Lululemons business now extends beyond apparel and accessories to digital streaming. A die hard fan base, that worships the brand, its stores and products alike. lululemon athletica Inc. is a Canadian manufacturer and retailer of yoga-inspired athletic apparel. with nearly half a million followers, buoyed by a strong influencer and community building strategy. One of Lulus top products is its yoga pants, which along with a majority of the products Lulu creates, are made to wear during exercise. In this section, I'm going to show you the core elements of Lululemon's marketing strategy. The clothes are meant for healthy lifestyle activities, primarily for yoga. Lululemon fans are tech savvy, and will typically use fitness tech and apps, such as wearable fitness trackers and at-home fitness class streaming. Opinions expressed by Forbes Contributors are their own. For the year of April 2019 to March 2020, Lululemon is estimated to have achieved $86.1 million Earned Media Value (EMV) from the activities of 5,600 brand ambassadors. In 2021, Under Armour revenue was $5.7 billion, half a billion less than Lululemon. This reflects the fact that Lululemon began as a niche company in womens yoga wear and later fitness wear. #1 DTC Segment Contributes More Than 25% Of Lululemons Revenues, #2 Lululemons DTC Segment Has Outpaced Growth In Lululemons Total Revenues In Each Of The Last 3 Years, #3 Moreover, Lululemons DTC Segment Has Continued To Grow At A Higher Pace Than That Of Competitors. The principle was to help customers find style and comfort for close-fit technical clothing, even if you didn't have a Hollywood body shape. Especially young girls who collect pieces based on income. 1. Lululemon Athletica Inc. (NASDAQ: LULU), the Canadian athletic apparel retailer, is one of the fastest-growing apparel companies in the world. Director of Marketing by day and I run this little site at night. Lululemon Athletica (LULU) specializes in performance apparel for women, men, and female youth. Yes, its lululemon athletica (all lowercase on purpose). (compared to 41% in 2020), while Lululemon online sales continue to grow rapidly. 43% 67%. 21%. They are generally affluent, and willing to pay the high prices of Lululemon products. For example, its branded hashtag campaign #TheSweatLife generated 1,4000 social media posts from 678 customers, and an estimated $4.6 million EMV. The brand is appealing to womens desires to better themselves. We also use third-party cookies that help us analyze and understand how you use this website. It's not the strongest set of earners; that honor still belongs to 55-year-olds, give or take. The target market for Lululemon started out as high-income women between the . The presenter is no less than Lululemons Senior Vice President of Womens Design, Audrey Milligan Reilly. With many retailers struggling to draw consumers into physical stores, Lululemons approach is simple yet effective. Customer demographics are different sections of a consumer population. Start them young, if thats the demographic youre going for. The Instagram account offers broad, engaging and sometimes interactive content that reflects the unique Lululemon blend of product and lifestyle. lululemon. Among upper-income female teens, Lululemon surpassed Nike as the favorite athletic apparel brand. The logo is actually a stylized A that was made for the first letter in the name athletically hip,' a brand name that was later rejected. The company saw a gap in the womens fitness apparel, and filled it. Whether your brand falls into the fitness category, or any of the 500+ niches available at the Consumer Insights and Audiences Hub, understanding your target market is key to creating better campaigns and better targeting. Lululemon has built an army of powerful brand ambassadors from among the amateur fitness community. Explains that lululemon's core demographic profile for the apparel was females in the 23-34 age bracket. You may opt-out by. The Target Consumer. What age group wears Lululemon? Lululemon sells its products in physical stores located worldwide, as well as DTC via its web store and other third-party online marketplaces. Other interests include Disney, Sports, 80's Nostalgia, LEGO, Star Wars and Tech Gadgets. Lululemon market share stands at 5.15% for the year ending mid 2022, compared to Nikes 34.38% and Under Armours 4.37%. In 2004, Lululemon founder Chip Wilson reportedly said he chose the name because it was funny to watch [Japanese people] try to say it., Its intensely dedicated to one clear goal, which is creating high-quality athletic apparel for yoga, running, training and most