Mirror Founder Brynn Putnam on Lululemon & Selling Too Soon

Brynn Putnam has much to be optimistic about. A graduate of Harvard University and a former professional ballet dancer who established the first of what would become three high-intensity fitness studios in New York, she subsequently initiated a second venture in 2016. While expecting her son, she discovered a gap in the market while exercising at home – a convenient method to access exercise classes on her laptop or phone. This led to her innovative concept: to integrate mirrored screens, approximately eight square feet in size, into users’ homes, enabling them to participate in a wide variety of streamed and on-demand fitness classes through a monthly subscription of only $39.

Those familiar with the surge in popularity of at-home fitness solutions will recognize these Mirrors as quickly gaining traction among celebrities, who enthusiastically shared their experiences with the product on social media platforms. Putnam’s company also secured approximately $75 million in venture capital funding across several investment rounds. By the close of the previous year, “tens of thousands” of Mirrors had been purchased, according to Putnam, prompting her to consider Mirrors as content hubs potentially offering fashion, facilitating telehealth appointments, and providing access to classes for children and therapy services within users’ homes. As she explained to The Atlantic in January, “We see ourselves as the third screen in people’s homes.”

In June, the company announced its acquisition by athleisure brand Lululemon for $500 million in cash, including a $50 million earn-out. For Putnam, this agreement was exceptionally appealing, allowing her to solidify the future of her company, which continues to operate as a subsidiary. Investors likely welcomed the deal as well, given the swift return on their investment and the competitive landscape, which included a significant player like Peloton in the growing home fitness market.

Currently, the partnership appears to be thriving. Lululemon recently announced the installation of Mirrors in 18 of its 506 U.S. retail locations, including stores in San Francisco, Washington, D.C., and Miami. While Lululemon has not yet begun selling products directly through Mirror, “shoppable content” is “definitely something we’re exploring,” says Putnam. Furthermore, Mirror’s revenue, previously projected to reach $100 million this year, is now anticipated to exceed $150 million, she reports.

As the pandemic continues, it’s natural to contemplate the potential growth of this young company, considering the increased time people and their families are spending at home and engaging with screens. In a conversation late last week, we posed this question to Putnam, who continues to lead a team of 125 individuals. The following is a lightly edited transcript of our discussion, with a link to the complete conversation provided.

TC: Those familiar with the company understand your initial motivation for creating Mirror, but could you elaborate on the precise steps you took to launch it?

BP: With Mirror, I had a clear vision for the product, and the first step was acquiring a Raspberry Pi, a piece of one-way glass, and an Android tablet. I assembled these components in my kitchen to determine if the concept I had in mind could be realized and brought to life.

TC: Did you pursue any coding courses? It might surprise some to learn that a former ballet dancer with a chain of fitness studios would assemble something like that in her own kitchen.

BP: I’ve been incredibly fortunate to have a husband with some experience in software development. He assisted me in writing the initial code for the Mirror and verifying that my concept could be successfully implemented. Subsequently, we naturally expanded the team over time.

TC: Where are they manufactured – in the United States or China? How did you begin to determine how to integrate these components?

BP: I had encountered numerous cautionary tales regarding teams collaborating with design firms to create visually appealing products, only to discover manufacturing challenges or financial constraints later on. Therefore, I adopted a reversed approach. I sketched a basic design on a napkin and outlined the essential elements for the product’s success. I then sought out factories in China experienced in digital signage and working with large glass surfaces, learning about their systems and processes. I brought this information back to a local manufacturer on the East Coast to refine the design into a prototype, and eventually transitioned to Mexico for large-scale production.

TC: The Mirror is priced around $1,500. How did you build consumer confidence and encourage them to make such a significant investment?

BP: When introducing a [novel] product, it’s challenging to compete on specifications and features like you do with phones or laptops. Therefore, you’re primarily focused on building a brand, which involves storytelling. In our case, we dedicated considerable effort from the outset to envision the lives of our customers and craft narratives that resonated with them.

We were also fortunate to have early adopters who embraced the product and began sharing their experiences, effectively amplifying our message. Once that customer feedback loop began, our task became considerably easier.

TC: You engaged actors, celebrities, designers, and social media influencers to discuss their Mirrors. Was it simply a matter of sending the product to a select group who then shared their enthusiasm online? Was it that straightforward?

