Why did Lululemon acquire a display startup?

Sportswear brand Lululemon acquired Mirror, a sports-related display startup. The acquisition amount was $500 million.

Lulu Lemon is a popular brand that is sometimes called Apple in the apparel industry. Mirror is a sports-related display startup, and it is a large reflective display that reflects the state-of-the-art fitness content enjoyed at home and exercising while watching it. The display costs about $1,500, and you can purchase content or attach a personal trainer for distance training from a famous trainer.

It is quite eye-catching that a fitness apparel brand has acquired a startup with hardware and content. Lululemon said it expects the acquisition of Mirror to increase loyalty to the company’s community and strengthen the relationship between customers and members.

In addition, it can be said that business diversification is expected to be strengthened through this acquisition. This can be seen in the home fitness industry, which is experiencing increased sales, as opposed to the apparel industry, which lost sales through stay home. In fact, Mirror’s sales this year are expected to be $100 million, and as it is expected to turn into a surplus next year, it may be helpful when companies with different fields face new challenges like Corona 19 in the future.

In addition, Lulu Lemon and Mirror can expect a positive effect in that they have the same keyword of fitness while being a completely different business. It is said that Lulu Lemon, who has a passionate mania, can be an opportunity to diversify management without damaging its image. Related information can be found here .