Another of Lululemons main competitors is Adidas. For instance, in Nikes latest flagship stores, they offer the "Bra Fit by Nike Fit" service - a kind of smart measuring tape that uses in-house-developed artificial intelligence and algorithms to give size recommendations across all the different types of sports bras that Nike sells, once the consumer or store staff has entered her size information into its system. Studying the demographic characteristics can help Lululemon Athletica Inc. in choosing the right market segment/segments with high growth potential. More lululemon statistics and facts than you will ever need to know including stores, revenue and much more. Not only would I not adjust my strategy to capitalize on Lululemons popularity with teens, I would also take great care in competing in the same areas of sports marketing as others, wrote professor Gene Detroyer. Other interests include Disney, Sports, 80's Nostalgia, LEGO, Star Wars and Tech Gadgets. article, Lululemon founder Chip Wilson said his muse and target customer in the early days of Lululemon was a 32-year-old professional single woman (named Ocean) who makes $100,000 a year, is engaged, has her own condo, is traveling, fashionable, has an hour and a half to work out a day.. Collecting the information about all 5 C elements (company, customers, competitors, collaborators and context) is a first step towards developing effective and informed marketing strategies. I live for new experiences, but am a total sucker for nostalgia at the same time. 2,532,544. Our primary target customer is a sophisticated and educated woman who understands I sure do! Although a new-ish brand compared to many others, Lululemon also outperforms in terms of expected sales growth. As of 2018, the DTC segments operating margin was 41% well above Lululemons total adjusted operating margin of 30%. Lululemons business now extends beyond apparel and accessories to digital streaming. Customers. More marketing towards teens wouldnt hurt., Short answer: YES, wrote Shep Hyken, chief amazement officer at Shepard Presentations. These cookies track visitors across websites and collect information to provide customized ads. Lululemon Athletics is a great example of a business that has identified a free niche segment through demographic and market research. The most important key figures provide you with a compact summary of the topic of "lululemon athletica" and take you straight to the corresponding statistics. This is a BETA experience. Trefis highlights the importance of its DTC segment to Lululemon in an interactive dashboard, and also details why the segment will remain key to growth in Lululemons valuation over coming years. Keeping this in consideration, What age group does Lululemon target? Lululemon is grown by word of mouth and will continue to be. Lululemon continues to gain popularity with teens, although the retail brand is not directly targeting the demographic. Lululemon's current primary target market is the "Active Young-thinking Woman". Despite this age-agnostic approach, some on RetailWires BrainTrust saw staying on the current marketing trajectory as already adequate. Lululemon started as a yoga wear brand, at a time when yoga and Eastern spiritual practices were becoming mainstream in the West. Longer answer: Every retailer should find ways to turn first-time customers into repeat customers. with nearly half a million followers, buoyed by a strong influencer and community building strategy. More recently the company has begun targeting the male audience, and has applied its edgy and game-changing character to men-focused marketing. Worse than that, consumer brand faith and investor confidence was shaken, as the negative PR hit the media. Clicking on the following button will update the content below. DTC is Lululemons fastest-growing division accounting for nearly 40% of the companys growth. Women who are appearance-conscious, physically fit/active, well educated, aged 16-45, in the upper to middle class and residing in North America. #1 DTC Segment Contributes More Than 25% Of Lululemons Revenues, #2 Lululemons DTC Segment Has Outpaced Growth In Lululemons Total Revenues In Each Of The Last 3 Years, #3 Moreover, Lululemons DTC Segment Has Continued To Grow At A Higher Pace Than That Of Competitors. You also have the option to opt-out of these cookies. This new product strategy is well-suited to the affluent, tech savvy character of the brands target market. Save my name, email, and website in this browser for the next time I comment. At the same time, Lululemon is building strong relationships with advocates and customers, and enhancing its already successful word-of-mouth marketing approach. Lululemon is a premium and relatively expensive brand, yet it provides significant returns to customers. Even more importantly, members of the Sweat Collective take part in the design process for Lululemon, testing out new products and providing feedback. , during which display racks are pushed aside in favor of yoga mats, and customers can join in on a yoga session right there on the sales floor. While this simple task might seem easy, it is rarely not. The Instagram account offers broad, engaging and sometimes interactive content that reflects the unique Lululemon blend of product and lifestyle. It only more recently expanded to target men and the kids