Groupon is often associated with deals on fitness-related activities and products, and now it’s hoping to get an even bigger piece of the pie.
Today, Groupon launches a private-label women’s clothing line called Form + Focus, which is an assortment of discount-priced activewear, including tanks for $11.99, shorts and capri pants for $12.99, and a sports bra two-pack for $19.99.
The items are already available on the company’s site through Groupon Goods, which is its consumer-products channel. The line is targeted toward Groupon’s key female demographic, as more than 70 percent of customers are women, and the “stylish, functional” styles are firmly in the ath-leisure camp.
The price of an open-back long-sleeved top, for example, is listed at $18.99 but with a value of $88. The item comes in gray, navy or plum, and the product description says the top is “ideal for adding a chic touch to casual ensembles.”
“We’ve seen significant demand for this type of clothing — especially given the popularity of our local fitness-related offers,” said Jacob Hawkins, vice president of Groupon Goods North America. “Form + Focus offers women a variety of options for any activity, and it’s a natural next step for us to offer customers the opportunity to enhance their workouts with a collection of quality activewear at an incredible value.”
Form + Focus is Groupon’s sixth private-label brand. Previously, Groupon Goods introduced a private label for women’s apparel (called Sociology), footwear and accessories (Olive Street), men’s apparel, footwear and accessories (Oak & Rush), home goods (Wexley Home) and pet goods (Franklin Fox).
According to a company spokesman, Groupon’s private-label business began in 2015 as a way for Groupon to capitalize on existing demand and improve its margins across multiple business categories, while offering customers new, low-priced options.
The listings and approach to discounting are similar to those seen on Amazon, which has also quietly introduced a suite of private-label apparel brands.
In February, Amazon had already launched at least seven private-label brands, selling goods ranging from men’s dress shoes, suiting and accessories to women’s casual and contemporary clothing, accessories, and children’s clothing. Most of the items are in the women’s dress and handbags line called Society New York.
It makes sense for an online discounter to capitalize on the thirst for deals, as this allows the retailer to take advantage of higher margins and use customer data to inform the merchandise assortment. According to the Private Label Manufacturers Association, in 2015 the growth of store brands matched that of national brands, at 2 percent, and total annual sales reached $118.4 billion. And that Groupon would target ath-leisure isn’t surprising — as women have eschewed other casualwear for fitness attire, the industry has grown to represent as much as $35 billion, according to The NPD Group.