The global fitness equipment industry is undergoing a profound transformation. Once dominated by direct-to-consumer digital fitness brands like Peloton and Tonal, the market is now witnessing an unexpected turn: these same tech-driven pioneers are partnering with a traditional manufacturing powerhouse — Johnson Health Tech (JHT) from Asia.

This strategic move marks more than a business partnership; it symbolizes a shift in the very structure of the fitness ecosystem. The boundaries between hardware and software, online and offline, manufacturing and branding, are blurring faster than ever. For Chinese fitness equipment manufacturers, these changes offer both a warning and an opportunity — a reminder to rethink their role, positioning, and long-term strategy in a rapidly evolving global market.

Below is a detailed analysis that explores what Peloton’s and Tonal’s collaboration with Johnson Health Tech reveals about the future of global fitness manufacturing, and what lessons Chinese companies can draw from this shift.

I. Why Peloton and Tonal Turned to Johnson Health Tech

Yesterday, I published a report about Peloton’s products entering Johnson Health Tech’s U.S. retail stores. Today, I just noticed that Tonal, another smart fitness equipment brand in US,  has also announced a similar partnership with Johnson Health Tech (JHT).

Two of America’s most prominent home fitness technology brands—Peloton and Tonal—have both chosen to collaborate with JHT, leveraging its more than 100 traditional brick-and-mortar stores across the United States. A few years ago, such a move would have been unimaginable.

Simply put, JHT has earned its reputation as a powerhouse.

With the cooperation agreement, For Peloton and Tonal, this partnership represents a strategic transition from a purely online direct-to-consumer model to a hybrid omnichannel approach by even working with competitors. Post-pandemic, the home fitness boom has slowed, and an online-only model can no longer sustain rapid growth. JHT’s well-established retail infrastructure in the U.S. now provides an ideal environment for hands-on product demonstration and customer engagement.

For JHT, this cooperation is the culmination of years of deep cultivation in the American market. Through long-term investment, Johnson Fitness & Wellness has become one of the largest fitness-equipment retail networks in North America, with comprehensive newwork for sales, installation, after-sales service, and customer experience. It now stands as JHT’s most significant competitive advantage on the global stage.

II. Market Reflection: Rebalancing Product, Brand, and Distribution

From a market perspective, product, brand, and sales channels form the three core pillars of competitiveness. However, no single company can excel in all three simultaneously.

Peloton and Tonal lead in product innovation and brand influence—the former with its AI-driven Peloton IQ for personalized training, and the latter with its digital strength training and rich content ecosystem. Yet, both brands have a relatively narrow sales channel strategy, relying heavily on online sales and lacking the immersive, in-person experience consumers often seek.

By contrast, Johnson Health Tech, a leading player in both commercial and home fitness sectors, has spent years building a robust offline distribution network. While JHT’s product portfolio may lack the “sex appeal” of Peloton or Tonal, its extensive retail and service network delivers unmatched efficiency and offers a tangible product-experience advantage.

This collaboration perfectly illustrates a timeless truth of the market: success lies in complementarity. In an era of fierce competition, the ability to integrate each other’s strengths—and offset weaknesses—defines who can capture greater market space.

III. From Competition to Coexistence: Cooperation as the New Competitive Edge

Peloton and Tonal’s partnerships with Johnson Health Tech occurred just as the United States announced a 100% tariff hike on Chinese-made products—a stark contrast between zero-sum politics and win-win business logic.

In the business world, a “closed loop” model may deliver control, but isolation stifles growth. Peloton and Tonal’s collaboration with JHT represents an “open loop” ecosystem, maintaining brand and content independence while leveraging a partner’s channel resources to enhance user reach.

Ultimately, those companies that understand their own strengths and limitations—and embrace cooperation to complement others—will be the true winners in the next phase of industry evolution.

IV. Lessons for Chinese Manufacturers: Know Your Role and Position Clearly

While the story of Peloton and Tonal partnering with Johnson Health Tech highlights the retail and branding side of the industry, my professional focus lies deeper — within the fitness equipment supply chain itself. Today, the majority of global fitness equipment manufacturing capacity is concentrated in China, where I have worked closely with hundreds of manufacturers, witnessing their cycles of growth, challenges, and transformation firsthand.

