Nautilus, Inc

Nautilus, Inc Overview

Company Headquarters: Washington, United States

Founded: 1986

Workforce: ~521

Company Working: Nautilus, Inc. (Nautilus) is one of the global manufacturers and distributors of home fitness equipment and connected solutions. Nautilus, Schwinn, Bowflex, and JRNY are the range of brands the company is currently operating in the global market through direct sales and retail sales. Under the retail business operations, the company offers Nautilus, Bowflex, and Schwinn through e-commerce retailers, independent retailers, specialty retailers, and warehouse stores and the direct business segment comprises the sales through the company’s e-commerce stores where the majority of the sales are driven through a mix of traditional and digital media-based marketing strategies.

Bowflex is dedicated to cardio and strength training products that also have connected-fitness solution equipment. Velocore, Max Trainer, Select Tech, and C6, among various others, are some of the well-known brands under Bowflex. Schwinn brand houses a variety of exercise bikes, treadmills, and rowers and it was started as a bicycle company in 1895 as Arnold, Schwinn & Company which became part of Nautilus post its acquisition. Nautilus brand houses specialized cardio equipment comprising four broad categories of equipment including upright bikes, treadmills, recumbent bikes, and ellipticals. JRNY is a digital platform that offers personalized workout videos and entertainment choices for training. The company sells its product across Asia, Europe, the US, and Canada.

Strategy

Nautilus's constant product innovation over the years to suit the trend and demand for the home sector company helps in maintaining the leadership position in the connected fitness sector in the global market. In addition, the company’s strategic acquisition of VAT, a leading solutions provider in mobility technology helps in utilizing and upgrading the technology suite of the JRNY fitness app, as a result, the fitness app is integrated with all its new launches since the acquisition. The constant upgradation of the technology has helped in integrating around 1400 on-demand workout videos and 200 different location-based backgrounds stimulating a real-time experience resulting in a robust growth of 13% in the number of members that are using the JRNY connected fitness digital platform and overall growth of the company.

Moreover, the company’s giveaway initiative during National Public Health Week included a Bowflex T22 treadmill, Velcore stationary bike, SelectTech 552 dumbbells, and a free JRNY membership along with the Tuff Shed, Inc.’s offering of a Premier PRO Series building and a free installation in the winners' house. This giveaway through influencers is expected to boost the awareness of the brand and equipment among the customers.

SWOT Analysis

Strengths

Strong and diversified product mix of home fitness equipment through three broad brands
Increasing investment on research & development continuously over years help in better product and solutions innovation

Weaknesses

Decrease in company’s profit in 2021 compared to 2020 lessens the fund available for investment
Loss due to sale of Octane business in 2020

Opportunities

Strengthening its presence in the Middle East and Africa to capitalize on the increasing demand for home fitness equipment in the region
Collaboration with apartment buildings in metro cities in key market for sales and distribution of the fitness equipment range

Threats

Risk of patent infringements
Fierce competition from companies including Technogym S.p.A., iFit Health & Fitness Inc., Echelon, Johnson Health Tech Co., Ltd, etc. in key markets

Key Developments

Date	Approach	Development
January 2023	Product Launch	Nautilus launched motion tracking in its JRNY app that is aimed to help the user in achieving their health goals through personalized feedback by counting the number of reps and counts done while using the brand’s equipment. The launch is made available to both Android and iOS users who have a membership of JRNY.
November 2022	Product Launch	Nautilus launched two bikes under the Schwinn brand named Schwinn 290 Recumbent Bikes and Schwinn 190 Upright. The two bikes are designed in such a way that it has connectivity feature with the JRNY platform.
September 2022	Product Launch	Nautilus launched a new treadmill named Bowflex BXT8J that can be connected to the company’s fitness app. The company has priced the product in the affordable range to maximize sales in the home fitness sector. The product is made available to the customers through selected online retail sales channels.
November 2021	Product Launch	The company has launched a new cardio equipment named Bowflex Max Total 16 that comes with a 16-inch HD touchscreen panel. The product comes with a complimentary one-year membership for the fitness app. It has a feature of multiple profiles that can be used for different individuals in the family
September 2021	Mergers & Acquisition	Nautilus has acquired VAY, which specialized in AI technology and computer vision solutions. The acquisition is expected to help the company in utilizing its technology to track individual motion through cameras in the JRNY fitness app. The integration of the technology helps in pushing the company's equipment sales in the connected fitness solutions market.
August 2021	Partnership	Nautilus collaborated with FitOn, a digital fitness provider to boost the workout and JRNY fitness app experience for its customers. The partnership provides video-based workout content and access to a coach that has global experience in the fitness industry.
January 2021	Product Launch	The company has launched the JRNY fitness app integrated with two new offerings named the Bowflex T22 treadmill and the Bowflex Max Trainer M9 machine. Both the equipment has an inbuilt touchscreen console for streaming workout and entertainment videos.
December 2020	Product Launch	Nautilus launched a connected treadmill named Bowflex that has a maximum speed range of 12 mph and also has wheels for easy transport of the treadmill at home. Also, the equipment is designed with a folding system technology SoftDrop that provides better convenience for home users.
December 2020	Product Launch	Bowflex launched an indoor cycling bike that comes with a 7-inch HD touchscreen console through which consumers can access various streaming apps including Amazon Prime, Disney+, Netflix, and Hulu. Bowflex C7 connected bike is made available to the customer through Dick's sporting goods stores.
August 2020	Product Launch	Nautilus has introduced a novel dual-mode indoor cycling bike named Bowflex VeloCore that provides both leaning and stationary setting modes while exercising. The equipment is integrated with the fitness app which further enhances the user experience
August 2020	Partnership	To distribute fitness equipment across Europe efficiently the company has collaborated with logistics and freight company SEKO Logistics. The partnership aids in capitalizing on the growing demand for fitness equipment in the residential sector in Europe.
June 2020	Product Launch	Nautilus introduced a barbell and curl bar system in the market under the product name Bowflex SelectTech adjustable 2080. The equipment is expected to meet the goal of a complete boy workout.
October 2019	Product Launch	Nautilus Inc has integrated the JRNY fitness app service with various Bowflex products including treadmills, and cardio machines. All the new equipment range Max Trainer Max Total Machine, BXT216, and BXT116 Treadmills have JRNY integrated with them.
October 2019	Product Launch	Nautilus launched its first indoor cycling bike named Bowflex C6 at a competitive price which is less than the same equipment offered by Peloton. The equipment can be connected with both Zwift and Peloton cycling fitness apps.
October 2019	Product Launch	The company has launched 810 treadmills and IC4 bikes under the Schwinn brand. Both the equipment has various backgrounds and videos to enhance the workout experience.
August 2019	Product Launch	Bowflex has introduced a new range of kettlebells under the brand name SelectTech 840 that comes in different weights ranging from 8 pounds to 40 pounds. In line with the launch, the company has uploaded a video regarding the kettlebell-based workout on its YouTube handle.