Strengths
- Strong Brand Reputation
- Across the globe, lululemon has established that it offers high-quality yet stylish products and services in the athletic apparel industry. According to Statista, 79% of its customers show loyalty to the brand, illustrating how the company’s premium offerings have allowed it to maintain a strong customer base and overall positive image.
- Brand Associations
- Lululemon has partnered with many notable brands, such as Peloton and Madhappy, which has helped build the brand’s credibility and exposure.
- Diverse Product Range
- Since its start, lululemon has dramatically expanded its product and service offerings. Over the years, it has grown beyond catering to the yoga industry and entered the sectors of golf, tennis, running, and more. This has allowed the brand to acquire an even larger audience, as its business model now benefits a broader demographic.
Weaknesses
- Cost
- Lululemon’s price points for many of its products, such as leggings and sports bras, are much higher than their competitors, such as Under Armour and Fabletics.
- Lack of Market Share
- At the end of 2023, lululemon’s market share was only about 7%, while its top competitor, Nike, held about 35%. Although a well-respected brand, lululemon doesn’t have a dominant position compared to its top athleisure competitors.
- Dependence on North America for Revenue
- North America is lululemon’s largest market, representing 84% of the company’s revenue in 2022. This significant dependency on a geographic sector makes lululemon’s success very volatile.
Opportunities
- The Global Movement Towards Using AI
- Artificial intelligence has grown exponentially, and many businesses are incorporating it into their products and services. Lululemon could capitalize on this by offering new features to their customers on their app or through new innovative equipment.
- Growth in Sustainability
- Society is shifting towards buying and using items made from sustainable practices, whether water bottles or clothing. Lululemon could use this insight to create an entirely new line made from zero waste, which could attract a brand new audience of environmentally conscious consumers.
Threats
- Weak Economy
- The economy is heading towards a recession, meaning consumers will have less disposable income to spend on unnecessary items such as premium activewear.
- Emerging Competition
- With the rise of Alo Yoga and other athleisure companies, many consumers may gravitate towards newer brands that draw from lululemon’s customer base and revenue. Alo has ultimately gained a grip on Gen Z and Alpha through TikTok and its strategic influencer partnerships, which can hurt lululemon in the future if it does not find a way to regain the loyalty of younger demographics.
- Regulatory Risks
- Lululemon has factories worldwide, including in China, Sri Lanka, Vietnam, and more. The world’s current unstable geopolitical climate heavily impacts whether certain goods can be transported from one border to another, or whether or not they will make it to buyers on time, which is crucial to the happiness and loyalty of customers.
**Disclaimer: All content included on this page is for academic purposes and has no affiliation with lululemon**