F45 Market Landscape Study
Case Study
As Australian fitness brand, F45, prepared to go public, it put itself in position to challenge industry giants in the workout space. We deployed a selection of Langston modules to survey over 1,500 fitness enthusiasts in 10 major US cities. Our survey paints a picture of F45 as a healthy young brand poised for growth.
Overview
A lot has changed in the fitness industry since Richard Simmons and Tony Britts brought fitness into our homes in the 1980s. From simple to ultra-premium gyms, highly specific workout studios to digital-only exercise classes, body-weight home workout programs to "smart" fitness devices, consumers have an endless number of options to get fit and stay healthy.
An Australian fitness brand, F45, recently brought its offering to the United States. F45 offers 45 minute high-intensity functional movement classes to consumers of all ages and fitness levels. The company boldly entered a fiercely competitive space, with a wide variety of long-standing incumbent players like CrossFit, Orangetheory, and Soulcycle, as well as newcomer disruptors like Peloton Digital.
We deployed a selection of Fetch modules to survey over 1,500 fitness enthusiasts in 10 major US cities to explore the question: Is F45 fit to compete?. The short answer is yes. In fact, F45 is not just fit to compete; it's poised to disrupt.
Below are three powerful insights that shed light into the promising disruptive growth potential of F45. The full report is chalked full of many more insights—and it is available to download for FREE at the end of this page.
Insights
Insight 1: F45 joins the digital platforms in leading among consumer satisfaction with the quality and price of their workouts.
How the Data is Collected: The Fetch Value Drivers module measures perceived value - that is, the relationship between what consumers pay (time, hassle, and money) in exchange for what they get (quality of a product and service). We measure these factors and use regression analysis to determine the relative impact of all value drivers on overall perceptions. Note: Each dot’s size represents the awareness of that brand; brand awareness data can be found in the free downloadable report below.
What the Data Says:
1. F45 & Digital Brands Leading
Digital brands Fitbit Coach and Beachbody OnDemand share the Better Value Zone with F45 as the brands that offer a superior tradeoff between cost and quality. Close followers Barry's Bootcamp and CorePower Yoga have similar dynamics. The Better Value Zone is where businesses thrive.
2. SoulCycle, Orangetheory, and Pure Barre lag behind.
While each of these brands enjoy a very strong base of core customers, their reputation among the broader market is being more expensive and less convenient than other class-based fitness options.
Why It Matters: Over the long run, brands that occupy the Worse Value Zone can be expected to struggle in maintaining growth and loyalty as consumers experiment with options they perceive as delivering greater benefits for their time and money. On the other hand, brands in the Better Value Zone tend to attract many new customers through word-of-mouth referrals, trusted reviews, and resonance with their marketing efforts. As such, F45 and digital platforms like Fitbit Coach and Beachbody OnDemand are well-positioned to capitalize on positive value perceptions to drive growth and customer loyalty.
This chart plots relative satisfaction of Quality (vertical axis) and Cost (horizontal axis) of each brand compared to the market average. For example, if a brand’s cost satisfaction is exactly equal to the market average, its mark would be placed at 1.0 on the vertical axis. Dot sizes represent market awareness measured by this study.
Analysis from Langston’s 2020 Fitness Study, “Is F45 Fit To Compete?” N=1,571
It’s worth noting that smaller brands sometimes show higher value perceptions because they are selling their products to a smaller audience that is tightly aligned with their value proposition. As brands grow, they must reach broader groups of customers, which might result in them selling to users that are less and less similar to the original core consumer. This can make it challenging for brands to maintain superior perceived value over time. By considering the dot sizes in this chart - which represent relative market awareness measured in the study - we can see this dynamic at work for some brands in the study.
Nevertheless, F45’s advantageous position on the value map sets it up for strong acquisition and growth, as shown in the funnel conversion ratios displayed below. When we measure the percentage of consumers who are aware of F45 that report a high likelihood of trying it in the next six months, we see a high level of interest in the offering which suggests strong growth potential. Similarly, when we measure the percentage of customers who have tried F45 that report a high likelihood of subscribing in the next six months, it’s clear that experience with the brand has a better-than-even likelihood of making someone want to continue doing its workouts.
Insight 2: F45 has the best retention and acquisition outlook among any brand in our study, setting it up for promising growth potential.
How the Data is Collected: We asked consumers how likely they are to subscribe to the brands in our study, either for the first time (“acquisition”) or re-subscribe/continue to subscribe (“retention”). The output shows the percentage of consumers who state they are “likely” or “very likely” to subscribe in the next six months.
What the Data Says: F45 performs best among its competition on both acquisition and retention. This means 25%+ of consumers who are familiar but have never tried F45 state a high likelihood of trying it in the near future; 62% of consumers who have ever tried F45 or are currently subscribed will remain customers in the next six months.
Why It Matters: Our data suggests that familiar/never-subscribed consumers are eager to try the brand, and that previous & current subscribers are actively looking forward to subscribing in the future. These metrics are music to the ears of a brand looking to grow its footprint in the US fitness market, and provide valuable empirical evidence of the health and growth potential of the brand to investors looking to buy F45 stock later this year.
Insight 3: Consumers associate F45 and Peloton as being both more effective and more approachable than other workout types.
How the Data is Collected: We ask consumers how much they agree or disagree with various statements about each brand. We compile this data into a composite indices that represent the position of each brand relative to others in the market. For example, we combine consumer ratings on a series of related statements to determine a brand’s level of approachability and intimidation relative to others.
We plot two such indexes on the same chart to illustrate which areas of the market are occupied by each brand in consumers’ eyes. In the example on this page, we show how each brand falls in terms of being approachable vs. intimidating and effective vs. ineffective.
What the Data Says: The audience of consumers who are familiar with F45 consider it both highly effective and highly approachable relative to alternative workouts. Peloton shares this space. Corepower Yoga, Fitbit Coach, and Beachbody OnDemand are also seen as very approachable but consumers have a weaker perception of their effectiveness for achieving goals.
Barry’s Bootcamp and CrossFit are seen as relatively effective, although they can be intimidating to participate; and SoulCycle, Orangetheory, and Pure Barre have fallen into a market position of being both intimidating to outsiders and less effective at achieving goals. To some extent, approachability and effectiveness are likely related insofar as consumers who are intimidated by a workout brand are less likely to see themselves attending and, thus, less likely to achieve their goals.
Why It Matters: In addition to the perceived high value offering described in Insight #2, F45 enjoys consumer associations that are promising for its growth. Consumers’ beliefs that the brand is both approachable and effective make it likely they will trial its product. Peloton’s strong performance in this analysis is somewhat better than the value analysis - it seems that consumers see the workout at effective and approachable, but the high-cost associations with the brand’s stationary bike and treadmill products influence overall perceptions of its cost and value.
DISCLAIMER: We base our research, recommendations, and forecasts on techniques, information and sources we believe to be reliable. We cannot guarantee future accuracy and results. The Langston Co. will not be liable for any loss or damage caused by a reader's reliance on our research.
More Insights, More Data. Download This Study to Learn More.
In order to conduct unbiased and objective research, this study was privately funded by The Langston Co. We did not receive endorsement or financial support of any kind from any third party.
Thanks for taking time to read our research. With questions, comments, or suggestions about this study, please contact us at contact@thelangstonco.com.