Please enable JavaScript.
Coggle requires JavaScript to display documents.
Lululemon - Coggle Diagram
Lululemon
Strengths 💪🏽
High Quality Products: Part of their differentiation strategy is the quality, material, and innovation of their clothing
-
Customer Oriented Model: Listens to their customers wants and needs. "Their product quality matches customer demand, which makes them one of the popular retailers," Wondershare, 2022)
-
Loyal Customer Base: Lululemon customers are loyal due to product innovation, scarcity, and addictive experiecnces. "In a crowded market with big name competitors like Nike...Lululemon’s been able to stay one step ahead by building one of the most loyal fan bases of any clothing brand today," (Kaufman, 2021).
-
Innovation: This brand sets trends and paves the way for brands similar to them. "Lululemon has an extensive Research and Development department, namely White Space, that continuously works hard to bring innovative features to improve product quality," (Wondershare, 2022).
-
Weaknesses🤕
High Prices: Lululemon prices are much higher than their competitors, with a single pair of leggings averaging $138. Nike leggings average $50 and Gymshark $60.
Niche Market: Though weightlifters and runners purchase from Lululemon, they are marketed as a yoga brand. "The brand’s Yoga accessories have a limited target audience and prevent it from reaching the mass," (Farooq, 2019).
-
Limited International Presence: Lululemon does not ship internationally aside from select countries. Their competitors have a broader reach. " Heads up - We cannot currently ship selfcare to guests living outside of Canada and the US," (Lululemon, 2022)
-
Less Brand Recall: The Lululemon marketing is not as broad and memorable as their competitors. "The brand’s online presence is significantly lesser than its competitors, and hence it fails to bring in many customers. For this reason, brand recall is also less for Lululemon," (Farooq, 2019).
-
Unbalanced Inventory: " Facing issues in balancing their inventory level which is not good for their business and may lose their loyal customer base," (Farooq, 2019).
-
Opportunitiesđź’ˇ
Expand Internationally: The company operates mostly out of the U.S. Despite being from Canada, the brand does not have that much international presence. Expanding into China and India would be a good move for sales
Utilize Social Media Marketing: Social Media is the best way to appeal to younger generations. Lululemon lacks social media presence while their competitors use it to their advantage.
Release More Affordable Products: The brand is very popular, but the prices are not affordable. Cheaper products will boost revenue and compete better with Nike and Gymshark
Expand From Yoga: This is a very niche market that prohibits the brand from exapnding. Appealing to other sports and activities will broaden their audience
Open More Physical Stores: Physical Lululemon stores are scare, with about 500 existing. Most locations are located in the U.S. "The company has about 500 stores worldwide, with 370 in North America" (Rastello, 2020)
-
Threats ‼️
Competitive Market: Though Lululemon is a yoga brand, they compete with other companies in the athletic apparel industry. "Lululemon is under constant threat as the sports retail market to a rapidly growing market," (Wondershare, 2022)
-
Price-concious Buyers: Customers are hesitant to purchase Lululemon due to how expensive it is. This leads for consumers to look at competitors instead
Competitor Pricing: Competitors sell similar products for almost hald the price of Lululemon. "Under Armour, Nike, Gap and Amazon, most of these companies have a broader global presence, lower prices and huger operating budget," (Farooq, 2019)
-
Imitation: Many companies, such as Amazon, attempt to sell clothing that imitates Lululemon products in every way. Using the same material, features, and logo placement
Employee Shortage: Since COVID-19 there has been an employee shortage, which can impact production and inventory. "Shortage of skilled workforce in certain global market represents a threat to steady growth of profits for Lululemon Athletica Inc. in those markets," (Strategic Management, 2022)
-