Lululemon Athletica, known for its trendy line of yoga clothing, wants to stretch out its reach into new markets. The company has announced that it’s buying Mirror, a startup that sells a digital screen-mirror-device and accompanying subscription to guide home gym workouts and general fitness. Lululemon is paying $500 million for the new acquisition.
Mirror is one of a new breed of home gym devices that sells itself on a personalized, socialized experience for fitness. The $1500 device hides a vertical screen behind the mirrored glass, so users can watch coaches giving them exercising instructions as they mind their own form and movement in the reflection. Naturally there’s an accompanying app for fitness tracking and working out away from home. Like Peloton and similar competitors, most of Mirror’s advanced functionality requires a subscription: $39 a month.
Mirror’s advertising targets the well-to-do, those who can afford to sink a couple of mortgage payments into what’s essentially a TV that only shows fitness programs. It tracks with Lululemon, whose famous yoga pants average more than $100 a pair. Lululemon has been branching out into shoes and more general men’s and children’s apparel, all still focused on athletics and athleisure with the brand subtitled “technical clothing.”
Though it’s gained a devoted following of users and quite a bit of praise from reviewers since its launch last year, in Mirror has yet to turn a profit. Lululemon should be able to boost both economy of scale in the gadget’s production and expand its profile even further, promoting the gadget in its stores and advertising clothing on the Mirror itself.
Source: New York Times