Analysis Of Lululemon
Culture: The culture surrounding Lululemon is tough to pinpoint exactly due to the global scale that Lululemon operates at. Originally founded in Vancouver, where “the culture [is] healthy living” (Oliffe, J. L., White, C. F., & Bottorff, J. L. 2013), it is clear to see how Lululemon shaped their foundation of a business into now what is one of the largest clothing retailers in the world. Lululemon stresses healthy living through physical activity: their annual renowned “Seawheeze” half marathon brings 10,000 runners together, the perfect embodiment of what the brand stands for.
Demographics: Lululemon is faced with highly diverse demographics as they operate on a global scale. However, a common theme among the demographics for the brand is …show more content…
(MarketLine Company Profile, 2017). Counterfeit products continue to plague the retail industry, leading to legal battles. The athletic apparel retailer itself has filed a lawsuit with the US Federal Government against counterfeit goods. There is an increasing number of knock-off merchandise that mimics the products of Lululemon, thus, causing a lost opportunity to capitalize on consumer demand (Jeff …show more content…
At the same time, Lululemon competes with low-cost providers like Walmart which sell similar products, for instance, yoga pants but at a much lower price (MarketLine Company Profile, 2017). Growing online retailers like Fabletics and Zaful also offer lower prices and cater to the same style-seekers (Wilson, 2016). Similarly, a pair of Lululemon yoga pants cost $30 more on average than a pair from Gap’s Athleta, yet some consumers are still unwilling to switch to the latter. The reason for this is because “[Lululemon] has devoted fan base” which allows consumers to easily recall the brand and stay loyal to it (Peterson, 2013). In contrast, there were a small number of loyal customers who decided to switch to brands like Nike and Under Armour due to the more attractive prices (Schlossberg, 2015). Additionally, since October 2017, Nike decided to increase its investment in the women’s athletic apparel segment, with a focus on women’s yoga pants after seeing an opportunity to profit from this $7 billion business (Townsend, 2017). As Nike continues to emerge as the world’s leading sports brand, Lululemon will face increased
Demographics: Lululemon is faced with highly diverse demographics as they operate on a global scale. However, a common theme among the demographics for the brand is …show more content…
(MarketLine Company Profile, 2017). Counterfeit products continue to plague the retail industry, leading to legal battles. The athletic apparel retailer itself has filed a lawsuit with the US Federal Government against counterfeit goods. There is an increasing number of knock-off merchandise that mimics the products of Lululemon, thus, causing a lost opportunity to capitalize on consumer demand (Jeff …show more content…
At the same time, Lululemon competes with low-cost providers like Walmart which sell similar products, for instance, yoga pants but at a much lower price (MarketLine Company Profile, 2017). Growing online retailers like Fabletics and Zaful also offer lower prices and cater to the same style-seekers (Wilson, 2016). Similarly, a pair of Lululemon yoga pants cost $30 more on average than a pair from Gap’s Athleta, yet some consumers are still unwilling to switch to the latter. The reason for this is because “[Lululemon] has devoted fan base” which allows consumers to easily recall the brand and stay loyal to it (Peterson, 2013). In contrast, there were a small number of loyal customers who decided to switch to brands like Nike and Under Armour due to the more attractive prices (Schlossberg, 2015). Additionally, since October 2017, Nike decided to increase its investment in the women’s athletic apparel segment, with a focus on women’s yoga pants after seeing an opportunity to profit from this $7 billion business (Townsend, 2017). As Nike continues to emerge as the world’s leading sports brand, Lululemon will face increased