Alo Yoga is preparing to enter the Chinese market, aiming to compete directly with Lululemon (LULU, Financial). The brand has hired former Arc'teryx VP Aurora Liu to lead its China team and plans to open its first store in 2025. This move offers Chinese consumers an alternative to Lululemon's yoga apparel, which has seen significant growth in China, with a 40% increase in revenue.
Alo Yoga, founded in 2007, has rapidly expanded from $200 million to $1 billion in sales between 2020 and 2022. In North America, Alo Yoga has been gaining ground, with 63% of its consumers overlapping with Lululemon's. The brand's appeal to the younger "IT girl" demographic contrasts with Lululemon's focus on the "super girl" elite.
Despite challenges like counterfeit products, Alo Yoga is set to capture a share of China's lucrative market, already popular on social media platforms like Xiaohongshu.
