October 3, 2022
Starting October 5, fitness gear company Lululemon will temporarily cut the price of its Mirror home-fitness device by roughly 50%—taking the price down to $795 as it works to build interest in a new studio membership platform, the company announced on Wednesday, September 28, reports Business Insider.
The company first unveiled the plan for a membership program linked to Mirror at an analyst day in April. On Wednesday, it offered new details about the platform, which it’s calling Lululemon Studio, including a launch date that coincides with the Mirror sale: October 5.
According to Business Insider, for $39 a month, members will have access to more than 10,000 online classes. They’ll also get a 10% discount on Lululemon merchandise and discounts on in-person classes at studio partners including Pure Barre, Rumble, and YogaSix.
Lululemon also will launch a free membership program on October 5 that will offer shopping rewards, free access to select Lululemon Studio classes, and early access to product drops.
Lululemon executives said the platform will help the company to serve its customers more flexibly.
“Our guests’ fitness needs have evolved and Lululemon Studio is solving for them by providing members with access to fitness content from our world-class trainers and studio partners at home, on the go and live in studios around North America,” said Chief Brand Officer Nikki Neuburger in a news release.
Analysts weren’t immediately sold on the plan given the struggles of other connected-fitness companies.
“Increasingly, it seems publicly traded companies are making the pivot to content over equipment,” said Simeon Siegel, a BMO Capital Markets managing director, in an email to Business Insider. But he questions whether companies can do both content and hardware at the same time.
“Like all companies, connected-fitness operators should focus on what makes them special. If it’s the equipment, great. If it’s the content, fantastic,” Siegal said. “If it’s both, make sure to value and price both accordingly. But that is rare. And being true to who they are is difficult, but key.”
Lululemon acquired Mirror in July 2020 for $453 million. At the time, company insiders were skeptical about the technology, calling it “buggy” and wondering how it fits into Lululemon’s long-term growth strategy.
At the April investor day, Michael Aragon, Lululemon Digital Fitness CEO, said Mirror is a natural fit for the company’s business plan.
“Our goal is to build a platform that connects Lululemon guests, who want to live healthier lives,” he said. “The goal is simple: Be the go-to platform for fitness and wellness.”
Research contact: @BusinessInsider