Background
Chip Wilson was an avid surfer and snowboarder who fell in love with yoga during his very first class. Wilson noticed how ill-fitting cotton clothing was when practicing yoga. As a result, in 1998, Lululemon was born (Lululemon, 2015). Wilson sold his clothing to yoga instructors and relied on these instructors to grow the business. The first store opened in Vancouver, Canada, and now Lululemon can be found in 201 locations across the United States, Australia, Canada, New Zealand, Hong Kong, and Great Britain. Lululemon’s early success allowed the company to go public in 2007 (Wikipedia, 2015).
While Lululemon now offers athletic clothing for men, women, and children, initially Lululemon sought to target active women who practice yoga. Before 1998, the athletic market for women was not nearly as representative as it should have been. Wilson recognized this and worked to create the yoga clothing movement.
Finance + Synergies
Marketing and Brand + Synergies
Lululemon’s products include athletic clothing and accessories for both women and children. Lululemon also opened an athletic line exclusively for young girls aged 6-15, called Ivivva (Lepore, 2014). The Lululemon brand is committed to using technologically advanced fabrics in order to create superior, well-fitted products for customers. Some of these fabrics include Luon, Swift, Luxtreme, Mesh, and Silverescent, which work to wick sweat away, keep athletes comfortable, and prevent odor (Lululemon, 2015). Beyond the fabrics, Lululemon differentiates itself from its competitors through its focus on style and fashion. Furthermore, Lululemon has become a status brand. Lululemon considers its brand to be in the luxury athletic wear market. Consumers purchase these products because they believe in the value and also because they want to be a part of the Lululemon community. Consumers pay high prices in order to be a part of the company’s attitude and lifestyle. The price of Lululemon certainly puts the brand in the luxury category. One pair of Lululemon’s famous yoga pants costs, on average, $100 (Lululemon, 2015). Athletic jackets for men cost, on average, $200 (Lululemon, 2015). This high price is a barrier for many consumers, but for those who are seeking a truly elite and active group, the price is considered a good value. From shopping in the stores, we have observed that two pricing strategies that Lululemon engages in are urgency and lack of discounting. Lululemon typically releases a select number of new products, in order to create a sense of urgency and excitement around their brand. In addition, Lululemon rarely discounts their products. As a result, they can keep their prices high, and consequently and continuously increase their demand. Not all aspects of Lululemon are overpriced, however. For instance, Lululemon offers free yoga classes inside of their retail stores. These classes are typically taught by yoga instructors from surrounding yoga studios. The thought behind offering free classes is that it will bring in new customers. The second that the yoga class ends, the clothing racks and display tables are brought out, so that the yogis will walk through the brand selection before leaving. Place in Lululemon’s marketing mix refers to its distribution channels. Primarily, Lululemon sells their products inside of their specific retail stores (where most of the free yoga classes take place). Smaller showrooms also exist in certain cities and areas. Consumers can buy products directly from Lululemon’s online website. Lastly, there are a very limited number of partners that Lululemon will work with in terms of distribution. A few high-end gyms and studios, in affluent areas, are allowed to sell Lululemon products within their facilities. Similar to the LVMH strategy, Lululemon wants complete control over their …show more content…
Both companies’ products are comparable in prestige, value, and perceived luxury. LVMH and Lululemon have very high price points, in comparison to their general competitors’ prices. The following statement is true for both companies: as price increases, demand increases. Distribution centers for both LVMH and Lululemon are limited, so as to provide complete control over where and how each product is sold. Promotion by customer involvement and word-of-mouth is effective for LVMH and for Lululemon. Based on brands alone, one can see that Lululemon is a strong fit for an LVMH
Chip Wilson was an avid surfer and snowboarder who fell in love with yoga during his very first class. Wilson noticed how ill-fitting cotton clothing was when practicing yoga. As a result, in 1998, Lululemon was born (Lululemon, 2015). Wilson sold his clothing to yoga instructors and relied on these instructors to grow the business. The first store opened in Vancouver, Canada, and now Lululemon can be found in 201 locations across the United States, Australia, Canada, New Zealand, Hong Kong, and Great Britain. Lululemon’s early success allowed the company to go public in 2007 (Wikipedia, 2015).
While Lululemon now offers athletic clothing for men, women, and children, initially Lululemon sought to target active women who practice yoga. Before 1998, the athletic market for women was not nearly as representative as it should have been. Wilson recognized this and worked to create the yoga clothing movement.
Finance + Synergies
Marketing and Brand + Synergies
Lululemon’s products include athletic clothing and accessories for both women and children. Lululemon also opened an athletic line exclusively for young girls aged 6-15, called Ivivva (Lepore, 2014). The Lululemon brand is committed to using technologically advanced fabrics in order to create superior, well-fitted products for customers. Some of these fabrics include Luon, Swift, Luxtreme, Mesh, and Silverescent, which work to wick sweat away, keep athletes comfortable, and prevent odor (Lululemon, 2015). Beyond the fabrics, Lululemon differentiates itself from its competitors through its focus on style and fashion. Furthermore, Lululemon has become a status brand. Lululemon considers its brand to be in the luxury athletic wear market. Consumers purchase these products because they believe in the value and also because they want to be a part of the Lululemon community. Consumers pay high prices in order to be a part of the company’s attitude and lifestyle. The price of Lululemon certainly puts the brand in the luxury category. One pair of Lululemon’s famous yoga pants costs, on average, $100 (Lululemon, 2015). Athletic jackets for men cost, on average, $200 (Lululemon, 2015). This high price is a barrier for many consumers, but for those who are seeking a truly elite and active group, the price is considered a good value. From shopping in the stores, we have observed that two pricing strategies that Lululemon engages in are urgency and lack of discounting. Lululemon typically releases a select number of new products, in order to create a sense of urgency and excitement around their brand. In addition, Lululemon rarely discounts their products. As a result, they can keep their prices high, and consequently and continuously increase their demand. Not all aspects of Lululemon are overpriced, however. For instance, Lululemon offers free yoga classes inside of their retail stores. These classes are typically taught by yoga instructors from surrounding yoga studios. The thought behind offering free classes is that it will bring in new customers. The second that the yoga class ends, the clothing racks and display tables are brought out, so that the yogis will walk through the brand selection before leaving. Place in Lululemon’s marketing mix refers to its distribution channels. Primarily, Lululemon sells their products inside of their specific retail stores (where most of the free yoga classes take place). Smaller showrooms also exist in certain cities and areas. Consumers can buy products directly from Lululemon’s online website. Lastly, there are a very limited number of partners that Lululemon will work with in terms of distribution. A few high-end gyms and studios, in affluent areas, are allowed to sell Lululemon products within their facilities. Similar to the LVMH strategy, Lululemon wants complete control over their …show more content…
Both companies’ products are comparable in prestige, value, and perceived luxury. LVMH and Lululemon have very high price points, in comparison to their general competitors’ prices. The following statement is true for both companies: as price increases, demand increases. Distribution centers for both LVMH and Lululemon are limited, so as to provide complete control over where and how each product is sold. Promotion by customer involvement and word-of-mouth is effective for LVMH and for Lululemon. Based on brands alone, one can see that Lululemon is a strong fit for an LVMH