B2B D2C Hybrid Channels

TRX built a successful business by combining B2B and direct-to-consumer channels, creating a premium fitness brand with multiple revenue streams.

Core Business Model Evolution

• Started as B2B focused company selling to gyms/trainers
• Expanded to become omnichannel distributor
• Built strong brand recognition in professional space first
• Later leveraged professional credibility for consumer market

Revenue Streams

• Physical Products

  • Suspension trainers and equipment
  • Sells to both commercial facilities and consumers
  • Products known for exceptional durability

• Professional Education

  • Provides continuing education credits (CECs) for trainers
  • Developed comprehensive training programs
  • Helps trainers achieve mastery with products

• Distribution Channels

  • Commercial/B2B sales to gyms and facilities
  • Direct-to-consumer through website
  • Amazon marketplace presence
  • Inside and outside sales teams
  • Paid advertising to reach gym owners

Business Model Advantages

• Professional credibility transfers to consumer market

  • Trainer endorsement builds consumer trust
  • Creates natural product evangelists

• Multiple revenue streams provide stability

  • Physical products
  • Educational content
  • Professional services

• COVID-19 Impact

  • Saw massive D2C growth when gyms closed
  • Existing gym users converted to home customers
  • Demonstrated value of hybrid model during crisis

Challenges

• Supply chain management for physical products

  • Inventory forecasting difficulties
  • Stock-out risks during demand spikes
  • Long-term durability affects replacement sales

• Digital vs Physical Balance

  • Digital has better margins but more competition
  • Physical products provide tangible value but logistics challenges
  • Optimal approach combines both channels