Did you know?
The LULULEMON Was A Yoga Studio When It First Started
The main Lululemon offerings and products are water bottles bags, yoga mats, undergarments, hair accessories shorts, sweaters, jackets yoga pants, men’s and women’s sportswear and accessories for women. According to a report the annual earnings of the brand as of April 20, 2021, was 4.976 billion dollars. And it has risen by 29.29 percent. Of that the net earnings of the brand’s sportswear line is 0.705 billion dollars, and has grown by 22.09 percent. The company has employed over 25000 workers to run its operations across the globe.
This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct a SWOT analysis by Lululemon.
Lululemon At A Glance – Lululemon SWOT Analysis
Company: Lululemon Athletica inc.
Founders: Chip Wilson
Year of establishment: 1998, Vancouver, Canada
CEO: Calvin McDonald
Headquarters: Vancouver, Canada
Employees (Dec 2020): 19,000
Ticker Symbol: LULU
Annual Revenue (Dec 2020): $4.4 billion
Profit net income (Dec 2020): $2.46 billion
Products & Services: Athletic wear | Yoga pants | Shorts | Sweaters | Jackets and undergarments | Hair accessories | Bags | Personal care products
Company Website: shop.lululemon.com
Lululemon SWOT Analysis – SWOT Analysis Of Lululemon
SWOT Analysis Of Lululemon analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Lululemon SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Lululemon SWOT Analysis. Below Is The Detailed SWOT Analysis Of Lululemon.
Lululemon Strengths – Lululemon SWOT Analysis
1. Marketing: Lululemon uses sophisticated marketing techniques to aid in promotion of its items and products. For example, sportswear yoga pants and training and running products are the most popular products offered by the business. The brand follows a specific marketing strategy of an individual segment of the market for sportswear. In addition to specialization marketing Lululemon sells their products through influential people in the field of sportswear like yoga instructors, fitness trainers and others. Lululemon doesn’t invest millions of dollars in advertising similar to the brands that compete with it; Adidas, Nike and others.
2. Strong Network: Lululemon operates a network with greater than 521 stores spread across greater than 17countries all over the world. The area of service includes Oceania, Europe, Asia and North America, and its expansion is on the rise.
3. Product Line: Lululemon provides a range of products and services for clients in the clothing business. The company recently formed an alliance with fashion designers to increase its product range and clothing range.
4. Customer Engagement: Lululemon is very active on social media platforms, and its customers’ engagement is extremely high. Indeed, the team of the company recognizes its frequent customers by their name. They feel like being valued customers of the business.
5. Material: Lululemon produces its merchandise from fabrics that are lightweight in weight and able to absorb sweat. It’s also easy to wear for athletes. The most important thing is that the clothing of the company is fashionable and trendy for males and females.
6. Quality: Lululemon provides high-quality, trendy and fashionable clothing with regard to material stretching, texture, and stretch. The research center of the company is geared towards different aspects like quality and the needs of customers when engineering the design, manufacturing, and designing the product.
7. Brand Value: According to an estimate from Forbes The market capitalization for Lululemon stood at 43.16billion dollars. Lululemon is ranked in 1201 in the 1201 spot of the Global 2000 companies in 2021.
Lululemon Weaknesses – Lululemon SWOT Analysis
1. Low Brand Recall: Lululemon operates its clothing business across around 17 nations around the world. The brand’s apparel line offers trendy, fashionable quality clothing for women and men. But, few people are familiar with the name Lululemon. Its absence in the world market and the lower growth rate have hindered the growth of the company and its profitability.
2. Lower Profit Margin: Lululemon has premium pricing to sell its merchandise and has a large base of customers. It has enabled the clothing brand to not depend on the huge quantity, and it functions well in normal conditions. However, it affects the overall sales of the business in various categories of products.
Lululemon Opportunities – Lululemon SWOT Analysis
1. Developing Markets: Lululemon should introduce its brand in the developing world and increase its market share in the developing countries. The emerging countries have an abundance of growth opportunities and would allow the company expand its brand and market.
2. Healthy Trends: Dietary and fitness trend is increasing across the globe. Many food and sporting brands are keeping track of these trends and are offering a variety of products to meet market demand. But, Lululemon should increase its efforts to offer more sportswear-related products sector.
Lululemon Threats – Lululemon SWOT Analysis
1. Changing Trends: The fashions in the sportswear and apparel market are very unpredictable. Your company’s success is when your product is in line to the current market trends. If you do fail to predict the market’s trends, it will cost you the entire value of your product.
2. Competitors: Decathlon, Adidas, Nike, Under Armour, Puma among others are some of the primary rivals of Lululemon. They have developed a formidable brand and a reputation for their brand across many countries throughout the globe. It’s a challenge for a clothing business to get into the market and capture the market share.
Lululemon SWOT Analysis Template
Conclusion – Lululemon SWOT Analysis
After careful examination of the swot study of Lululemon, we’ve discovered that Lululemon is the top sportswear brand in the world. Growing competition, shifting fashions, low brand recognition and a small market share are a few of the biggest problems. Lululemon ought to diversify its product line and expand into new markets to tackle these challenges.
This is the SWOT report that Lululemon has done. Please let us know if you have additional suggestions to add.
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