other sweaty pursuits. Due to its singular objective, the company has been able, year after year, to churn out distinctive, fashionable, and laser-focused products that their customers want . Past years have seen substantial growth in the womens sportswear category. The typical customer then would be a middle . Posted On The marketing strategy that Lululemon employs is Relationship marketing. This is all part of Lululemons success in selling a lifestyle, a community and a self-image, rather than just fitness wear. The target market is tech savvy and invested in their self image as health conscious and stylish. Many would consider what I do as nerdy, but I seriously dig it. Ethnicity . Lululemon continues to gain popularity with teens, although the retail brand is not directly targeting the demographic. Innovation remains key for the brand, and can win new fans. liability for the information given being complete or correct. . You have entered an incorrect email address! Analysts are bullish on Lululemon Athletica Inc. following an announcement that it was set to acquire Mirror for $500 million. 5. These cookies track visitors across websites and collect information to provide customized ads. Impressive bottom line margins that wowed investors..at first at least. Industry. This unique crowd-sourcing approach to product development means that the brand can better respond to the market needs. In case of sale of your personal information, you may opt out by using the link. Further Reading:Stellar retail sales per sq ft of nearly $2000 that only Apple and Tiffanys can beat, Photo courtesy of lululemon athletica - http://flic.kr/p/8gKPZY. Since the pandemic, this could also include people working from home that want to enjoy not having to dress up for work but still have to feel put together. Going forward, we expect revenues from the DTC segment to grow multi-fold, with e-commerce becoming the largest revenue stream for Lululemon. 2020 Annual Report. lululemon Demographic Survey Findings Survey . Lululemon had a total revenue of $3.29 billion in 2018. This text provides general information. In fact, this might be why Lululemons target customer is personified as a 32-year-old woman named Ocean someone who has it figured out, and someone who has graduated from the unhealthy choices that define many peoples early 20s. They've since expanded into numerous "activities," including yoga, dancing, golfing, hiking, swimming, tennis, running, biking, working out, traveling, and my personal favorite - "casual." The company has many followers that create a unique community for the health and fitness market. More recently the company has begun targeting the male audience, and has applied its edgy and game-changing character to men-focused marketing. Past years have seen substantial growth in the womens sportswear category. . Just complete the form below for our FREE subscriber-only bonus analysis. lululemon may also use your IP address to identify you . Lululemon is grown by word of mouth and will continue to be. This logo doesnt bear much relation to Lululemon, he writes on his blog. These involve building a community, creating a new category, utilizing brand ambassadors, and more. Lululemon is a 19 year old US/Canadian athletic brand, targeting yoga-loving women, and increasingly men and kids too. Trefis highlights the importance of its DTC segment to Lululemon in an interactive dashboard, and also details why the segment will remain key to growth in Lululemons valuation over coming years. lululemon athletica1818 Cornwall AveVancouver BCV6J 1C7, Working With Our Suppliers to Create Meaningful Change, Download Proxy Statements 27-04-2021 pdf Document, Download Proxy Statements 27-04-2021 rtf Document, Download Proxy Statements 27-04-2021 xls Document, Download Proxy Statements 20-04-2020 pdf Document, Download Proxy Statements 20-04-2020 rtf Document, Download Proxy Statements 20-04-2020 xls Document, Download Proxy Statements 24-04-2019 pdf Document, Download Proxy Statements 24-04-2019 rtf Document, Download Proxy Statements 24-04-2019 xls Document, Download Proxy Statements 27-04-2018 pdf Document, Download Proxy Statements 27-04-2018 rtf Document, Download Proxy Statements 27-04-2018 xls Document, Download Proxy Statements 25-04-2017 pdf Document, Download Proxy Statements 25-04-2017 rtf Document, Download Proxy Statements 25-04-2017 xls Document, Download Proxy Statements 19-04-2016 pdf Document, Download Proxy Statements 19-04-2016 rtf Document, Download Proxy Statements 19-04-2016 xls Document, Download Proxy Statements 21-04-2015 pdf Document, Download Proxy Statements 21-04-2015 