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Home / Business

Adidas, Asics, Under Armour spend $1 billion on fitness apps

By Olga Kharif
Bloomberg·
19 Feb, 2016 12:30 AM2 mins to read

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Fitness brands have been aspiring to have a relationship with the consumers and establish an ongoing relationship. Photo / Getty Images

Fitness brands have been aspiring to have a relationship with the consumers and establish an ongoing relationship. Photo / Getty Images

Alongside sneakers, gym shorts and yoga pants, sportswear brands are adding one more must-have to their list of products: workout apps.

Unlike Nike, which has been developing its own running and sports apps for years, rivals have taken to acquiring startups to stay relevant among gym rats who want to quantify their every step, jump and calorie burned. The latest is Asics, the Japanese apparel maker that said it acquired Runkeeper last week for $85 million.

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Under Armour kicked off the buyout frenzy in 2013, when it spent $150 million for MapMyFitness. Then in February 2015, Under Armour said it bought Endomondo for $85 million and MyFitnessPal for $475 million. Adidas snapped up Runtastic in August, giving the software company an enterprise value of 220 million euros ($239 million).

Jason Jacobs, the co-founder of Runkeeper, said sports brands recognize that apps can help them connect with their customers on their daily runs, not just when they walk into a store.

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"The fitness brands have been aspiring to have a relationship with the consumers early and establish an ongoing relationship with consumers," he said.

That strategy can build more loyalty with customers, and buying an established app offers clothing and footwear companies a quicker way onto the market than building from scratch.

Runners will be more loyal to the brand if it also has all your stats. Imagine the hassle to switch the data from one app to the next.

"People want to be connected, track their stats, update their records," said Roger Entner, a technology analyst at Recon Analytics.

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Roger Kay, an analyst at Endpoint Technologies Associates, said the shopping spree for fitness likely isn't over.

There are still plenty of apps out there without a brand allegiance, including Fitness Buddy, Lose It!, Couch to 5K, LogYourRun, and Map My Tracks. "There will be a lot of consolidation," Kay said.

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