After completing an in-class activity about Lululemon, I was surprised to find a blog post by Ty McMahan denouncing founder Chip Wilson for a recent bout of offensive comments. Following reports of quality issues regarding pilling in newly-purchased yoga pants, the CEO responded by claiming Lululemon was not responsible.
“Quite frankly, some women’s bodies actually just don’t work for [the pants]. They don’t work for some women’s bodies,” said Wilson.
From a marketing perspective, these comments have been extremely detrimental to the brand image and its implications. Lululemon’s strategy is to not only sell their products, but to sell a “way of life”. By blaming women’s bodies and claiming that not everyone suits their clothing, Chip Wilson has effectively estranged himself from a large portion of his consumer base.
Competitors have also taken advantage of Lululemon’s declining market share; Macy’s is planning to double its activewear square footage in early November, with both Nordstrom and Kohl’s following suit. With a lack of distinct points of difference, I predict that Lululemon will be susceptible to competition from brands that offer a similar value proposition.
Sources:
http://www.huffingtonpost.com/ty-mcmahan/where-founder-fails-to-be_b_4268917.html?utm_hp_ref=busines
http://investorplace.com/2013/10/lululemon-stock-lulu-nke-ua/#.UodLMOIUJKk