Why Alo Yoga is Beating Lululemon
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- Опубліковано 13 вер 2024
- Alo Yoga is ahead of its time and is beating Lululemon and Nike at their own game. The founders of Alo have utilized a powerful 3-pronged strategy to make everyone from models, popstars and athletes obsessed with the yoga brand. In this video, I dive into Alo's story and key business strategies.
#alo #aloyoga #lululemon #nike #athleisure
- ABOUT PROBABLY SOMETHING -
Hey, I'm Kunal. I'm a Swedish founder in NYC and ex-investment banker (Lazard M&A). You can think of this as my personal business blog, but in video format.
I create videos about finance, business strategy, M&A and mental models to help me better understand our complex business world. Through my work, I've mostly covered tech, media, healthcare, sports and holdcos so those are naturally the topics I gravitate towards.
My goal is to constantly challenge myself to become a better business operator, investor and thinker by studying world class founders, financiers and investors. I hope this channel will help you do the same.
Just sharing what I'm learning along the way and documenting my journey - nothing on here should be considered financial advice.
Feel free to reach out: kun.chauh@gmail.com
-Kunal Chauhan
What will Alo do in 5-10 years when the hype drops off and all these expensive retail leases come up for renewal at rebounded market rates? There is a reason OG Lululemon has pivoted away from yoga; the yoga market primarily consists of a churn of 20-something-year-old women. They already have most of the original yogis, leaving little room for growth. I feel that Alo is just fluff and hype, masking an impending expensive, atypical fashion and retail brand that will have to manage supply chains and costly retail leases like the rest. Alo is already slowly trying to pivot away from yoga, and they haven't even IPO'd yet. While I appreciate their cool branding and the design of their retail spaces, I see a lot of hype and fluff. I'm not sure what the future holds for them once celebrities no longer consider it a cool brand to wear. At least Lululemon is obsessed with technology and quality, allowing them to charge a hefty premium. In my view, this will outlast the idea of "fashion," which is always going to change and shift.
Wow this is a very well made video.great presentation. Subscribed 👍🏼
Thanks man, happy to have you!
Great video as always. Love the new editing style and the in depth research you do.
Thank you, really appreciate the feedback!
@@probsomething in video you said 34 years old in 1992 or at this time? what danny harris year born? sorry for my bad english.
I thought this video had millions of views, this was an exceptional study thank you so much for these insights
Appreciate it, thanks for watching!
@@probsomethingit should be at least 10 million views. High value content
You're too kind!
Really interesting video! I'm biased as a lululemon consumer but I feel that alo represents a lot of gen z/alpha sentiments in that it's primarily focused on digital content/perception/fashion giving me a shallow brand impression. I personally love how lululemon focuses on quality product and function which to me has much more longevity. Anyway, this video was really insightful! Stayed for the whole thing (:
Thanks for watching Jane! Glad you found it insightful. I agree - Lululemon is better off prioritizing technical wear (what made them successful in the first place) over fashion, but it doesn't seem like the easiest thing to do as they try to appeal to a broader and younger audience
Thank u
This was a good analysis. However i disagree they're taking Lulu's market share. Lulu's both sales and gross margin have increased on a y/y basis so I don't think they're actually taking Lulu's marketshare. Dont know about Nike tho