Athletica Inc. test boutique is providing assistance to form the foundations for what the finest yoga wear maker considers as an auspicious avenue for customer attraction and growth in sales. The Canadian retailer is currently focusing on global markets even as it struggles with the need of having a fresh chief executive, fixing a tainted image after a distressing recollection of excessively sheer pants and looking forwards to expand in the United States. The step to expand in the United States can prove to be tricky even during the best times or season. Though the rewards are appealing, such international markets can be inconsistent, complex and uncertain. Currently the investors observing the successful track record of Lululemon, opinion …show more content…
that they doubt the company can manipulate the various balls required to maintain a supercilious valuation and educe some of its former dramatic growth. At the local level, the company has offered upscale yoga clothing produced with the help of performance fabrics and requested native yoga trainers to use their products and provide company with their feedback. The company received positive and satisfactory response. The company provided a unique in-store shopping experience, supplemented with robust ties to fitness coaches and fitness launches, local athletes and individuals concerned about fitness, and numerous communal and fitness events. The products of Lululemon product face the threat of numerous substitute.
Though the high quaky materials used by Lululemon apparel is tough to replicate, yet there is a large number of other. The industry of athletic apparel wear is highly competitive because of a large number of firms involved in this business. Top five competitors of Lululemon are Bebe Spon; Lucy Activewear, Under Amour, Nike, and Adidas. The competition among these brands is primarily through price, innovation, quality, and brand image. The top competitors of Lululemon have considerable competitive positioning because of being more customary with a wider customer base and a variety of products. Moreover, the competitors of Lululemon have an advantage regarding retail, R&D, and financial position. But Lululemon differentiates itself by its marketing strategy and rely on it solid, faithful customer base because of its vertical retail strategy and grass root …show more content…
marketing. Lululemon has been gradually escalating into fresh markets during the previous six years. There are several steps taken by the company in this regard. As a first step, the company has setup temporary stores called showrooms with the aim of analyzing markets. At the same time, it helped the company in gather some time to hire workforce and search for the right real estate for permanent stores. Currently, the chairman of the company is signaling that he wants to place his foot on the gas control as customer traffic slows at its main North American outlets and a decrease is experienced in the sales. Stakeholders seemed satisfied with the fresh direction and had pushed the stock up to 6.7 per cent to $61.20 (U.S.). Though the vender’s forecast regarding next year is lesser than analysts are anticipated, it beat its condensed prediction for the last quarter of 2016. Lululemon is making use of ambitious expansion model.
The company is having a good time now after facing two consecutive tough years. Lululemon is currently enjoying a recovery in sales and its Chief Executive Officer; Laurent Potdevin is hopeful that the company is capable of taking benefit of this momentum and expanding in new venues. The company has taken advantage from the swing in athletic wear which is becoming a part of everyday fashion. The company’s CEO has set aspiring objectives of increasing the sales by 100 percent to $4 billion till 2020. The company also aims to bring innovation in products such as menswear and swimwear. Moreover, the company aims to increase the number of its stores in North
America. Though Lululemon is a Vancouver, Canada, based company while the majority of its stores are in the United States. The CEO of the company aims to increase its retail footprint more in the United States as compared to Canada. This drift is mainly because of the larger market size of the United States and its developing economy. Other than the United States, the company can also look forward to targeting new markets like that of its competitors Adidas and Nike. Lululemon can target growing economies such as China, India, and Malaysia in Asia. Other than this Myanmar, Ivory Coast, and Bhutan are also good destination where the company can hire labor at cheaper rates in addition to selling its products. It is expected that as these economies are growing at a greater pace, the income of people in these economies is increasing. Moreover, the increased income of people is expected to result in an increased demand for goods. As far as Malaysia is concerned, it attracts a large of tourists and there can be a big market for products produced by Lululemon. Therefore these economies can prove to be beneficial for the company to expand. However, before investing and expanding its outlets to these countries, the company has to take into account the traditions and rules and regulations of these countries. There is not much problem with the current business model of Lululemon as it is targeting the main consumers of its products such as footwear’s and apparels. However as the company grows and enter new markets, it has to upgrade its equipment just like its main rivals Nike and Adidas. The company has to focus on activities such as design and development in addition to marketing. Moreover, as the company’s market share increases, it should outsource its non-core activities such as manufacturing to indenture manufacturers. Other than this, while taking any decision, it should not forget its true aim of being a truly international brand. The company should also increase the ratio of its R&D expenses to total profit. The above-proposed model is necessary for the company’s current situation because it is performing well currently but within a limited number of markets. The company’s history shows that it had focused on grass root marketing when it was rarely known. However, it has proved to be successful with its old strategy and continuation of the current strategy for a year or two the company should shift to strategy proposed above. Provided the aim of the company to operate globally, it has to focus on further expansion and discover new markets. Increased expenses in R&D will help the company to introduce innovative and differentiated products which will be helpful for the company to stand apart from its competitors.
