Previously, we saw the detailed digital marketing strategy of Gymshark. Today we are going to see the irresistible SWOT analysis of Gymshark.
Gymshark – a true shark in the market and a perfect example of how a local business gets successful using digital marketing strategies at its best. Gymshark is currently a major player in the fitness clothing industry giving tough competition to veteran fitness brands like Adidas, Nike & Puma.
Gymshark has been making perfect use of social media since it was founded in the year 2012. As the world was online and still shifting online, the marketing techniques are changing which is digital marketing. If you are interested in learning about the latest – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.
Before we begin with the SWOT analysis of Gymshark, here’s a deep dive into the company’s history, founding, products, financial status, competitors.
(Ben Francis the Founder of Gymshark, Source: The Business Desk)
Gymshark is a UK-based athletic wear brand. It was founded by Ben Francis and Lewis Morgan in 2012. Ben & Lewis were 19 years old university students & Ben as a part-time pizza delivery boy, later on, came up with an idea to manufacture gym apparel with the help of a screen printer and a sewing machine, and Ben parent’s garage being their production house.
Since then, the inception of Gymshark started and 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.
Gymshark now has its headquarters in Birmingham and three offices one in Shirley, West Midlands, one in Hong Kong, and one in downtown Det America. According to Forbes, with Ben holding the majority of the shares he is now a billionaire.
|Founder||Ben Francis & Lewis Morgan|
|No. of Employees||850|
|Market Cap||£ 1 Billion (2020)|
|Annual Revenue||£ 261 Million (2021)|
|Net Income/ Profit||£ 400 Million (2021)|
Products of Gymshark
- Fitness Fashion
Competitors of Gymshark
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.
- Fitness Clothing Manufacturer
- Giordano Fashions
- Outdoor Voices
After understanding the core of the company, let us now proceed to the SWOT analysis of Gymshark.
SWOT Analysis of Gymshark
SWOT analysis is one of the most frequently used methods in research and report writing to provide an instant manifestation of the best opportunities, threats, and greatest strengths, weaknesses.
There is some tough competition in the market but Gymshark has its strengths and various opportunities which could be used 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 of Gymshark.
To better understand the SWOT analysis of Gymshark, refer to the infographic below:
So let us first start by looking at the strengths of Gymshark from the SWOT analysis of Gymshark.
Strengths of Gymshark
- Digital Marketing: Gymshark has undertaken a very effective approach to market its products. Due to excessive social media marketing, the brand has gained much attention and customers.
(A Brilliance Social Media Strategy by Gymshark, Source: Creative Revolution)
Did you know? In 2013, Gymshark’s Luxe tracksuit generated £30,000 of sales within 30 minutes from Facebook. As you can see the brand got a pump in 2013 is still climbing the stairs of success day by day just because of the help of effective digital marketing strategies.
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- Influencer Marketing: 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.
- Growth Helping to Generate Brand Value: 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.
- Engaged Audience: Gymshark is a company that has always prioritized marketing digitally than marketing using offline methods. Over the years, it has built a very active and engaged audience on various social media platforms, especially YouTube.
- Well-Defined Customer Base: The success behind this high-flying fitness brand can be credited to a well-defined customer base.
- Hear Customers Opinions & Preferences: As some people do not prefer to buy online, Gymshark is coming soon with its first flagship store on Regent Street. Gymshark knows its target audience by heart as it is always open to hearing their opinions and preferences, and provides them with all that they demand.
Weaknesses of Gymshark
- Online Factors: Currently Gymshark only provides its products online and factors such as shipment price and time to get the products also play a major role in the purchase decision-making process.
- Question of Worth: 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.
- Market Share: 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.
- Gender Drawbacks: 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.
Opportunities for Gymshark
- Start Soon With Stores: At the moment Gymshark only offers its products online, establishing its brick and mortar stores in different countries is a great opportunity to make the products more available for the customers.
- Traditional Marketing: 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.
- Launching Footwear: 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 footwear to gym enthusiasts.
Threats to Gymshark
- Competition: 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 provide exceptional quality at very affordable prices.
- Niche Marketing: 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.
- Threat From Suppliers: 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.
- Continuing Exorbitant Rates: Although they charge exorbitant rates for their gym wear, and other products, people are still happy and satisfied as they feel valued. But, continuing the same for the long run may have a chance to lose on customers.
This ends our engrossing SWOT analysis of Gymshark. Let us conclude our learning below.
One of the biggest strengths of Gymshark is that it targeted an undeveloped niche that is now flourishing. It has a great opportunity of opening its official stores in major cities and also an option to launch its athletic footwear and use other means of marketing to 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. But, all in all, Gymshark has left no stone unturned to achieve success.
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We hope this blog on the SWOT analysis of Gymshark has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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