Alo Yoga Lets People Pay With Cryptocurrency

Alo Yoga is giving its customers the option to make online purchases via cryptocurrency, according to the lifestyle brand. Salaried corporate employees can also elect to have some or all of their paychecks deposited into their crypto wallets and converted from U.S. dollars to crypto with zero transaction fees, said Angelic Vendette, the company’s vice president and head of marketing. “The Alo customer is incredibly tech-savvy,” Vendette said, noting that Alo—a purveyor of athletic apparel, yoga classes, and beauty and wellness products—is first and foremost an ecommerce company. The company was inspired to dive deeper into Web3 in part by a stronger-than-expected response to its metaverse activation on Roblox. Since the launch in February, the activation has received nearly 40 million unique visitors, Vendette said. As NFT Sales Slump, Brands Refocus on Utility and Security Alo also said it's launching an NFT collection during September’s New York Fashion Week, with a corresponding apparel line. The company’s push into Web3 is motivated both by existing consumer interest and the potential to acquire customers, with Vendette noting that there is a demand for wellness in the metaverse. For example, over 40 million pieces of free Alo clothing have been worn in the company’s Roblox space, with users gaining access only after meditating a certain number of days in a row, Vendette said. Fashion and Web3 make cozy bedfellows Fashion has been embracing Web3, with luxury brands Gucci, Balenciaga and ecommerce retailer Farfetch all announcing recently that they were accepting crypto payments. Fashion at more accessible price points in Web3 is still emerging, said Rebecca Finn, cultural insights director at social agency We Are Social. “It’s the next phase,” Finn said. “Luxury in itself can feel unattainable in the same way crypto feels unattainable.” Alo’s foray into cryptocurrency comes during a bear market for many digital currencies after they experienced explosive growth last year. Ethereum is down more than 300% since its high in November, and Coinbase, the cryptocurrency exchange powering Alo’s crypto wallet functionality, said it was cutting 18% of its staff last week in response to the downturn. “With all bear markets, things are cyclical,” Vendette said. “Us investing in Web3 is a long-term plan.” Crypto’s drop in value in recent weeks has given fuel to its critics, who have raised concerns that the currency’s marketing sometimes belies the risks it poses to novice investors and its potential deleterious environmental impact. Brands who have embraced crypto have at times been caught up in this backlash; for example, direct-to-consumer brand MeUndies stepped back from an NFT collaboration after negative consumer response on social media, particularly given the contrast between the company’s commitment to sustainability and NFTs’ potential for environmental harm. A brand should treat its decision to get involved in Web3 the same as it would with taking a stand on any hot-button social issue by considering if it benefits the brand’s community, said Katie McDonald, senior strategy director at We Are Social. “The time [has] passed for us to be guessing,” McDonald said. “You need an actual community you’re looking to serve.” Vendette noted that people have their choice of currency at checkout, meaning if they do decide to pay via crypto, they can choose a blockchain that is more sustainable. “It's definitely reaching our audience where they were,” Vendette said, “because they are early adopters.” Instagram Begins Testing NFT Sharing

Emerging Technologies

Alo Yoga Now Lets Customers Pay With Cryptocurrency and Adds Crypto Paychecks for Staff

At a volatile time in the crypto market, Alo is an early wellness brand to enter the Web3 space

Catherine Perloff

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Catherine Perloff