Imajen Media

SWOT ANALYSIS

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SWOT SUMMARY:

Strengths:

  • Strong brand association — lululemon is a well established leading brand in the athleisure industry, particularly in the realm of yoga
  • Omni-channel retailer — lululemon provides a seamless shopping experience within all of their channels such as their app, website, brick and mortar stores, etc.
  • Differentiation strategy: quality products — lululemon has always focused on creating and marketing the quality of their products for longevity. Their quality is evident in the materials that they use and proudly disclose to their consumers. Overall, lululemon’s return and refund policies, combined with their confidence in product longevity, reinforce their commitment to having quality products as a differentiation strategy in their brand which enhances their competitive advantage.
  • Brand loyalty — lululemon has integrated marketing strategies that allow the brand to successfully build awareness and loyalty (Lululemon Annual Report, 2022).
  • Innovative — As a press release by lululemon states, the company has a power of three strategy that drives an increase in revenues by product innovation in both new and existing categories (Lululemon, 2019).

Weaknesses:

  • Company’s controversies — lululemon had a brand image crisis in 2013 that involved the former CEO, Chip Wilson. After receiving criticism on the company’s yoga pants, Wilson had responded that “some women’s bodies just actually don’t work” (Lemire, 2024). Despite the passage of time, the incident is still talked about in 2024 influencing the perceptions of the company.
  • Limited global reach — Although lululemon is an omni-channel retailer with both brick and mortar stores & a wide online presence, the company’s stores are primarily located in the U.S. and Canada and their online presence may be limited due to shipping and distribution restrictions.
  • Premium pricing — lululemon is on the premium side when it comes to pricing, especially compared to competitors like Fabletics. This may be beneficial for the brand’s increase in revenues but may also deter certain customer segments who are price-sensitive, limiting the brand’s market reach.
  • Strong brand association with yoga — Although lululemon’s strong association with the yoga industry attracts a loyal customer base, it may dissuade consumers in other pursuits, such as our new target market: sportswomen and athletes, from choosing this brand.

Opportunities:

  • Partner with athletes & sports brands — Sports, especially women’s college basketball, is on the rise. According to an article by Sports Pro Media, “ESPN recorded its most-watched women’s college basketball regular season since 2008/09, with average viewership up 37% year-on-year to 272,000” (Mccaskill, 2024). The company can leverage this and start catering to a wider market.
  • Emphasize quality & longevity in products for concerns with pricing
  • Expand menswear — Men’s growing concerns on health and wellness has increased their needs in the athleisure industry which is also something lululemon can leverage.
  • Global expansion — lululemon can continue to expand internationally, reaching more people across the globe.

Threats:

  • Competition with athleisure brands — As of 2024, the athleisure market continues to expand rapidly, with new brands emerging constantly. This presents a significant threat to lululemon’s market growth as consumers are constantly provided many alternatives to choose from. This is particularly concerning in the segment targeting women in sports, such as our target: high school and college basketball athletes because of the presence of well established sportswear giants like Nike and Adidas.
  • Economic crisis & inflation — lululemon has premium price points. Some of lululemon’s targets might route to a cheaper alternative, especially during times of a recession, since its pricing is higher than some of its competitors.
  • The rise of affordable dupes/knock-off items —  Consumers may alter to buying more affordable “dupes” of lululemon products commonly found on Amazon, SHEIN, and TikTok Shop, resulting in revenue loss from the company and possible brand loyalty. Thus, the company needs to continue to emphasize that their quality and longevity in its products can not be duplicated.

References

Lululemon Athletica Inc. (2022). 2022 annual report. Retrieved from https://corporate.lululemon.com/~/media/Files/L/Lululemon/investors/annual-reports/lululemon-2022-annual-report.pdf

Lululemon Athletica Inc. (2019, April 24). Lululemon Athletica Inc. announces first quarter fiscal 2019 results. Retrieved from https://corporate.lululemon.com/media/press-releases/2019/04-24-2019-090026432

Lemire, S. (2024, January 8). Lululemon founder Chip Wilson’s controversies explained. Today. Retreived from https://www.today.com/popculture/news/lululemon-chip-wilson-controversy-explained-rcna132284

McCaskill, S. (2024, March 15). NCAA Women’s College Basketball: ESPN ratings rise as season progresses. SportsPro. Retrieved from https://www.sportspromedia.com/news/ncaa-womens-college-basketball-espnratings

Disclaimer: All information on this page is solely for a school project. ImaJen Media has no affiliation with lululemon or any of its partners in this campaign.