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How technology has impacted businesses
Technology and its impact on business
How technology has impacted businesses
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Executive summary This report is aiming to analyse the special market offer “women’s yoga clothing” of Lululemon, what’s special about this product is that it is accounting for most of Lululemon Athletica’s sales. Women’s and Girls’ Wear Manufacturing Industry is expected to gain about $589.6 million in 2013-14, a little drop by 3.9%. The major participators in this industry are: • Nike, Inc. • Reebok • Adidas AG Lululemon is a public company that founded in Vancouver in 1998, which now becomes a top athletic apparel company in the world, especially for women’s yoga clothing. Lululemon is affected by competitor and supplier forces from micro environment. Moreover, it is affected by technical and demographic force from macro environment. Lululemon offers various product that including the clothing and athletic accessories for different customers. In Lululemon’s 2013 annual report, it target at “sophisticated and educated woman who understands the importance of an active, healthy lifestyle” (Lululemon 10K, 2013). Lululemon’s strategy is providing various products to different custom...
The most recognized brands amongst US males in the sports and fitness clothing market are Nike, Adidas, Reebok, and Puma (Statista, 2014). However, there is a large amount of opportunity to gain market share as only Nike hold a high percentage favoritism from male shoppers (Statista, 2012). Multiple brands have a stronger focus on women’s clothing such as: Fabletics, Athleta, and Lululemon. Lululemon has a similar business model however the brand has a stronger connection with women and yoga.
Karolina Swietoniowska, the young, youthful, educated and passionate owner of Korra dancewear has been in business, trying to live her dream of designing dancewear clothes for the past three years. Sales have been however very slow for her, given that she had other priorities to take care of, she is now looking to improve her position as a businessman and increase her scale of business and expand and grow. Capital and experience constraints have been pulling her down and she is struggling to make her mark on the market. There are other very strong competitors in the market, functioning with very different
As stated, “Americans dominated sales in the global tennis racket market in 2015, accounting for a share of 49.2%. The region is expected to continue leading the market during the forecast period, with an estimated 51.21% market share in 2020.” This dominance in the market make the population a perfect target to sell Pacific products. Tennis apparel market is also dominated by the Americans in sales. Pacific should target the market of the United States. The best distribution channels to connect to Americans is through online sales and product sales in retail stores. These distribution channels will help Pacific connect with Americans with more ease. Since many consumers live in the United States this strategy can potentially grow the company
With much success expanding into a global market, Lululemon’s vision was to evaluate the world from mediocrity to greatness. To achieve this vision, a strategy was developed with a network of leaders and established three different kinds of calculated sales programs in the hope of increasing love for yoga and improving the level of health within their communities. These are opportunities missed by the company, with the potential to provide the company with financial growth and further brand recognition. Increasing the products they offer to all genders and ages is only going to create more product awareness and consumer loyalty.
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.
On the other, production side, it is argued, that changes in technologies and mass-production “created the competition in the women’s ready-made garment industry to push manufacturers an retailers to market dungarees and other standardised garments in new ways in order to expand their markets compete with one another”, as written by Ben Fine and Ellen Leopold (Clarke, S., Fine, B. and Leopold, E. (1994) ‘The world of consumption’, Contemporary Sociology,)
Wholesale channels comprise another significant revenue stream for Lululemon, they partners with elite yoga
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.
I. Executive Summary Harley-Davidson is the largest market share holder of over 750cc motorcycles in the United States. After the expansion of our production and distribution capacity, we will be in the position to meet the increasing demand for our motorcycles and other products, including a new line of clothing specially designed for women. Growth potential appears very good, especially in the overseas market and the young and mature women and younger market. Gaining a larger market share in this area may require a further increase in production and distribution capacity. We must plan for expansion and build new strategies to target the woman, younger market, as well as the already HD owners and continue to grow as a company.
C-79). The company is also offering products and apparel intended for other healthy and athletic lifestyle pastimes rather than solely for yoga. These include swimwear, which were introduce for women in fiscal 2013 and men in the spring of 2014, dance apparel through its ivivva brand, as well as expected golf and tennis products (Thompson, 2014, p. C-80). Additionally, Lululemon offers such products as gear bags, water bottles, caps, gloves, headbands, and socks. This supports the company’s core component to “broaden the lululemon product line beyond yoga, running, and general fitness (specifically swimming, golf, and tennis) and include offerings for both males and females of many ages” (Thompson, 2014, p. C-79) for its fiscal 2014 business strategy. This indicates that the senior administrators of Lululemon have been transitioning the company’s competitive strategy from having a narrow market focus just on yoga
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.
store managers and frontline personnel, play a critical role in the context of Zara’s business model. Using customised PDAs, store managers constantly communicate customer feedback, either hard data such as orders and sales trends or soft data like customer reactions to a new style or the “buzz” around a new design, to Zara’s HQ where the feedback is used by designers to quickly develop new garments based on customers’ wishes (Ferdows et al., 2004). Frontline employees assist their superiors in collecting the feedback. Zara’s store managers and shop assistants thus close the communication loop between shoppers and Zara’s HQ (Ferdows et al., 2004) and therefore contribute hugely to Zara being able to first understand what customers like and then design and produce it (Buck, 2014). Accounting for their key role, Zara pays store managers an above-average salary and up to 100% of their salary in bonuses if they hit sales targets (Ruddick,
Zara, the most profitable brand of Inditex SA, the Spanish clothing retail group, opened its first store in 1975 in La Coruña, Spain; a city which eventually became the central headquarters for Zara’s global operations. Since then they have expanded operations into 45 countries with 531 stores located in the most important shopping districts of more than 400 cities in Europe, the Americas, Asia and Africa. Throughout this expansion Zara has remained focused on its core fashion philosophy that creativity and quality design together with a rapid response to market demands will yield profitable results. In order to realized these results Zara developed a business model that incorporated the following three goals for operations: develop a system the requires short lead times, decrease quantities produced to decrease inventory risk, and increase the number of available styles and/or choice. These goals helped to formulate a unique value proposition: to combine moderate prices with the ability to offer new clothing styles faster than its competitors. These three goals helped to shape Zara’s current business model.
Thau was inspired by the Bashar Nejdawi, president of Ingram Micro Mobility that is a provider of technology and supply chain services. According to Nejdawi, “In five years, consumer electronics stores as we know them today won’t even exist, and the same rings true for our favorite apparel brands”. He also asserts that three influential factors will change the retail landscape: instant gratification, borrowing and customization. A good example of instant gratification is Uber or Amazon. The Uber customer can see in real time where the Uber car is and when is going to arrive. In the same way the Amazon provide fulfillment program that allow retailers to sell products that are not physically in storage. In this way the retailers do not have to care about inventory and can concentrate on marketing. Secondly, the borrowing culture is going to grow. As an example is Zip Car or Netflix applications. On the Zip Car program someone can borrow a car just for few hours. Likewise, some business offer a mobile device rental program that allow a customer to lease the latest device for a fraction of the cost. Further, the customization program permits customers to choose their preferences before the product is being made. As an example is miAdidas company that gives to the clients the possibility to create
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).