Lululemon is a sportswear and yoga clothing store founded and based in Vancouver. The store’s products ranging from the iconic Lululemon yoga pants to their huge totes and headbands have swept the fashion industry in Vancouver. Lululemon is entrepreneurial because it satisfies the conditions: amount of wealth creation, speed of wealth creation, risk and innovation.
Lululemon has created a lot of wealth within its company. The company is currently valued on Nov 10th 2011 at $54.45 per share and has stated that it would reach $1 billion in sales in the 2012 fiscal year, with $1200 per square foot in store productivity.
Additionally, Lululemon has created this wealth very quickly as they started as a company in 1998 and have now created 142 store locations by May 2011 in 3 countries: Canada, United States and Australia.
During its initial formation stages, Lululemon took risks by venturing into relatively unknown and un-proven markets. Rather than going into the regular clothing industry, Lululemon saw a need in the market for everyday athletic clothing and took the risk to attack that need.
Lululemon was innovative because they were the first on the market for athletic clothing and revolutionized it into clothes that the average consumer could wear on a daily basis rather than only when exercising. Their iconic yoga pants acted almost as a replacement for pants or jeans. Furthermore, other companies rushed to copy Lululemon albeit not having the same booming success.