Lululemon, a Vancouver-based clothing company, has always been known for its high-quality, durable athletic apparel. However, due to recent incidents that questioned the company’s trademark Lyon fabric quality, Lululemon’s reputation has been slowly declining.
Recently, consumers filed a lawsuit against Lululemon for the sheer, see-through quality of their yoga pants. This lawsuit caused an immediate 17.5% fall in the company’s share price, approximately $1.62 billion U.S. dollars worth of market value. The consumers are justified in their disappointment; The brand retains its relatively high price range but if its clothing no longer meets that value, why would consumers choose Lululemon over other, cheaper brands?
Last year Lululemon faced reports of dyes coming off bright apparel, another example of sacrificing product quality for low manufacturing costs. Lululemon’s reputation as a reliable brand seems to be but a memory of the past, another sad reminder of the destructive effects of mass-consumerism. However, there is still hope. Lululemon was a strong first in the specialized yoga market, and maintained a good reputation. Therefore, the strong brand image that Lululemon has built over the years should be of aid in fixing its quality problems, regaining consumers’ trust, and continuing to expand its market.
Resources:
http://www.fashionweekdaily.com/chic-report/article/lululemon-fires-sheree-waterson-after-see-through-pants-fiasco
https://blogs.ubc.ca/chloehoy/2013/11/13/lululemon-losing-popularity-on-a-global-level/