­ƒôà  FitX Programming Updates

EVENT ALERT! Join us today as FitX hosts Barry's Head of Operations, Head of Strategy, and Head of DEI for The Strategy Behind the Red Room: A Q&A with Barry’s Executives. Barry’s Execs will share how they have built such a strong global fitness brand that consumers so strongly believe in.You will also have the opportunity to learn about how Barry's has continued to innovate and led the fitness industry in navigating the ambiguity of COVID-19 and driving towards greater inclusivity. Mark your calendars from 6-7PM tonight!

Catch us on Insta: Want to stay in the know in real time about all the stories and companies we’re following in the wellness space? Follow us on Instagram @Ross_FitX for all our ­ƒöÑ content until we are back with more newsletters in 2021!
 

­ƒæÅ FitX Feature - Year In Review (or should we say Wrapped?): Our Take on the Top 10 Stories in Health and Wellness in 2020

10. Pleased to “Meat” You: Lab grown, veggie based and fake meat become a main course. 2020 was the year of plant based meat substitutes. Impossible Foods raised over $700M in funding, while Beyond Meat continue to thrive following their 2019 IPO. Numerous other startups popped up in 2020, looking to capitalize on this trend which is projected to grow to $140B by 2030.

9. Sleep Tech: According to the CDC 1 out of 3 Americans don’t get enough sleep, which not only leads to increased mortality rate, but also has economic implications with respect to productivity. From smart beds, sleep trackers and melatonin infused beverages, this industry is poised to grow to $101B in revenue by 2023 up from $69B in 2017. One company to keep an eye on is Eight Sleep, a smart mattress company that boasts dynamic cooling and heating, detailed sleep tracking, and sleep coaching. For more Eight Sleep check out this Fitt Insider Podcast. We have a team of MBAs working with Muse on their latest sleep wearable - stay tuned to hear outcomes of the project in early January!

8. Meditation Goes Mainstream: Over 40M Americans suffer from anxiety or depression, and the mental health treatment system needs a massive overhaul. Enter: Calm and Headspace. These mindful meditation and sleep apps have quickly rose up the charts, especially in 2020 where we could all use a little break, and both companies plan to continue their growth trajectory with a little celebrity magic. Both Calm and Headspace made waves this year when they inked deals with various celebrities to become involved in the product. Most notably, John Legend became Chief Music Officer to help users focus and meditate, while Calm has turned to the like of Harry Styles and Matthew McConaughey.

7. Apple Fitness+: Apple was already a major player in the fitness market with their Apple watch, which leads the wearables category. However, their launch of Apple Fitness+ brings them firmly into competition with other fitness content providers. In conjunction with the launch of Fitness+ was the introduction of the $279 Apple Watch SE. Following the strategy of their iPhones, the lower priced SE is hoping to capture greater market share and bring the Apple Watch to even more consumers. This move indicates some of Apples greater intentions with Apple Fitness+ as they move deeper into the healthcare space. What will the impact be? More to come in 2021...

6. Mirror Acquired by Lululemon: In home fitness product Mirror was always a company we were keeping an eye on (especially after working with them on an action-based learning project last year), however their growth during the Covid-19 pandemic seemed to catch the attention of Lululemon, who agreed to acquire Mirror for over $500M. Lululemon had already invested $1M into Mirror the previous year, but they clearly saw synergistic opportunities between the two companies. Mirrors will now be featured in Lululemon stores and the Mirror platform will allow Lululemon ambassadors to connect more directly with consumers. Do you think a dynamic Mirror to replace your bathroom Mirror (with contour tutorials etc.) is next? We are curious...

5. Amazon Health: Amazon is slightly late to the game of wellness as compared to its counterparts Google and Apple, but in true Amazon fashion, they are going big. Amazon first hinted at its healthcare aspirations in 2018 when Jeff Bezos announced a partnership with Jamie Dimon of JP Morgan and Warren Buffet. Since then, Amazon has acquired DTC prescription company, Pill Pack, and this year launched Amazon Halo, the newest entrant into the wearables category. All of this speaks to the larger ecosystem of healthcare. Amazon Health customers who wear a Halo could have their data fed to their insurance provider and people who exhibit healthier habits could benefit from lower health care costs. Amazon Health is currently being piloted in the state of Washington but we expect to hear more about it in the near future.

