Lululemon Executive Summary
How Athleta will Defeat Lululemon:
The Impact of Decision Making on Consumer Behavior in Women’s Athletic Apparel
Today women’s athletic aparrel is both a highly profitable and competitive market. The $14.3 billion market is growing exponentially, about twice as fast as women’s clothing overall . The industry is also quite crowded. There are many companies and brands competing for the market share, including Lululemon, Athletica, Gap’s Athleta, and Lucy. Well known brands such as Nike, Under Armour and even Target are creating more high performance athletic apparel for women . Lululemon current holds a majority of the market for women’s athletic clothing. It has over 200 store locations in North America and Australia and approximately $1.4 billion in revenue this past fiscal year .
Athleta is attempting to take Lululemon’s spot at the top of the market , but it still has quite a bit of progress to make. Athleta was founded fifteen years ago in Petaluma, CA. It started as a catalog and online store selling high performance clothing and shoes for women athletes . In 2008, Athleta was acquired by Gap Inc. and since then has begun opening brick and mortar stores throughout the United States . The Gap counts revenues for Athleta and Piperlime, the online shoe store, together. The combined revenue in 2012 was $301 million, about …show more content…
By not discounting its product like Athleta does, Lululemon creates the perception, and possible reality, that its product will produce better athletic performance for consumers. The individual consumer has assumed that the product will also be high quality, and likely higher quality that Athleta, which is priced cheaper and usually has items at a discounted price. However, the value of the Lulelemon products has recently been tested, and Athleta has the opportunity to capitalize on this drop in
The Impact of Decision Making on Consumer Behavior in Women’s Athletic Apparel
Today women’s athletic aparrel is both a highly profitable and competitive market. The $14.3 billion market is growing exponentially, about twice as fast as women’s clothing overall . The industry is also quite crowded. There are many companies and brands competing for the market share, including Lululemon, Athletica, Gap’s Athleta, and Lucy. Well known brands such as Nike, Under Armour and even Target are creating more high performance athletic apparel for women . Lululemon current holds a majority of the market for women’s athletic clothing. It has over 200 store locations in North America and Australia and approximately $1.4 billion in revenue this past fiscal year .
Athleta is attempting to take Lululemon’s spot at the top of the market , but it still has quite a bit of progress to make. Athleta was founded fifteen years ago in Petaluma, CA. It started as a catalog and online store selling high performance clothing and shoes for women athletes . In 2008, Athleta was acquired by Gap Inc. and since then has begun opening brick and mortar stores throughout the United States . The Gap counts revenues for Athleta and Piperlime, the online shoe store, together. The combined revenue in 2012 was $301 million, about …show more content…
By not discounting its product like Athleta does, Lululemon creates the perception, and possible reality, that its product will produce better athletic performance for consumers. The individual consumer has assumed that the product will also be high quality, and likely higher quality that Athleta, which is priced cheaper and usually has items at a discounted price. However, the value of the Lulelemon products has recently been tested, and Athleta has the opportunity to capitalize on this drop in