Introduction Since 1998, Lululemon has transformed the way people dress to workout. Through innovative products and technical athletic fabrics, a brand was created to provide clothing for workouts such as yoga, running and cycling. Lululemon opened its first store in Vancouver in 2000 with the plan to have the store be a community hub for people to learn and discuss their physical fitness and overall health goals. As Lululemon was more than a store to provide products for consumers, their goal was to influence every person who walked into the store. A basic criterion for investment is Lululemon’s mission to create components for people to live longer, healthier, fun lives. All Lululemon locations maintain strong relationships with local communities and host in-store events such as complimentary yoga classes and goal-setting workshops. The specialty retail and athletic apparel industry Lululemon is a part of is very competitive. The growth from competitors is increasing and Lululemon is in the midst of a global expansion and releasing a new product line in the hopes of gaining a competitive advantage. However, Lululemon has experienced hardships throughout the past year due to a lawsuit filed against the company in regards to their Luon yoga pant line and the fabric being see-through. This has caused many repercussions not only for the stock price, but also for consumers and management as a whole. As Christine Day has resigned, Laurent Potdevin has been announced as the new CEO of Lululemon. His past work experience, overall moral, and consumer approval demonstrate that he is the right fit for the position and someone who can turn Lululemon around. In order to assess Lululemon’s strength and value for investment, this ana... ... middle of paper ... ... 2013. Web. 08 Apr. 2014. . Lutz, Ashley. "Lululemon Is Feeling The Heat From Competitors." Business Insider. Business Insider, Inc, 14 Mar. 2014. Web. 09 Apr. 2014. . Peterson, Hayley. "Lululemon Has Entered Completely New Territory With A New Clothing Line." Business Insider. Business Insider, Inc, 18 Mar. 2014. Web. 11 Apr. 2014. . Stempel, Jonathan. "Lululemon Prevails in Lawsuits over Yoga Pants Recall." Chicago Tribune. Chicago Tribune, 04 Apr. 2014. Web. 08 Apr. 2014. .
While looking at many different reviews people posted online, customers of lululemon athletica seem to be very pleased with the wear and tear of their products. Many different sources say that lululemon athletica’s clothing lasts for an extremely long time therefore people feel that their getting their money’s worth. lululemon athletica is a trend in itself because many consumers want to show off that they work out and wear an expensive clothing line while doing so and love flaunt
Sutherland, B. (2013, August 28). Francesca’s besting lululemon seen luring bids: Real m&a. Bloomberg, Retrieved from http://www.bloomberg.com/news/2013-08-28/francesca-s-besting-lululemon-seen-luring-bids-real-m-a.html
Rivalry is especially strong in the outdoor apparel industry. Patagonia competes with many comparable outdoor clothing brands who feature cheaper, more affordable alternatives of high quality. With innovation and sustainability being a core value of their target market, Patagonia must consistently introduce new technology, increased durability, and added comfort in order to remain relevant and competitive. The threats that Patagonia faces has to do with the bargaining power of buyers and the threat of industry competition. As a company focused on quality, Patagonia faces the threat of buyers forcing down their prices by not purchasing their goods. Buyers might feel that their products, although high-quality, are too pricy to purchase. There is also the threat of
Conclusion Since Lululemon started in 1998 they have expanded the company into North America and Australia and offered high end yoga products. Lululemon was able to corner the market in a market driven business, which has strengths and weaknesses to consider. This company could benefit from more aggressive advertising because they have such great brand recognition and consumer loyalty. With the retail market changing and more competitors entering the market, Lululemon needs to stay competitive and offer a broader spectrum of products and expand their markets into areas they already have great brand recognition. Lululemon takes pride in offering a high quality product and this company has changed the way the world sees yoga appeal today.
Lululemon, a premium yoga-focused retail chain, serves two market segments. One segment consists of consumers who are characterized as “trendy urban” and the other segment consists of “wealthy” consumers. The “trendy urban” segment, in summary, is fashion oriented or active women who live in metropolitan areas. The “wealthy” market segment is affluent women who live in either urban or suburban areas. As discussed below, these two market segments are defined by differences in demographics, geography as well as behavioral and psychographic characteristics.