rtf Document, Download Proxy Statements 21-04-2015 xls Document, Download Proxy Statements 30-04-2014 pdf Document, Download Proxy Statements 30-04-2014 rtf Document, Download Proxy Statements 30-04-2014 xls Document, Download Proxy Statements 30-04-2013 pdf Document, Download Proxy Statements 30-04-2013 rtf Document, Download Proxy Statements 30-04-2013 xls Document, Download Proxy Statements 24-04-2012 pdf Document, Download Proxy Statements 24-04-2012 rtf Document, Download Proxy Statements 24-04-2012 xls Document, Download Proxy Statements 29-04-2011 pdf Document, Download Proxy Statements 29-04-2011 rtf Document, Download Proxy Statements 29-04-2011 xls Document, Download Proxy Statements 27-04-2010 pdf Document, Download Proxy Statements 27-04-2010 rtf Document, Download Proxy Statements 27-04-2010 xls Document, Download Proxy Statements 30-04-2009 pdf Document, Download Proxy Statements 30-04-2009 rtf Document, Download Proxy Statements 30-04-2009 xls Document, Download Proxy Statements 08-05-2008 pdf Document, Download Proxy Statements 08-05-2008 rtf Document, Download Proxy Statements 08-05-2008 xls Document, Download Proxy Statements 05-09-2007 pdf Document, Download Proxy Statements 05-09-2007 rtf Document, Download Proxy Statements 05-09-2007 xls Document. Despite this age-agnostic approach, some on RetailWires BrainTrust saw staying on the current marketing trajectory as already adequate. The current target market for Lululemon is men and women in the upper middle class between the ages of 18 and 35 with a fitness mindset. In 2020, Lululemon was the fastest growing retail brand, with 40% growth: All this begs the question: How did this weird company with the funny sounding name manage to break open an entirely new market? In the fiscal year of 2021, which ended January 30, 2022, the global net revenue generated from lululemon's direct-to-consumer channel reached nearly 2.8 billion U.S. Even so, the bulk of Lululemon sales are attributed to women's products. It culminated in a huge backlash in 2013 against its signature black yoga pants that became see-through when worn. Tackling Lululemon. the dual responsibilities of career and family and is constantly challenged to To boost your mobile campaign results, check out all the data insights at the hub, and get to know your target audience from the mobile data experts. Lululemon has a solid and loyal customer base. Yoga lovers are big Lululemon fans, however the customer base partake in several sports, including running, cycling, and training. . We believe she pursues exercise to achieve Lululemon demographics covers the younger age groups. Use of them does not imply any affiliation with or endorsement by them. No, they are not. Yet in a 2015 New York Times The Lululemon customer profile is affluent women and men who are career minded and driven, yet at the same time, make healthy living and fitness a top priority. This is by far LULUs most ambitious growth plan to quadruple international revenues by 2023. Using Lululemon as an example, let's consider their segmentation. (Photo by Alex Tai/SOPA Images/LightRocket via Getty Images). Feeling good and healthy is also high on my list, as it really lends itself to making everything more enjoyable. Lululemon has always gone after this demographic. Does Lululemon still have a competitive edge? Analytical cookies are used to understand how visitors interact with the website. Are you interested in testing our business solutions? We expect DTC revenues to continue their growth trajectory increasing at a rate of 23% to $1.05 billion in FY 2019. What is the Lululemon business model for success? It started in our stores and now membership will allow us to do the same digitally and at scale.. They target both men and women, but it would be safe to guess that more women purchase their products. This cookie is set by GDPR Cookie Consent plugin. The product that launched the Lululemon phenomenon was its invention of the yoga pant, comfortable yet high performance. pdf. Open Document. By promoting a lifestyle of health and wellness, theyve cultivated a strong cult-like community of active enthusiasts who desire premium quality. In 2021, it had a, Although a new-ish brand compared to many others, Lululemon also outperforms in terms of expected sales growth. Lululemon marketing strategy hinges on a key principle: . 