How Joe Kudla & Vuori team made a dent in the athleisure market across the globe?
Road to $4 billion valuation
Let's kickstart this newsletter by learning about opportunities in the athleisure apparel market
The global athleisure market size is anticipated to reach USD 350.08 billion by 2023 and grow at a compound annual growth rate(CAGR) of 9.1% from 2023 to 2030. Over the projection period, increased passion for sports and outdoor recreational activities among the country’s young population is predicted to fuel demand for athleisure gear.
One of the primary aspects driving this trend is a rise in consumer fitness and health consciousness, which is generating the demand for comfortable and fashionable clothes. The COVID-19 pandemic has drastically altered the yoga landscape around the world. Yoga studios, gyms, health clubs, and other locations where in-person group yoga lessons were held were shut down or temporarily closed on a global scale as a result of the lockdown measures.
However, the shift from in-person sessions to online platforms supported the market growth.
Some of the prominent companies operating in the global athleisure market include:
Hanes Brands, Inc.
Adidas AG
Vuori
PANGAEA
Under Armour, Inc.
Outerknown
EILEEN FISHER
Patagonia, Inc.
Wear Pact, LLC
Lululemon Athletica
But there is one story that stands up due to the speed at which they captured the market.
Vuori was Joe Kudla’s third startup. But what paved the way for him to be the right person to kickstart and scale Vuori?
Graduated University of San Diego from which he graduated in 2000.
Kudla took on various modeling jobs for brands such as Dolce & Gabbana, living between Italy, Germany, Spain, and New York City.
In 2002, Kudla joined consulting firm Ernst & Young (EY) as an auditor and did till 2005. Same year he joined San Diego-based recruiting firm Vaco as a partner.
Marked by years of long office hours, his back would often trouble him.
Why Vuori?
Following the advice of a friend he started attending Yoga classes, where he soon began to notice the kind of clothing people were wearing. Taking cues from Lululemon and Patagonia, he saw a gap in the marketplace for a brand catering specifically to men and so Vuori was born.
Named after the word for “mountain,” the brand reflects the founder Joe Kudla’s passion for mountain climbing.
Launched brand in 2015
With a little help of USD 700K funding from institutional investors, Vuori launched as a California-inspired lifestyle brand. Vuori makes premium performance apparel inspired by the active Coastal California lifestyle; an integration of fitness, surf, sport, and art. Breaking down the boundaries of traditional activewear, they are a New Perspective on Performance Apparel.
Initial hurdles
In the first year, Vuori had to generate awareness primarily selling through yoga studios and gyms but soon they were running out of money since bringing in cash to the business started becoming a problem.
Men simply did not want to shop for clothes before or after their yoga sessions
Soon Joe realized they need to shift into a Direct to Consumer Model.
Invest in selling online, bring in more eyeballs through advertising, and build a brand.
What paved Vuori’s growth?
1) Take feedback from customers
Joe was really obsessive about finding out whether his initial SKUs were loved by his customers. Soon he realized, his target audience was less focussed on yoga and more on active sportswear.
2) Right hiring
He also recruited industry veterans to help grow the brand, including Luis Alvarez, who had previously worked for Asics and Nixon Watches and Rebecca Bray who previously worked for surf brand Rip Curl.
Within months, the company saw $2 in sales for every dollar spent on advertising
3)The BIG Wholesale Break :
In 2016, Vuori joined REI’s incubation program, which would feature various legacy and emerging brands. Vuori became the number 2 brand across many of REI’s stores and was introduced in 150+ physical locations
Vuori was able to get national distribution after inking a partnership with retail giants Nordstrom and REI, which allowed its products to be sold in more than 150 physical retail locations.
4) Investing heavily in building a raging Facebook Audience
They started a campaign called #therisetheshine.
Philosophy was to inspire people to wake up in the morning, face their challenges, overcome them during the sunshine, and rule the day.
Very simple campaign but the execution was top class.
They partnered with athletes, gyms, trainers, fitness influencers, surfers & yogis to start this campaign.
This has been an ongoing campaign even to date.
4) By the end of 2017
Profitability kicked in. Vuori was being sold in over 600 retail stores including Segal, Equinox, and Paragon Sports.
5) In 2018 after leveraging its retail partnerships, Vuori opened two stores in Manhattan Beach and San Francisco in addition to its store in Encinitas. Strategically, they opened them based on where Vuori’s customers most resided.
6) Testing waters of advertising
In January 2019, Vuori went on the offense and created a national advertising campaign to raise awareness for its female clothing line.
And more continued over the years
It also invests a healthy amount of its budget in Facebook, Instagram, TikTok and launched several out-of-home billboards. Check out their facebook ads here .
7) Building Customer happiness
The brand invests in highlighting its robust sustainability practices and promotes a free returns policy to new shoppers.
7) Robust Community Program
The best way to grow a brand is to create ambassadors who understand your key values & partner up in your mission , make it their own and grow your brand.
This is exactly what happened to Vuori.
A sea of folks all around the world came in
To host classes in their activ club group
Share about their products
Make money through an affiliate program
Get access to local sessions to invest in their happiness ( Both physically & mentally )
FutureThe athleisure market is set to grow by over $150 billion globally by 2025, validating that a massive opportunity, not only in the U.S but also internationally.
Vuori seeks to expand its U.S. retail footprint to over 100 stores by the end of 2026.
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