BP: We intentionally made substantial investments early on to establish the Mirror brand as larger and more established than it was, given its premium positioning and novel category. We aimed to inspire trust in our brand. Consequently, we implemented out-of-home advertising campaigns, ventured into television advertising, and strategically secured early celebrity endorsements. However, the expansion and growth of these celebrity endorsements were largely organic and demonstrated the network effects of the product. One celebrity would acquire it, and another would encounter it in their home, or in the home of their stylist or agent.

TC: How did you assure early adopters of your company’s longevity, and were investors equally convinced?

BP: It was crucial to reassure customers that their investment in the Mirror wouldn’t be rendered worthless if the company were to fail within a few years, leaving them with a piece of hardware but no access to the content or community they had come to appreciate. This consideration played a role in our decision to partner with Lululemon, leveraging the stability and reputation of a well-established global brand.

Regarding fundraising, we were fortunate to have a product that resonated with investors once they experienced it, operating within a large and expanding market, with Peloton serving as a valuable competitive benchmark.

TC: Who initiated the conversation with Lululemon? Were you also in discussions with Peloton and other potential acquirers?

BP: I’ve had the privilege of collaborating with Lululemon throughout my fitness career. A team of Lululemon educators in New York were among the first clients of my studio business and played a significant role in its growth and success, providing me with confidence as a first-time small business owner. We reconnected with Lululemon approximately a year before the acquisition when they made a minority investment in the company. We began collaborating on various projects. From there, the partnership naturally evolved. Mirror was not actively for sale, and we weren’t seeking an acquirer. However, as a founder, it’s your responsibility to continually assess your vision, your obligations to your team, and your responsibilities to your shareholders. When the opportunity arose – prior to the COVID-19 pandemic – it seemed too advantageous to decline.

TC: You also expressed ambitions of transforming this into a more comprehensive content portal, potentially incorporating telehealth appointments and other services, which may not materialize now.

BP: The vision for Mirror remains consistent, and we’re excited to continue expanding the range of content we offer through the Mirror platform, with a focus on immersive experiences that empower users to become the best versions of themselves. Therefore, I anticipate a broader array of content in the coming years.

TC: You’ve noted that Mirror is used by families. Is there children’s programming available, or is it in development?

BP: Over 65% of our households include more than two members, often resulting in younger family members participating. This is attributable to both the platform’s versatility and the ability for multiple individuals to engage with the content. We’ve also observed a fivefold increase in users under the age of 20 during the COVID-19 pandemic, as young adults returned home or teenagers transitioned to remote schooling. We’ve responded by introducing “family fun” content designed for participation by the entire family.

TC: Do you foresee a secondary market for refurbished Mirrors in the future? Will there be a second-generation model, if one isn’t already in progress?

BP: We will undoubtedly continue to refine the hardware over time, but our primary focus is on enhancing the content, community, and overall experience. Unlike Apple, which prioritizes releasing new hardware models annually, we concentrate on delivering updates through software and content, continually adding value to the core experience.

TC: What developments can people anticipate in the future?

BP: We’re taking a significant step toward fostering a connected community with the launch of our community feature set this holiday season, including the ability for members to view and communicate with each other and their instructors; face-offs that allow members to compete head-to-head and earn points based on their heart rate zones; and friending, enabling users to connect with and follow friends within the Mirror community to share workouts, participate in programs together, and offer encouragement.

TC: Are you still selling Mirrors to hotels and businesses outside of Lululemon?

BP: We maintain B2B relationships, and Mirrors can be found in hotels, small gyms, residential buildings, and through our direct-to-consumer channels – the Mirror website, the Lululemon website, and our two brick-and-mortar stores.

TC: Considering Peloton’s remarkable stock performance this year, do you ever question whether you should have remained independent for a longer period? Do you ever wonder if you sold too soon?

Throughout my career, I’ve consistently focused on the same mission, seeking to address a problem and achieve my vision in various ways. I firmly believe that confidence in one’s own body is fundamental to a fulfilling life, and fitness is a powerful tool for cultivating that confidence, which extends to personal relationships, professional performance, and friendships. Therefore, my primary focus has always been on maximizing the number of Mirrors in homes and expanding access to that self-assurance. Consequently, I rarely compare ourselves to competitors and prioritize meeting the needs of our members.