4. The Next Generation of Wearables: Much has been said about incumbents in the space like Apple Watch and FitBit, but two firms really broke though in 2020 in the wearable category, Aura and Whoop. Whoop recently raised $100M and puts them in unicorn status with a $1.2B valuation and a bevvy of pro athlete investors like Kevin Durant and Patrick Mahomes. Whoop gained notoriety this year when the PGA Tour inked a deal with Whoop to help the tour track symptoms of Coronavirus. Similarly, the Oura Smart Ring was worn by multiple players in the NBA bubble to help them track their health as they returned to play. Oura was recently named to Time’s best inventions of 2020. Both wearables are notable because they focus so much on sleep and recovery, which as noted earlier, is a huge opportunity in the wellness space.

3. Supporting Black Voices in Wellness: We recognize that wellness and the ability to work out are a privilege that not all have the opportunity to pursue. We believe that technology can help democratize fitness and wellness space. We also believe we have a long way to go when it comes to amplifying minority voices in the wellness space. Nicole Cardoza argues the cost of reparations can easily be quantified when looking at the health disparities between Black and white communities. To learn more about systemic racism in the wellness industry we’ve linked related articles here, here, and here. Looking to diversify your IG account? Start here.

2. Can Gyms Survive Covid: Have we mentioned these are unprecedented times? While Covid-19 took its toll on a variety of industries, few were harder than gyms and fitness studios. Analysts estimate that Covid wiped out $10B of value from the gym industry in 2020. While we did see several gyms and boutique firms like Barry’s Bootcamp shift to digital, there’s still a long road to recovery. Many consumers have reported that they won’t return to the gym even after lockdown is over and much of that has to do with the rise of in-home fitness (which we’ll cover shortly). Those that are bullish on return to gyms and studios rely on the community feeling that you get from a super charged workout in a crowded workout studio. It’s likely that well capitalized gyms like Equinox can survive this impact, but what about your local gym or yoga studio. It’s likely that many of these businesses will, unfortunately, remain closed for good.

1. WoFH (Work Out From Home): In home fitness is not a new concept. Ask your Mom or Dad and chances are they were doing 8 minute abs or a Jane Fonda workout videos decades ago. However, nothing has taken the forefront of the fitness industry in 2020 more than the in-home workout. The leader of the pack is Peloton, who has reached a $30B market cap, with its upscale Bike and Tread as well as their Peloton digital offering. However, the space is getting crowded with new entrants like Mirror, Hydrow, Tonal, and numerous other content creators who are giving consumers more flexibility about when or how they want to sweat. Even old school players like NordicTrack are seeing a huge surge in popularity. There will no doubt be a brief decline in popularity as the vaccine hits and people are excited to get out of the house, but not everyone will return to the gym. This is accelerated by the exodus we’re seeing from major cities. As people move into homes with more space, it's likely an in-home gym could remain a top priority. Whether you like to downward dog with Mirror or pump up the pace with Peloton, you’ll have no shortage of options for in-home fitness in 2021 and beyond.

ÔÅ®  Industry Highlights

Amazon moves into pharmaceutical space:

Rewinding two years ago, Amazon acquired PillPack for $750M in order to launch an online prescription fulfillment service. This much anticipated offering is finally here with Amazon Pharmacy, which will deliver prescription medication directly to homes in 45 US states. This is just the latest Amazon undertaking to venture into the health and wellness space, and experts think Amazon Prime Health could be on the horizon. Just this week Amazon released workout-tracking headphones to add to their repertoire of health and wellness offerings.

Zwift confirms rumors that they are building a connected bike:

That’s right, yet another connected spin bike will be hitting the very saturated at-home cycling market. What makes Zwift different you ask? Currently, Zwift is a fitness company that uses video games to enable users to train and compete in a virtual world. CEO Eric Minn did not disclose many details about their new hardware, but users can expect it to further enhance the gamified fitness experience. He also notes that while it is easy to compare Zwift to at-home cycling giant Peloton, he does not see it that way. Zwift targets cycling enthusiasts, runners, and triathletes and even has aspirations of becoming an olympic sport. Hopefully their recent $450M investment helps them to zwiftly bring their bike to market.

