Marketing Assignment Canadian Apparel Federation

Lululemon’s strategy is not only sell the product, they also offer healthy life style and targeting very specific segment which is customers who do yoga. Their competitive advantage is they offer benefits except a good product such as physical

The apparel and clothing accessories industry, a subgroup within retail, reached sales of $32 billion in 2016. Given the industry’s highly competitive and rapidly evolving nature, Canada Goose Inc. (CG) and Roots Corp. (Roots) must focus on creation of innovative designs to remain relevant. Retail sales are forecasted to decrease, however, the luxury segment of retail stores and e-commerce segments are predicted to expand. This suggests CG and Roots have the capacity to remain competitive due to their high-end product offering and online sales presence.

The women's apparel market is highly competitive. With the launch of a new active-wear line from Harrington Collection's, more and more competitors will start to realise the potential value in in producing an active-wear line of their own. The active-wear market is growing so rapidly (expected to double turnover from 2007 to 2009), that eventually all of Harrington's competitors would likely be expected to launch a line of their own, relying on existing brand loyalty and high-scale advertising campaigns to capture market share and move units.

Lululemon reaches out to local fitness instructors, driving brand awareness through word of mouth. Their stores and showrooms offer free classes, workshops and community events. Lululemon focuses its business activities towards building a strong community legacy. Wherever a retail store is located, Lululemon connects with yoga, health and athletic leaders to become partners in building healthy communities with people who share Lululemon‘s values of: Quality, Product, Integrity, Balance, Entrepreneurship, Fun and greatness

In the athletic apparel industry, as in any industry, it is key to stay in touch with the current trends in order to keep your products relevant. With Lululemon focused on such a niche activity it will be important that they explore other markets within the sports apparel industry in the future so as to stay relevant. We can see the company’s first steps in doing just this when they recently introduced their men’s apparel line. A summary of the athletic apparel industry’s external environment are listed in Exhibit 1.

Lululemon is a large company, making clothing for athletic activities, not only are they in the women’s athletic range, but they have hit the men’s market and youth range as well. A SWOT analysis will be used to break down Lululemons strengths, weaknesses, opportunities, and threats to the business. Strengths which Lululemon have achieved include multi-faceted and community-based approach strategy, making customers feel part of a community through marketing strategies like there “ambassador program, social media, in-store community boards and grassroots initiatives” (Lululemon, 2016 Annual Report, 2016, p. 3). Touchpoints which have been a part of this multi-channel include Lululemons websites www.lululemon.co.nz and ivivva.com which is based around female youth active ware. With Lululemon having 12,500 full-time employees worldwide (Lululemon Athletica Inc. (LULU), 2017) with 406 stores (Lululemon, 2016), their large market capital of $8.33 billion (Lululemon Athletica Inc. (LULU), 2017), shows the total value of Lululemons shares of stock. Lululemon having $581.1 million in net revenue, this is an increase of 13% while their gross profit increased by 17% rising to $297.4 million. (Lululemon Athletica Inc. Announces Second Quarter Fiscal 2017 Results, 2017). This shows a steady increase in profit for Lululemon for 2017 which is a strength for them.

Lululemon Athletica’s (LULU) competitive advantage hinges on the company’s use of the four management pillars; efficiency, quality, innovation and responsiveness to clients (Tsang et al, 2013). LULU achieves unrivalled efficiency through outsourcing and technological advances. Even though LULU continues to design their merchandises in Canada, the manufacturing is outsourced from countries such as Bangladesh, China and Indonesia. The company has benefited from technological advancements by allowing customers the comfort of buying merchandises online, through the company’s website, which comprises of free shipping straight from the manufacturing plant, and thus saves on shipping costs, time, as well as retail store resources like signage and employees.

Lululemon describes itself as a yoga-inspired athletic apparel company, and as a "technical athletic apparel company for yoga, running, training and most other sweaty pursuits,"(Lululemon), and primary sells sports apparel (short sleeves-shirts, yoga pants, socks, arm warmers, bras, tank tops, jackets, hoodies and more) as well as sports accessories (yoga mats, water bottles, sports bags, and more).

The Lululemon brand ranked highest among their competitors for “luxury fashion apparel”. Organizing a like-minded community for body-conscious and health-aware as well as fashion-pursuing female customers is one of the most fundamental parts of Lululemon’s marketing strategy. Lululemon is the first mainstream clothing company to really put the “salon” business model into every detail of their business management. Resembling the core of Apple’s retail strategy, in which like-minded thinkers came together to share their own opinions, culture, and theories. Customers go to the Apple store and salesmen will teach them how to use the products. Lululemon will do the same thing, they could teach customers. In recent retail environment, buyer and seller are put on the same sides under the effect of this strategy. Both are focused on an idea of self-betterment that overshadows the commercial transaction itself. This ethic strategy transforms the stores into a space for personal communication with low pressure. The employee have the chances to talk to the customers about their passions and pursuits, and customers will select the ideal garments with the help of the employee. The final purchase transaction comes to be an investment in customers themselves, representing their own ideas and goals. In fact, Lululemon keeps setting goal behind the counter to make customized service to guests. Salon-model strategy is a trend to interest consumers overtook the desire to just own or consume more

Lululemon’s self reinforcing activities, such as target customer base, tailored products and community based marketing approach make it very challenging for existing retailers to challenge Lululemon in its market from their own store bases. However, there are limited barriers to entry in this industry and Lululemon should expect new competition to try to copy its format

Lululemon 's main competition are Nike and under armour they provide similar products that are of mid -high quality but do not include the unique fabrics lululemon produces but are well known established and

Since 1998 when it was formed, Lululemon Athletica has performed as a niche market leader with a strong brand image and awareness among fitness professionals by distributing high quality products

Lululemon already has presence in international markets, having corporate-owned retail stores in Australia, New Zealand, United Kingdom and Singapore.

The threat of “Substitutes” to Lululemon is high, although the demand for performance apparel and goods is moderate. The competition has comparable products with the exception of the “Trademark” material that loyal Lululemon customers may prefer. The product demand for high performance sports apparel is an expanding market.

A carefully crafted vision statement should provide long-term direction, delineate what kind of enterprise the company is trying to become (“where we are going”), and infuse the organization with a sense of purposeful action. Crafting and Executing Strategy defines strategic vision as, “managements aspirations for the company and the course and direction charted to achieve them”. The vision statement for Lululemon has changed over the years as they have grown. At inception, Wilson created Lululemon with a strategic purpose to build, “a community hub where people could learn and discuss the physical aspects of healthy living from yoga and diet to running and cycling as well as the mental aspects of living a powerful life of possibilities” (Company