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Can Alo Yoga Persuade Consumers to Pay Couture Prices? 

Premium and luxury are not the same. 

In the world of fashion, premium brands strut their stuff by offering top-tier products that outshine mass-market alternatives, all while keeping prices at a runway-ready level for a wider audience.  

On the other hand, luxury brands tend to feature more inaccessible price points and are targeted for the elite and the fashion-forward affluent crowd. 

Given that premium brands have already nailed the quality aspect, it raises the question of whether they can step up their game by introducing luxury lines and enticing their dedicated clientele to embrace those elevated price points. 

A brand looking to take on that challenge is Alo Yoga

The activewear brand, is introducing a broader range of upscale occasion wear known as Alo Atelier following its aprés-ski collection during New York Fashion Week in September 2022. 

The new collection features 30 pieces using materials like cashmere, silk, and Alo Yoga’s Airlift fabric, launched Thursday (Oct. 19), in time for the holidays. The range includes gowns, vegan faux fur outerwear, and loungewear, with prices ranging from $248 to $1,900. According to the brand, the collection draws inspiration from the world of couture in Paris. 

Consumers interested in this line can find it at three of Alo’s 43 retail locations, in Beverly Hills, Soho in New York City, and Aspen, Colorado. Additionally, the collection is available on the brand’s website. 

“Our design team designs more like a fashion house, but at a very fast pace. As we’re at a higher price point within the athleisure market, we wanted to see how far we could go if there weren’t any cost restrictions to push the brand to create the highest quality product,” said Summer Nacewicz, EVP of creative and brand marketing at Alo. 

Consumer Willingness to Pay More

The success of a luxury line for brands like Alo Yoga will ultimately depend on consumer willingness to pay a higher price. Many consumers are willing to invest in premium products if they see a clear value proposition. The brands must demonstrate why their luxury lines are worth the additional cost. 

To gauge consumer interest, conducting market research, launching limited-edition luxury collections, and seeking feedback from their existing customer base can be essential steps. Price sensitivity, perceived value, and the overall shopping experience should be carefully evaluated. 

With that in mind, while Nacewicz refrained from disclosing specific sales figures for the collection, she did mention that the majority of the 2022 “Aspen” collection was sold out within three weeks. She further noted that the brand’s customers in Aspen, Beverly Hills, and Soho tend to make substantial purchases and are less sensitive to pricing. 

Consumer Sentiment

Although Alo Yoga may have sold out its collection in 2022, luxury retailers in 2023 are witnessing a deceleration, which they attribute to the process of normalization

“There is a slowdown in the U.S., but compared to an absolutely crazy base,” said Michael Kliger, chief executive of luxury eCommerce platform Mytheresa in July. “People got out of the pandemic and went bonkers.” 

Taking this into consideration, if luxury retailers are finding it challenging to retain consumers at the price points they’re accustomed to, how will premium brands like Alo Yoga fare, particularly in a period when inflation is affecting consumers’ financial situations?