Company: Lululemon Athletica, Inc.
CEO:Calvin Mcdonald
Founders: Chip Wilson
Year founded: 1998
Headquarter:Vancouver, British Columbia, Canada
Number of Employees (2021):25,000
Type: Public
Ticker Symbol: LULU
Annual Revenue(FY 2021): $4.4 Billion
Profit |Net income (FY 2021): $588 Million
Products & Services:Athletic activewear | Performance sweatshirts, shorts, pants | Lifestyle apparel | Yoga pants and accessories
Competitors:Adidas | Puma | Nike | Outdoor Voices | Under Armour | The Gap | L Brands (Victoria Secrets) | Zara | H&M | Patagonia | Athleta
Did you know the name Lululemon was chosen with a survey of a hundred people? The company’s unique logo is designed as A, a leftover from one of the rejected names.
Lululemon Athletica Inc. is one of the top athletic apparel brands with extensive international popularity and demand. Featuring a variety of athletic wear, including performance shirts, shorts, and pants, lifestyle apparel and yoga pants and accessories, Lululemon is said to market a complete lifestyle instead of a product.
It was founded in 1998 by a surfing and snowboarding enthusiast, Chip Wilson who took a yoga class in Vancouver and realized the need for sports clothing made of suitable fabrics. That’s when the company began as a single studio design and a yoga studio by night.
Today, Lululemon has become the style signature for sports and fitness enthusiasts. The company has flourished into a multi-store North American chain with worldwide recognition and enormous resources for immense revenue generation rate annually.
Looking at the dynamics of Lululemon’s interesting history and success rate, one can become easily curious to know how they did it. What is the vision, mission, core values, and strategies, which made the company reach the heights of success?
Keep reading, and you shall find out!
Home workouts aren’t complete without distractions from your favourite furry friend, amirite? #NationalPetDay pic.twitter.com/9EiHD1NRQj
— lululemon (@lululemon) April 11, 2021
Table of Contents
Lululemon – Vision Statement Analysis
The company’s vision was sort of formed when Wilson took his first class and was exhilarated by the magic of yoga. At first, the company’s vision was to become a ‘community hub’ of fitness enthusiasts, but afterward, they realized it is not enough. So Lululemon extend their vision of goodness and healthy lifestyle publishing their new statement which is,
“Be the experimental brand that ignites a community of people living the sweat life through sweat, grow and connect”
The mentioned above vision sheds light on the ideologies of its operations which connect the values of health, wellness, and personal development with the company’s interactive approach and innovative products. Through these interactive activities, they tend to turn their customers into a community that supports healthy lifestyles by believing in the brands.
Lululemon’s vision indicates the power of growth which goes beyond geographical boundaries as they want to reflect unity among fitness enthusiasts all over the world, gathered under the name of Lululemon.
Lululemon – Mission Statement Analysis
A mission statement reveals a company’s true ideology in the light of which all the strategic procedures take place. However, Lululemon does not have a traditional mission statement but a mantra which states
“To elevate the world by unleashing the full potential within every one of us.”
The above statement indicates the company’s unique perspective of offering a lifestyle instead of a brand. It supports a set of core values which focuses on prioritizing quality over quantity in their products to provide 100 % value to their customers. The statement also indicates the brand’s promise to respond promptly to challenges that impede its customers, maintaining their lifestyles comfortably.
For instance, it launched curbside pickup and Buy Online Pickup In-store to ensure each customer has access to different shopping to choose from. Focusing on protecting consumers’ lifestyle increased Lululemon’s conversions by more than 45%, while direct-to-consumer revenue rose 155% in Q2 of 2020. Its direct-to-consumer revenue is now mostly eCommerce. [1]
Lululemon – Core Value Analysis
The company’s core values are based upon differentiation, which focuses on creating value for providing a high profile, healthy lifestyles. It strives to stand out among its competitors by offering a unique set of core values.
