Lululemon Athletica operates in one of the largest industries in the global market today. Lululemon is considered to be a part of the textile-apparel industry. Lululemon is credited with starting the yoga apparel trend and dominated in that area for years. Since the apparel industry is highly competitive, many of its competitors began to produce similar products when the yoga craze was at its peak. Nike started its very own yoga line which showed promise and remains one of Lululemon’s greatest competitors. Other companies, like Under Armor, have started marketing campaigns that targeted Lululemon’s audience. Also new companies like, Lucy Activewear, have entered the apparel industry increasing Lululemon’s competition. The trillion dollar textile …show more content…
This has caused an increased demand in athletic apparel where Lululemon operates.
After analyzing Lululemon’s annual report there are some major risk factors that stand out. A major risk factor would be their heavy reliance on a small number of suppliers to produce their products. According to their 10K annual report, Lululemon acquires forty percent of their raw material from a single manufacturer. This is considered a serious risk factor because if that manufacturer is unable to provide them with materials needed for production, they will not be able to meet ordinary supply quota. Also, if demand for their product increases, there is a significant chance that they will be unable to keep up with what the consumers are demanding. Another significant risk factor is if their customers are in any way disappointed with the quality of their product, their business could be affected significantly. Lululemon is well known for their high quality products, so if at any point customers become dissatisfied with their products it can take a huge toll on their business. They briefly mentioned that a situation has
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They are emphasizing growth both domestically and internationally. Since there is such fierce competition in the apparel industry, Lululemon realizes they cannot continue to expand solely in the US; In January 2015, Lululemon entered into a licensing agreement with a partner in the Middle East. This agreement will allow the company to expand their brand in the United Arab Emirates, Kuwait, Qatar. Bahrain, and Oman. They also plan on expanding their stores in Australia and Japan. Since there is such fierce competition in the apparel industry, not only will expanding their stores increase profitability, but it will also increase the recognition of their brand globally. They also plan to work closely with their suppliers “to incorporate innovative fabrics and bring particular specifications of their products”. The innovation of new products and designs will help the company stand out from its major competitors. They also plan on expanding their Men’s line of clothing in order to keep up with its competitors like Nike and
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.
Lululemon geographics have expanded into Asia, Africa, Europe, and have densified in North America with new openings of stores. The companies’ demographics have also expanded. Previously only focused on yogi’s, Lululemon is now focused on any one who sweats and is interested in athletic wear and the lifestyle it promotes. Lululemon also offers the same quality leggings to men and young females; one of Lululemon’s biggest market segmentation moments was when they opened their sister store Ivivva to market the same product to a younger female audience. However, they are still fixed on offering their products at a higher cost, meaning only customers who have money for discretionary products can purchase them; the high exclusiveness and quality has created a loyal fan base. The organization also continues to segment themselves as a leader in the health conscious market, promoting the better lifestyle with yoga ambassadors. With the rise of people being aware of their bodies, Lululemon fits perfectly into the new
Lululemon is an athletic company that is in the clothing industry and more specifically in the retail sector of the economy. The clothing industry is a multi-million dollar industry that is devoted to the making and selling products for consumers to wear. Lululemon produces various athletic attire for both men and women including exercise...
Problem: Lululemon Athletica wants to convert consumers of rival workout clothing companies to become loyal customers of Lululemon.
Lululemon was able to corner the market in a market driven business, which has strengthens 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 is offering a high quality product and this company changed the way the world sees yoga appeal today. In very recent years yoga has become a popular sport and the consumers today want to look stylish while doing so and this company offers the rights products to do
Weave Tech has several strategic challenges and opportunities since the purchase of the once then called Johnson-ware apparel in 2007. Since the organization has had the challenge of rebranding themselves to attract a new customer base which is also an opportunity to grow the organization. Weave Tech has to reposition the organization to be successful throughout the changes. Another strategic challenge the organization is undergoing is reorganizing and attracting a new management team which causes for cuts and layoffs. These cuts and layoffs can drastically effect the morale of other employees and ultimately production. Over the next 3 years Weave Tech goal will be to strategically handle these challenges and opportunities while
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.
Wilson has started many retail companies, foundations and programs. His most known company is Lululemon Athletica, often referred to as Lululemon. Started in 1998, in 16 years the company has become the leading brand in yoga apparel. The business started because female participation in sports increased in those years. The first store was in Kitsilano. It is a small town in Vancouver where Wilson was born and brought up. Originally, Lululemon sold all women sports wear. After the some success, the company launched a subsidiary in 2001 called Fashion Active Lab. This company specialized in yoga clothing. The success of yoga clothing, created a new opportunity for Lululemon. In 2009, they started a new subsidiary called Ivivva Athletica. This company’s target market was girls ages 6 to 12. On July 27, 2007, Lululemon hit the NASDAQ market for public trading under the symbol LULU. On December 10, 2013 Wilson sa...
Finally, Lululemon also faces competition from active-wear giants, like Nike. Nike has introduced a yoga line, which they are in the process of expanding (Lutz, 2013). Nike proves to be a major rival because they have a greater reach to customers than Lululemon (Lutz, 2013). According to the Nike website, they are selling their yoga pants for $100.
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.
Lululemon Athletica, Inc. (Lululemon) is renowned for its technical, high-quality yoga-inspired apparel for women. However, the company is growing beyond this niche market and is therefore altering its competitive strategy. Lululemon utilizes a broad differentiation strategy because its target market is broad and its product line is varied, it stresses product innovation, and its community-based marketing and retail experience sustain its differentiation from competitors.
Nike inc. which all the other companies are trying to be like. Some changes are
Nike’s focus for fashion forward women is the following: lead the athleisure trend, increase advertising, and the introduce the #BetterForIt social media campaign. We need to focus on the athleisure trend by increasing our portfolio for the women target market. Athleisure is already 20% of the firm’s revenue and we need to recognize that women are leading this fashion movement. Under Armor and Lululemon are already making headways in this fashion focused market. We need to emphasize our athletic technologies, promoting lighter fabrics and better performance, while still maintaining a level of comfort and fashionability. Increasing the portfolio means nothing if women don’t know we’ve done just that. Nike will need to increase advertising specifically with this target market in mind. The #BetterForIt campaign is one important aspect of these advertising efforts. Similar campaigns should promote and help “normalize” athletic wear in everyday
Finally Under Armour needs to implement better monitoring and control of its stock levels. Under Armour has been forced to cut prices in the past do to being overstocked. Improving supply chain management and shorting the turn around time on order both to retailers and from suppliers is going to be key in preventing this from happening again. Upside supply chain flexibility measures the amount of time that it would take for suppliers to react to an unplanned increase in sales, monitoring this metric will ensure the necessary improvements are being
While growing up, I realized the benefits a person has when they personally own their own business. You can make your own schedule, personally control your finances, and essentially have complete control of your business Of course upon this realization; I came to the conclusion that I was going to be my own boss. I have always taken pride in how I present myself including how I dress. The limitless nature of fashion and its versatility has always intrigued me. One empowering aspect of clothing that is so fascinating is how it enables people to express themselves. Because of these interests, I have come to the conclusion that I wish to own a fashion boutique. In order to pursuit the path of becoming a fashion boutique owner, it is essential that I obtain a degree in business management, evaluate my own skills that make me ideal for the job, and