How I Built This with Guy Raz: Beyond Yoga – Michelle Wheeler

Release Date: February 10, 2025

In this compelling episode of How I Built This, host Guy Raz delves into the inspiring journey of Michelle Wheeler, co-founder of Beyond Yoga, an iconic activewear brand renowned for its inclusive sizing and commitment to quality. Michelle's story is a testament to resilience, innovation, and the power of steadfast vision in the face of adversity.

Early Life and Influences

Michelle Wheeler's entrepreneurial spirit was significantly shaped by her upbringing in suburban Maryland. Her father's venture into the music retail industry and her mother's struggles with self-esteem left a profound impact on her.

[06:49] Michelle Wheeler: "One thing that was highly influential on me is the fact that my mom really struggled with her self-esteem... I watched her struggle with her weight, and it was just frustrating to me because I really wanted her to see herself the way I saw her."

Michelle observed her mother grapple with societal beauty standards, fostering her deep-seated belief in body positivity. Additionally, witnessing her father's entrepreneurial endeavors and subsequent challenges during the rise of digital music platforms instilled in her an understanding of the volatile nature of business landscapes.

[08:26] Michelle Wheeler: "Once MP3s came onto the scene... my father lost his entire company... it wasn't because he did anything wrong... sometimes there's just nothing you can do about it."

These early experiences fueled Michelle's determination to create a brand that celebrated all body types, ensuring that her mother's struggles would not be mirrored in her own ventures.

Founding Beyond Yoga

Michelle's foray into entrepreneurship began during her tenure at People Magazine, where her dissatisfaction with the unrealistic body images perpetuated by media led her to launch Unsweetened, a T-shirt line celebrating natural body shapes.

[16:14] Michelle Wheeler: "I started selling people my T shirts while I was working at People. And then I started going to holiday bazaars... I felt like, oh, my goodness, I really made it."

In 2005, seeking a fresh start, Michelle moved to San Diego. It was at a trade show in Los Angeles that she met Jodi Guber Bruvsky, who would become her business partner. Their shared vision of creating inclusive activewear led to the birth of Beyond Yoga.

[17:20] Michelle Wheeler: "I fell in love with the idea of Beyond Yoga... it's created to make clothing for women of all shapes and sizes and to make show people that every body is beautiful and all bodies are good bodies."

Growth Strategies and Challenges

Beyond Yoga embarked on a wholesale strategy, distinguishing itself from competitors like Lululemon by focusing on distribution through boutiques, yoga studios, and department stores rather than relying solely on direct-to-consumer channels. This approach fostered brand validation and built a loyal customer base.

[24:52] Michelle Wheeler: "I think of wholesale as marketing that you get paid for. Anytime somebody goes into a yoga studio and sees your product, they're discovering you."

Despite initial success, the company faced significant hurdles, notably during the global financial crisis of 2008-2009, which resulted in a substantial revenue drop.

[28:35] Michelle Wheeler: "We were doing so well... the global financial crisis happened and everything kind of bottomed out... that was a big setback."

To address financial mismanagement, Michelle took decisive action by bringing financial operations in-house and enhancing her business acumen through classes at UCLA Extension.

[32:56] Michelle Wheeler: "I realized that finance was too important to outsource. I hired an accountant and had to lean into all areas of the business."

Key Turning Points

One pivotal moment in Beyond Yoga's trajectory was the discovery of a unique fabric known as space dye, which became the cornerstone of their product line. This high-quality, polyspandex blend offered unparalleled softness and stretch, setting Beyond Yoga apart in a saturated market.

[39:07] Michelle Wheeler: "I found space dye, and I was like, what is this?... I don't care how expensive it is, this is what everybody is going to want to put on their body."

The fabric choice not only enhanced product quality but also aligned with the brand's ethos of comfort and inclusivity.

Another significant challenge arose during the COVID-19 pandemic. As yoga studios shuttered and orders were canceled en masse, Michelle made the bold decision to halt shipments, prioritizing customer trust over immediate profits.

[53:35] Michelle Wheeler: "We assumed every order was canceled unless we got written consent... it ended up being a blessing because our customer acquisition fees went rock bottom, and we acquired a lot of new customers."

This strategic pivot allowed Beyond Yoga to capitalize on the surge in home workouts and online sales, solidifying its market position.

Acquisition by Levi’s

In the fall of 2020, Michelle received a transformative LinkedIn message from Levi’s, expressing interest in a potential collaboration. This outreach evolved into an acquisition, with Levi’s acquiring Beyond Yoga for $400 million in 2021.

[55:53] Michelle Wheeler: "When we spoke to people, they were looking at the business very differently... we decided that we didn't want to bring on an investor... And she was like, okay, let's go."

The acquisition provided Beyond Yoga with the resources to expand further, including the establishment of brick-and-mortar stores, a venture previously unexplored by the brand.

[58:13] Michelle Wheeler: "One of the things Levi's was really excited about... I was able to open six stores."

This strategic partnership not only accelerated growth but also honored Michelle's commitment to maintaining the brand's inclusive and high-quality standards.

Stepping Down and Future Endeavors

After nearly two decades at the helm, Michelle stepped down as CEO in February 2024. The transition marked the end of an era but also the beginning of new opportunities for her personal and professional life.

[59:15] Michelle Wheeler: "It was really hard... I needed to give everybody a little distance in the beginning, and I needed to give myself that distance, too."

Embracing her role in the female founder community in Los Angeles, Michelle is focused on mentoring and supporting other entrepreneurs, leveraging her extensive experience to inspire the next generation of innovators.

[61:42] Michelle Wheeler: "It's definitely a mixture, but I do think that luck favors the prepared mind. We put a lot of really hard work into this business and set ourselves up to be lucky."

Conclusion

Michelle Wheeler's journey with Beyond Yoga epitomizes the essence of entrepreneurial grit and visionary leadership. From humble beginnings and personal struggles to building a multimillion-dollar brand recognized globally, Michelle's story offers invaluable insights into navigating the complexities of the fashion industry, maintaining brand integrity, and adapting to unforeseen challenges.

Notable Quotes:

• Michelle Wheeler on Body Positivity:
  “I wanted this to make show people that every body is beautiful and all bodies are good bodies.”
  [17:20]

• On Wholesale as Marketing:
  “I think of wholesale as marketing that you get paid for.”
  [24:52]

• Facing the Financial Crisis:
  “We were doing so well... the global financial crisis happened and everything kind of bottomed out.”
  [28:35]

• Discovery of Space Dye Fabric:
  “This is what everybody is going to want to put on their body.”
  [39:07]

• Strategic Pivot During COVID-19:
  “We were not going to ship... our customer acquisition fees went rock bottom, and we were able to acquire a lot of new customers.”
  [53:35]

• On Luck and Hard Work:
  “Luck favors the prepared mind. We put a lot of really hard work into this business and set ourselves up to be lucky.”
  [61:42]

Michelle Wheeler's narrative is not just about building a successful brand; it's about fostering a movement that champions inclusivity and authenticity. Her legacy within Beyond Yoga will continue to inspire entrepreneurs and consumers alike, reinforcing the idea that businesses can thrive while staying true to their core values.