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Fitness Equipment
First Research, Oct 2009, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US fitness equipment manufacturing industry consists of about 100 companies with combined annual revenue of more than $3 billion. Major companies include Cybex International, ICON Health & Fitness, Life Fitness, Nautilus, and Precor. The industry is concentrated: the top five companies account for more than 50 percent of revenue.
COMPETITIVE LANDSCAPE
Demand is driven by consumer income and demographic trends. The profitability of individual companies depends on unique product designs and effective marketing. Large companies have some advantages in brand recognition, but small companies can compete effectively by building unique products.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products are motorized treadmills, stationary bikes, stair climbers, rowing machines, and elliptical 'cross-trainers,' collectively called aerobic exercisers; and weightlifting machines ('strength training'), and traditional weightlifting equipment ('free weights' and benches). In addition, there are a large number of ancillary products. This equipment allows individuals to exercise by themselves in a limited space. The two major market segments for fitness equipment are the home and the institutional exercise equipment market (including health clubs, corporations, apartments, and hotels). The home market is by far the largest and has grown significantly in the past decade. Products are made and marketed separately for the two segments.
Products for home use are mainly treadmills and exercise bikes. Cost is a primary consideration, so home equipment is generally built with lighter materials, as it is rarely used more than one hour per day. ...
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