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Peloton, Lululemon Partner on Content as Mirror Gets the Ax
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Peloton, Lululemon Partner on Content as Mirror Gets the Ax

Once competitors, Peloton and Lululemon have entered a five-year global strategic deal centered around content and apparel

After abandoning the connected fitness ship and pivoting to app-based experiences, Lululemon and Peloton have teamed up in a five-year global partnership to reach a combined 20 million members and guests. Lululemon is also finally shutting down its connected fitness Mirror, which it will discontinue before the end of the year. 

The news has caused shares of Peloton to soar despite recent issues surrounding recalls and a decline in subscribers.

As part of the deal, Lululemon will become Peloton’s apparel partner, and Peloton will create exclusive digital fitness content for Lululemon Studio starting early next year.

Times have clearly changed for both companies, especially in terms of apparel. In 2021, Lululemon accused Peloton of patent infringement regarding its apparel designs. The two ended up negotiating a mutually agreeable settlement last year.

The partnership could prove lucrative, allowing each company to focus on its original core ambitions: Lululemon with its popular apparel and Peloton’s expertise in fitness. Each had tried to push into the other’s lane, which didn’t take off for either company. 

Mirror, Lululemon’s $500 million attempt at connected fitness, ended up underperforming, resulting in a $443 million impairment charge. Despite offering it for sale at a steep discount, Lululemon has reportedly been unable to find a buyer for Mirror. Lululemon Studio, the brand’s digital fitness unit, felt the effects, with 100 Studio employees receiving pink slips this summer. 

Peloton, on the other hand, slashed its sales projections for its apparel line in 2022. 

credit: Lululemon

Now, the apparel and fitness giants plan to engage their global communities with technical athletic wear, real-life experiences, special programming and original content in the U.S., Canada, the U.K., Germany and Australia. 

The deal also sees some select Peloton instructors becoming Lululemon ambassadors.

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“We’re excited to collaborate with Peloton to connect with our highly engaged communities across North America and in markets around the world,” said Celeste Burgoyne, president of the Americas and global guest innovation for Lululemon. “As a leader in technical athletic apparel, this partnership will create a powerful product offering for Peloton members and fans. Our two companies share a vision to advance well-being through movement, and this partnership ensures our Lululemon Studio Members will have access to the most expansive and dynamic offering of fitness content possible.”

Starting October 11, 2023, Lululemon’s co-branded apparel product lines will be available at Peloton’s retail stores and online in the U.S., U.K. and Canada before becoming available in all five of Peloton’s global markets by March 2024.

The apparel will launch over three new events during Peloton on Tour, debuting during an activation in Chicago starting on October 5. 

On November 1, all-access members of Lululemon Studio will be able to access Peloton’s classes as Lululemon ends its digital app-only membership tier. Content will be updated weekly on the Studio device and app, with new Studio content produced by Lululemon through spring 2024. Those who sign up for Lululemon’s free Essential membership program can also access exclusive Peloton content.

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