Gymshark: The Fitness Brand Phenomenon

When Ben Francis created Gymshark out of his bedroom in his parents’ house, he never imagined that he would revolutionise fitness apparel forever. In 2012, aged just 19, Francis had already tried and failed with several enterprises, from selling licence plates to developing iPhone tracking apps, all while working as a Pizza Hut delivery driver to raise the capital to fund his entrepreneurial ambitions. Gymshark began as a health supplement brand, when as a full-time student, he had no funding and began to dropship products from other retailers until realising that the profit margins made his latest endeavour collapse before his very eyes. Undeterred, he discovered a gap in the market when he realised that the kinds of clothing he wanted to wear did not exist, so set about gathering his brother and friends, buying a screen printer and a sewing machine, building a global leader in the nights after work. Creating form-fitting workout clothes that were aimed at the general population versus the original clothing targeted specifically large bodybuilders was an innovation that gym-goers everywhere were screaming out for. Today, the company is a billion-dollar brand with year-on-year growth that has attracted investment interest from across the globe. But what was the secret to their success? In basic terms, Gymshark became the trend of the sportswear world. Taking advantage of the emergence of influencer marketing, the company utilised social media to find popular names in health and fitness, approaching trainers, athletes and personalities who were willing to spread the word in exchange for free clothing. While the reputation grew, they invested time and money into their own channels that saw their content connect with the target audience that identified with the need and the image the brand represented, feeling a personal attachment as the ‘aspirer’ type of customer now needed to wear the same, modern apparel that their heroes were now promoting online. Gymshark’s lack of physical locations means that all purchasing happens online, allowing them to react quickly to changing trends and guarantee their customers maintain their status as first adopters, also ensuring that they never have to raise prices to account for costs. This is all backed up by products which represent premium quality, rival any big name in the market and are loved by over 130 different countries globally. Financially the brand was always successful, with Francis and his then business partner Lewis Morgan making £250,000 in revenue after just the second year of trading, forcing the pair to drop out of Aston University to focus on the business. Following this, in 2016, Gymshark was recognised as the UK’s fastest-growing company, with it featuring well on ‘The Sunday Times Fast Track 100 and making shrewd business endeavours by hiring industry experts who could help navigate and develop the growth of the business, such as former sports brand owner Steve Hewitt who was

brought on as a managing director before being appointed chief executive in 2017. Such persistent growth is why, in 2020 the private equity firm General Atlantic purchased a 21% stake in the still developing brand, elevating the worth to over £1 Billion. Ben Francis as a result, possesses shares worth £700 million through being the majority shareholder. Despite all this success, and its international offices in key sports markets such as Denver and Hong Kong, the company has stayed loyal to its roots through its head office in Blythe Valley Park in the West Midlands, with potential for further locations as the business continues to challenge global icons such as Nike and Adidas for their market share. Defying pandemic conditions, The Sunday Times has also announced that the company will feature on its ‘Fast Track BDO Profit Track 100’ for the fourth year in a row, with further achievement noted by Hype Auditor, who announced that in the last quarter of 2020, Gymshark was a market leader in its Influencer marketing strategy with an average engagement of 4.36%, that gave an average cost of £0.11 per engagement when factoring in criteria such as rate of engagement, audience quality, influencer quality and reach. Further analysis showed that while the major brands had a higher quality of audience, Gymshark had a better quality of influencer, due to their use of real people and personalities who while famous live attainable lifestyles and so relate more in the eyes of the customer versus the big global star, who while admired are considered to be out of touch with modern society. Such influencers as the Rybka Twins, Antonie Lokhorst, David Laid, Youtube’s Ethan Payne and Nelly London show an expansive contrast that appeals to every shape and size that exists within the fitness community. These factors relate to why in the space of just a calendar year, the company reported £260.6m in turnover for 2020, an increase of £83.9m with pre-tax profit increasing from £18.4m to £30.5m. The vision of the brand has been truly unparalleled, and this is evidenced by a constant desire to pursue any idea no matter how big or small, to not just react to the needs of the future, but to become that future instead. The dream of creating a legacy, sharing every part of your journey with customers who feel a sense of belonging, and building long term relationships with influencers that embody your brand is an important framework that any business should strive to replicate. Their constant development, always trying to innovate to make the community aesthetic a hallmark of their success has made them a billion dollar company, which is sure to only grow as they continue to redesign the next steps in British fitness apparel.