Gymshark is the UK’s fastest growing brand of fitness apparel accessories brand founded by Ben Francis and high school friends back in 2012. They focus on producing sports clothing found in Redditch in Worcestershire in the United Kingdom (Gymshark UK 2017). Gymshark has seen rapid support, growth and an ever-expanding quality customer base engaging in social media followers and customers in 131 countries. Stated in (Gymshark UK 2017) they have grown from operating screen printing in the garage into a fast-growing and most recognisable brand in fitness. The establishment of Gymshark in 2012 by Ben Francis has grown not only as a recognisable brand in fitness but has a business. Gymshark was averaging 500 orders per day, and the ongoing increases in average order volumes would then peak on Black Friday 2015
Currently employs 85 staff and rising to 120 staff at peak times that fulfils customer orders globally from there 10,000 sq. Warehouse facility which will be expanded in August 2017 to 100,000 sq. Warehouse facility. The combination has delivered critical benefits of stability of supporting the rapid growth of customer experiences, the agility for faster and more accurate ordering processing, picking, packaging and shipping. The ordering volume operations in 2016 had jumped to 2,000 – 3,000 per day, the Black Friday sale had 90,000 orders cleared in 2016. Scalability plays a part in the flexibility of warehouse and to match the 4,000 – 5,000 per day orders. The rapid expanding of Gymshark has the distinction of 193% sales growth in three consecutive years with revenues escalated to £43 million compared to £13 million in 2016.
However, the net worth, current liabilities, current assets and cash turnover for Gymshark have increased rapidly (Company Check, 2017). The cash turnover has increased from £57,352.00 in 2013, 2014 £993,760.00, 2015 £1,026,803.00 and £ 1,729,017.00 in 2016, what this suggests that it is a rapid growth, which is a 211.23% increase in turnover for the last three years (Company Check, 2017). Gymshark financial numbers make it clear that the growth they have grown through in the last years is compelling. According to (business innovation, 2017), Gymshark is now generating annual sales of over £13 million with projected sales of £80 million the year after launching in three years was achieving a turnover of £4 million and £40 million this year and will see a £12m turnover in 2017. How did they achieve it? The results can be found in their business strategy.
The growth stems from a devotion commitment to producing innovative, useful performance wear and an ever-expanding social presence. Gymshark has three core values, family, progression, vision (Gymshark UK 2017), with each there has a mean; the family value is for the community of athletes, artists and visionaries who are like-minded individuals. The way of this is athletes, artists and visionaries share the same goals, targets, and dreams, therefore having a team who share the same innovation but from different viewpoints will generate a new vision of life for the business that will help the company.
Progression value signifies that Gymshark will be updated on the future changes in the retail market, this is good because with the changes affecting the retail market Gymshark will be able to foresee the market change and adjust and adapt to changes, so it does not have a massive effect on their business. The last core value of Gymshark is a vision, which states bringing ideas to life (Gymshark UK 2017). The overall core values that Gymshark offers is the willingness to be truthful, respectful and business orientated to grow into a top firm in the retail market.There has been an increase in recent years of start-up companies that try to sell their range of sports garment to the vast number of consumers in the industry. However, few companies achieve success in doing so; the differences between the successful and unsuccessful brands are how their unique selling an efficient business model and marketing strategy translates into staying ahead of the competition in an increasingly competitive environment. To find if their success is exclusive because of their social media and marketing activity, or due to the quality of their products, several brands in the fitness or sports industry focus their marketing strategy solely on professional athletes on social media profiles, such as Facebook, Twitter and Instagram. Sénécal et al., (2002) find that offering flow-inducing and immersive content on e-commerce websites is an ineffective approach. However, Gymshark’s social media/marketing growth is built around a social media strategy that has employed great success by focusing on increasing customer satisfaction by improving the practical value their retail site.
The Gymshark strategy will aim to efficiently compete to make profits, therefore, by finding direct competitors will help Gymshark to introduce new products as an immediate threat to the competition that will attract success and profitability. The Gymshark strategy is to reflect the beneficial impact of the dangers that the business will draw from competitors, therefore having actions and countering them, said in Wilson (2003) your approach is what you sell and should incorporate specific features to hold the threat from existing suppliers. Therefore, Gymshark will need to have some structural and operational changes in the market. The strategy Gymshark used engaging with the growth and focus of social media channels is made for an opportunity of advertising because the number of followers multiplies and the more followers a circuit has, the more significant the channel become and the more companies want to be an ambassador for that channel.
What is the role social media play in marketing? It is an affordable approach to marketing (Wicks, 2017) and personalises the “brand” (The Balance, 2017). Social media channels are full of ambassadors each ambassador promotes a specific choice of brands. For example, the ambassador for Gymshark cannot be an ambassador for Nike because it would take away the advertisement for Gymshark. However, ambassadors have their own social media strategy and make choices on which, titles they want to wear.
Gymshark’s plan is a redefinition approach to launching a new brand, (Tepeci 1999) noted that to create value through social network interactions labels should suggest alternative strategies for consumer behaviour in computer-mediated and online environments. When YouTube channels begin to grow, they will gather attention from companies, YouTube partners and other brands looking towards them to promote their business.
Gymshark focused on employing YouTubers and Instagrammers ambassadors with a large social media following to start wearing their clothing (Brusin, 2017). Gymshark began with a small distribution part to the ambassadors, in return for free clothing, the Youtubers and Instagrammers agreed to be ambassadors for the company and advertise the product on social media, these individuals would amass large numbers of subscribers and viewers. However, the ambitious plans for Gymshark to begin to target a wider audience will give them the opportunity to showcase product innovations. Over the past three years there has been tremendous growth, since then Gymshark has continuously penetrated the market serving through aggressive social media adverting and marketing, up to date.