Lululemon's strategy: when a challenger threatens the big players of activewear (2023)

When looking at the biggest share of fabric used,Lululemonstill relies heavily on nylon, polyester, and elastane, which are all petrol-based fabrics. Lululemon isn’t alone in this regard — its competitors also use a lot of petroleum-based materials.

Retviewsdata shows us thatLululemonuses the same amount of recycled polyester as it does new polyester. This is a small step, but it moves them closer toward sustainability.

One side note: a tricky element to consider when discussing activewear is that this industry has to balance performance with eco-friendly materials. Indeed, most innovations and technology for the production of breathable, water-repellant, sweatproof garments are made with highly engineered fabrics derived from petroleum. The question arises: should one compromise performance to create a more eco-friendly product?

Lululemon’s secret? Focus on what you do best —and only that.

The iconic yoga brand has done one thing since its debut, and now the big players in the industry are pushing it forward: focus on building a community. Indeed, nurturing consumers to develop a community and make them into brand ambassadors is whatLululemonhas done since its early days. This helped Lululemon spend nothing on marketing but still earn almost every penny of their products.

At the same time,Lululemon’s strength lies in understanding its comparative advantages and improving its products to meet consumer expectations. “Focus on what you do best, and only that” is a crucial component toLululemon’s success — combined with premium prices, because business is still about making money.


What type of strategy does lululemon engage in? ›

Lululemon is a yoga and exercise apparel company, whose business strategy is based on marketing a lifestyle rather than a product.

What is the threat of new entry lululemon? ›

The threat of new competitive entrants to this market are high. This can be justified by the high financial, human, production, and marketing costs that would be necessary to achieve any substantial market share beyond a local level. There may be entrants in specific niches, such as Lululemon is associated with yoga.

What is Lululemon differentiation strategy? ›

Differentiation: The main business-level strategy employed by Lululemon Athletica. By offering their first unique fabric, their signature "Luon", Lululemon paved the way for offering high quality and performance athletic apparel, available to customers at a premium price.

What social responsibility strategy is Lululemon Athletica pursuing? ›

We have made five major commitments to stand up and fund inclusion, diversity, equity and action within lululemon to ensure we stay engaged and act in allyship in our commitment to anti-racism. Pay equity. At lululemon, we stand for gender pay equity: equal pay for equal work.

What type of strategy does lululemon engage in quizlet? ›

Their competitive strategy is focused differentiation.

What is lululemon positioning strategy? ›

Lululemon's vision statement is “to be the experimental brand that ignites a community of people living the sweat life through sweat, grow and connect.” The statement consists of the following components: exceptional brand, ignite communities through sweat, and create connections.

What are the 4 P's of lululemon? ›

Lululemon 4p's marketing mix. In this section, we will look at Lululemon 4p's marketing mix, which includes Products, Place, Price, and Promotion to better understand the Lululemon marketing strategy.

How does lululemon target their customers? ›

Lululemon customer demographics includes people in their mid-teens to mid thirties, both women and men. They are largely yoga and/or fitness enthusiasts who value work-life balance and a fit and active lifestyle. They are generally affluent, and willing to pay the high prices of Lululemon products.

Who is Lululemon's biggest competitor? ›

  • Athleta – a Gap subsidiary.
  • Victoria Sports.
  • Under Armour.
  • Prana – a Columbia sportswear subsidiary.
  • Nike.
  • Adidas.
  • Puma.
  • Sweaty Betty.

What did Lululemon get sued for? ›

O) has reached a settlement of a lawsuit in which Lululemon Athletica Inc (LULU. O) accused the exercise bike maker of infringing its patents by developing a line of apparel for women.

What is Lululemons unique selling proposition? ›

Top quality, technically advanced product that offers unique and proprietary innovations. A strong culture that connects our guests, our collective, and our communities. The commitment to create positive change for our people and planet.

What are the two differentiation strategies? ›

There are two main types of differentiation strategies that a business may carry out: a broad differentiation strategy and a focused differentiation strategy.

What type of generic strategy is lululemon using to sustain a competitive advantage? ›

Answer and Explanation: Lululemon is using a focus differentiation strategy to face the competition in the market.

