Lululemon drops $500M for futuristic home fitness Mirror — LULU+ could be next
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Call it flexible hardwear... Or the protagonist of a Black Mirror episode. Lululemon has made the leap from fitness wear to fitness hardware. In its first acquisition ever, Lulu has snatched up home exercise startup Mirror for $500M. Mirror calls itself "The Nearly Invisible Interactive Home Gym." Here's why...
- For $1.5K, you get a sleek vertical TV that's also reflective (hence, "mirror"). It's kind of like a Peloton for your wall (but without the bike... just the screen).
- For $39/month (which you have to pay, if not it's literally just a mirror) you get access to live classes with trainers and on-demand workouts. Also: one-on-one live personal training via camera (you pay per class).
- During lockdowns, home fitness soared. Peloton sales jumped 66% last quarter, and its stock more than doubled in the past 3 months. Lulu wants in on the hype because...
Retail isn't dead... bad retail is. As its stores reopen, Lulu can lure customers back with cool Mirror experiences. Imagine: Mirrors installed in Lulu's 25K sq ft Chicago store offer personalized workouts while you try on new leggings. Or: your Mirror at home lets you purchase your yoga instructor's Lulu top directly from the screen.
The most powerful use case could be LULU+... In addition to providing a more diversified biz model, the Mirror acquisition could be key to strengthening the Lulu "community."
- Lulu has tested a loyalty program where members (who pay $100+ fee) get special benefits. Think: limited edition products and free expedited shipping.
- Mirror could be incorporated to create a more attractive premium membership offering. Think: discounted Mirrors and free member-only live workout classes.
- A Soul Cycle-style community could emerge for Lululemon fans thanks to a Mirror integration (along with recurring monthly revenues for Lulu).