Lululemon has long been known as a trendy, high quality company with a strong brand and ethos. But after losing a third of its value this year in shares, it’s in need of a.business plan makeover. The problem with their products is that their high costs represent not only the high quality but also the reputable brand name, and in a time of rising competition from more economical competitors, Lululemon is suffering.
They’re tackling this issue by offering more fashionable products, and branching out from simply workout items.
Aswell as diversifying, they’re globalizing their presence to international markets. However, the cost of globalization combined with their competitors improvements may hinder Lululemon’s progress. Since Lululemon’s revamp, the number of shoppers have increased, I believe this shows a strong brand loyalty among Lululemon customers. Because Lululemon represents a culture and lifestyle, customers are more inclined to buy into the brand for life.
They should capitalize this and focus on product quality. If they’re going to continue to demand high prices, they should ensure their quality beats the rest of the competition. After learning from their product recall last year, if they can ensure quality, then I believe their loyal customers will be willing to continue buying their products over their competitors.