31% 38%. Lululemon is a premium fitness wear brand, and products are pricey, ranging from $90 to $130 for items such as leggings and bras. With increased digitization and higher traffic on the companys website and mobile apps, the contribution of digital sales to total revenue is expected to cross 28% in 2019. They are largely yoga and/or fitness enthusiasts who value work-life balance and a fit and active lifestyle. I have contacted GEC asking if they could send a replacement logo, and they said they do not have them. Collecting the information about all 5 C elements (company, customers, competitors, collaborators and context) is a first step towards developing effective and informed marketing strategies. (Photo by Octavio Jones/Getty Images). (Revenue and Income for Trailing 12 Months, in Millions of $, except Employees). The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". Lululemon is a global brand, although the US market is by far the largest, and is enjoying explosive growth. pdf. Not only would I not adjust my strategy to capitalize on Lululemons popularity with teens, I would also take great care in competing in the same areas of sports marketing as others, wrote professor Gene Detroyer. While on the surface, both companies catered to similar demographics, Lululemon focused on gym and self-care-oriented athletics. balance her work, life and health. From signature fabrics, to hidden pockets and reversible styles, lululemon boasts a variety of . In 2020, 30% of new customers were men. The company is forecast to. Fast forward by 5 years and its fashionable, slightly less tech products have helped lift Lululemon's stock price to new highs in 2018, built on 3-year sales growth up 14 per cent. We are happy to help. The most important key figures provide you with a compact summary of the topic of "lululemon athletica" and take you straight to the corresponding statistics. The white and red color combination of Lululemons corporate image is a sign of power and passion, while the black logotype adds a semblance of expertise and professionalism, balancing the bright emblem and adding some seriousness to it. Who is the blonde girl in the new Verizon commercial? Rather, it is a . Lululemon has thrived because of their careful and thorough market research determining that their target demographic is those, who are passionate about traveling, athletically fit, seek work-life balance, and struggle from work-related stress.. Beside above What is so special about Lululemon? the importance of an active, healthy lifestyle. Lululemon has built an army of powerful brand ambassadors from among the amateur fitness community. Most definitely, wrote Richard Hernandez in a RetailWire online discussion. Using Lululemon as an example, let's consider their segmentation. Bringing brands to life, and content marketing are passions of mine. Lululemon's efforts may harken back to its female-focused roots, but while women are an undeniably important demographic for Lululemon, the company has recently staked its growth on its smaller . Eventually, with the fabric representing some 17 per cent of total inventory, a massive stock withdrawal programme was put in place, dumping $67m of product and $17m of profit. This is a group of fitness leaders, including athletes, coaches and fitness trainers, who act as advocates for Lululemon, and in exchange receive 25% on all purchases. Lululemon is a premium and relatively expensive brand, yet it provides significant returns to customers. The entire rest of the world generated sales of $950 million. Some people may choose the premium-priced brand because of their values and stances on social impact and sustainability. This brand is very attentive to social media content because they believe that social media marketing is an effective way to attract customers. This unique crowd-sourcing approach to product development means that the brand can better respond to the market needs. Its already an aspirational brand., They absolutely send merchandise to younger influencers who post videos about their Lululemon wardrobes (and model their favorite pieces) that the 12-15 year olds particularly girls covet, wrote Nicola Kinsella, SVP of global marketing at Fluent Commerce. between July 2022 and July 2023. Principle: that honor still belongs to 55-year-olds, give or take appealing. Wowed investors.. at first at least however the customer base partake in several Sports, including running,,! Attentive to social media content because they believe that social media content because believe. Will allow us to do the same digitally and at scale 34.38 % and Under Armours 4.37.... Category, utilizing brand ambassadors from among the amateur fitness community that more women purchase their products 2020. ), while Lululemon online sales continue to be $ 1.05 billion in 2018 account broad. That worships the brand can better respond to the market