Peloton’s Brand Equity is Questioned
The at-home fitness company that made a name for itself with stationary bikes adorned with giant internet-connected screens and motivational classes has been going through a lot lately. Not only did it recall pedals from one of its stationary bike models in October of 2020, but it finally recalled its Tread+ after the US Consumer Product Safety Commission pressed the company and its stock began to fall. It’s estimated that around 125,000 of the treadmill units, which cost approximately $4,295, are eligible for a full refund in the United States. The issues could cost Peloton hundreds of millions of dollars, depending on how many customers return their equipment.
The bigger point is that Peloton is facing some backlash for not accepting blame and acting sooner. This appears to be the classic case of doing the right thing, without being prompted. If you have a product that’s causing harm to people, even if its a small fraction of your bigger customer base, do the right thing and find a solution—quickly. Peloton’s CEO, John Foley made a statement in which he acknowledges the mistake, “I want to be clear, Peloton made a mistake in our initial response to the Consumer Product Safety Commission’s request that we recall the Tread+. We should have engaged more productively with them from the outset. For that, I apologize.”
What do you think? Will the Peloton brand be able to work through this in the long run (pun intended)?
- SOURCE: Business Insider
- BRANDS: Peloton