This experience raises an important question: how should Chinese fitness equipment manufacturers reposition themselves as upstream suppliers to adapt to an increasingly fast-changing and competitive international market environment?

In recent visits to several Chinese fitness-equipment manufacturers, I observed a common situation: many factories that once relied on traditional Western brand clients are now facing a sharp decline in orders and under-utilized production capacity. Meanwhile, cross-border e-commerce and emerging DTC brands are thriving, winning customers through agility and marketing innovation.

Factories that have adapted quickly to new e-commerce models are running at full capacity, while those clinging to traditional client bases are struggling. This shift forces a critical question: how should Chinese manufacturers redefine their position and strategy?

1. OEM Manufacturers: Building Barriers Through Cost and Efficiency

For most Chinese fitness-equipment factories, OEM (Original Equipment Manufacturing) remains the dominant model. Their value lies in production stability and economies of scale, serving Western brands focused on lead time, quality, cost, and consistency.

Key competitiveness for OEMs should focus on:

• Cost Optimization: Automate and standardize production, and integrate supply chains to reduce per-unit costs.

• Quality and Process Control: Establish robust quality-management systems and SOPs to strengthen customer trust.

• Flexible Manufacturing: Adapt to smaller, more frequent orders from e-commerce channels with faster turnaround times.

While OEMs may not lead in innovation or branding, excelling in efficiency, cost control, and reliability makes them the “invisible force” behind the global supply chain.

2. ODM Manufacturers: Breaking the Ceiling Through Innovation

Compared with OEMs, ODM (Original Design Manufacturing) companies possess independent R&D and design capabilities, handling projects from concept to production. They often master key component technologies or system integration—such as mechanical design or smart solutions—positioning them as the technical backbone of manufacturing.

To strengthen competitiveness, ODMs should focus on:

• Original R&D Systems: Build cross-disciplinary teams to integrate hardware, software, and design.

• Intellectual Property Protection: Secure inventions and utility patents to safeguard innovation.

• Rapid Prototyping and Mass Production: Shorten development cycles to bring new products to market faster.

However, many ODMs fall into a trap: despite having good products, they fail to find suitable buyers or markets, ending up selling at low prices and reverting to OEM margins. Bridging that “last mile” between innovation and commercialization is critical.

3. OBM Brands: The Long March from Manufacturing to Global Branding

In Asia’s fitness-equipment industry, few have successfully reached the OBM (Own Brand Manufacturing) stage, and Johnson Health Tech from Taiwan is the standout example.

Originally an OEM manufacturer, JHT spent five decades evolving from OEM → ODM → OBM, ultimately becoming a global leader by:

• Creating the Matrix, Horizon, and Vision brand families;

• Establishing global retail and service networks;

• Covering commercial, home, and rehabilitation markets;

• Building a full ecosystem across R&D, manufacturing, and sales.

This journey was long and demanding, requiring sustained investment and global expansion. Yet once brand trust and distribution barriers are established, brand power far outlasts price competition.

V. Strategic Thinking for a New Era: Layered Competition and Precise Positioning

Today’s global fitness-equipment industry exhibits a clear tiered structure:

• Top Tier: International brands dominate with innovation, brand strength, and channel control.

• Middle Tier: ODM innovators leverage technical integration and design capability.

• Base Tier: OEMs compete on cost, reliability, and delivery efficiency.

Many Chinese enterprises today face strategic confusion—trying to do everything: OEM, R&D, branding, and global sales simultaneously. Yet resources are finite. Spreading too thin often leads to mediocrity.

It’s essential for every company to define its role clearly before taking action. Blind diversification can dilute focus and erode advantages.

Sustainable growth requires strategic focus:

• OEMs should perfect operational efficiency,

• ODMs should establish innovation moats, and

• OBMs must prepare for the long road of internationalization.

In the end, competition will no longer be individual battles but ecosystem wars. Those who excel within their segment and forge strong upstream-downstream alliances will be the ones to stand unshaken in the global market.