Introduction
Lululemon Athletica is a manufacturer and retailer which produces and sells shirts, jogging pants, leggings, sweaters, outerwear, and underwear, as well as hair accessories, purses, yoga pads, plastic bottles, and home healthcare goods including deodorant and shampoo. Lululemon has a global retail network and offers all of its items online to offer customers a more convenient buying experience. In addition, Lululemon is generally attempting to create new textiles to give customers a more pleasant wearing experience. Lululemon Athletica, regardless of the issues it had to overcome, can be considered a potentially beneficial project in terms of market development and customer relations.
Customer Characteristics
Lululemon Athletica is a Canadian sportswear store with headquarters in Vancouver. Chip Wilson started Lululemon Athletica, Inc. in 1998 with an emphasis on ergonomic, creative sports apparel for those committed to a healthy, fit attitude (Baalbaki et al., 2019). In November of 2000, on West 4th Avenue in Vancouver’s Kitsilano neighborhood, what began as a design company during the day and a yoga class by night became a freestanding business. The developers of the establishment sought to build a communal center where individuals could become educated and explore the physical components of healthy living (Lululemon Athletica, 2022). In addition, the creators attempted to emphasize meditation, and living a life of possibilities, rather than exclusively a location where people could obtain high-quality equipment.
The target audience of the company is women aged 16 to 35 years who are interested in an active lifestyle, sports, and fitness. Undoubtedly, men can also use the goods produced by the company, but still, the company is mainly interested in working with the female population engaged in yoga, jogging, cycling, and so on. The company is also focused on creating comfortable clothing for professional athletes who need a certain quality and criteria of sportswear.
Concerning specifically identified customer characteristics related to Lululemon Athletica, it is feasible to highlight several essential aspects. Lululemon Athletica did not merely sell items and services, which is part of the essence of the shop formula tied to consumer characteristics. The organization and its managers created a sense of community by focusing on yoga. Every shop organizes monthly yoga events in its neighborhood, inviting athletes and coaches to participate, which leads to an increase in demand for brand products, which has a significant impact on the development of a positive brand image. Instead of merely being a location to buy nice stuff, the retail setting becomes a magnet for feeling good with like-minded individuals. Such activity is effective for the development of retail trade and helps to increase the regularity of store visits and reduce downtime, which helps to increase the number of goods sold. To earn a shot at super-high sales, it is necessary to combine this with clever use of outdoor areas and attractive in-store merchandising and design.
Gentlemen and ladies between the ages of 16 and 45 who are physically healthy are the company’s target audience and main customers. The firm aims to continue its expansion plan and encourage fitness in regular activities, based on a solid track record of authenticity and quality. Through its various graded ambassador and partnership programs, Lululemon takes advantage of its devoted followers. All of their worldwide, elite, and shop ambassadors have inspirational remarks for other consumers on their webpage. Lululemon, a high-end yoga-focused retailer, caters to two distinct markets. Customers who are described as “trendy urban” attempt to compensate for one section, while “rich” consumers comprise the other. In essence, the “trendy urban” category consists of fashion-conscious or active women who reside in urban regions. Due to its innovation, creativity, and the danger that comes with picking a new and specialized product, the company distinguishes itself from smaller or local businesses.
Customer Pain Points
Customer pain points are believed to be distinct issues that a concrete company’s current or potential customers face in the marketplace. They are, in essence, any issues that a consumer may encounter during their shopping experience. Customers and their companies might be inconvenienced by continuous difficulties with a good or service. Customer pain issues, as well as any other issue, are as different as the potential consumers themselves. Nevertheless, not all clients will be aware of their sticking points. This aspect can make advertising to customers complicated since it is vital to enable prospects to recognize that they have a difficulty and persuade them that the item or service would help them fix it.
Lululemon’s inventory management networks and item sourcing management did not evolve in tandem with the company’s rising client base, resulting in declining quality standards. Color bleeds and swimsuits that became extremely exposed when wet became common complaints. It resulted in a massive reaction against its iconic black yoga trousers, which turned see-through when worn, in 2013 (Agnihotri & Bhattacharya, 2019). Clients returning things were required to put on their trousers and bend over to prove the issue, which heightened the uproar (Agnihotri & Bhattacharya, 2019). Furthermore, as a result of unfavorable public relations, customer loyalty, trust, and investment confidence were undermined (Agnihotri & Bhattacharya, 2019). Lululemon Athletica has subsequently attempted to reclaim its dedication to the quality of its product, as well as to address the company’s inventory, marketing, and executive team’s medium-term deficiencies.
Opinion on the Future State of Market and Customers
Concerning the industry experts’ opinion on the future state of the market and customers, it is possible to underline the following details. Outside industry experts believe that the company was able to achieve success even though, at some point, they had to recall some models of their clothing, and currently, the company is growing (Thangavelu, 2021). Lululemon has developed its brand on behaviors that it believes mirror what customers desire. Unlike the majority of the sports gear business at the time, Lululemon did not resolve with producing womenswear that consisted only of smaller-sized pieces in pastel colors (Barker & Milano, 2018). Instead, it followed in the footsteps of high-tech running and ski companies, providing breathable textiles with seamless stitching.
Although Lululemon’s rivals have been competing for a long time, they have never achieved the same level of popularity as Lululemon. It has a potent market combination: high product design and quality in a community retail setting that values activity and discussion as much as sales. Investors have already included their trust in Lululemon Athletica’s development, thus the price for future ambitions has already been put in. Industry experts state that in general, growth drivers include menswear, online, electronic, and foreign sales (Barker & Milano, 2018). New markets, for example, opening shops in New Zealand, indicate that if a modest target’s absolute volume is not large, the company’s match with a fitness-friendly consumer is always compelling.
Conclusion
Summing up, we can say that Lululemon Athletica is a major retailer of sportswear for women. Lululemon Athletica did not only offer products and services, which is part of the retail formula based on customer preferences. In reality, by emphasizing yoga, the company, and its administrators generated a sense of community. Lululemon’s inventory management networks and item sourcing management failed to remain competitive with the company’s growing customer base, resulting in lower quality standards. New markets, such as the establishment of stores in New Zealand, highlight that even though a modest target’s absolute volume is small, the company’s fit with a fitness-conscious customer is always enticing.
References
Agnihotri, A., & Bhattacharya, S. (2019). Executive crisis at Lululemon: Who is responsible for establishing company culture? SAGE Publications.
Baalbaki, S., Gilliard, D. J., & Hoffman, D. L. (2019). Is Lululemon Athletica’s turnabournd sustainable? American Journal of Management, 19(2).
Barker, R., & Milano, G. (2018). Building a Bridge between Marketing and Finance. Journal of Applied Corporate Finance, 30(2), 29-39.
Lululemon Athletica. (2022). History. History | lululemon athletica. Web.
Thangavelu, P. (2018). Understanding Lululemon’s Business Model (LULU). Investopedia. Web.