What is Gymshark
Gymshark is a UK-based athletic wear brand. It was founded by Ben Francis and Lewis Morgan in 2012. Ben was only 20 years old when he started the company, Though there were many athletic apparel producers in the market at that time Ben wasn’t satisfied with the offerings of the market and therefore wanted to create the best athletic wear in the market. He then took some sewing lessons from his nan who used to make curtains at that time. Here, we’ll know Gymshark SWOT Analysis and competitors.
Ben and Lewis were still in university when they started working on Gymshark as a side project. They first worked on made to sell basis and would only make their products when they received the order. He used a sewing machine and screen printer which he bought with his savings. During the first year, they generated $210,000 worth of sales. In 2013 they attended a body fitness trade show in Birmingham where they sold out their entire stock and went viral on social media which helped them reach $290,000 worth of sales. At this point, Ben and Lewis dropped out of college to work on Gymshark full-time.
Gymshark now offers athletic wear and accessories for both men and women and has sponsored several athletes on social media as Gymshark athletes. The company offers its products in 131 countries across the world. The company now has its headquarters in Birmingham and three offices one in Shirley, West Midlands, one in Hong Kong, and one in downtown Denver in North America. In revenue, the company has been growing drastically every year and now stands at a total net worth of $1.45 billion. According to Forbes, with Ben holding the majority of the shares he is now a billionaire.
Competitors
Though Gymshark has been growing very quickly, it is relatively new compared to other athletic wear companies in the industry. Let’s take a look at the competitors.
Nike
Founded in 1964, this American athletic footwear apparel and accessories producer is considered the biggest sportswear producer in the world. In 2017 the brand’s total net worth was estimated to be $29.6 billion, in 2020 the total revenue was valued at $30.3 billion and has an estimated net worth equal to 39.1 billion making it the most trusted and successful brand in the industry.
Adidas
Founded in 1949 in Germany; Adidas is the second-largest athletic wear producer in the world and the biggest in Europe. With around 1327 stores worldwide, the German giant’s average revenue annually is $2.32 billion. Adidas provides for 6% of the US athletic wear needs and has a firm position in the market position with a total net worth of $16.48 billion.
Puma
Puma is also a German brand producing athletic and casual footwear, apparel, and accessories. Founded in 1948 the brand offers its products in 120 countries worldwide and has celebrities such as Selena Gomez, BTS, The Weeknd, and Rihanna as it’s Brand Ambassador, who promote its products to their millions of fans. As of 2020, the brand’s total revenue was estimated to be $5.7 billion making it the 3rd most valuable brand following Nike and Adidas.
Under Armor
In 1996 24 year old Kevin Plank founded Under Armor as an athletic apparels producer. The company now offers footwear and toiletries (personal hygiene/care products) as well. Its apparel are very trusted and prevalent in the sports industry as they are worn by NFL players, major baseball league players and has recently signed a partnership contract with online sports apparel and other sports accessories retailer “Fantastics”.
New Balance
Coming in at 5th place is New Balance. Founded in 1906, by William J. Riley New Balance was initially an athletic footwear producer and later added accessories and apparel to its offerings. This American brand has over 5000 employees worldwide and in 2020 made $4.1billion in revenue.
Lululemon
Lululemon Athletica also commonly known as lululemon is a Canadian-American brand. It started as a yoga apparel producer and later added other athletic, casual apparel and accessories to its offering. Founded in 1998 the brand now has over 400 stores worldwide and also sells online via its website. Its products include yoga pants, yoga mats, bags, water bottles, tops, shorts, undergarments, jackets sweaters, and hair accessories. The brand has a good standing in the market and recently generated $3.4 billion worth of revenue.
Columbia Sportswear
Founded in 1938 the brand first started as a hat producer and later added a multitude of products to its offerings. Though the company had started in 1938 it started with the name Columbia Hat Company and later changed it to Columbia sportswear after 22 years in 1960. The company currently offers outerwear, sports apparel and footwear, headgear, camping equipment, and other accessories. The brand is one of the biggest ski and snow sports apparel and accessories producers. The company’s recent sales revenue equaled $2.9 billion.
ASICS
Ashikkusu is also known as ASICS is Japanese athletic apparel, footwear, and accessories producer. The name is derived from a Latin word meaning “Sound mind in a sound body” Founded in 1977 the brand first started as a football shoe producer and later added more products to its line. It is the biggest athletic wear producer in Asia and recently generated revenue equal to $2.7 billion.