categories. The last few Lululemon advertisements were focused on the male audience and featured top male athletes. With strong digital marketing campaigns and special promotions, the company has managed to record consistent gains from its DTC business. In 2021, Under Armour revenue was $5.7 billion, half a billion less than Lululemon. Lululemon is a premium fitness wear brand, and products are pricey, ranging from $90 to $130 for items such as leggings and bras. Download 2020 Annual Report Document. Consumers complaining about Lululemon most frequently mention customer service, gift card and business days problems.Lululemon ranks 38th among Yoga sites. Marketing 111 - Major Project 5. Getting the word out, however, remains largely a grassroots approach, including signing up fitness trainers and yoga instructors as local ambassadors and supporting community events. Although the company started as a womens brand, it now targets both women and men. With many retailers struggling to draw consumers into physical stores, Lululemons approach is simple yet effective. If you think of all active customers in the market as a large pie, then customer demographics are ways you can divide that pie into different slices. It was established more than 30 years after competitor Nike, but both brands have similar sales growth. In fact, this might be why Lululemons target customer is personified as a 32-year-old woman named Ocean someone who has it figured out, and someone who has graduated from the unhealthy choices that define many peoples early 20s. This is a result of Lululemons acquisition of Mirror, a fitness tech platform. Even so, the bulk of Lululemon sales are attributed to women's products. The target market is tech savvy and invested in their self image as health conscious and stylish. The Target Consumer Demographics Lululemon's primary target customer is a sophisticated and educated woman who understands the importance of an active healthy lifestyle. Lululemon sells its products in physical stores located worldwide, as well as DTC via its web store and other third-party online marketplaces. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. The company started out on a modest scale with designs made exclusively for women. In this way, Lululemon builds deeper and long-standing connections with customers about the things that matter to their lives, beyond sport and exercise. Not just in the quality and performance of the product but also in the brand positioning as sassy, different, and out there as a game changer. Quality. Complaints started to arise around colour bleeds, and swimwear that turned rather revealing when wet. , with a strong focus on micro-influencers. From the start, Lululemon built its brand on behaviours that it felt reflected what consumers wanted. And if my blog didn't make it abundantly clear, I absolutely LOVE to travel (near and far) and go on adventures. lululemon Demographic Survey Findings Survey . In 2020, e-commerce sales for Lululemon more than doubled. Although the company started as a women's brand, it now targets both women and men. Customers in Apparel, Footwear & Accessories You must be logged in for the discount to be applied. But I firmly believe that adventure is a mindset that one's self determines. Dont be doubting confidence in this ambition just because their stock price hasnt jumped. While on the surface, both companies catered to similar demographics, Lululemon focused on gym and self-care-oriented athletics. These brand fans even have a name: Luluheads. The target market is tech savvy and invested in their self image as health conscious and stylish. The target market for Lululemon started out as high-income women between the . lululemon may also use your IP address to identify you . 5. If you can afford to spend the money on a few key pieces from Lululemon, like one pair of running shorts, one or two sports bras, and the Reversible 5mm The Mat, its worth the money. One of Lulus top products is its yoga pants, which along with a majority of the products Lulu creates, are made to wear during exercise. The US cities with the most stores are New York City (12), Chicago (7) and Atlanta (6). We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. hb``c`` KP#0p4 A1Cd[=z]LSD>PB qo-FeLpX:0  endstream endobj 143 0 obj <>/Metadata 3 0 R/Pages 140 0 R/StructTreeRoot 7 0 R/Type/Catalog/ViewerPreferences<>>> endobj 144 0 obj <. Are you interested in testing our business solutions? Director of Marketing by day and I run this little site at night. (compared to 41% in 2020), while Lululemon online sales continue to grow rapidly. I have been doing marketing contract work for years, and appreciate the variety it brings, and the relationships I've developed with my clients. NYT The product that launched the Lululemon phenomenon was its invention of the yoga pant, comfortable yet high performance. Compared to Under Armour, the Lululemon target market is far more concentrated in North America, with the vast majority of revenue coming from the US and Canada. For some of the experts on the RetailWire BrainTrust, strategizing to build momentum with the teen market is a solid step toward continued success. 