CEO of Mirror discusses partnership with Lululemon and whether she sold too soon:

In 2016, Brynn Putnam struggled to find an accessible at-home workout while pregnant with her second child. It was during this time that she founded Mirror. Fast forward 4 years and Mirror has raised more than $75M in venture funding and sold ‘tens of thousands’ of mirrors. They caught the attention of retail giant Lululemon, who bought the company for $500M back in June. However, as we are all aware, millions continue to exclusively workout from home amidst the global pandemic, which leads us to believe the value of Mirror could have exceeded even $500M. When questioned on her decision to sell Mirror so quickly, Putnam emphasizes her overarching goal of getting ‘more Mirrors into more homes’ and since Lululemon allows her to accomplish this, she believes she made the right decision.

Peloton and NordicTrack parent company battle on for patent rights:

Back in May, Peloton sued ICON, creators of at-home fitness equipment NordicTrack, alleging that the veteran company copied their fitness programming. (Side note: Peloton also sued Flywheel’s at-home business, and forced the company out of business.) Then, after Peloton released its new Bike Plus, ICON counter-sued stating that the new products are built upon ICON’s patents. Now the battle just got uglier. Peloton has retaliated stating that ICON has attempted to steal Peloton’s advertising plans. We can expect the battle to intensify as both companies have a lot at stake. Icon has struggled to reclaim their market share since Peloton joined the scene in 2012. However, since Peloton has relatively few patents, any founded violations could have dire consequences. We will have to wait and see what the future holds for FitX’s favorite brand.

­ƒÄÖ Listen In: New Podcasts To Check Out (on your Winter Walks?)

Popular Peloton instructor, Olivia Amato, on chasing her dreams:

This episode discusses how peloton instructor, Olivia Amato, went from being a trader on Wall Street to being one of the most beloved tread and bike instructors.

The story behind the first wearable glucose-monitor:

Learn how Josh Clemente, former rocket scientist and SpaceX employee, founded Levels, creators of first wearable glucose-monitors. Levels enables users to learn how their diet and lifestyle choices affect their metabolic rate in real-time. As of now, there’s a 31,000 waiting list to test their product.
 

­ƒôê  Financial Highlights 

• Popular running app, Strava, has secured $110M in the latest funding round, and is now valued at more than $1.5B, making it the latest fitness company to have reached unicorn status in 2020

• Calm, the meditation and sleep app, is considering a new funding round that could more than double its valuation to over $2B

• Andy Roddick and Thrive Market CEO Nick Green participated in a seed funding round for Cure Hydration, makers of healthy sports drinks, who secured $2.6M 

• Mars, the global candy company that produces M&Ms, Skittles, and Twix, is venturing into healthier snacks after acquiring Kind for $5B

• Levels, a health tech startup that creates a wearable glucose-monitor, has raised $12M in seed funding - take a look at the pitch deck they used here

• Mental health startup Headway, an app that connects patients to licensed therapists recently raised $32M in a Series B funding round
   

­ƒÆ╗  Job Postings 

Full-Time

Sr.Product Manager, Health @ FitBit

Product Manager, Inclusion @ Peloton

Sr. Product Manager, Health & Wellness @ Walmart

Product Manager @ Whoop

Growth Marketing @ ClassPass

Sr. Product Manager @ Thrive Market

Internships

Strategic Planning Intern @ Nike

Product Management Intern @ Nike

Strategic Initiatives Intern @ Carbon Health

Strategic Partnerships Intern @ SoHookd

­ƒÿ£  FitX Fun Facts

During 2020 we all reached for a few adult beverages to get us through Zoom happy hours or Netflix binge sessions. However, more and more people are looking for that buzz, minus the buzz. Functional beverages are hitting mainstream as companies like JoyBrau, which is a non alcoholic beer that includes ingredients like protein. Or if you’re looking to mellow out, you can reach a CBD infused beverage like Recess.

Feedback, thoughts, or partnership ideas for us? Send a note to Sonja.