Lululemon
Lululemon
Lululemon
Ashley North
July 6, 2021
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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).
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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
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
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associate’s incentives. With ample room for company growth, a premium shopping experience
References
Danziger, P. N. (2019, April 05). Three Challenges Lululemon Needs To Address To Keep
https://www.forbes.com/sites/pamdanziger/2019/04/05/Lululemons-2018-results-were-
astounding-but-can-it-do-it-again-in-2019/?sh=6faffb883b47
Keown, A. J., Martin, J. D., & Petty, J. W. (2020). Foundations of finance: The logic and
Linde, A. (2021, March 15). 30 Best Workout and Gym Clothing Brands to Know. Retrieved
brands/
Lululemon Unveils "Power of Three" Strategic Plan to Accelerate Growth. (2019, April 24).
release-details/Lululemon-unveils-power-three-strategic-plan-accelerate-growth
Salpini, C. (2019, September 26). Lululemon to shutter Ivivva brand by mid-2020. Retrieved
by-mid-2020/563798/
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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