Because of the recent controversy for the Vancouver-based company, from sheer pants, to pilling, and competition with other more affordable yoga brands, most people would think that Lululemon is in trouble. Yet experts believe that it will take a lot more than that to bring down this clothing giant. They say that even with all the bad press the company has been receiving, it will continue to do well since they have a a very reliable and established costumer base. We have learned extensively how companies deal with these types of issues in class and I think Lululemon has responded well. And it is also not that concerned about these issues since it is confident that their established customer base will stay loyal. This shows us how important it is to firstly build a good consumer base not only when starting a company but also to keep it running. Some recent issues the company has to deal with are explained below.
1. Sheer Pants and Pilling
Lululemon Athletica just got over the massive complaints received by their loyal customers about the transparency of their yoga pants, and now there is a new problem: pilling. The $10 billion yoga apparel company suffered a huge blow in back in March when it had to recall 17% of their pants costing the company almost $67 million in revenue. Customers bought replacements, but now they are complaining about pilling on the same $98 pants. Several people who said they have been loyal to Lululemon for years lamented that the quality of the brand’s yoga pants has declined over the years.
“I’ve been addicted to Lulu for years and have a TON of it! I can tell you in my opinion the quality is gone,” a customer wrote on Oct. 4. “Fabric is much thinner and now pills.” Read more here.
2. Athleta vs. Lululemon
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Many new yoga apparel companies are entering the market and they could be a possible threat to Lululemon. For example Athleta has introduced a yoga pant that is almost identical to the Lululemon yoga pant but it’s $30 cheaper. Some analysts wonder whether Lululemon’s pricing will remain sustainable as the yoga apparel market gets increasingly competitive. Many customer reviews for the Athleta brand top Lululemon and many customers believe Athleta might even have better quality. But why is Lululemon not terrible concerned? An expert says “that even thought these reviews are troubling they don’t spell disaster for the company — yet.” “Athleta is gaining traction at the expense of Lululemon,” she said. “But at the end of the day, [Lululemon] really has this devoted fan base that’s going to carry it.” Read more here.
Sources:
http://ca.finance.yahoo.com/news/lululemon-customers-brands-yoga-pants-210235635.html
http://ca.finance.yahoo.com/news/why-lululemons-yoga-pants-cost-213753120.html