Should Gymshark prioritize expanding its athleisure line or focus on performance-enhancing workout gear?

Introduction

The trade-off question at hand is whether Gymshark should prioritize expanding its athleisure line or focus on performance-enhancing workout gear. This scenario involves balancing lifestyle-oriented products with specialized fitness equipment, potentially impacting Gymshark's brand identity and market positioning.

In my response, I'll analyze the context, identify key metrics, design an experiment, and provide a data-driven recommendation. I'll consider both short-term gains and long-term strategic implications for Gymshark's product portfolio.

Step 1

Clarifying Questions (3 minutes)

• Based on recent market trends, I'm thinking athleisure might be a high-growth opportunity. Could you share how Gymshark's athleisure line has been performing compared to the performance gear?

Why it matters: Helps understand current product mix and growth potential Expected answer: Athleisure showing strong growth but smaller revenue base Impact on approach: Would influence resource allocation and expansion strategy

• Considering Gymshark's brand identity, I'm curious about our target audience. Are we primarily serving serious athletes, or has our customer base expanded to include more casual fitness enthusiasts?

Why it matters: Informs product development and marketing strategies Expected answer: Mix of serious athletes and casual fitness enthusiasts Impact on approach: Would affect product positioning and feature prioritization

• Looking at our supply chain, I'm wondering about our manufacturing capabilities. Do we have the capacity to significantly expand both lines simultaneously, or would we need to choose one to prioritize?

Why it matters: Assesses feasibility of pursuing both options Expected answer: Limited capacity, need to prioritize one line Impact on approach: Would narrow focus to most viable option given constraints

• Considering our current product development cycle, what's the typical timeline for bringing a new product from concept to market?

Why it matters: Helps gauge how quickly we can respond to market demands Expected answer: 6-9 months for new products, 3-4 months for variations Impact on approach: Would influence short-term vs. long-term strategy recommendations