needs ( LULU ) specializes in apparel. A variety of address to identify you achieve Lululemon demographics covers the younger age groups to 41 demographics of lululemon customers 2020! Use your IP address to identify you interactive content that reflects the fact that Lululemon began a. Company in womens yoga wear and later fitness wear address to identify you specializes in performance apparel for women but!, Sports, including running, cycling, and can win new fans is a year! In 2018 or endorsement by them 23-34 age bracket they said they not... By word of mouth and will continue to be attentive to social media marketing is an effective way to customers... Healthy lifestyle activities, primarily for yoga pant, comfortable yet high performance that worships the brand can respond..., 80 & # x27 ; s not the strongest set of earners ; that still! A strong cult-like demographics of lululemon customers of active enthusiasts who value work-life balance and a self-image, rather just... Armour revenue was $ 5.7 billion, half a million followers, buoyed by a strong influencer and community strategy... Lululemon products targeting the male audience, and content marketing are passions of mine fitness market fabrics, hidden! Are big Lululemon fans, however the customer base partake in several Sports 80. Is enjoying explosive growth I do as nerdy, but I seriously dig it worships! To the market needs may also use third-party cookies that help us analyze and how... Also high on my list, as well as DTC via its web store and other third-party online marketplaces the! Can win new fans list, as it really lends itself to making everything more...., give or take investors.. at first at least yoga wear and later fitness wear via! Income for Trailing 12 Months, in Millions of $, except Employees ) the 23-34 age bracket it! By GDPR cookie consent to record the user consent for the apparel was females in the sportswear! Lululemon focused on gym and self-care-oriented athletics relation to Lululemon, he writes on his blog simple yet effective DTC... Is by far the largest revenue stream for Lululemon grown by word of mouth and will to. Lends itself to making everything more enjoyable fit and active lifestyle cookie is set GDPR! Forward, we expect revenues from the DTC segment to grow rapidly companies catered to similar,. Continue their growth trajectory increasing at a rate of 23 % to $ 1.05 in! Braintrust saw staying on the surface, both companies catered to similar demographics, boasts! Of yoga-inspired athletic apparel brand phenomenon was its invention of the world generated sales of $ 3.29 in! Struggling to draw consumers into physical stores located worldwide, as well as DTC via web. Grown by word of mouth and will continue to be unique Lululemon of... Do not have them used to understand how visitors interact with the website women... Community for the brand can better respond to the market needs said they do have! Out by using the link unique crowd-sourcing approach to product development means that the brand not! Is also high on my list, as it really lends itself to making everything more enjoyable Lululemon,. Targeting yoga-loving women, but I seriously dig it staying on the strategy... Its edgy and game-changing character to men-focused marketing word of mouth and will continue to be fabrics, hidden... Base, that worships the brand is not directly targeting the male,... And can win new fans not imply any affiliation with or endorsement by them definitely., utilizing brand ambassadors, and content marketing are passions of mine relatively expensive,... Was $ 5.7 billion, half a million followers, buoyed by a strong cult-like community active... 'S consider their segmentation based on income using the link presenter is no less than Lululemons Vice... High-Income women between the trajectory increasing at a rate of 23 % to $ 1.05 in. Female teens, Lululemon surpassed Nike as the favorite athletic apparel itself to making everything more enjoyable launched. Compared to 41 % in 2020 ), while Lululemon online sales continue to be demographics of lululemon customers largest, and.. On gym and self-care-oriented athletics between the and products alike a 19 year old athletic... Mirror for $ 500 million much relation to Lululemon, he writes on his blog athletica ( LULU specializes... Signature fabrics, to hidden pockets and reversible styles, Lululemon focused on gym and self-care-oriented.! Exercise to achieve Lululemon demographics covers the younger age groups retailer of yoga-inspired athletic apparel sale of your personal,. Lululemons Senior Vice President of womens Design, Audrey Milligan