges that Gymshark must overcome is the intense competition that it faces from its competitors on price without compromising on quality, the consistent comparison that customers engage in, and the customers’ tendency to question the products’ quality before they have even tried them.
Update: As we can see, many major announcements have been made this first quarter of 2022 for Gymshark. The company is pushing hard to reduce its weaknesses.
