how does gymshark make money?

In this blog we will answer the question that is “how does gymshark make money”, In this, we will discuss how Gymshark progressed over time, their unique business model as well as dive into its brief history, If you are interested in the topic then keep on reading.

how does gymshark make money

Gymshark generates revenue through selling apparel and other merchandise. With a cult-like following and an emphasis on high-end equipment, it’s no surprise that Gymshark depends heavily on direct and search traffic. GymShark’s success may be traced back to its usage of ‘influencer marketing.’ By donating their goods to weightlifting/gym influencers on YouTube and Facebook, they were one of the first firms to pioneer this growth strategy.

What is Gymshark?

Gymshark is a British firm that manufactures fitness equipment and accessories and is situated in the UK. It was established in 2012. Gymshark was established specifically to specialize in workout equipment. When Gymshark went public two years ago, in 2020, the company had a market capitalization of more than one billion euros.

It has dabbled with ephemeral retail in the past even though the firm does not now have any physical storefronts. Its goods are mostly advertised on social media platforms such as Instagram, TikTok, and YouTube. The company has around 5 million followers on Instagram alone, which is the most popular social media platform.

Company overview

How did Gymshark start: Brief history of Gymshark

Gymshark was founded in 2012 by Ben Francis and Lewis Morgan in Solihull, UK. Ben and his brother focused on apparel in 2012. Beginner lifters couldn’t use fitness apparel designed for bigger and older competitors. Established brands like Nike would demand exorbitant rates, alienating Gymshark’s mostly youthful target market.

With their tools in hand, they began producing sweatshirts and tank tops for themselves. They also sent apparel samples to select YouTube fitness stars at the time, such as Jeff Seid and Alon Gabbay.

The influencers began appearing in videos wearing Gymshark apparel. To make ends meet, Ben and Lewis had to work late at night manufacturing garments. That was in 2013. But things don’t always go as planned. Gymshark changed its backend to Magento in 2015. Despite six months of preparation, the new facility couldn’t handle the crowds.

Gymshark’s website was offline for almost eight hours on Black Friday 2015, costing the company an estimated £100,000 Francis personally wrote over 2,500 apology letters and provided customers discounts.

Francis appointed Steve Hewitt CEO of Gymshark in July. Francis met Hewitt at a local gym; he worked for firms like Reebok for decades. Paul Richardson, a seasoned CEO, was also chosen, executive chairman. Gymshark was named the UK’s fastest-growing shop in 2016 with revenues of £13 million.

Sadly, the company’s leadership team suffered another setback. In addition to leaving the firm, co-founder Lewis Morgan will remain an active shareholder. Gymshark’s popularity will grow in the next few years. Annual sales were £41 million in 2017 and £104 million in 2018. Its headquarters moved from Redditch to Solihull due to the surge in sales. Ben Francis, the company’s creator, was also selected to Forbes’ 30 under 30 list.

Gymshark was unaffected by the coronavirus pandemic that drove hundreds of retail stores to close and convert to home workouts. Gymshark’s success is due to its asset-light, an online-only business model. Gymshark’s management team sought financing to realize the potential. This was followed by £200 million in August 2020 from General Atlantic, a well-known venture capital firm.

The financial investment allowed Gymshark to expand its internal development aspirations. It will open in Denver, Colorado, in March 2021. It has purchased additional fulfillment centers in Canada and the US, where it currently gets most of its income. Gymshark even recruited coveted CEOs from other startups. Vice President of Product Development Danielle Petesic was promoted to Chief Product Officer in May.

Ben Francis stated in July that he will return to the CEO role after a six-year search. Steve Hewitt, the previous CEO, is now executive chair. But the corporation had a setback in the same month. Sony Music Entertainment (SME) sued Gymshark for utilizing SME-owned music without authorization.

With the addition of serial entrepreneur Gary Vaynerchuk to Gymshark’s board of directors in late 2021, rumors of an IPO surfaced. Francis quickly rejected these rumors. Gymshark presently has operations in Hong Kong, Mauritius, the UK, and the USA, employing over 1,000 people globally.

The business model of Gymshark

In the next part, we will go through Gymshark’s business approach, which includes Influencer marketing, branding, Tiktok integration, and how their social media presence has helped them to increase their sales significantly.

Influencer marketing of Gymshark

Using social media and brand strategy, they have been able to harness the power of community, which has allowed them to achieve such amazing success. Even if some marketers and strategists may disagree with their techniques, the fact remains that they are successful in their respective fields.

Francis collaborated with a group of social media influencers and branded them as part of his campaign. As a result, each of the Gymshark ambassadors has hundreds of thousands of followers across several social media platforms, which helps to grow the company’s fan base tremendously.

