Sauder graduate, Michelle Lei, came in last week to share to us her endeavours on her business Light Activewear. The company designs sustainable spandex garments and other yoga apparel to more than 60 fitness centers and yoga studios across Canada and the United States.

What are the challenges the company faces?

The company has a high cost structure, because their products are sustainable and environmentally friendly; this forces them to increase the price of their products. As well, the company is mainly focused on online consumers, as they lack a physical store to sell products in. This is disadvantageous for them, as it prevents them from getting their brand image and name into the market. The companies value proposition is to sell environmentally products that are comfortable, and are of great quality.  However, without a strong brand image and attention, consumers will not know about their great quality or choose their brand over their competitors. Light Activewear is faced with an important decision: Should they continue to be ethical and produce products that benefit the environment, or should they follow the production process of their competitors, which will allow them to lower their costs and compete over a low-cost strategy?

http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/day-to-day/when-retailers-arent-interested-in-your-pricey-new-product-line/article13116739/