Currently, Lululemon has 254 stores in North America, Australia, and New Zealand. (“Lululemon Athletica Inc. announces fourth quarter and full year fiscal 2013 results,” 2014). They offer a range of performance apparel and ac...
Lutz, Ashley. "Lululemon Is Feeling The Heat From Competitors." Business Insider. Business Insider, Inc, 14 Mar. 2014. Web. 09 Apr. 2014. .
Norms for consistency was another determinant of why Abercrombie decided to commit to reinvesting in its brand. Leaders are expected to take action when they encounter difficult situations. This expectation derives both from the public and from the employees as well. Thus, it was necessary for Abercrombie’s executives to act. Abercrombie believed that if they stay consistent with their efforts, the results were going to be positive. However, rebranding has proven to failed for several years
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
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
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 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 Athletica Inc., also referred to as Lululemon, is an athletic apparel retailer from Canada. You can find them on Nasdaq with the ticker code LULU, as they are a publicly traded company. Lululemon was founded by Chip Wilson in Vancouver, in 1998. It didn’t take long time for Lululemon to become a wide-spread sensation throughout the United States. As of October 2015, Lululemon had over 354 stores worldwide. With growing popularity of the brand, it is not a surprise how successful the company itself has become. According to many, their products still maintain to be unique within the massive athletic-wear industry. Today, Lululemon produces outfits and gear for many different types of sports
Topman already has more than 309 fashion stores nationwide with another 50 stores outside the United Kingdom division. Topman boasts the worlds largest fashion store in London with over 200,000 shoppers per week, Topman gets twice deliveries per day and 7,000 looks per season. In the year 2006, Topman’s operating profit hits 110 million with its annual sales of 600 million now. It brings a strong brand image of Topman based on the successful achievement to consumer’s mindset. Strong brand image builds confidence and reliability towards Topman’s product. In a nutshell, expending Topman’s market in Vietnam has a strong potential to gain sustainable profit.
Lululemon’s competitive strategy is broad differentiation due to the company expanding its target market and product line. Although Lululemon was initially established to satisfy the apparel needs of adult women who practice yoga, the company has widened its definition to
Offering special products is marked under strengths and opportunity; however, long term sustainability must ease the weaknesses and threats posed by competitors and external markets forces. However, they are several other strengths of this company that outweigh the weaknesses but can easily be threatened. Lululemon has a great brand equity and knowledge in the market which has helped them development a customer loyalty. While Lululemon’s strengths is challenging, limiting their products to a special market, with higher than normal prices opens the markets for competitors. Lululemon has several weaknesses, they only offer a specialty product and it mostly aimed to attract woman. The company’s profitability has decreased over the recent years, showing the necessity for Lululemon to sustain its economic growth through product diversification and geographical expansion. Many of their competitors have grown, mostly likely due to their global growth and divarication. If Lululemon would expand their market growth this would open up so much more opportunity for this company to grow. One of their weaknesses is there is the dependence on suppliers. This opens a great opportunity for Lululemon, right now they are heavily relying on suppliers around the world and they do not have their own manufacturing facilities. This is causing the company to spend more money of vendors to
Nike’s goal is to remain unique and different from others in terms of the items offered on the market. Arguably, Nike belongs to a monopolistically competitive market as there only a few organizations with the ability to regulate the amount charged for their product which means they cannot make their prices high as this is likely to make customers move on to other available choices (Nike, Inc., 2012). However, Nike can find a balance between the prices to charge for their products and remaining competitive with other companies in the industry. Nike has formed a distinction between the appearance and performance of their footwear and that of their competitors. Although products are differentiated from other companies, they still influence each other because they are items of the same
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
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