Fitness apps for your phone have been prevalent in both the android and iOS ecosystems for years, but now it the light of the COVID-19 pandemic, it all feels like it was part of a master plan.  Nike has had their fitness application alongside their Run app for a few years now as they partnered with Apple devices to make the data more consumable.  We’ve seen numerous apps that have diagrams, video libraries, and programming for their subscribers so that capitalizing on recurring revenue from your userbase that cannot train in person is possible.

As the fitness world shifts away from being able to do in-person training as the end-all best solution, these apps have taken center stage in helping America (and the world for that matter) stay in shape.  There are several interesting things to note about the Gymshark app that from a business perspective were great choices that didn’t water down the experience and ultimately could launch a revenue stream that makes sense outside of clothing.

The Gymshark app was built and delivered by a clothing brand that oddly didn’t sell clothing in the app.

With a 193% compound sales growth over 3 consecutive years, building a new stream of revenue is required in order to sustain the trajectory.  Selling physical goods can reach niche audience saturation quickly despite how popular it might be and enabling a more scalable method of revenue growth ultimately increases the Gymshark company worth exponentially.  Gymshark explicity chose to capitalize on their brand strength to drive adoption and ultimately disassociate it with their clothing brand to ensure that it is a clear value driver for their valuation.

Reaching the growth potential is evident for physical goods it the fitness space (The brand now operates 11 online stores around the world, and earlier this year it was listed second in the UK’s top 100 private companies with the fastest-growing profit. Its 2018 annual profit growth of 152%, The company made £18.1 million in profit last year based on sales of £103.2 million.)

The Gymshark app provided a clear revenue model for their influencers

Athlete revenue in the Gymshark ecosystem is paid as a commission, not a discount code.  Contrary to the strategy of many other brands and their business relationships with influencers, Gymshark commissions are not grown through special codes given to the athletes.  The influencers of Gymshark are required to have the ability to reach their own audiences and push sales without the ability to save them money.  This validates the real influence as opposed to the dollar savers.

Many of the athletes that make up the Gymshark team have been “grown” per se through the Gymshark community and brand.  These influencers exhibited the ability to connect to their audiences and align their personalities with what Gymshark stood for and were propelled into internet fame by the brand.  This organic growth of influence has allowed Gymshark to have a unique loyal relationship with these people who are dubbed Gymshark Athletes.  In addition to keeping the athletes paid through commissions and other means, the Gymshark app would provide a brand new stream of revenue to these athletes that would ensure loyalty going forward.

Athletes have the ability to make high quality content that differentiates them.  This falls directly inline with the growth startegy in social media marketing that Gymshark has always had.  The high quality content that is already being created now can be applied in a reusable manner that grows Gymshark as a brand and grows their athlete follower base and popularity.  With a combined audience of 65M followers, creating such demand for its products that many new launches sell out within hours is the perfect catalyst for generating hype digitally.

Total Gymshark mobile app revenue in April 2020 was $30k, including $30k for iOS apps and < $5k for Android apps. Total mobile app downloads for Gymshark was 100k, including 100k iOS app downloads and < 5k Android app downloads.

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