When marketing to other businesses, Lululemon has a wholesale program that specifically focuses on partnering with yoga studios and gyms. They sell their athletic apparel and yoga accessories. Before search engines like Google, studious couldn’t search for a company to partner with so it was a “if you know, you know” type business. Now studios can search for companies to partner with online and see Lululemon’s program through their website. From there studios partner with them through stores and e-commerce (Strategic Sales, N.d).
Bargaining Power of Buyers: As a group, Lululemon’s customers have a high level of bargaining power. Buyer’s switching costs are low; they can easily switch to another brand if they are at all dissatisfied with Lululemon’s products.
The company began operations more than 60 years ago, but has only recently made a name for itself within the competitive fashion world with its chic $900 Parkas, ideal for the urban audience that it so effectively targets. Success came about through the efforts of very effective marketing campaigns, supported by notable celebrity endorsements. Canada Goose has not only grown rapidly but also managed to remain profitable. Its presence in markets such as China, the US, and Europe is at this time very limited, but this also means that it can claim that its growth rate will continue to push forward because of these markets. However, its long-term outlook has been called into question, with some even raising doubts over the credentials of the Canada Goose IPO.
Lululemon company offer a diverse selection of premium – price products. From the first Lululemon’s establishment, many of this company’s products were specifically intended for people taking part in yoga, now the company has broaden its products to address the needs of other activities (swimwear, golf and tennis). Some new kinds of products are introduced to the customers like socks and underwear, sweat cuffs and gloves, instructional yoga DVDs, gear bags… Lululemon now not only provide products for woman but also has broaden the customer range to men and female youth. They realized that everyone now is caring about their health. The number
O'Keefe, Benjamin. "Petitioned Abercrombie & Fitch." Change.org (n.d.): n. pag. Nov. 2013. Web. 05 Apr. 2014. .
What makes a person choose one brand of clothing over another? Is it the price? Or is it the style of the clothing? There are numerous factors that will play a key role in determining who will purchase your products and why they will choose to purchase your product. Kevin Plank, the founder of Under Armour and former captain of the special teams on Maryland University’s football team, would become infuriated at the amount of times he was forced to change his undershirt during games and practices due to how heavy with sweat they would become. He set out to create a shirt that would help keep an athlete cool and dry during intense physical activity. This simple idea would develop into a powerhouse in the sports apparel industry and has broken into the sports equipment industry as well.
Ten years ago, for the average person who was not an athlete, sports clothing was about large t-shirts and baggy sweatpants that were nothing more beyond comfortable and functional. However, due to this paradigm shift, people who do not take part in sporting activities now wear sport items, like trainers or sports bras, on a casual basis. In fact, even the most well-known fashion companies like Inditex, Mango and H&M have launched their own sport line in an attempt to take advantage of this fusion that has opened a window of opportunity. This is true to the extent that Base, a network of 300 sport shops in Spain, assures that running has become so influenced by fashion that a running clothing item can perfectly be extrapolated to the everyday
The business model that sets Zara apart from other clothing retailers is how rapidly the company changes stocks and releases new product lineups. The company averages 12-16 collections annually which equates to more than one lineup a month. Due to stock being limited and the rapid production Zara brings forth, their items are viewed as exclusive promoting further business. Their customers are happy knowing that their specific article of clothing is more “rare” due to only having an average of a two-week window to purchase the clothing. The company specifically targets current trends and has them in the store within 30 days. This maintains the brand’s uniqueness and relativity in fashion.
The Lululemon manifesto sets out guidelines for employees to live by and features advice such as exercise daily, don’t trust a pension, and live near an ocean for the salty air. They focus on keeping their employees happy and motivated. This leads to a unique experience for their guests that keep them coming back for more lessons and equipment. The inventory turnover rate is extraordinary and is truly a distinct advantage.
Charles & Keith, a well-recognized women’s footwear brand was established in 1996 in Singapore Amara shopping centre by the two young brothers, Charles Wong and Keith Wong. The company began its foreign market venture in 2000. To date, Charles and Keith has a presence in more than 20 major cities around the world. The brand are well-known internationally today with the vision “to be the most admired fashion-forward company” and the mission “to offer high quality products and services, with a commitment to perfection” in mind all the time (Charles & Keith, 2013).