Vuori's $4B+ valuation is the result of smart moves
March 6, 2023
7 year old performance apparel brand Vuori is suddenly everywhere --even at the NFL Combine last week. How has this digital native brand done it?
3 Strategies:
#1) FOCUS ON A CONSUMER INSIGHT.
Vuori’s founder and CEO Joe Kudla started the brand in 2015, after noticing an unmet need in the men’s activewear market. In a 2019 interview for Sourcing Journal, he explained that he was turned off by the offerings from the dominant players: “shiny synthetics, in-your-face logos and bold primary colors… Gym clothes were almost costume-y.”
Kudla thought there was a growing segment of men who wanted workout wear that “feels casual and easy, while still offering performance qualities like moisture-wicking.” He saw Lululemon offering flexible styles “yoga studio to street” for women, but not for men.
So, Vuori created a more casual “beach inspired” look, flexible enough to go from the office to the gym. And they've stuck to it.
#2) DEVELOP INTELLECTUAL PROPERTY AROUND A POINT OF DIFFERENCE.
For the Vuori team, the fabric feel, quality and performance is the focus, the true point of difference. As the Sourcing Journal article points out, “Vuori spends a lot of time developing fabrics and incorporates some proprietary textiles into its collections.” Vuori’s tops, bottoms, jackets and more heavily rely on polyester fabrics developed to have the “tactile hand, and look and feel like a natural,” Kudla explained.
In my estimation, it looks like Vuori is boldly pursuing fabric innovations, while many apparel brands are battling (and increasingly litigating) over bold styles. It’s worth noting, by the way, that Vuori has moved to trademark several proprietary fabrics including for example, the names VERSA LIFE, DURA TERRA, and DREAMKNIT.
But from a customer perspective, Vuori simply has “ridiculously soft” and highly durable fabrics. This is why the brand has been called “the Uber of loungewear.” And it’s why elite fitness training firm Exos had all of their competing athletes wearing Vuori at the 2023 NFL Combine last week.
#3) BUILD A STRONG CULTURE BY INVESTING IN SOCIAL VALUES AND SUSTAINABILITY.
Lastly, Vuori has pursued these product strategies while also investing heavily in sustainability and ethical business practices. Built into the Vuori business model is, for example, heavy use of recycled materials, avoidance of unhealthy perfluorinated compounds in waterproofing, and investing in partnerships to offset carbon and plastic footprints.
Ultimately, the combination of these 3 strategies has positioned Vuori for continued growth in a hypercompetitive category. So when you see this brand at your gym or on a Zoom call, now you know why.
#apparelbrand #consumerinsights #sportsmarketing #intellectualproperty #sustainability