Lululemon

Words: 671
Pages: 3
Open Document
When it comes to online clothing shopping, many consumers are left disappointed when they receive a product that either does not look like it was advertised or does not fit properly. As a result, many consumers prefer to shop for clothing in stores rather than online in order to be fully satisfied with their purchase. In fact, more than 70% of consumers would prefer to shop a brick & mortar Amazon store instead of Amazon online (Study). “Despite the hype around e-commerce and online shopping, consumers [...] value the personal experience of the physical store” (Study). With a high quality, high price company such as Lululemon, the majority of customers would prefer to try on the clothing and accessories to ensure it matches their needs, rather …show more content…
Consequently, U.S. President Donald Trump has suggested imposing a 45% tariff on imports originating from China (Mody). This increase in tariff cost poses a threat to Amazon’s merchandise imports as the firm will have to pay additional tariffs in order to work with Chinese sellers. Additionally, the tariff increase will affect any prospective sales if Amazon were to acquire Lululemon; as 23% of Lululemon clothing is manufactured in China (Soni), the company would also have to pay the additional tariff fees. This change in business economics between the U.S. and China could be considered a setback and a potential company threat for both Amazon and Lululemon if the law were to be passed. In order to be successful long-term, Amazon needs to ensure they are able to continue effectively doing business with Chinese sellers. Investing in a company that manufactures its products in China and other Asian countries could prove to a problem in the …show more content…
Although Amazon’s profits are currently stable, company shareholders worry that its selection has become too diversified and the company is growing too rapidly to maintain its success (Page). Currently, Amazon is in direct competition with the majority of retail sector chains such as books, TV shows, clothing, food and more. At first glance this may seem like an advantage, however this continuous growth can result in a lack of focus and strategy; although expansion is necessary for a company to remain successful, blind expansion into numerous sectors can cause Amazon to lose control of its production and ultimately lose control of its clientele. Recently, Amazon has expressed interest in acquiring Lululemon, a Canadian athletic apparel retailer (Lululemon). With little to no previous experience with yoga-inspired athletic wear, Amazon would need to familiarize itself with a new market, a task that can prove to be difficult as the company has many other markets to focus on. “Not only do companies that expand quickly have personnel problems but they are also less able to adapt to a changing market” (Page). Amazon’s success with Lululemon heavily depends on how effectively the company can adapt to the needs of the new market; this includes updating warehouse business environments, hiring additional personnel and the expansion of new
Show More

Related Documents: Lululemon

Lululemon Athletica

strategy of athletic apparel retailer Lululemon Athletica. It provides an insightful explanation of the importance of non-financial performance measurements, in particular customer satisfaction and retention. These performance aspects are then discussed in relation to Lululemon Athletica, both online and in-store aspects, and their importance in successfully competing in the highly saturated retail market that is active wear. INTRODUCTION & BUSINESS OVERVIEW Lululemon Athletica is a Canadian athletic…

Words 1149 - Pages 5

Essay on Sustainability and Lululemon

overall identity. 2. Lululemon and Social Pillar of Sustainability 2.1 Brief Introduction of Lululemon Established in Vancouver, Canada in the year 1998, Lululemon is a company focuses on producing sports wears especially for sports such as yoga, jogging, gymnastics as well as sport dancing. The company develops its business at an alarming rate and the past 15 years have witnessed great development for the brand. Up till now, there are altogether more than 150 Lululemon retail stores all over the…

Words 2523 - Pages 11

Lululemon Case Brief Essay

Robert Korn 3.2.15 Lululemon Case Brief 1. a. Demographic Segment: The demographic segment is important to the sportswear industry due to different age groups, cultures, and genders demanding different types and price points for their apparel. This is positive for the industry, since businesses can sell to anyone with an active lifestyle. b. Global Segment: The largest companies in this industry have achieved their size due to their penetration of global markets on multiple continents, suggesting…

Words 1054 - Pages 5

Lululemon Case Study

Lululemon has seen tremendous success with their ability to sell high quality athletic apparel. I would say that the competition between the producers of athletic ware is in between moderate and fierce. Lululemon has a large competitive base, which include Nike, Adidas, Under Armour, Zella, and Athleta. With the success that Lululemon has achieved, many other competitors want to jump on the possibility of making more profit for their companies. To fight these rivalries, Lululemon has created…

Words 339 - Pages 2

Lululemon Athletica Crisis Analysis

Lululemon Athletica is a Canadian company that specializes in yoga sportswear. In 2013, Lululemon experienced a crisis involving a number of customer complaints addressing their dissatisfaction of the yoga leggings appearing too see-through when worn. The company acted fast in recalling the product and providing full refunds to customers. However, the company initially claimed that the problem was with the manufacturing procedures, to which their manufacturer had denied. The crisis was further complicated…

Words 266 - Pages 2

Lululemon Pant Summary

1. Lululemon wants to advertise to persuade an active male audience that ABC Pants will offer them comfort and crossover appeal. The ABC (Anti-Ball Crushing) Pants is design to provide men athletic leisurewear that will take them from the gym to the office. 2. The desired demographic is professional men in their late 20s and mid 30s who are physically active five to six time a week. Psychographic: above average income, professional, extremely active, health focus, and busy life style. Geographic:…

Words 401 - Pages 2

Essay on Lululemon Internal Analysis

the store base in North America, primarily United States • Open additional stores outside North America • Increase awareness of the lululemon brand and apparel line • Incorporate next-generation fabrics and technologies in the company’s products to strengthen consumer association of the lululemon brand with technically advanced apparel products and enable lululemon to command higher prices for its apparel…

Words 2541 - Pages 11

Lululemon Case Analysis Essay

Lululemon Athletica, Inc. Created by: Kelsey Davis GBA 490-901 March 21, 2014 Table of Contents Executive Summary To: Laurent Potdiven Chief Executive Officer Lululemon Athletica Inc. This report has been created with the intent to analyze the athletic apparel industry with a specific focus on Lululemon Athletica, Inc., further refered to as Lululemon. In this report you will find that the strengths and weaknesses of Lululemon’s current strategies and future goals are analyzed and…

Words 4318 - Pages 18

Case Study: Lululemon Case

In the highly competitive fashion market, Lululemon stands out from the rest. Lululemon's mission statement is, “We’re constantly thinking about how we can innovate our process, our gear, and our social impact so we can elevate the world”(Lululemon’s website). Commitment to sustainable products and development is bringing Lululemon to the front of the market. Driving it all is Lululemon’s approach to hiring and developing a rewarding work environment. To do this they use personality testing in the…

Words 196 - Pages 1

Case Study: Lululemon Athletica Inc.

Lululemon Athletica Inc. is Canadian company established in Vancouver, which provides athletic apparel for men and women across the country. Initially when it was founded in 1998, the mission/purpose of Lululemon was to offer women a wide variety of clothing to wear during yoga. However, as the business grew over the years, it began to design items for not only yoga, but also running, training, and cycling for both genders. The company started opening several stores across Canada and the United States…

Words 983 - Pages 4