The $10Bn It-Girl Brand

Last week, it was reported that Alo Yoga, an athleisure brand, was exploring an investment that could value the parent company at $10Bn. According to the report, the brand generated over $1Bn in revenue in 2022, doubling the size of the business YoY. Even if a deal happens at a discount to the headline price, it would cement Alo as the latest darling of the consumer world – earning its spot among the likes of Skims, Vuori, Prime, Celsius, Birkenstock, and Oddity. Consumer is so back!

But perhaps more interesting than the valuation is how Alo got there: influencers. Early followers of the brand will remember that their initial marketing strategy involved enlisting well-known yogis and instructors into their ProProgram, dressing them in Alo, featuring them in marketing materials, and encouraging them to spread the Alo gospel of mindfulness and movement. And like any digitally savvy brand, they capitalized on their highly recognizable products, ensuring they were photographed on the likes of Kendall Jenner and Gigi Hadid. Any millennial will remember the chokehold the Alo ribbed moto leggings had over their friend group.

On the heels of this early success, Alo expanded its network from just yogis and traditional celebrities to popular lifestyle influencers, like Alix Earle. Alo’s seamless penetration into the influencer sphere has been so well-executed, it’s at times impossible to tell what is paid marketing and what is not. It just seemed to be what every it-girl (and guy) was wearing.

Alo didn’t stop there…they doubled down. They launched (heavily) branded fitness/wellness centers in New York and Los Angeles, complete with top-of-the-line private gyms, pilates studios, cold plunges, and saunas. Invite-only for the most influential of creators (as long as they posted, of course), these centers further boosted their relevance among consumers and cemented their influencer-driven growth strategy. And it worked – they grew 100% year over year, reaching $1Bn in revenue in 2022.

People often talk about the death of the creator economy, but, as Kaya at The Information aptly pointed out, the creators themselves seem immune. Influencer marketing is outpacing other formats, and US spend is expected to rise 14% to $5.14Bn next year. Alo isn’t the only brand to deploy this strategy. Revolve was loud about their pioneering of the model, making their influencer strategy well-known not just among shoppers but also Wall Street analysts, as evidenced by their S-1. Established brands (e.g., Tarte) and up-and-comers (e.g., Seed, Armra (iykyk)) alike are capitalizing on the power influencers have to drive growth.

The ascent of Alo is a testament to the enduring power of influencers in an age where skepticism and celebration of the creator economy coexist. Alo has showcased the viability of deliberate and organic influencer marketing as a cornerstone for monumental business growth. This trajectory, mirrored by companies like Revolve, underscores a broader trend: influencers remain a driving force in contemporary marketing, impervious to the proclaimed decline of the creator economy and still capable of commanding significant consumer attention and investment. Alo Yoga, through mindful marketing and strategic influencer engagement, has emerged not just as a brand of the moment, but as a blueprint for success in the modern consumer landscape.