Already having deep roots in fitness, Adidas strengthened its position by entering into a partnership with interactive fitness platform Peloton.
“I’m proud to announce our partnership with Peloton, the leading interactive fitness platform. Together, we see great potential to delight and surprise our highly engaged communities by multiplying the power of both brands in a number of exciting ways,” Adidas GM of global training Aimee Arana said this week in a statement. “Our shared values are around well-being, inclusivity, community, provide an incredible foundation, and we look forward to bringing these brands together.”
Although the partnership was announced, details on what it will yield were not.
Adidas’ announcement of the partnership with Peloton comes when people are turning to at-home fitness more than ever.
In its 2020 annual report, Peloton stated it generated $1.8 billion in revenues in 2020, representing 100% year-over-year growth. Additionally, the company said it ended fiscal 2020 with 1,091,100 Connected Fitness Subscriptions, and that its Connected Fitness Subscription base grew by 113%.
Although the partnership is new, Adidas has long had relationships with Peloton instructors including Robin Arzon (a former FN cover star) and Ally Love.
This week, Adidas revealed a series of goals during its annual Investor Day, which included transforming into a direct-to-consumer business. The athletic giant believes that DTC sales will account for roughly half of its total net sales by 2025, and that its e-commerce revenues will double from 4 billion euros (or $4.77 billion) to between 8 billion euros and 9 billion euros (or between $9.54 billion and $10.73 billion).
What’s more, Adidas detailed plans to triple the number of people in its membership program from 150 million to around 500 million, and said it will further engage with customers in “key cities” (Tokyo, Shanghai, Paris, London, New York and Los Angeles) that will expand by adding Mexico City, Berlin, Moscow, Dubai, Beijing and Seoul.