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    Lululemon

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    Lululemon was founded in 1998 as a yoga studio in Vancouver, Canada and has since expanded to hundreds of retail stores worldwide selling athletic apparel. It launched a children's line called Ivivva in 2009 but closed it in 2017 to focus on growing its men's collection. While Lululemon remains successful, the document suggests it could improve associate incentives and the in-store shopping experience to maintain growth. It also discusses the company's goal of making its men's business equally as large as its popular women's line through expanding the men's department digitally.

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    Lululemon

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    149 views5 pages
    Lululemon was founded in 1998 as a yoga studio in Vancouver, Canada and has since expanded to hundreds of retail stores worldwide selling athletic apparel. It launched a children's line called Ivivva in 2009 but closed it in 2017 to focus on growing its men's collection. While Lululemon remains successful, the document suggests it could improve associate incentives and the in-store shopping experience to maintain growth. It also discusses the company's goal of making its men's business equally as large as its popular women's line through expanding the men's department digitally.

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    Lululemon was founded in 1998 as a yoga studio in Vancouver, Canada and has since expanded to hundreds of retail stores worldwide selling athletic apparel. It launched a children's line called Ivivva in 2009 but closed it in 2017 to focus on growing its men's collection. While Lululemon remains successful, the document suggests it could improve associate incentives and the in-store shopping experience to maintain growth. It also discusses the company's goal of making its men's business equally as large as its popular women's line through expanding the men's department digitally.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    149 views5 pages

    Lululemon

    Uploaded by

    api-562131193
    Lululemon was founded in 1998 as a yoga studio in Vancouver, Canada and has since expanded to hundreds of retail stores worldwide selling athletic apparel. It launched a children's line called Ivivva in 2009 but closed it in 2017 to focus on growing its men's collection. While Lululemon remains successful, the document suggests it could improve associate incentives and the in-store shopping experience to maintain growth. It also discusses the company's goal of making its men's business equally as large as its popular women's line through expanding the men's department digitally.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 5

    Running head: LULULEMON 1

    The Expansion of Lululemon

    Ashley North

    Arizona State University

    OGL 260: Resource Allocation in Organizations, Module 1

    July 6, 2021
    LULULEMON 2

    The Expansion of Lululemon

    Founded by Chip Wilson in 1998, Lululemon Athletica made its yoga-inspired apparel

    debut in Vancouver, Canada. What started as a one-stop-shop yoga studio, has flourished into

    hundreds of retail locations. Lululemon has developed into a technical athletic apparel company

    intended for sweaty pursuits such as yoga, running, and training (“History,” n.d.). While

    Lululemon is among the top athletic apparel brands, it has room to grow through a variety of

    approaches.

    Wilson envisioned a “community hub where people could learn and discuss the physical

    aspects of healthy living, mindfulness, and living a life of possibility” (“History,” n.d., para. 3).

    Originally designed to be an apparel studio by day and a yoga studio by night, Lululemon

    eventually transformed into a standalone store (“History,” n.d.). Lululemon has stuck to its core

    values by offering free yoga classes once a week; however, I feel there could be an improvement

    regarding discussing healthy living. In providing high-quality products at premium prices, the

    customer service should be exceptional. As Arthur Keown, John Martin, and J. William Petty

    (2020) stated in Foundations of Finance: The Logic and Practice of Financial Management, “If

    consumers don’t feel good about a company, they are less likely to spend money on its products,

    and that impacts stock prices” (p. 10). According to a source of Pamela Danziger (2019), “For a

    $128 pair of pants, not getting someone helping you in the dressing room is inexcusable” (para.

    13). When spending this amount of a pair of leggings, customers expect guidance from

    Lululemon’s educators. Sadly, Danziger (2019) source goes on to state that, Lululemon doesn’t

    “pay their store associates, called educators, very well … they could do a better job of

    incentivizing the educators in order to get more premium talent at the educator level” (para. 19).
    LULULEMON 3

    It seems that after two decades Lululemon stores are becoming stale with their shopworn

    appearance and sub-par customer service. To obtain another forceful year such as 2018, and to

    continue expanding their men’s department, Lululemon must find new ways to entice its

    associate to perform at unprecedented levels.

    As Alex Linde (2021), stated, over the years, Lululemon “has expanded to include

    menswear, as well as garments targeted for running, cycling, training, and anything else that gets

    you sweaty” (para.19). When considering other ways the corporation could expand, I would have

    suggested manufacturing a children’s line. After doing a little more research, I was surprised to

    find that in 2009 Lululemon launched Ivivva which created athletic wear for girls age six to

    fourteen. Unfortunately, the decision was made in 2017 to scale back its girl’s line to focus on

    the growth of its men’s collection (Salpini, 2019). In doing so, the company closed roughly 50

    Ivivva stores in 2017 with the intention of closing the remaining seven locations by mid-2020

    (Stych, 2019). All remaining Ivivva merchandise has been removed from Lululemon stores and

    placed online for sale. In fact, over the next two years, Lululemon plans on doubling its men’s

    digital revenue (“Lululemon Unveils”, 2019). According to the company CEO Calvin

    McDonald, “we really believe that Lululemon can be a gender-neutral brand and that our men’s

    business can ultimately be as big as our women’s” (Danziger, 2019, para. 25).

    Altogether, I’ve learned that Lululemon Athletica was initially designed to be a one-stop-

    shop yoga studio, for men and women. To shake up the market, Lululemon launched Ivivva to

    reach a broader customer base. Since Ivivva did not develop as expected, the company decided

    to retract the new brand and focus on the expansion of the men’s department. Lululemon remains

    one of the top athletic apparel retailers; however, I would suggest that the company improve its
    LULULEMON 4

    associate’s incentives. With ample room for company growth, a premium shopping experience

    can increase foot traffic while increasing profit.

    References

    Danziger, P. N. (2019, April 05). Three Challenges Lululemon Needs To Address To Keep

    Delivering Record Results. Retrieved July 05, 2021, from

    https://www.forbes.com/sites/pamdanziger/2019/04/05/Lululemons-2018-results-were-

    astounding-but-can-it-do-it-again-in-2019/?sh=6faffb883b47

    History. (n.d.). Retrieved July 05, 2021, from https://info.Lululemon.com/about/our-story/history

    Keown, A. J., Martin, J. D., & Petty, J. W. (2020). Foundations of finance: The logic and

    practice of financial management (10th ed). New York, NY: Pearson.

    Linde, A. (2021, March 15). 30 Best Workout and Gym Clothing Brands to Know. Retrieved

    July 05, 2021, from https://www.thetrendspotter.net/workout-and-athletic-clothing-

    brands/

    Lululemon Unveils "Power of Three" Strategic Plan to Accelerate Growth. (2019, April 24).

    Retrieved July 05, 2021, from https://investor.Lululemon.com/news-releases/news-

    release-details/Lululemon-unveils-power-three-strategic-plan-accelerate-growth

    Salpini, C. (2019, September 26). Lululemon to shutter Ivivva brand by mid-2020. Retrieved

    July 05, 2021, from https://www.retaildive.com/news/Lululemon-to-shutter-ivivva-brand-

    by-mid-2020/563798/
    LULULEMON 5

    Stych, A. (2019, September 30). Bizjournals.com. Retrieved July 05, 2021, from

    https://www.bizjournals.com/bizwomen/news/latest-news/2019/09/Lululemon-exiting-

    the-childrens-clothing-market.html?page=all

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