The uncommon success story of lululemon is example of consistently developing year-on-year like a shell, the athletic attire area is supposed to reach $257 billion in esteem by 2026. Therefore, it is not surprising that numerous apparel brands have entered this market. One of the spearheading organizations is Lululemon — a yoga-enlivened sports clothing brand that quickly turned into a staple in each Millennial lady’s closet.
In the last 5 years the stock price of Lululemon (LULU 1.12%) has increased by 433% and surprisingly improvement over the S&P 500’s 80% total return over the same period. In a highly competitive market, the thriving retailer has achieved remarkable success.
Let’s drill the marketing strategy of lululemon :
The marketing strategy used by Lululemon is original and very effective. Lululemon has taken a grassroots, community-driven approach, whereas its larger rival, Nike (NKE -0.29%), spends a lot of money on expensive endorsements of athletes and celebrities.
- To accomplish this, a network of brand ambassadors must be established 47 global ambassadors for the company are all elite athletes but probably not well-known.
- In the markets where Lululemon has a physical presence, there are also 1,240 store ambassadors who are social and fitness community influencers. These store ambassadors organize get-togethers at Lululemon stores for events like yoga classes.
- Ambassadors receive priority access to brand-new Lululemon products in return, as well as ongoing support that can assist them in expanding their individual businesses. In addition, some individuals are given the chance to participate in the design process of the company by evaluating brand-new apparel and providing feedback.
- Lululemon’s previous success demonstrates that this differentiated approach has worked tremendously, which is even more impressive in light of Nike’s monopoly on the entire sports apparel market
- lululemon’s Social Media Strategy is more effective then search engine marketing the lululemon Middle East instagram is live with 684 & posts 35.1K followers – USA 3,396 & post 4.3M followers – Singapore 1,576 & posts 71K followers and Europe 2,377 posts & 271K followers, It is good appearance to define overall efforts.
- Not weekly post on Facebook but actively engaged on community and group post comments with 2.7m followers on Facebook, USA.
- Twitter is only floating with motivation quotes, and account has nearly 990,000 followers, USA.
- The Tiktok is sharing more benefits then fb & twitter accounts.
- Organically lululemon is well established, with SEO. As shown in below image
10. In the paid media company is not able to cover the extra milestones but considerable as benefit as shown in the below image
Lululemon’s revenue and profit have increased by 174% and 221%, respectively, over the past five fiscal years. Additionally, during that time, its operating margin has increased from 18.3% to 22%.
Additionally, the brand has demonstrated its extreme strength. Lululemon had a gross margin of 58.1% in its most recent fiscal quarter, which ended on January 30, compared to Nike’s gross margin of 46.6% in its most recent fiscal quarter, which ended on February 28. Furthermore, the company’s increased profitability has been a recurring pattern for the past ten years, so this is not a one-time occurrence. Furthermore, Lululemon outperforms luxury brands like Apple, Ferrari, and RH in terms of gross margin.