Johnson Health Tech Co., Ltd

Johnson Health Tech Co., Ltd Overview

Company Headquarters: Taiwan, Republic of China

Founded: 1975

Workforce: ~5,300

Company Working: Johnson Health Tech Co., Ltd. (Johnson Health Teach/JHT) is one of the family-owned businesses engaged in the global manufacturing and distribution of fitness equipment. The company initially started as metals manufacturing business under the name Johnson Metals which was serving various players engaged in the fitness equipment industry including Ivanko Barbell Company, Ross Recreation Equipment Company, Inc., Trek Equipment Corporation, etc. Barbells were one of the primarily manufactured products by the company for its clientele in its initial phase. Later the company, through strategic acquisitions and the establishment of subsidiaries in around 30 countries, entered the global fitness and wellness equipment industry.

Matrix, Horizon Fitness, Vision Fitness, Synca Wellness, Fujiryoki, and Tempo Fitness, and are the diverse range of brands under which the company markets equipment including treadmills, elliptical trainers, indoor cycles, rowers, massage equipment, endurance equipment, strength equipment, etc. The products are manufactured across facilities located in Taiwan, Wisconsin, Shanghai, Osaka, and Hanoi. The company has an extensive network of research and development teams situated across the US, Taiwan, and China apart from the subsidiary’s capacities located in the five continents. Johnson Fitness & Wellness, the retail division of the company is a direct retailer which has around 475 stores across the world and is headquartered in Cottage Grove, Wisconsin.

Matrix was launched in 2001 and sells a premium range of fitness equipment to both commercial and residential customers. In the commercial space, the company sells equipment to luxury resorts, educational institutions’ athletic teams, and health clubs. Apart from the fitness equipment used for strength training, group training, and cardio training apart from solutions servicing. The company’s solution services include facility planning, matrix learning (covering product learning videos, webinars, personal trainers, service technicians, exercise library, and maintenance tips), customer support, sales & support, warranties, financing/leasing, and a complete package of marketing.

The Horizon Fitness brand is involved in the sales and marketing of home exercise equipment and started in 1998. The company's range of products comprises treadmills, ellipticals, indoor cycles, fitness accessories, rowers, massage, and cardio accessories made using durable materials and has incorporated several smart features in its offerings that allow the user to connect with any apps and streaming fitness class solutions including Peloton.

Vision Fitness is the exercise bikes fitness equipment manufacturer brand that was started in 1995 by Trek Bicycle Corporation which was later acquired by the Johnson Health Tech. Sectors including hospitality, multi-family housing, corporate wellness, and government departments are the major clientele markets of the brand. In addition, the company also has 3D space planning and 2D layout space planner software as part of its fitness equipment products.

Synca brand is dedicated to the manufacturing and distribution of wellness products including a variety of massagers, massage chairs, muscle percussion guns, water eye masks, etc. headquartered in Osaka, Japan. The company is majorly serving locations including Japan, the United States, Germany, Italy, and Korea. The brand is based on the Japanese principle of planning, design, and technology development

Strategy

Johnson Health Tech’s key strategy in the global market is the strong vertical integration of gym training and home fitness equipment manufacturing including design, procurement of raw materials, and production of the final product. Owing to the expertise in metals and manufacturing of equipment before the entry into the fitness equipment business in addition to the use of advanced manufacturing practices that comprises a combination of robotics and a skilled workforce that helps in delivering excellent quality equipment. Further, the company focuses on a multi-channel distribution strategy including the company’s dedicated specialty stores, e-commerce sales platforms, and other retail stores covering around 460 locations across the globe.

In addition, the company’s constant product innovation, integration of the latest technology, strategic acquisitions, and partnerships of brands help in strengthening its presence in the home fitness and gym-training equipment industry. For instance, the company’s acquisition of gym source retail stores has helped in strengthening its presence in the US through retail stores chain. To meet the growing demand for on-demand fitness and workout videos, the company has collaborated with various leading firms like iFit and well-experienced professionals like Mogul Boyd Epley and Rick Muhr. Apart from its aid in content creation, these collaborations are expected to build brand image and credibility among customers. Moreover, the myriad of awards & recognition awarded to the company and its equipment offering including the Fitness Professor award for best elliptical A50 XUR, Best Climber C50 XUR, Best Recumbent R50 XUR, Taiwan Excellence Award for Matrix Performance Plus Treadmill, etc. over the years serves as a testament to the quality and image of the company.