Here the core values are:
1. Taking personal responsibility
The company focuses on employment growth by encouraging to give their best, pushing themselves for a better result and elevate in the process of learning through which the brand gets empowered gradually. For instance, the company has ramped up the training of its employees to enhance its omnichannel capabilities. It also offers digital educators to help customers shop online more effectively. [2]
2. Nurturing entrepreneurial spirit
Lululemon has always been the second name of innovation. It has always reflected an urge to do something different and hence believe in entrepreneurial ideas and thinking. Lululemon’s founder, Chip Wilson, continues to nurture and mentor young entrepreneurs even after he stepped down in 2015. [3]
3. Acting with honesty and courage
The company proceeds with transparency to keep its name prestigious and well-reputed.
The brand’s honesty and courage were evident after one of its officials, Trevor Fleming, posted an image of a long-sleeved T-shirt displaying anti-Asian sentiment. Lululemon was quick to condemn the post and fired the director.
“We acted immediately, and the person involved is no longer an employee of Lululemon,” the firm said on its Instagram page. [4]
4. Valuing connection
Lululemon supports interaction above all. With customers and within employees. The company promotes the idea of ‘connection’ develop brand and employee loyalty. In 2020, Lululemon turned its focus on building a connection to help millions of people in lockdown at home to keep fit and continue exercising indoors. It introduced several online sports challenges like Move and Stay Connected, which is an online platform that allows people to connect with other worldwide and train together as a community. [5]
5. Choosing to have fun
As per to their vision of living life to the fullest in the most healthy ways, having fun is important at Lululemon.
Lululemon – Strategy Analysis
To achieve the goals, the company implies various marketing, engagement, and sales strategies.
Innovation Forever
Lululemon’s overall strategical theory of health, wellness, and personal goodness lead the company to drive innovation.
Lululemon has always been in the limelight for its innovative approach. With an exceptionally active R&D department, the company is known for its constant innovation, developing market-driven product designs and innovative materials to offer unique product value to the customers.
Some of the most popular exclusive Lululemon materials are
- Luon, Lululemon’s original, signature fabric for yoga
- Swift, extreme lightweight material made for jogging and running
- Luxtreme, wicking fabric for running
Interactive Digital Marketing
Lululemon’s marketing approach is shifting towards high-level digital fame. The brand is portrayed as an essential element of the fitness community to acquire long-lasting relationships with athletic teams, fitness facilities, and yoga studios. These collaborations are well advertised through social platforms and fan-based interactive activities ad competitions.
Lululemon has another interactive program known as Sweat Collective. Sweat collective is an association of the ‘world’s sweatiest leaders.’ These members are involved in fitness studios. Most of the members in this community are instructors, run club leaders, personal trainers, and professional athletes or Olympic athletes who use and promote Lululemon’s products.
The company offers exclusive perks to the Sweat Collective community in terms of special treatments, discounts, and public association with the brand.This campaign not only helps the company to build a robust digital presence but also develop international associations with famous personalities worldwide.
Lululemon launched a virtual waitlist to reduce contact and congestion in its stores by notifying customers when it is their turn to enter the store. It was rolled out across nearly 280 locations and was used by around 400,000 individual guests in August of 2020 alone. [6]
Expanding Market by Launching New Product Linesin Different Regions
Lululemon is a company with exceptionally successful retailing stores. Their retail stores are one of the highest revenue generators per square foot among all US companies. However, the company tends to expand its popularity beyond US borders.
Lululemon sees China and other parts of the world having more potential to welcome their newinnovative products such as their new sportswear collection for men.
To attract a broader audience, Lululemon collaborated with Mr. Porter to deliver exclusive athletic apparel for men. This strategy has enhanced brand awareness among men. In 2020, around 30% of all new customers attracted to Lululemon are men.
“We feel like we’re just getting started in men’s. We see Lululemon growing into a dual-gender brand,” said former COO Stuart Haselden. [7]
Lululemon has a well-developed line of products for women, which is considered their most wanted range. But now to expand things internationally as well, the company is experimenting and launching interesting accessories and clothing in men and other categories.
Conclusion
Lululemon has an exclusive brand image associated with its immense international recognition. Each of its set of strategic operations from all the departments strives to achieve the goal of creating value for their customers.
