Fitness Equipment Industry News Blog - 20240823
1. Johnson to Set up Second Manufacturer in Vietnam
Johnson Health Tech Co., Ltd., a leading fitness equipment manufacturer based in Taiwan, has announced plans to invest $100 million in constructing the world's largest fitness equipment manufacturing and assembly center in northern Vietnam. This new facility, to be located in the Thuan Thanh I Industrial Park in Bac Ninh Province, will cover 20 hectares and is expected to begin construction in the first quarter of 2025, with operations commencing the following year. The factory will focus on producing key components like control panels, motors, and running belts. Once completed, it is anticipated to create 2,000 to 3,000 jobs and generate an annual revenue of $120 million. This expansion marks Johnson's second manufacturing base in Vietnam, following their $50 million investment in 2019. The new plant will allow Johnson to shift some production from mainland of China and optimize its global supply chain. Bac Ninh, though the smallest province in Vietnam by area, has become a significant destination for foreign direct investment, attracting $3.2 billion in the first seven months of 2024.
2. IHRSA Fitness Brasil 2024 Opens in São Paulo
The 25th edition of IHRSA Fitness Brasil, the largest fitness expo in Latin America, opened on August 22, 2024, in São Paulo. The event, which runs through August 24, has drawn over 25,000 visitors and features more than 120 exhibitors across 19,000 square meters of exhibition space. Jointly organized by Fitness Brasil and IHRSA, the event provides a platform for networking, education, and business opportunities within the fitness industry. Highlights include over 20 professional training courses and presentations from more than 120 experts discussing the latest trends and innovations in fitness and health. Notable exhibitors such as ASSAULT FITNESS, Matrix Fitness, and Polar showcased their latest products, emphasizing the significance of the Brazilian market, which is the second largest in the world in terms of gym numbers, despite rising obesity rates.
3. Reebok Launches New Fitness App: Reebok Fitness
Reebok has officially launched its new subscription-based fitness application, Reebok Fitness, aiming to offer a comprehensive and personalized fitness experience. The app includes features such as on-demand workouts, exercise tracking with GPS, challenges with real-world rewards, and nutrition guidance. Reebok Fitness also emphasizes community interaction, allowing users to connect with like-minded fitness enthusiasts. This launch marks Reebok's continued investment in the digital health sector, following its recent ventures into the metaverse and AI-driven experiences. The app, available on Android and iOS, positions Reebok as a strong competitor in the rapidly growing digital fitness market, which includes players like Nike and Lululemon.
4. Virtuix's Omni One VR Treadmill to Launch on September 10, 2024
Virtuix has announced that its highly anticipated Omni One VR treadmill will be officially launched on September 10, 2024. Priced at $2,595, thetreadmill offers an immersive virtual reality experience with a 360-degree motion platform and a custom Pico 4 Enterprise headset. The Omni One allows users to perform a wide range of physical actions, such as walking, running, and jumping, within a virtual environment. The product has been well-received during its six-month testing phase, with over 3,000 pre-orders already placed. Virtuix's investment in VR gaming technology continues to position the company as a leader in the immersive gaming sector, supported by a growing library of optimized games.
5. Peloton Stock Soars 35% After Positive Q4 Report
Peloton Interactive, Inc. saw its stock surge by 35% following the release of its fourth-quarter financial report, which showed a surprising sales growth and the first positive EBITDA since 2021. The company reported sales of $643.6 million, a slight increase from the previous year, and a significant improvement in its adjusted EBITDA, which reached $70.3 million. Despite a 2% decline in membership to 6.4 million and a 4% drop in connected fitness revenue, Peloton managed to exceed market expectations with a narrower-than-expected loss per share. The company remains cautious about the upcoming fiscal year, projecting lower-than-expected sales and a further decline in subscriptions due to economic uncertainties.
6. Decathlon to Invest $111 Million to Expand India Operations
Decathlon, the French sporting goods giant, has announced a $111 million investment to expand its operations in India. The expansion, set to be completed by 2029, will see the company increase its retail footprint from 110 to 190 stores and boost its manufacturing capabilities. Currently, 68% of the products sold in India by Decathlon are locally produced, and the company aims to raise this figure to 85% by 2026. Decathlon also plans to accelerate its online sales through a robust omnichannel strategy. The Indian sports goods market is projected to grow by 69% to $6.6 billion by 2027, providing a strong growth opportunity for Decathlon's expanded operations.
By Roger Yao (cs01@fitqs.com) from Shanghai, China
Stay tuned for more updates and insights from the fitness equipment industry in next week's report.
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