SWOT Analysis

Strengths

Strong and diversified product portfolio offerings in the home and commercial fitness and gym training equipment market
Strategic partnership with well-experienced athletes for brand endorsement, technological firms like Myzone, Aplift, etc. that helps in better positioning of the offerings and acquisitions including Cravatex brands, Gym Source retail stores, etc. for strengthening distribution strategy
Strong vertical-integration of equipment manufacturing that helps in better supply chain management

Weaknesses

Company’s failure to report the defects of the Matrix brand equipment in the United States Consumer Product Safety Commission and as a result the company paid a fine of USD 3 million. This hampers the product image and usability among the customers
F-rating for the Horizon equipment range issues by Better Business Bureau which translates to increased customer complaints related to poor quality of equipment

Opportunities

Offering promotional deals for home & gym equipment while purchasing massage chair products under the Synca brand that helps in strengthening its presence in luxury home & gym training equipment market
Technological development and investment involving integration of artificial intelligence in equipment that helps in eliminating the need of a personal trainer and diet planning

Threats

Risk of cyber threats and data breach related to online fitness equipment integrated with health monitoring apps
Fluctuations in global exchange rates

Key Developments

Date	Approach	Development
August 2021	Expansion	Johnson Fitness & Wellness retailer has opened around seventeen stores across the major metro markets of the United States of America. The stores are involved in retailing, commercial sales, and services with an aim to market premium fitness products that are manufactured for both commercial and residential use. To achieve excellence in customer service and relationship management, the company has rolled out around 60 well-experienced fitness consultants in these retail stores. This new expansion has resulted in a strong store base in the US totaling 114 stores.
March 2023	Partnership	Matrix Fitness has integrated a digital solutions company’s cloud-based integration-Aplift in all matric target training cycles. The integration helps in reporting metrics including functional threshold power and calories burnt by the equipment. The digital solutions company’s offerings are available in Europe and Latin America
June 2022	Mergers & Acquisition	Johnson Health Tech has acquired Cravatex Brands Limited based out of India and is set to operate as an Indian subsidiary of the company. Cravatex has been functioning for over two decades in the Indian market and was previously a dealer of the JHT. The acquisition is expected to strengthen the company’s presence in the Indian fitness equipment market.
October 2022	Partnership	Matrix Fitness of JHT has partnered with coach Rick Muhr as a brand ambassador who is expected to provide his coaching and training methodology through motivational speaking content and other content materials delivered to trainers and members. The partnership is expected to boost the brand image among the customers
February 2020	Product Launch	Matrix Fitness has launched a seat-belt treadmill, a performance-plus treadmill designed to match the level of athletic training to cardio workouts at home and in commercial spaces. The equipment is designed in such a way it requires minimum maintenance even if it runs for 100,000 miles. Further to reduce the maintenance and service of the equipment, the synchronous response drive system is situated in the front panel of the running surface.
February 2020	Product Launch	Matrix Fitness introduced three new series comprised of a performance series, endurance series, and lifestyle series under the cardio product offering segment of the company. The endurance series and performance series are designed for the professional fitness market and are expected to withstand heavy and solid workouts while the lifestyle series is designed for casual use for the home sector, small-scale hospitality centers, government institutions, and corporate wellness bodies.
September 2020	Partnership	Matrix Fitness partnered with Mogul Boyd Epley as a brand ambassador who retired from the University of Nebraska as assistant director for the Department of Strength and Conditioning. He has been the recipient of the National Strength Coach of the Year Award for the Year 1980 and in 2003 one of the inductees of the USA Collegiate Coaches Hall of Fame. His expertise in performance training is expected to boost the brand image and credibility among the customers
December 2020	Product Launch	Matrix Fitness added a new range of strength training equipment under the Go Series name. Chest press, leg press, shoulder press, seated row, seated leg curl, seated triceps press, leg extension, biceps curl, lat pull down, and abdominal are part of the Go series.
December 2020	Partnership	Matrix Fitness has collaborated with iFit to provide fitness content that brings out the expertise of both Johnson Health Tech and iFit in its premium home equipment offerings. As a result of the collaboration, the Matrix Fitness touchscreen consoles are integrated with the iFit platform that streams workout shots in various locations covering around 50 countries across the world apart from diversified trainers. The product is made available across retail stores and online sales channels for customers in the US.
April 2021	Partnership	Matrix Fitness has collaborated with iFit to provide interactive content for both companies in its range of offerings to a commercial clientele comprising health clubs and fitness facilities similar to its launch for the home sector in December 2020. This collaboration integrated the on-demand workouts created by more than 180 trainers of the iFit company. The users who are presently using Touch and Touch XL consoles will be receiving the collaborative content through a software update.
August 2021	Mergers & Acquisition	Johnson Health Tech acquired its distributor of the company in South Africa, Matrix Fitness South Africa. With the acquisition, JHT has officially become the first company in the global fitness and equipment market to have a wholly owned subsidiary in the African region.
October 2021	Partnership	JHT’s Matrix Fitness has entered into a partnership with Myzone, the wearable technology solutions provider company. The integration of the Myzone with Touch consoles of the Matrix product offerings. The partnership is expected to boost the usability features of its equipment and provide a personalized workout experience. The technological development will be available on the Touch and Touch XL consoles that are purchased post-September 2021 through a software update.
November 2021	Mergers & Acquisition	Johnson Fitness and Wellness is an acquired gym source retail store locations present across Virginia, Pennsylvania, Connecticut, Massachusetts, New Jersey, and New York in the US. The acquisition has increased the total number of retail stores to around 100 in the US and is expected to strengthen the company’s presence in commercial fitness businesses in the region.