Lauren Telford recently commented on the “compromising position” Lululemon is in after having to pull a large mass of its black Luon yoga pants from their shelves, as they were too see-through. With a 7% share decline and their high-quality brand at stake they have clearly ran into a PR disaster!
Lauren presents two options that which Lululemon could consider: throwing 17% of all their women’s pants out, and offloading the product to a discount retailer like Winners. I support her opinion that the first option may not be the best choice for the company, as they have branded themselves as being sustainable and environmentally friendly. Throwing millions of dollars into a landfill would without a doubt tarnish their image. Secondly, selling to discount retailers like Winners would undermine their high-quality lifestyle brand.
So how does the company restore their image? Lululemon has taken the first step by taking full responsibility for the mistake. They have owned up and committed to making things right allowing customers to return/exchange the product if purchased after January 1st. In addition, they need to implement a plan of action. In the minds of consumers, Lululemon is associated with a promise of high quality and value especially with their higher prices compared to less expensive competitors. If consumers or “yogis” are not assured that the right plans are being put in place to ensure this slip-up doesn’t happen again, Lululemon may see its profits going downward (dog) in the future.
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