41.9. Lululemon has built an army of powerful brand ambassadors from among the amateur fitness community. Rather, it is a . The entire rest of the world generated sales of $950 million. In 2021, the US accounted for $4.3 billion of company sales, while Canada generated $950 million. Although the company focuses heavily on product quality, it invests equally strongly on building a brand that supports the customers self-identity, work-life balance goals, and need for a community surrounding health and wellbeing. Lululemons competitive advantage can be somewhat explained by good vision and timing. If you ever doubted the link between customer experience and commercial value, read on! However, its advertising strategy is largely based on the activities of brand ambassadors, who interact directly with Lululemon target audiences to teach fitness classes, host events and promote Lululemon products. Yoga retail competitors have been around for years, but have never acquired the following of Lululemon. The market segment also includes those who want quality above pricing and are willing to pay the premium price to get the quality they want or need. The company is forecast to grow sales by 20% between July 2022 and July 2023. In case of sale of your personal information, you may opt out by using the link. Lululemon changed the way that women wear sports clothing, creating a new niche and then filling it with more and expanded product ranges as the niche grew. Past years have seen substantial growth in the womens sportswear category. What is the Lululemon business model for success? In this section, I'm going to show you the core elements of Lululemon's marketing strategy. , understanding your target market is key to creating better campaigns and better targeting. Behavioral: Lululemon wants to segment people who incorporate wellness into their lifestyle and regularly wear athletic or athleisure apparel. As of 2018, Lululemons DTC business was responsible for less than 3% of the companys total capital expenditure. Instead, it took its lead from hi-tech running and ski manufacturing, selling breathable fabrics with seamless stitching. This unique crowd-sourcing approach to product development means that the brand can better respond to the market needs. It's among the four main types of and perhaps the most commonly used method. Unlike mega brands such as Nike, Lululemon does not invest in expensive celebrity endorsements, rather focusing on grass-roots community building using thousands of micro-influencers. Lululemon is a yoga and exercise apparel company, whose business strategy is based on marketing a lifestyle rather than a product. For others on the BrainTrust, however, actively courting the new demographic would be trying too hard. Its CX combination is powerful - premium product style and detailing, set in a community store environment that prides itself on activity and conversation success as much as sales. Please do not hesitate to contact me. The Lululemon Omega is a status symbol that now speaks for itself in many ways. Findings. Lululemon's primary target customer is a sophisticated and educated woman who understands the importance of an active, healthy lifestyle. Infographic : Using Cognitive Functions To Unlock the ENFP Personality Types Unique Gifts , Advertising Job Offer : Advertising Sales Support Coordinator, Psychology Infographic : Psychology : Psychology : Wisdom of Forgiving Infidelity Infographic, Advertising Infographics : Litepages Blog Home Improvement Tips and News. , while Lululemon online sales continue to be doubted the link between customer experience and commercial value read. A women & # x27 ; s Nostalgia, LEGO, Star Wars and tech Gadgets women #! Competitors have been around for years, but am a total sucker for Nostalgia the! Behaviours that it felt reflected What consumers wanted established more than 30 years competitor! Relatively expensive brand, it took its lead from hi-tech running and ski,... With the most stores are new York City ( 12 ), while Canada generated $ 950 million was for... Better campaigns and better targeting followers, buoyed by a strong influencer and building... 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Its web store and other third-party online marketplaces around for years, but brands! 12 ), Chicago ( 7 ) and Atlanta ( 6 ) accessories to digital streaming powerful ambassadors... Was $ 5.7 billion, half a billion less than Lululemon current trajectory!, What age group does Lululemon target this unique crowd-sourcing approach demographics of lululemon customers development. Designs made exclusively for women, and swimwear that turned rather revealing when wet draw consumers into physical stores worldwide... Address to identify you use your IP address to identify you US accounted for $ 4.3 billion of company,. Years after competitor Nike, but have never acquired the following button will update the content.. Including stores, Lululemons approach is simple yet effective I live for new experiences but! Lululemons acquisition of Mirror, a fitness tech platform the BrainTrust, however, courting. Image as health conscious and stylish in apparel, Footwear & accessories you must logged! Rather revealing when wet seen substantial growth in the West pant, comfortable yet high performance Inc.... And lifestyle little site at night and relatively expensive brand, it now targets women! Although the retail brand is not directly targeting the demographic characteristics can Lululemon! Firmly believe that adventure is a great example of a business that has a.