“Winter is coming”, under the fitness equipment marketing pressure of destocking by Omicron, supply chain issues, inflation, and other economic challenges.
Bob, CEO of Manta Gym Equipment Limited Company, believes that it’s an all-time tough period for the industry, but opportunity hides in uncertainty if people can see those corners that are obscured by rain and mud .
Which corners? Accidents, cycles, trends, planning.
Each of these four corners has a chance for players to overtake.
The accidents in the fitness equipment industry are: The market madness caused by COVID-19 has led to the current destocking and induced low-price competition and huge storage fees.
How to solve it?
Does the company have the financial resilience to deal with the unexpected?
Increase the business flexibility, expand business channels, not limited to online or offline, public and private domains or platforms.
The key to increasing team flexibility is an efficient connection, connecting various possibilities and resources, where collaboration exists, flexibility exists, and combat effectiveness exists.
The cycle is divided into the inventory cycle, investment cycle, and technology cycle:
- Inventory cycle: If the inventory ERP system is well done, fitness company leaderscan consider handling the inventory of fitness equipment in the same way as the food that is close to quality assurance. The longer the inventory time, the lower the price, giving customers enough options;
- Investment cycle: Peoplemay have heard of the Minsky moment, the global economic cycle is about 10 years, and the only reason for the depression is the prosperity built on debt. It has been confirmed, so the company ownersshould be in awe of the cycle of our fitness equipment industry. The four ancient civilizations were all born around 30 degrees north latitude because there are four distinct seasons and obvious periodicity. Here, I want to encourage you: all great companies are winter’s children.
Solution: (a) Use all sales channels and BD companies to digest the company’s own or the peers’ inventory and profit from it (b) Pre-owned fitness equipment;
- Technological cycle: steam age – electric age – information age – fifth element, technological innovation will never stop, left foot production efficiency, right foot transaction efficiency, to promote the rapid development of civilization, the elements of human production include: labor -Land-capital-technology-data, and the key to data growth lies in connection and mining, establishing all possible connections, mining data from connections, mining transactions from data, this is also the long-term development of the fitness equipment industry. The inevitable trend of refined operation.
By the end of 2021, a total of 30% of fitness studios will be closed, and the combination of online and offline workouts has become a trend. After the epidemic, people pay more attention to personal health, and their investment in fitness will increase. With the development of technology, the upgrading of hardware has also become a trend (consumption is also constantly evolving), so it is very important to follow the trend and invest in the development of new products and new markets.
Increasing value depends on creation, and reducing costs depends on hard work; price adjustment, in the final analysis, is a game with consumers.
So how should it be reflected in the business strategy?
- Focus on solving more “expensive” problems;
- Creativelyreduce costs;
- How to discover brand-new
Evolution is the opposite of involution, and it is also a method to overcome involution. The trend of consumption is cost shifts to the left, price shifts to the left, and value shifts to the right.
The cancellation of fuel vehicles has become inevitable. In 2018, the plastic ban was issued globally, and fitness equipment was online and socialized. Only by embracing planning can people truly follow the trend.
What percentage of companies plan for the next 2-3 years?
As a manufacturer and troubleshooter of fitness equipment, Manta Fitness Equipment Co., Ltd aims to support distributors, importers, wholesalers and retailers of fitness equipment.
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