With Lululemon’s multiple production failures, the company has yet to establish a stable and reliable connection with their consumer. In fact, they have been doing quite the opposite. After having quality control issues and distributing yoga pants that were too sheer and thus see through, customers are feeling alienated from the brand. With the stock price tumbling down 4% to $66.24, even investors are questioning if this mistake marks the beginning of a slippery slope.
It was no help when co-founder Chip Wilson began to blame the pants’ problem on women’s bodies. Sparking an outrage, customers all around are feeling under-appreciated -some even petitioned for a formal apology from the co-founder. Also customers were asked to bend over to prove that the yoga pants were defected in order to receive a refund.
With all this negative publicity the most crucial damage is towards the company culture. One of Lululemon’s infamous value proposition was that their yoga pants lead to a healthy and comfortable lifestyle. However, with the consecutive mishaps and publicity blunders, the consumer’s perception of the company’s culture has now begun to shift. With their main point of difference taken away, Lululemon products are beginning to lose its appeal. Lululemon must retain and recapture their original image if it hopes to recover from this major setback.
Article reference : http://www.huffingtonpost.com/2013/11/14/lululemon-alienating-customers_n_4275842.html?utm_hp_re f=canada-business&ir=Canada%20Business