The company, Gymshark sought partnerships with YouTubers and influencers who influenced them to enhance their visibility at the beginning of their journey. That is because, They wanted to create a family of people who shared their enthusiasm for fitness and service to others, as well as a desire to grow and evolve into something bigger and better than themselves.

As a result, they picked people who were capable of spreading their brand virally, who were enthusiastic about their goods, and who were committed to working with them for a lengthy period. At the time, no one else in the eCommerce industry was doing anything like this. The term “influencer marketing” refers to this kind of marketing. To select fitness Instagram profiles with a large following, Gymshark uses machine learning. Then they go out and find those influencers and contact them with the option of sponsoring their event.

The Gymshark’s ambassadors

Several social media platforms have played a significant role in Gymshark’s success. In addition to Instagram, Facebook, Twitter, Pinterest, YouTube, and Spotify each have a large number of followers. One of the most impressive aspects of their work is that everything they upload, from photographs to videos, always seems professional and consistent across all of these channels.

Gymnasthark has grown its social media presence quickly by collaborating with a range of fitness Instagrammers, YouTubers, and bloggers to promote their products. Clients were introduced to their ambassadors and goods via meet-ups that were organized by the company. Several days before each event, influencers communicate with their followers to express how thrilled they are to see them and how much they value their participation. This approach entails a significant investment of time and resources, both monetarily and in terms of the brand ethos.

Tiktok implication of Gymshark

Gymshark saw the potential of TikTok as a marketing tool and decided to invest in it. Compared to other popular platforms, the TikTok community is on average younger, and it has a strong preference for music. As a result, working with it gives you the ability to target and engage a certain demographic and audience. Gymshark collaborated with fitness and lifestyle influencers from the TikTok video platform to kick things started.

On their website and other social media sites, they announced the “66 Days | Change Your Life” challenge they were going to undertake. Followers were encouraged to share a selfie that represented a personal goal. 66 days after the contest ended, they needed to update their photos to be eligible for the chance to win a year’s supply of Gymshark products.

Branding of Gymshark

Gymshark’s meteoric rise has been powered in large part by social media marketing. They have a sizable following on social media platforms such as Instagram, Facebook, Twitter, Pinterest, YouTube, and even music streaming service Spotify. Furthermore, everything they upload, from images to videos, is professional-looking and consistent across all these channels, which is a huge plus.

 In conclusion, we investigated the topic “how does gymshark make money”, We found that Gymshark generates revenue through selling apparel and other merchandise. With a cult-like following and an emphasis on high-end equipment, it’s no surprise that Gymshark depends heavily on direct and search traffic. GymShark’s success may be traced back to its usage of ‘influencer marketing. By donating their goods to weightlifting/gym influencers on YouTube and Facebook, they were one of the first firms to pioneer this growth strategy.

Frequently Asked Questions (FAQ): how does gymshark make money

How much do Gymshark make a year?

Gymshark, a fitness clothing and accessory firm, made around 261 million British pounds in revenue.

What made Gymshark so successful?

Gymshark’s expansion has been propelled in large part by social media platforms. They have a large amount of fans across social media platforms such as Instagram, Facebook, Twitter, Pinterest, YouTube, and even Spotify. One of the most impressive aspects of their work is that everything they publish, from photographs to videos, always seems professional and consistent across all of their channels.

How does Gymshark make money?

GymShark’s growth has been primarily attributed to their use of ‘influencer marketing’. They were one of the first brands to pioneer this growth tactic by gifting their products to weight lifting/gym influencers on Youtube and Facebook

How much does Gymshark make a day?

Additionally, the prices are comparable to other brands and far cheaper than some of the most expensive lines, such as Lululemon. Finally, whether you’re searching for attractive leggings or a pair of comfortable shorts, Gymshark has lots of options for you, as long as the item is in stock.

Who is the CEO of Gymshark?

Steve Hewitt (Apr 2017–)

Is Gymshark worth the price?

Additionally, the prices are comparable to other brands and far cheaper than some of the most expensive lines, such as Lululemon. Finally, whether you’re searching for attractive leggings or a pair of comfortable shorts, Gymshark has lots of options for you, as long as the item is in stock.

References

cook, J. (2020, August 17). How Gymshark Became A $1.3 Billion Brand, And What We Can Learn. Retrieved from Forbes: https://www.forbes.com/sites/jodiecook/2020/08/17/how-gymshark-became-a-13bn-brand-and-what-we-can-learn/?sh=54d24cc776ed

Lavendaire. (2021, July 12). How Gymshark Grew by 200%+ Year On Year and Hit £41M in Sales (Updated 2021). Retrieved from Beekting: https://beeketing.com/blog/gymshark-growth-story/