FILA
Founded in 1911 this Italian brand first started as an undergarment producer and then upgraded to a sportswear producer. The brand was later acquired by South Korea in 2007 by businessman Yoon Soo Yoon and is known recognized as a Korean Brand. Fila now has 11 offices globally and recently generated sales equivalent to $2.6 billion.
Reebok
Founded in 1958 Rebook is an American brand producing athletic footwear for the past 126 years and apparel and was bought by Adidas in 2006. In 2021 Reebok’s net sales were estimated to be 1.41 billion, lower than its annual sales in 2019 which was a whopping $2.0 billion.
SWOT Analysis
SWOT analysis is one of the most frequently used methods in research and reports writing to provide an instant manifestation of the best opportunities, threats, and greatest strengths, weaknesses. However, the method is often criticized for not being comprehensive or exploring the subjects in-depth. There is some tough competition in the market but Gymshark has its own strengths and various opportunities which could use to grow. But Gymshark like every other company has its fair share of threats and weaknesses. Let’s take a look at them via a SWOT analysis.
Strengths
- Gymshark has undertaken a very effective approach to market I products. Due to excessive social media marketing, the brand has gained much attention and customers.
- Gymshark athletes evince a strong devotion to the fitness lifestyle and are a clear manifestation of the brand. These influencers then promote the products to the drastically growing fitness community.
- Gymshark has experienced growth at a very fast pace and its drastic growth helps customers see its value and feel tempted to give it a try.
Weakness
- Gymshark only provides its products online. Most people do not prefer to buy online, factors such as shipment price and time to get the products also play a major role in the purchase decision-making process.
- Though it is relatively less costly compared to the leading brands like Nike, Lululemon, and Champion, it is also relatively new in the market. People often question whether it is worth paying the price to buy the products.
- The sportswear industry is very competitive with major brands such as Nike which alone has more shares in the market than both Adidas and Puma combined, Gymshark has very little share in the market.
- Gymshark has a lot of variety in female products however there aren’t as many options available for men and this draws them to opt for brands that have more options to choose from.
Opportunity
- At the moment Gymshark only offers its products online, establishing its own brick and mortar stores in different countries is a great opportunity to make the products more available for the customers.
- Gymshark does not use traditional marketing procedures such as TV advertisements or billboards to market its products. Using this approach would also help in giving the brand more exposure.
- Gymshark at the moment only offers athletic apparel; athletic footwear is a very lucrative niche. It would be a great opportunity for Gymshark to introduce its own footwear to gym enthusiasts.
Threats
- The major sportswear producers Nike, Lululemon, and Adidas have very competitive prices. They are always working on ways to reduce price and increase quality or providing exceptional quality at very affordable prices.
- A Gymshark is working on niche marketing and this particular niche is growing at a very fast pace. There is always a threat of new producers entering the market with similar products.
- Another major threat that most manufacturers face is the threat from suppliers. Sudden increases in prices or with-drawls by the suppliers could lead to some serious pricing issues which affect the firm’s plans and goals.
Conclusion
Gymshark is a fast-growing athletic apparel producer from the UK. Founded by Ben Francis and Lewis Morgan when the two were still in college in 2013 the brand grew very quickly within 2-3 years and saw massive growth in recent years. In the year 2020, the brand’s worth was estimated to be $1.45 billion. Though Gymshark has been experiencing massive growth it is still relatively new compared to brands such as Nike, Adidas, Columbia sportswear that have been serving the industry for decades and have a majority of the market shares. Nike alone has more market shares than Adidas and Puma combined and is the biggest athletic wear producer.
Major competitors include Nike, Adidas, Puma, Under Armor, New Balance, Lululemon, Columbia sportswear, ASICS, Fila, and reebok. One of the biggest strengths of Gymshark is that it targeted an undeveloped niche that is now flourishing, Its biggest weakness is that it only serves online and most people do not prefer online purchasing. It has a great opportunity of opening its official stores in major cities and also an option to launch its own athletic footwear and use other means of marketing it increase exposure. One major threat that Gymshark faces is the tough competition from its rivals, constant comparison, and questioning the quality before actually trying the products.