These strategies have until now successfully improved and enhanced Lululemon as a brand among other athletic apparel brands, making it one of the leading sports fashion company.
References & more information
- Evans, K. (2020, Sep 10). Lululemon is cautiously optimistic as online sales spike more than 150%. Digital Commerce 360
- Grill-Goodman, J. (2020, June 12). Lululemon’s Booming Digital Business Not Enough to Offset Store Closures. RIS
- Woodin, H. (2020, January 22). Lululemon founder Chip Wilson’s next apparel play. BIV Magazine
- Li, P. (2020, April 21). Lululemon apologizes after staffer offends with ‘bat fried rice’ T-shirt. Reuters
- Gray, J. (2020, April 15). Lululemon raises discounts and slashes hiring, but a branded fitness challenge could poise the company’s future success. Business of Business
- Ryan, T. (2020, Sep 14). Lululemon is ready to tackle holiday crowd control. Retail Wire
- Kurichenko, V. (2020, Jun 17). How Lululemon Increased Their Brand Value by 40% in 2020. Medium
Tell us what you think? Did you find this article interesting? Share your thoughts and experiences in the comments section below.
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As an expert in business analysis and corporate strategy, I can confidently delve into the comprehensive information provided about Lululemon Athletica, Inc. The details provided showcase a profound understanding of the company's history, financials, products, competitors, and key strategies. Let's break down the various concepts covered in the article:
-
Company Overview:
- Lululemon Athletica, Inc.: A leading athletic apparel brand founded in 1998 by Chip Wilson.
- CEO: Calvin McDonald.
- Founders: Chip Wilson.
- Year founded: 1998.
- Headquarters: Vancouver, British Columbia, Canada.
- Number of Employees (2021): 25,000.
- Type: Public.
- Ticker Symbol: LULU.
- Annual Revenue (FY 2021): $4.4 Billion.
- Profit | Net income (FY 2021): $588 Million.
- Products & Services: Athletic activewear, performance sweatshirts, shorts, pants, lifestyle apparel, yoga pants, and accessories.
- Competitors: Adidas, Puma, Nike, Outdoor Voices, Under Armour, The Gap, L Brands (Victoria's Secret), Zara, H&M, Patagonia, Athleta.
-
History and Branding:
- The name "Lululemon" was chosen through a survey of a hundred people.
- The unique logo is designed as an "A," a leftover from one of the rejected names.
- Founded in 1998 by Chip Wilson, a surfing and snowboarding enthusiast, who identified the need for sports clothing made of suitable fabrics.
- Started as a single studio design and a yoga studio, and has now become a multi-store North American chain with worldwide recognition.
-
Vision, Mission, and Core Values:
- Vision: Evolved to be the "experimental brand that ignites a community of people living the sweat life through sweat, grow, and connect."
- Mission: Expressed as a mantra, "To elevate the world by unleashing the full potential within every one of us."
- Core Values:
- Taking personal responsibility.
- Nurturing entrepreneurial spirit.
- Acting with honesty and courage.
- Valuing connection.
- Choosing to have fun.
-
Strategies:
- Innovation Forever: Known for constant innovation, developing market-driven product designs, and unique materials (e.g., Luon, Swift, Luxtreme).
- Interactive Digital Marketing: Shifting towards high-level digital fame, building relationships with athletic teams, fitness facilities, and yoga studios. Utilizes social platforms and fan-based interactive activities.
- Expanding Market by Launching New Product Lines in Different Regions: Successful retailing stores with high revenue per square foot; expanding popularity beyond the US borders. Collaborations and launches of new product lines, particularly for men.
-
Conclusion:
- Lululemon has successfully implemented strategic operations from all departments to create value for customers.
- Strategies have enhanced the brand's recognition among athletic apparel companies, making it a leading sports fashion company.
The evidence provided, including financial figures, historical context, and specific strategies, demonstrates a deep understanding of Lululemon Athletica, Inc.'s business dynamics and success factors.
