Breaking Down Lululemon's $500M Mirror Acquisition

https://insider.fitt.co/issue-no-87-why-mirror-sold/

by Cpevans • 6 years ago

35 26 6 years ago

insider.fitt.co

sambroner• 6 years ago

Reasonable explanation. Seems like $500 million might be over paying for one of many smart mirror workout solutions, but Lulu was already involved and hey... money's free now?

I do think people are really using these things. I've heard from way more friends than I expected that they use and love their workout devices.

For me, I can't quite figure out why it's better than a bike and a tablet, but if it helps you get healthy... so be it.

sradman• 6 years ago

I can't quite figure out why it's better than a bike and a tablet

The mirror part is important I think; people like the feedback, or maybe just looking at themselves.

daseiner12• 6 years ago

the social aspect.

personally, i need to fight to spend more time outside, not less, so it’s not for me, but i see the attraction of being able to compete against celebrities, athletes, and friends on a common platform, plus the classes component.

grawprog• 6 years ago

the company’s five-year strategic plan, released in April 2019, charted the path forward: “double men’s, double digital, and quadruple international” revenues.

Do men actually buy lululemon clothes? I didn't even know they made men's clothes. Honestly, I didn't realize they made anything other than yoga pants and bags with terrible slogans like 'children are the orgasms of life' or some shit like that.

bsder• 6 years ago

I didn't even know they made men's clothes.

Well, anyone using Mirror is now going to see male instructors in lululemon clothes.

So, that's clearly an untapped market, no?

immy• 6 years ago

In my case, I did buy lululemon men's clothes*. I got a gift card via my yoga studio and used it towards a nice men's tech shirt. But then I sprung for some soft and durable boxer briefs. They had a whole wall of fancy shorts with liners, but they don't seem much better in practice than running shorts from other brands. I also once used a voucher for a free Lululemon yoga mat via a charity event.

rel2thr• 6 years ago

Yes, I wear them, they make dress pants you can wear to work but it feels like you are almost wearing athletic pants . Really good product in my opinion

buzzert2• 6 years ago

Lululemon and Nike is extremely popular among men in the Dance Dance Revolution community.

briandear2• 6 years ago

in the Dance Dance Revolution community.

That's a thing? Wow. TIL.

arthurcolle• 6 years ago

They make great clothes. Check out their website. Very comfortable leisurewear

daseiner12• 6 years ago

the men’s “dress” pants are phenomenal - pretty much the only pants i wear, save jeans

shpongled• 6 years ago

My boss recently bought some lululemon clothes and he swears by them now.

csmiller• 6 years ago

Commission Slim pants are quite common in finance.

taylorcooney• 6 years ago

I saw someone wearing them, and I bought a pair the following week. I was surprised to learn when I arrived at the store that they offer free in-house tailoring. My pants fit perfect, for $100 it's a deal.

tootie• 6 years ago

They could easily just spin up a more macho brand.

cwhiz2• 6 years ago

Their ABC Pants are the only pants I’ll buy now. Incredible.

toomuchtodo• 6 years ago

Check out Public Rec’s Men’s All Day Every Day pants. Similar style, $30/pair cheaper.

https://publicrec.com/products/all-day-every-day-pant-inseam...

briandear2• 6 years ago

Their stuff for men is really great.

puppymaster• 6 years ago

I do. They have the nicest fabric on pants. Ditto on the slogans though.

futevolei• 6 years ago

Sure do and I love them. I have some literally 10 year old gym shirts that look almost brand new. I have a hoodie I wear in cool weather and I’ve had athletic pants. So comfortable and so high quality. Def recommend checking it out.

azinman2• 6 years ago

Yes and if you look you’ll see a lot of them worn in SF by finance-y and some tech-y types on the street, and they’re pretty standard in any yoga-type fitness class and often in gyms as well. They make attractive (for its category), sleek, and performative clothes.

fnord77• 6 years ago

this all seems reasonable on paper, but why does it _feel_ like it's going to be a failure?

Maybe I've seen to many instances where a non-tech company tries to run a tech company.

arzt• 6 years ago

Because lulu is judged on earnings and mirror is effectively a saas company that needs to achieve breakaway scale to own its market. My hunch is lulu doesn't have the stomach for the cost of acquisition required to get mirror there.

robbyt• 6 years ago

Because software is an ongoing living thing that needs care and feeding, but clothing is essentially disposable from the business perspective. Two very different models for management to understand.

Most MBA management types are trained to think that software development is like a factory, and that the software developers are like the manufacturing equipment that produce the code your customers buy.

Breaking Down Lululemon's $500M Mirror Acquisition

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