What made Lululemon so successful?
The technological advances lululemon has made in clothing makes it harder for competitors to emulate its success. It also enables lululemon to charge higher prices and have merchandise that rarely goes on sale. lululemon's focus on innovation not only lies within its products but within its stores.
Key Takeaways
The company operates 521 stores worldwide, but products are also sold via e-commerce and digital sales, as well as in health clubs, fitness centers, and yoga studios. Lululemon doesn't own or operate any manufacturing facilities.
“On the other hand, Lululemon has created a much more powerful community through its 1,500 member ambassador program and its user-generated content (USG).” Lululemon ambassadors are recruited from the local store communities and are authentic influencers-in-chief on the local level.
The key source of competitive advantage is brand loyalty. Lululemon has a solid and loyal customer base. The company has many followers that create a unique community for the health and fitness market.
Founded in Vancouver, Canada in 1998, lululemon (also known as lulu) is an athletic apparel company best known for its yoga, running and training apparel.
As a prestigious brand, Lululemon has used exclusive marketing to promote its brand and products. For the company, word of mouth is actually one of the most important advertising tools. Sales representatives offer personalized recommendations and encourage customers to visit the stores and try out products.
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.
Key strategies that will drive the success of the five-year plan, include product innovation, international expansion, building a digital ecosystem, and maximizing the retailer's North American operation.
As a design-led company, curiosity is at our core. We're constantly thinking about how we can innovate our process, our gear, and our social impact so we can elevate the world from mediocrity to greatness.
It uses renewable energy in its supply chain to reduce its climate impact, and reuses all of its offcuts to minimise textile waste. It is also a PETA approved 100% vegan brand!
What are lululemon's core values?
Our core values of personal responsibility, entrepreneurship, honesty, courage, connection, fun, and inclusion are lived by our people every day and are at the heart of our unique company culture. We live a life we love.
Key strategies that will drive the success of the five-year plan, include product innovation, international expansion, building a digital ecosystem, and maximizing the retailer's North American operation.
lululemon's strategic growth plan is underpinned by the Company's strong financial position. In addition to doubling men's and digital, and quadrupling international revenues, other key financial goals of the Company's Power of Three ×2 growth strategy include: Total net revenue CAGR of 15% between 2021 and 2026.
Lululemon's past success proves that this differentiated approach has worked tremendously, even more impressive given Nike's stranglehold on the entire sports apparel market. Over the past five fiscal years, Lululemon's revenue and profit have increased 174% and 221%, respectively.
The material is moisture-wicking and allows for a "four-way stretch." In addition to form and function, Lululemon's pants are also renowned for their appearance and have become a fashionable item for some. Unlike with sweats and other workout clothes, women often wear Lululemon gear in casual settings.