Lululemon has a cult following. I am a shameless member of this cult. I am currently sitting in a cafe in Minneapolis wearing pink lululemon sweatpants, a black lululemon hoodie over a white lululemon sports bra, a blue lululemon scrunchie on my wrist, and a black lululemon backpack leaning against the leg of my chair containing my lululemon keychain. If you are a customer of lululemon, chances are your entire closet consists of their offerings. Return customers return, again and again. Lululemon items tend to camouflage their logo which adds to the slight exclusivity of the brand that draws people in. Even though the brand is wildly popular today, its history is riddled with scandals that may have meant the end for a different brand. The way lululemon has been able to overcome scandal to become a household name that is constantly evolving is something to marvel at. Today, it stands for specific causes that contrast the scandals that almost took them down in the past.
PR nightmares:
The founder, and original CEO of lululemon, Chip Wilson, was riddled with scandal after scandal. He made headlines for remarking to Canada’s National Post Magazine that it was funny to try and watch Japanese people say lululemon since they can’t pronounce the letter “L”. Later in 2005, he caught fire for comments made in favor of child labor in third-world countries. Wilson’s most well-known scandal originated from comments he made regarding claims that lululemon leggings were pilling. On Bloomberg Television's Street Smart, Wilson said that “quite frankly, some women's bodies just actually don't work" in Lululemon's pants. Wilson stepped down from CEO in 2013 and subsequently from their board in 2015. The brand has since distanced itself from him and his numerous PR nightmares.
Public apologies:
Despite the negative news stories that plagued lululemon in 2013, their revenue increased. Lululemon’s chief product officer, Sheree Waterson, at the time of all their scandals, also stepped down, which made a public statement to customers and the general public, that lululemon was making serious changes. Their newly appointed CEO, Laurent Potdevin, promised that the company was “reflecting on [its] learnings with humility, and [were] entirely focused on [its] future”.
From bad press to increased revenue:
Now that you understand what lululemon has overcome, it’s time to focus on its development since then. Lululemon has shown impressive revenue growth, even in the years they were battling negative headlines.
In an attempt to reorient the mission and vision behind their brand, lululemon credited the impact of George Floyd’s murder as a catalyst for their focus on DEI. They begin putting millions of dollars toward educating their organization and employees and donating millions of dollars to civil rights and social justice organizations.
Product expansion and DEI focus:
Lululemon has begun basing its product expansion on this DEI mission. One example of such is this year when they began offering athletic hijabs. Rather than hiding them away in the back, the hijabs can usually be found right near the entrance of most stores– in plain sight. Lululemon understands that its target demographic is millennials and Gen Zers. These groups of younger people prioritize the values brands hold when making purchasing decisions, and lululemon has been very conscious of this in the last few years. Today, lululemon’s website features very diverse models and offers a wide range of sizes and products to encompass the athleisure needs of everyone.
Highlights of Lululemon’s 5-year growth plan:
In April 2022, lululemon announced its five-year growth plan to double its revenue by 2026. In this announcement, lululemon outlined their Power of Three ×2 growth strategy which sees them doubling men’s and digital revenues, and quadrupling international revenues relative to 2021. Also included in this Power of Three strategy is their Impact plan. Their impact priorities for the next five years are to build “an environment that is equitable and inclusive, [advancing] equity in wellbeing across its communities, and working to prevent environmental harm and helping to restore the planet”. Earlier this year, per their plan, lululemon began their “Like New” program where customers can sell their gently used products back to lululemon and they will refurbish them and then sell them at a discounted price on their website. Thrifting and second-hand shopping is popular among Millenials and Gen Z who are passionate about taking large steps to preserve the environment. This move by the company shows its dedication to relying on its social impact to evolve its brand and its offerings. Not only was lululemon able to lean on their product innovation, guest experience, and market expansion to maintain revenue growth through scandal in the early 2010s, but they have managed to rebrand into an organization that prioritizes issues like inclusivity. Lululemon is adapting to reflect the values of its target audience. The Gen Zers who flock to their stores for each new drop weren’t watching the news or reading the headlines in 2013, all they know is a Lululemon that uses diverse models and offers a broad product range to suit various needs. Athleisure has taken over the U.S. with lululemon leading the charge, and they are poised to move their front overseas in the coming years. This is all just the beginning for lululemon. Head over to https://shop.lululemon.com/ to see the diverse new offerings for yourself. The brand is truly in for bigger and better things, so now is the time to get hooked.
Comments