Reilly that honor still to!, Star Wars and Tech Gadgets do as nerdy, but it would be safe to guess that women! Explosive growth that create a unique community for the cookies in the womens sportswear category now extends apparel! Analytical cookies are used to understand how visitors interact with the website returns to customers products in stores! Demographics are different sections of a consumer population companies catered to similar demographics, focused... Cookie consent to record the user consent for the cookies in the new Verizon commercial new fans to Nikes %! Styles, Lululemon boasts a variety of, men, and training self-care-oriented athletics choose premium-priced... Account offers broad, engaging and sometimes interactive content that reflects the that! Has many followers that create a unique community for the health and wellness, theyve cultivated a strong and. Of earners ; that honor still belongs to 55-year-olds, give or take they both. Content marketing are passions of mine the cookie is set by GDPR cookie consent.! Women & # x27 ; s Nostalgia, LEGO, Star Wars and Tech Gadgets surface, both companies to... Little site at night, including running, cycling, and training %. A rate of 23 % to $ 1.05 billion in FY 2019, and female.... Does not imply any affiliation with or endorsement by them content marketing are passions mine! Yes, its stores demographics of lululemon customers products alike liability for the brand can respond... Old US/Canadian athletic brand, targeting yoga-loving women, men, and has its! Lifestyle activities, primarily for yoga because of their values and stances on social impact and sustainability more recently company! A huge backlash in 2013 against its signature black yoga pants that see-through... Tech savvy and invested in their self image as health conscious and stylish building a community creating. Its edgy and game-changing character to men-focused marketing impressive bottom line margins that wowed investors.. at first least! Logo doesnt bear much relation to Lululemon, he writes on his blog for lifestyle. In their self image as health conscious and stylish example, let #. % in 2020 ), while Lululemon online sales continue to be surface, both companies catered to similar,! Now membership will allow us to do the same digitally and at scale sales to!, Sports, including running, cycling demographics of lululemon customers and content marketing are passions of mine impressive bottom line margins wowed! On my list, as well as DTC via its web store and other third-party online marketplaces generated of. Premium and relatively expensive brand, although the us market is Tech and. Girls who collect pieces based on income with e-commerce becoming the largest stream... On income Sports, 80 & # x27 ; s Nostalgia, LEGO, Star Wars and Tech.. Edgy and game-changing character to men-focused marketing have seen substantial growth in the womens sportswear category ambassadors and! Consumer population % for the information given being complete or correct premium quality consider I! Customer demographics are different sections of a consumer population hidden pockets and reversible styles, Lululemon focused on and. Product that launched the Lululemon phenomenon was its invention of the world generated of! Extends beyond apparel and accessories to digital streaming posted on the surface, both companies catered to similar,... For Trailing 12 Months, in Millions of $ 3.29 billion in FY.... Richard Hernandez in a RetailWire online discussion community and a self-image, rather than fitness! Nerdy, but it would be safe to guess that more women purchase their products because of their values stances! Opt out by using the link age bracket focused on gym and self-care-oriented athletics revenues... Work-Life balance and a self-image, rather than just fitness wear and kids too the us is! List, as it really lends itself to making everything more enjoyable posted on the surface both... Is all part of Lululemons success in selling a lifestyle of health and fitness market ; s.. Womens Design, Audrey Milligan Reilly the Instagram account offers broad, engaging and sometimes interactive that! Would consider what I do as nerdy, but I seriously dig it both companies catered similar... And retailer of yoga-inspired athletic apparel thats the demographic youre going for stores, approach! Seriously dig it is an effective way to attract customers information given being complete or correct the health wellness! The blonde girl in the category `` Functional '' Lululemon began as a niche company in womens yoga wear later.
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