Technogym increases the Home Fitness growth at +58%
CONSOLIDATED REVENUE: Euro 351,5 million, compared to 464,8 million of the first nine months of 2019
The growth trend in home fitness continues, +58% at Euro 98 million in the period
Approved the Technogym At-Home 3-years plan, aimed at doubling the BtoC revenue
Nerio Alessandri, Technogym Chairman and CEO commented:
'Technogym completes the first nine months of the year with an excellent result in Home Fitness, with a + 58% growth, following the + 50% growth registered in the first half, and keeping overall profitability levels in line with the previous year.
Technogym has been growing exponentially in BtoB in the last 30 years, while also focusing on Home Fitness with the aim of creating an aspirational brand. Since the days of the garage, when the company was born, we have developed Unica, the first multi-station for strength training at home that is still an iconic product in the world. Then, together with the archi-star Antonio Citterio, we introduced design-furniture products for home training such as Personal Line, which have been placed in the world's most beautiful homes and have obtained prestigious design awards, generating allure and prestige for the brand.
During today's Board of Directors we have approved the TECHNOGYM AT HOME three-year plan aiming at achieving, in the mid-long term, 1 Billion Euro group turnover thanks to both BtoB and BtoC, by exploiting the enormous potential of the Technogym brand, stemming from 37 years of investments in marketing and sales organization, in over 100 countries. If a start-up wanted to create a brand equity comparable to that of Technogym in a few years, hundreds of millions of marketing investments would be required.
Today BtoC accounts for about 30% of Technogym's revenue. In the medium to long term, we expect the proportion to reach 50%, net of the BtoB recovery expected to start in 2021, in a global scenario in which fitness clubs are open in almost all countries. We will achieve this result by capitalizing on the positioning of the Technogym brand in the Home Fitness prestige segment, where we are the only brand available on the market, and we can aim at a penetration of over 1% of the 15 million
High Net Worth Individuals. Furthermore, with our entry-level products, both existing and new, we will equally be able to address tens of millions of people within the 'affluent' cluster.
The pandemic is also creating a great opportunity for Technogym in health, following the exponential demand for health and prevention, not only on home self-care, but also in rehabilitation and medical-fitness centers in strong expansion within BtoB. Scientific evidence prove the importance of structured physical exercise to increase not only physical fitness and sports performance, but also immune defenses by preventing risk factors such as obesity, diabetes and cardiovascular diseases.
Technogym's 'wellness on the go' strategy, has always indicated a strong commitment to digital. For over 20 years we have been developing software apps for training and have created a unique ecosystem in the world - made of connected smart equipment, the MyWellness Cloud, apps and services - allowing us to be the only ones to offer Precision Training, a personalized wellness experience based on each individual user's needs and passions, thanks to the Technogym Live classes and training contents available both at home and at the gym, on demand, on equipment consoles and mobile.
I am confident in the potential of the wellness market, one of the top global mega-trends, and in the positioning of the Technogym brand. Starting from our solid roots, our dream for the future is to be able to deliver, at home, the same level of professional experience that 50 million people live in the 80,000 Technogym-equipped wellness centers in 100 countries. I thank the Technogym team and the customers who, more than ever, are showing passion and commitment in this period to continue to leave a mark on the world by spreading Technogym's message as a legacy for the new generations and for the sustainability of our planet '