On Monday, lululemon, a fashion and fitness industry company, announced that it would buy mirror for $500 million to get into the hardware business.Mirror is a start-up company known as mirror (about $10567).During exercise, mirror users can watch streaming media videos and complete corresponding fitness actions.
Data map (from mirror)
In an interview with the New York Times, lululemon CEO Calvin McDonald said the acquisition was aimed at strengthening community loyalty and the company's relationship with its member customers, and he was optimistic about mirror's profit model.
It is estimated that mirror's revenue in the year will exceed $100 million, reach break even, or be profitable in 2021. It is not hard to guess why mirror was acquired during the special period of covid-19 popularity.
It is reported that during the epidemic period, shops were forced to close for several months, and the retail industry suffered a severe economic winter, which led to many people's unemployment.
However, even though lululemon's net sales fell 17% in the last quarter, online sales increased by 70%, and there is still a high demand for home fitness solutions.
By acquiring mirror and combining hardware and software with retail, lululemon can strengthen its business scope.