weightwatchers running scared

Lichent

I do wonder if weight watchers is going the same way as the video store, blackberry and Detroit.
Then there is the Men who Made us thin Part One which clearly spoke to the limited success these companies have.

http://gigaom.com/2013/08/20/how-the-quantified-self-movement-has-weight-watchers-running-scared/


Over five decades, Weight Watchers has become synonymous with weight loss. But for a new generation of smartphone-toting, gadget-loving dieters, the process of shedding pounds doesn’t come through in-person meetings and weekly weigh-ins, it comes from an app.

The company has made efforts to keep up with the times — through a digital subscription service that lets people look up calories, search for recipes and track their progress on the web and mobile devices and with its own activity tracking gadget. But, by its own admission, it hasn’t been able to stem the tide of dieters who’d rather use free mobile apps than Weight Watchers’ premium services.

Commenting on the company’s declining earnings, the company’s CFO Nicholas Hotchkin said earlier this month, “We feel that some of that is driven by the continued sudden explosion of interest in free apps and activity monitors.” The company declined to comment for this story.

New competition for weight loss industry stalwarts
In the past few months, it’s become especially clear that new apps and gadgets are indeed taking off as traditional weight loss companies like Weight Watchers and Jenny Craig struggle to reach new customers. Just this month, calorie- and exercise-tracking app MyFitnessPal and activity-monitoring startup Fitbit (see disclosure) both raised significant funding rounds from investors and released new milestones. Meanwhile, Weight Watchers replaced its CEO amid declining profits and Jenny Craig announced a new marketing strategy after disclosing underwhelming financial results.

Part of the problem, as some industry watchers see it, is a familiar story: Weight Watchers, which celebrated its 50th year in March, has gotten a little too comfortable as the “800-pound gorilla” in its field.


Part of the problem, as some industry watchers see it, is a familiar story: Weight Watchers, which celebrated its 50th year in March, has gotten a little too comfortable as the “800-pound gorilla” in its field.

“I think they rested on their laurels a bit,” said Morningstar analyst Pete Wahlstrom.

Its online business, which charges users $19 a month after a $30 sign-up fee, had been doing well for several years, he said, but instead of investing in it and innovating, they used it as a cash cow. Over the years, the growth of free apps with similar services, like those from Noom, Azumio and Lose It!, has made it increasingly difficult for the company to differentiate and compete.

Online customers can get social support through Weight Watchers’ message boards. But, by and large, the company doesn’t take advantage of video conferencing software, remote monitoring technology or other new technology that could provide dieters with social support that’s personalized and private, but still allows for community and accountability.