LULULEMON ATHLETICA Harvard Case Solution & Analysis

INTRODUCTION:

Chip Wilson is operating in the clothing business since 1979. He set up his first Lululemon Athletica store in the popular Vancouver neighborhood of Kitsilano. Wilson started his operations by stocking the store with well-known marked attire in order to attract clients and the recently outlined Lululemon items.

lululemon case solution

lululemon case solution

As clients scanned the store, Wilson looked for sentiment on Lululemon Athletica's first outline models. He placed his configuration studio amidst the store, so models could be changed on the spot. Wilson developed a little line-up of attire, delivering pieces in little clumps so as to minimize hazards. The top-offering thing was the Lululemon Athletica gasp, which was produced by using structure fitting Lycra.

Lululemon Athletica offered top notch female apparel that fit most of the sorts of body. The target shopper was an early 1930s expert lady who was overall instructed and had noteworthy disposable pay. Wilson depended on his contacts in the fabric business to acquire fabrics for his dynamic wear. To further separate Lululemon's items, he created exclusive fabrics, for example, Silverescent, Vitasea, and Luon. Silverescent fused silver particles due to its protective bacterial properties. Vitasea was a fabric created from a kelp compound. As indicated by Lululemon, it discharged amino acids, minerals and vitamins straightforwardly into the skin. Luon was a fabric that controlled dampness, was adaptable and designed to reduce irritation.

COMPETITORS

Lululemon Athletica profited due to its first-mover advantage and expanded quickly. The organization had been extraordinarily situated in the business sector before it prospered and got the consideration of Canadian retailers. A few contenders began to expand their product offering with lookalike garments. Aritzia was situated in Vancouver and had 55 stores primarily in Canada (with six stores in the United States). Aritzia's yoga attire, which was created to expand its product offering, appeared to duplicate the style components of Lululemon Athletica. Roots was a Canadian retailer that sold open air style attire, for example, sweatshirts, load jeans and coats, which had 120 stores in Canada, the United States and Asia. Later on, it included a little segment of yoga-inspired apparel in its variety of apparel.

In addition, Lululemon Athletica contended with a few other, very small, yoga-dress retailers, for example, Kharma Athletics, Lotuswear and Tonic. Kharma Athletics was set up in 2002 in Vancouver as a producer of yoga dress that was stylish and radiant. Lotuswear was established in 2004 and separated its brand from those of its rivals by advertising a specific concentrate on ecological and social awareness. Tonic was established in 2004 and made fashionable yoga garments. None of these contenders could match Lululemon Athletica's record of development and its extensive system of almost 60 stores.

Nike

In any case, genuine rivalry could originate from expansive organizations, for example, Nike, Polo Ralph Lauren, Hanesbrands or VF Corp. Nike is the worldwide pioneer in athletic shoes and clothing, with a market capitalization of $51 billion and 675 claimed stores. It composed, created and promoted footwear, attire, supplies and extra items and utilized exclusive fabrics, for example, Dri-FIT, that were intended to be cool, breathable and moisture-wicking. Nike planned ladies' sports attire for a range of sports and had recently propelled a line of yoga-particular things. Nike pushed its items by supporting as well as sponsoring occasions and concentrating on key players, along with utilizing broad publicizing. Its promotional efforts included supporting occasions and key players.

Polo Ralph Lauren:

Polo Ralph Lauren was a planner and merchant of lifestyle marked attire. It planned and sold items to retailers through 1,950 upscale retail establishments approximately and through its own particular system of 282 strength stores. The organization delighted solid brand value for its higher-end attire and bragged almost a million clients on its e-trade site, polo.com, etc.

Hanesbrands

Hanesbrands was a dress organization that was spun off by the Sara Lee Corporation in September 2006.  In addition to dynamic wear, such as, execution T-shirts shorts and easy wear, such as, T-shirts, downy and games shirts; Hanesbrands had yearly sales of $431 million. Its second biggest brand, Champion, was well-known as an urban style brand. The brand had a history of advancement, as it developed the sports bra and reversible shirts.

VF Corp

VF Corp. earned more than $6 billion in 2006 and was the world's biggest clothing organization. It had a stable of brands that were focused at more youthful purchasers that included: North Face, Vans, JanSport, Wrangler, Lee, Nautica and different brands.

ANALYSIS

The analysis begins with the size-up of the company, which will provide the assessment of its risks and opportunities.

The Size-Up

  • Economic Growth

U.S. GDP growth, which was 3.3% in 2006, was expected to back-off in 2007 (2.3%) and recoup to some degree in 2008 (2.6 %). Canada's GDP growth was required to hinder to 2.2%, in pair with the U.S. go-slow. This unforeseen growth could possibly influence Lululemon Athletica's anticipated growth rate because of a decrease in buyer interest for its premium-valued item................................

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