Lululemon plans to end sales of its Mirror device in 2023. It’s a fitness device that streams workout classes. They have partnered with the well-known workout brand Peloton to ensure a smooth transition. This move aligns with a five-year partnership with Peloton. Thus, Lululemon is effectively shifting away from direct involvement with digital fitness programs. For the athletic gear manufacturer, this represents a significant shift in strategy.
In this article, we learn more about how and why Lululemon has decided to discontinue its Mirror device.
The rise and fall of the Mirror
A mirror is a device that resembles an ordinary mirror that you would hang on your wall. However, when turned on, it may display both live and on-demand workout classes. It’s like having a workout coach in your home.
During the pandemic, everyone remained at home. Many people began working out at home because they could not go to the gym. Companies like Peloton grew popular because they provided a method to exercise without leaving home.
Lululemon noticed this trend and decided Mirror would be an excellent addition to their brand. They thought it would succeed since it combined technology with fitness fashionably.
In 2020, Lululemon acquired Mirror for $500 million. The Mirror is an innovative fitness device that resembles a sleek wall mirror and streams training classes. At the time, the acquisition looked optimistic. This is especially true given the pandemic-driven increase in demand for at-home exercise options. Yet, as COVID-19 restrictions were lifted, people returned to gyms and outdoor activities. Hence, the desire for expensive connected fitness gadgets faded.
Mirror failed to get the expected traction. Despite its unique offering, the market for connected fitness devices has become crowded and competitive, with major brands, including Peloton, Tonal, and Hydrow. It was becoming harder for Lululemon to stand out from the competition in the market, which was dominated by well-known companies with sizable subscriber bases.
The strategic partnership with Peloton
In response to these challenges, Lululemon has teamed up with Peloton to handle its departure from the connected fitness sector. This five-year partnership will be announced in late September 2023. It would make Peloton the official digital fitness content provider for Lululemon. In exchange, beginning October 11, 2023, Peloton would sell Lululemon co-branded clothes in its shops and online.
The key features of the partnership include:
- Peloton’s extensive catalog of fitness classes will be integrated into Lululemon Mirror devices and the Lululemon Studio app. This integration ensures that existing Mirror users continue receiving fresh and exciting content. This is applicable even if Lululemon discontinues hardware support.
- Peloton will sell Lululemon-branded clothes, building on the company’s reputation for high-quality sports attire. This collaboration aspect fits Lululemon’s primary specialty in clothes and adds value to Peloton’s product line.
- The companies will co-host in-person community events. Thus, they bring their communities together and encourage more significant interaction with their combined audiences.
Effect on Lululemon’s digital fitness strategy
Lululemon’s decision to quit the connected fitness business reflects broader shifts in the industry. As the pandemic passed, the demand for at-home fitness solutions decreased, placing pressure on companies that had made major investments in this sector. Mirror proved to be a strategic mistake for Lululemon, resulting in a $443 million impairment charge related to the transaction.
Lululemon’s agreement with Peloton allows the company to refocus on its core athletic gear and accessories expertise. It also continues to provide value to its existing digital fitness clients and profit from Peloton’s strong position in the sector. In the meantime, it avoids the ongoing costs of hardware development and content production.
Support for existing mirror users
Lululemon is returning to its original focus of producing athletic apparel and accessories. Thus, it is leaving the hardware side of the fitness industry behind. However, they will continue to support the devices for existing users, so if you have a mirror, you can still get help and updates.
Lululemon will continue to offer services and support for mirror devices. The firm has committed to maintaining its functionality by integrating Peloton content. Thus, it ensures that current Mirror owners do not end up with outdated equipment. This strategy reduces problems for current customers and provides them with time to explore alternative fitness options.
Thus, if you use a mirror, your device will still work. You will continue to receive new fitness classes from Peloton via your Mirror device. However, Lululemon will only create new content in early 2024.
Conclusion
Lululemon’s decision to discontinue Mirror and collaborate with Peloton is a wise approach. It allows them to focus on what they do best: creating incredible sporting apparel. Mirror users will not be left hanging. They will receive Peloton content to keep their devices active.
This shift shows how crucial it is for fitness companies to be adaptable. Companies must adapt to their customers’ changing desires and habits. Working together allows Lululemon and Peloton to provide more to their customers while remaining competitive in a changing industry.
In summary, Lululemon has left the mirror business and is partnering with Peloton to improve things for everyone involved. It benefits both the companies and their customers.
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