Gymshark's Jawsome Success
- Sg632
- Mar 4, 2019
- 4 min read
If you are like me and follow any fitness influencers on social media, the chances of you seeing the Gymshark gear being modelled in their posts is extremely likely and may have something to do with Gymshark becoming one of the fastest growing e-commerce gym apparel and accessory companies in the world (growing over 200% in one year) (Nguyen, 2017).
This blog aims to draw upon the hybrid giant that is Gymshark and evaluate how its digital business model has contributed to its success. But first, taking a look at a brief history of how has Gymshark generated over £100 million since 2012 gives us an outline of what the brand is about...
Gymshark's brief history...
Gymshark's success can be seen through delving into their digital business model and exploring how digital platforms have played a fundamental role in creating success in the ‘e-commerce fitness apparel and accessories brand’ (Grove, 2018). Outlined below, i have displayed the 8 main factors that contribute to its digital business model, in which this blog will explore some to demonstrate how they have played a role in creating success.
Gymshark's Values
Gymshark's digital business model runs on these core values as a concoction of fundamental aspects to the backbone of its business. To explore this further, Gymshark state that their influencers (Gymshark athletes and Social media influencers) are their family and community of athletes as visionaries and use them to promote and represent what it means to be part of the Gymshark community (seen below). Furthermore, they believe that progression exists within their products and portrays them as a visual of ‘engineering and art’ (Gymshark, 2019). Finally, their last core value lies within the vision that Gymshark has about bringing their own vision to life.
Consumers and Relationships
Who does Gymshark serve? Because its digital business model relies on the e-commerce frame, in which the Internet is used to leverage the unique qualities, it takes the form of B2C business model selling direct to the consumer through digital platforms only, having no brick and mortar stores and no wholesale stockists. Through this, they believe that a direct approach allows them to control their own destiny (Sutherland et al, 2018). Furthermore, the B2C model can have many benefits such as low start up costs, further reduced costs due to e-commerce (reducing risk of waisting money on a brick and mortar store), as well as allowing consumers to have an easily accessible platform in which they are not restricted by opening times. However, these also have cons, which may include the pressure on meeting supply and demand rates as well as the highly competitive nature of the e-commerce world. In fact, it has been reported that this is something Gymshark struggles with. Furthermore, because Gymshark relies on their social media presence to sell products, they are reaching millions of consumers in the digital sphere. Therefore, this has lead to added pressure on resources, such as keeping up with supply and demand. Regardless of them having just purchased their largest warehouse for stock, they've struggled with their rapid growth, having their website crash during sale days because of the mass amount of consumers (Grove, 2018) and being a digital based e-commerce retailer, this is exactly what you do not want.
But... 'Its just a gym clothing brand, what sets it apart?'
One of my main questions around the hype of Gymshark was "What sets it apart?" Well, by understanding their digital business model this becomes clear to see. For example, if we compare Gymshark to the likes of another sporting brand such as Nike, there are similarities that can be highlighted. In regards to apparel and accessories, it is clear to say that they are both extremely successful in their fields, however, Gymshark has set itself apart by using its digital platforms through fitness influencers on Instagram to promote the brand and build relationships with the customers. Gymshark CEO Ben Francis says that “One of the examples I always use is that if I wanted to meet, a Nike (sponsored) athlete, the closest I’m likely to get to them is if I pay to go a football game and see them from the stands...and we want our team to be as accessible as possible' (Sutherland et al, 2018) therefore by working this into their business model, and using digital technologies to automate and enhance its operation of selling apparel, it has further created a new transformational platform for the consumer, in which they can form a relationship between brand, consumer and athlete.
Being a gym-goer myself, I understand the importance of great fitness apparel, and know that you want to feel and look good in the gym, owning some Gymshark clothing myself, i understand the hype. Furthermore, I believe that their strong relationship with the consumer via branding through Instagram influencers has created a popular image of the ‘brand’. However, with the rise of athleisure on social media from ‘fitness to fashion’, Gymshark may be in danger of switching focus from their core values and straying into the realm of a fashion driven brand (Neville, 2018) which is not their goal.
In conclusion, it is clear to see that Gymshark's digital business model has helped them to create an empire of success by using integrated marketing communication through promotions with fitness influencers as a fundamental factor in their e-commerce strategy, understanding the importance supply and demand, as well as digital operations and the valued relationship with the consumer.
References:
Grove, W. (2018). Case study: Gymshark. Retrieved from https://www.peoplevox.com/case-studies/gymshark
Gymshark Logo (2019) Retrieved from https://www.fasttrack.co.uk/company_profile/gymshark/
How Fashion Influencer Helps Gymshark Grow From 0 To $1.5 Million In 2 Years | CustomerThink. (2019). Retrieved from http://customerthink.com/how-fashion-influencer-helps-gymshark-grow-from-0-to-1-5-million-in-2-years/
Gymshark Logo Neon (2019) Retrieved from https://www.neoncreations.co.uk/wp-content/uploads/GymShark-Logo-1.jpg
Nguyen, D. (2017) Retrieved from: https://beeketing.com/blog/gymshark-growth-story/
Neville, J. (2018). The rise of Athleisure: from fitness to fashion - K3. Retrieved from https://www.k3retail.com/en/rise-athleisure-fitness-fashion/
Nike Logo (2019) Retrieved from
https://www.thriftysigns.com/nike-logo-decal-sticker-nike-logo/
Suer, M. (2013). What’s your digital business model?. Retrieved from https://www.cio.com/article/3306452/digital.../whats-your-digital-business-model.html
Sumo Group, I. (2019). How To Find The Best Business Model For Your Ecommerce Business. Retrieved from https://sumo.com/stories/ecommerce-business-models
Sutherland, E., Geoghegan, J., Geoghegan, J., Whelan, G., & Brown, H. (2018). Gymshark takes a bite of the sportswear market. Retrieved from https://www.drapersonline.com/people/gymshark-takes-a-bite-of-the-sportswear-market/7030060.article
Hi Sarah :) I really enjoyed reading this blog as Gymshark is one of my favourite brands!! I think it's amazing how they have managed to grow so much and capitalise on their values around family, progression and vision in a way that reflects in everything they do - both online and offline. I admit that a couple of years ago, before I tried their products and before they became so big on social media, I didn't think that their spokespeople were diverse enough. I thought that the only sponsored athletes were men and women with unachievable lifestyles and physiques to which me or my peers couldn't relate to. However, as they grew their digital presence and connected with a wide…