[ranrotx]

Their apparel brand is a joke. It’s run by Foley’s wife. Unless I messed something, what experience or qualification does she have in apparel?

Never mind the fact that I’ve maybe seen only 3 people in the real world wearing anything that is Peloton branded (no, the free Century t-shirt doesn’t count).

Personally, I find their apparel to be a little loud and obnoxious, but that’s just me. As a consumer, I don’t see what value they bring to the apparel market. Nothing new, just branding.

[tqi]

The HN crowd is always quick to point out that Peloton has no moat - its just a screen on a bike. Creating a lifestyle brand (ala in person fitness brands like Soulcycle or Barrys) is a way to address that moat, and apparel is a core part of that.

Whether or not they were successful is an execution issue.

[ss108]

How would having a lifestyle brand create a moat? How would you define "moat"?

(Genuine questions, I have no position on the issue and no real knowledge in the area)

[danzig13]

Branding is a bit of a moat that puts you ahead of other competitors. Literal true story but perhaps a counter example: my wife is considering buying an exercise bike and is trying to choose between Peloton and Beachbody. Everyone online seems to be suggesting she buy the Peloton. She is a little torn, because she already has done non-bike exercises on Beachbody for several years. Peloton has the leg up for the bike, because it has the best branding in that area; however, my wife was at least willing to consider Beachbody, because of her previous experience with their brand.

[tqi]

I use moat here in the sense that it creates some level of defense against competitors. Nike's shoes obviously contain a lot of advanced technology in it, but the strength of their brand what shields them against a newcomers and generics selling similar items.

[PaulDavisThe1st]

IIUC, the classes/instructors are the moat.

[tqi]

Instructors definitely are, but I think they recognize that it would be very easy to poach an instructor to jumpstart a competitor.

[sharkweek]

Just for a counterpoint, as commented in a previous thread, my partner and her friends are obsessed with the culture of peloton and they all wear a considerable amount of peloton clothing. It’s been a predictable gift given among her friends over the last 2-3 years.

[mdoms]

I just took a look at Peloton apparel and I don't see how you could class it as "loud and obnoxious". Most of it looks like pretty generic branded fitness gear. If anything it's especially understated compared to the competition.

Considering how strong the brand is I think apparel is a genius idea for growth. It has just been mismanaged due to nepotism.

[mvkel]

Any clothing with a logo on it is nothing new, just branding. Nike does pretty well.

[908B64B197]

Apparel makes sense.

It’s very high margin and the company is in a great position to market to fitness conscious people. But I don’t see it ever being more than a side business.