Lululemon Digs Deeper into Digital Experience with Mirror Acquisition

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Lululemon Digs Deeper into Digital Experience with Mirror Acquisition

By Lisa Johnston - 07/06/2020

Lululemon Athletica is acquiring in-home fitness platform provider Mirror for $500 million as it further builds out its digital experiences.

Mirror, which launched in 2018, offers live and on-demand digital fitness classes and personal training accessible through a $1,495 smart mirrored display.

The acquisition will help Lululemon create more interactive, in-home customer experiences, and is expected by Lululemon to generate more than $100 million in revenue in 2020. Lululemon made an initial investment in Mirror in mid-2019, and this acquisition will further the content creation partnership between the brands.

The deal is also anticipated to amplify Lululemon’s brand ambassadors and establish product integration opportunities. Mirror founder and CEO Brynn Putnam is a former Lululemon brand ambassador.

The fitness startup will operate as a standalone company within Lululemon.

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Like many apparel companies, Lululemon faced significant declines when it was forced to temporarily shutter its retail stores in order to help slow the spread of the coronavirus. Although its e-commerce comps increased 70% in the first quarter and its direct-to-consumer net revenue grew 68%, sales still declined 17% compared with the prior year. E-commerce contributed to more than half (54%) of its total revenue during the quarter.

However, the company is still faring better than many of its apparel counterparts. Like other athletic and athleisure brands, such as Nike, it’s looking toward digital engagement as a way to serve its customers who are more eager to hunker down at home than enter a gym.

Even before the health crisis, the company was investing in its digital capabilities — refreshing its website and app — and exploring more experiential retail experiences. COVID-19’s onset accelerated its efforts, and the company rolled out a series of online customer engagement offerings, including virtual shopping help.

Retailers and organizations have a unique opportunity to create a digital experience where the consumer feels known and valued based on contextual information like user activity and shopping patterns

A store’s internal culture is inseparable from business results, and the best-run stores have one thing in common: effective and harmonious communication within the organization.

There’s no doubt this may be the strangest back to school season on record. As class supply lists hit parents’ inboxes, many are still debating if they will even send their children into the classroom this fall. However, as the COVID-19 pandemic continues to threaten the normalcy of purchasing paper and pencils, there’s still time for retailers to ramp up their back to school promotions.