Gymshark is a British fitness apparel and accessories brand, manufacturer and retailer. The company does not operate any physical stores. Yet, it has gathered significant attention and customers in major markets. The company has experimented with ephemeral retail, which uses trends and fads to make money. Currently, it has grown to over $1 billion in valuation and is growing steadily.
What is Gymshark?
Gymshark is a company based in Solihull, United Kingdom. Similarly, the company started its operations in 2012 under Ben Francis and Lewis Morgan. Francis had some experience in the entrepreneurial world from an early age. He also had some experience from his grandfather’s company that lined industrial furnaces with ceramic and brick. However, Francis didn’t like the work since it required significant effort.
Due to his challenging work, Francis got inspired to start his own ventures. He learned to code apps and websites as a teenager. Simultaneously, Francis began lifting weights, also one of his favourite hobbies. Francis also made money from his skills when he coded a website to sell car license plates. Similarly, his love for fitness promoted him to make two fitness apps for iPhone. They were named “Fat Loss Bas Guide” and “iPhysique”.
Francis made some money through one of his apps. However, it was not enough to give him a stable income. In 2011, Francis enrolled in Aston University, Birmingham. There, he pursued a degree in business and management. He also met his co-founder, Lewis Morgan, there. Both founders were starting afresh in the university. They got together to come up with ideas for future business ventures.
In late 2011, the founders launched the first version of Gymshark. However, there was no inspiration behind the name. Instead, they found the gymshark.co.uk domain for cheap. They decided to name their venture Gymshark. At the time, the website started as a dropshipping business that sold supplements. The website didn’t make significant profits. Similarly, it only made its first sale after two months.
The founders made money through their part-time work while attending university. However, that money was only a negligible amount, sometimes below the minimum wage. In 2012, the founders started moving their website toward clothing. The motivation for this move came due to the unavailability of clothing options for novice lifters. Even when available, these items were significantly more expensive.
The founders learned to screenprint t-shirts. Similarly, Ben learned to sew from his grandmother. The pair decide to use the money they made from part-time work to purchase a screen printer and sewing machine. They started creating clothing items for themselves. At the same time, they sent some samples to well-known YouTube influencers. Over time, their brand grew due to this modelling. This growth also helped them expand their business.
What is Gymshark business model?
Gymshark uses an e-commerce business model to market and sells its product. Under the hood, the company is also a retailer and manufacturer of clothing items. The company started as a small venture. Since then, it has grown to a well-known brand in the UK and the US. Over the few years, it has been active, Gymshark has garnered significant attention and praise. Similarly, it has become one of the go-to brands for most novice fitness enthusiasts.
Gymshark’s popularity reflects on its business model. The company primarily operates a retail business model where it sells and markets its own clothing brand. However, it is not similar to other companies. Gymshark has successfully leveraged influencer marketing into its brand identity. The company has exploited this technique to reach a new audience and gain more customers. Over time, it has also developed other channels to market its products.
One of the key success factors for Gymshark has been its understanding of its target market. This market is a part of the company’s business model. While the company offers products to all classes, its primary market is novice fitness enthusiasts and athletes. On top of that, it understands how to reach and market to that audience. Gymshark has used this understanding to its benefit and continues to gain more customers over time.
Gymshark also uses a multi-channel business models strategy. The company understands that not all revenues come from the same source. Therefore, it experiments with various marketing channels to reach its audience. Primarily, it relies on social media engagement to get to new customers. On top of that, Gymshark has also availed content market opportunities to gain more customers. These channels have been significantly crucial for the company.
Gymshark also knows the importance of its customers and listening to them. The company engages in asking customers for their feedback consistently. However, it does not use that feedback to engage its customers. Instead, the company incorporates those comments to allow its products better cater to the needs of its customers. This link between the company and its customers has also made it more likeable.
Lastly, Gymshark doesn’t rely on online marketing and digital presence only. The company has also fostered a sense of community offline by engaging with customers personally. Usually, it occurs through meetups where the company relies on influencers to market its products. The company has also organized tours to reach out to its customers. These events have also created a buzz for its products. Similarly, they are a part of the Gymshark business model.
How does Gymshark make money?
Gymshark makes money through its clothing line. The company sells clothing and other items to fitness enthusiasts and gym-goers. Similarly, it promotes its products through influencers and social media channels. In 2020, Gymshark reported its highest revenues since its inception at $260.67 million. The company’s business model has allowed it to grow to this position. Experts believe Gymshark’s revenues will grow even further in the future.
A summary of Gymshark’s revenues for the last few years is below.
|Year||Revenues (in USD)|
As mentioned above, the $260.674 million in 2020 were the highest revenues in Gymshark’s history. These revenues constituted an increase of 47.9% from 2019. Similarly, the company generated $176.16 million in 2019, which increased 70.8% from 2017. The company has experienced growing revenues since 2017. This increase was in line with the growth in its online presence.
Gymshark’s revenues depend on the company’s social media presence. Currently, it has over 20 million followers across various social media platforms. Gymshark also uses a separate team for each network to cater to the audience’s needs. This strategy has allowed the company to use a unique policy for each social media platform. Similarly, it has helped grow Gymshark’s online presence.
Primarily, Gymshark makes money from selling its clothing items. However, its business model is more complex. Although the money apparently comes from its product sales, other factors also contribute to them. Apart from social media, the company’s reach has also helped attract more customers. On top of that, the company also pays various influencers to market its products.
These factors contribute to Gymshark’s revenues. Like other clothing brands, Gymshark uses well-known faces to promote its products. On top of that, it also hires professionals known as Gymshark Athletes. On top of that, Gymshark grows its brand by selling items through its website only. These factors allow Gymshark to make money faster than other competitors.
Gymshark is a British company that produces and distributes fitness apparel and equipment. These items come in various categories. Similarly, the company offers its products to male and female customers. Gymshark has exploited the influencer marketing business model to increase its revenues. The company makes money from its product sales. However, other factors also contribute to the process.