Yoga Enterprise

Oming In On Lululemon With Digital And Kids’ Offerings

Alo Yoga’s business has legs as it aims to double its locations this year.

By Heather West

How do you compete for designer yoga leggings in a crowded market? Try adding sheer fabric to reveal strips of tinted flesh. offer ribbed or reflective details or a bold red plaid.

Or, open up experimental retail locations with kombucha on tap, yoga classes, and the promise of a like-minded community.

You can also add subscription fitness videos, including Peloton, and the sightings of Kendall Jenner wearing your product. And don’t forget about children, the next generation of yogis.

Or you can do all of the above. Meet Alo Yoga.

NEW YORK, NEW YORK – FEBRUARY 5: A general view of the atmosphere at Flow Into Fashion Week hosted by … [+] Delilah Belle Hamlin with Biossance & Alo Yoga on February 5, 2019 in New York City. (Photo by Craig Barritt / Getty Images for Alo Yoga & Biossance)

Getty Images for Alo Yoga & Biossance

The Los Angeles-based premium yoga apparel company has been around since 2007 but aims to double its presence this year. New stores are planned for the largest markets: Los Angeles and New York.

To build its brand awareness, Alo Yoga has invested in content and acquired the Seattle-based yoga app Cody in 2018, rebranding it Alo is movingand turn it into a subscription business. The device offers online videos on yoga, fitness, and meditation.

“The future is in terms of content,” says co-founder Danny Harris, who does not rule out additional acquisitions.

Alo Yoga was founded by Co-CEOs Harris and Marco DeGeorge and continues to be wholly owned by the two executives who have been friends since their youth.

There are currently six physical stores, and by the end of 2020 there should be up to seven in Southern California and four or five in New York. A store under construction on New York’s Fifth Avenue will be 20,000 square feet with a rooftop restaurant.

It’s in good company. Many digitally indigenous brands are reportedly taking advantage of retail weakness and opening stores.

Harris says the Alo shopping experience should be immersive, much like the walk way Recovery hardware “Inspires you to explore your designs,” then return home and shop online.

Other major manufacturers of yoga apparel are Lululemon Athletica and gap’s athlete Brand.

“All of our competitors are focused on fitness and the products look like you just got back from hitting some tennis balls.” According to Harris, Alo products should be carried from the studio to the streets and should be more fashionable.

Meanwhile, yoga clothing for children is expected to grow at an average annual growth rate of 7.5% through 2025. Alo Yoga took note of this after a charitable foundation called Alo there this aims to encourage children to take up yoga. The website offers free 5-minute videos showing children the benefits of yoga and meditation.

“When we were kids, Apple gave us Apple IIes to use.” Now it has the largest market cap in the world. “He continues,” We’re doing exactly the same thing. “

“We inspire people to get started,” Harris says of social media, a free YouTube channel, Alo Moves, its retail stores, and other digital outlets.

He admits the clothing isn’t cheap, but says that there are other ways to access their brand for those who can’t afford to spend more than $ 100 on leggings. The leggings are “fuel for our megaphone,” he says.

While Alo Yoga doesn’t release financial data, sales are near $ 200 million, according to Harris. Between Black Friday and Cyber ​​Monday alone, sales were around $ 40 million. It also has high margins, which is supported by the fact that Alo Yoga is vertically integrated and has its own manufacturing facilities.

Alo Yoga is one of several companies under the umbrella of Color picture clothingThe company was founded in 1992 by Harris and DeGeorge. Sales are over USD 800 million. Other companies within the holding are: Bella + canvaswho makes wholesale t-shirts; and maternity makers Ingrid + Isabel.

While Alo Yoga does not require outside funding, it could consider bringing in an investor or partner to help expand into Asia or gain experience in the inpatient or other areas. The EU is also on the radar, he adds.

According to Harris, the company is often turning away from private equity investors as Alo Yoga is focused on a longer-term plan for its brand that could include a public listing in five to seven years.

Given the growing interest from Apple, Alphabet Google aTech giants, along with others in the health and wellness sectors, are “just the ones we work with or who we can acquire as investors,” he adds.

Heather West is Senior Editor for Mergermarket and Deal Reporter in America. She is based in San Francisco and can be reached at heather.west@acuris.com.

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