Analysis Of The Success Factors Of Lululemon Brand

Lululemon is a yoga-inspired athletic apparel brand for both man and woman. It was established in 1998 by Chip Wilson in Vancouver, Canada. The company offers a variety of active wear such as shorts, shirts, legging pants, shoes and yoga accessories. On January, 2018 Lululemon has a total of 415 stores all over the world to satisfy customers demands. Besides, Lululemon sales keep on growing and becoming more and more popular among not only yoga fan but also sports lover. In recent years, there are many competitors that chose athletic apparel as their market segment. Nevertheless, Lululemon is having some issues which they need to solve in order to stand out in a fierce competition. Until now, Lululemon has achieved their goal in impressing their customers with high quality products which are designed for stretch, fabric technology that can make you feel in the most comfortable condition while you are working out, running, cycling, playing tennis and even when you are sweating. A t-shirt or a yoga pant costs $95 or more but customers still willing to pay. The key point for the success is Lululemon planned for their competitive advantage is niche competitive advantage, they are only focus on a single segment which is people have high income, passionate in sport, and follow fashionable trend. Moreover, Lululemon is also have a strong celebrity fanbase, many famous celebrities and athletics has chosen lululemon as their work out outfits that is an enormous contribution to increase the brand recognition.

Unfortunately, they are struggling with keeping their margins since it seems to be slow down compared to those from previous years. Because, many competitors show up with similar products at an affordable price such as Nike, Under Armour, Reebok, Puma. In addition, when you think about Lululemon, you may think it’s a brand for woman because of the wide variety of products for woman is more than man and style limitation is their weakness at the same time. This could also be a thread to the company since customers can go to another stores look for products that Lululemon does not sell. A new marketing strategy at this time is need to be brought into consideration to keep them stay on top. Lululemon can continue to develop by carrying out market development, more offers for their customers such as sales season, discount for whom spend more than $200, and also gift card for their next purchase. Furthermore, a choice to open free yoga class for customers who are new to yoga for one month to attract more new clients. They should concentrate on product development by producing new products like more types of shoes from running, hiking to training shoe. Moreover, the diversity of style is also really need to be improved by focusing to swim wear and. In addition, golf is becoming more popular nowadays and people play golf are whom have high income that included in Lululemon’s market segment. There are many accessories that go with golf and swimming, for example swim cap, golf bag, golf gloves. So, this is such a great advantage for Lululemon to attract new customers and earn more profit in the following years.