What are the four CSR strategies? ›

The four main types of CSR are environmental responsibility, ethical responsibility, philanthropic responsibility and economic responsibility. However, companies can also consider different forms of CSR, such as diversity and inclusion, governance, well-being and employee engagement.

What are socially responsible strategies? ›

What is a CSR strategy? A corporate social responsibility strategy (CSR) is the total plan a business has to build, execute and optimize its social responsibilities initiatives.

What are the two main competitors of lululemon highlighted in the 2017 Kellogg case? ›

To aid in this determination, the case presents two competitors as comparative foils (Under Armour and Athleta) to contextualize Lulu's growth prospects.

What gives lululemon a competitive advantage? ›

The key source of competitive advantage is brand loyalty. Lululemon has a solid and loyal customer base. The company has many followers that create a unique community for the health and fitness market.

What are lululemon key success factors? ›

Lululemon's brand strategy and marketing strategy are the key factors for success. The brand has 80% to 85% awareness in Canada, about 45%-50% in the US market, and only 12% in China. Many brands have entered China in recent years, all expressing that they will open 300 to 400 stores within two years.

What are the 3 positioning strategies? ›

There are three standard types of product positioning strategies brands should consider: comparative, differentiation, and segmentation. Through these strategies, brands can help their product stand out by targeting the right audiences with the best message.

What is Lululemon Power of Three x2 strategy? ›

Lululemon's Power of Three ×2 growth strategy is likely to double its revenues from $6.25 billion in 2021 to $12.5 billion by 2026. The plan focuses on three key growth drivers — product innovation, guest experience and market expansion.

What is an example of a positioning strategy? ›

A great positioning strategy example would be a computer company that focuses on providing cutting edge technology at premium costs before their competitors. Another example of positioning strategy would be a large chain store that focuses on providing popular goods to many people at a low cost.

What are lululemon's core values? ›

At Lululemon, our values are “courage, connection, inclusion, personal responsibility and fun.” These form the foundation of our culture and are what we stand for as a team.

What does lululemon stand for? ›

In essence, the name “lululemon” has no roots and means nothing other than it has 3 "L's" in it. Nothing more and nothing less.

What is lululemon's corporate level strategy? ›

lululemon's strategic growth plan is underpinned by the Company's strong financial position. In addition to doubling men's and digital, and quadrupling international revenues, other key financial goals of the Company's Power of Three ×2 growth strategy include: Total net revenue CAGR of 15% between 2021 and 2026.

How did lululemon establish a positive reputation? ›

By promoting a lifestyle of health and wellness, they've cultivated a strong cult-like community of active enthusiasts who desire premium quality. Lululemon is still experiencing rapid growth more than 20 years after launching and plans to double their revenue by 2026 to $12.5 billion.

Why did Nike sue Lululemon? ›

Nike is suing Lululemon over shoe designs, claiming the Canadian apparel brand is violating three textile patents. Nike has requested a jury trial and is seeking monetary damages and a “permanent injunction prohibiting further infringement by Lululemon,” per its lawsuit.

What is the most popular item from Lululemon? ›

What Is lululemon's Most Popular Item? Workout Leggings! lululemon is known for selling the best leggings. Not only the best workout leggings, but the best leggings for running, strength training, high intensity interval training, yoga and everyday wear.

What is the sister brand to Lululemon? ›

Shop Athleta for Women's Yoga Clothing, Technical Athletic Clothing, and Athleisure.

What is power of 3 strategy Lululemon? ›

In the growth plan, dubbed Power of Three x2, Lululemon plans to double its men's business and digital revenue, as well as quadruple its international business. At the same time, the company's women's business, stores and North America operations are all expected to grow by double digits.

What type of market structure is Lululemon? ›

Lululemon - LULULEMON Market Structure Lululemon is under monopolistic market structure.

What is power of three 2 growth strategy? ›

The new plan includes focusing on building an environment that is equitable and inclusive, advancing equity in wellbeing across its communities, working to prevent environmental harm, and helping to restore the planet. They are aiming for 100 percent of their products to be sustainable by 2030.

What is a broad differentiation strategy? ›

A broad differentiation strategy involves identifying industry-wide competitive advantages that set an offering apart from competitors. For this type of strategy to succeed, the customer market must be vast, unsaturated, and have numerous unresolved pain points.


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