Lululemon is an athletic apparel brand that sells activewear for fitness activities and more. While their initial focus was on yoga apparel for women, they have now branched into providing activewear options for men also. Additionally, Lululemon has also made an entrance into including more than just activewear. There has been a range of casual and lifestyle styles introduced by Lululemon now. Let us know about ‘Lululemon Competitive Advantage’.
Unlike other brands, Lululemon has continued thriving while pricing its products as they please. Lululemon popularly provides its items either in its exclusive store or its website. Unlike other brands, for example, Nike, Lululemon does not rely on retailers for its products. For this exact reason, pricing is according to their favorable terms for Lululemon. According to recent stats, Lululemon currently has a revenue forecast between $6.25 billion and $6.29 billion.
The company noticed a serious rise in earnings during the pandemic. Their recent exploration in the digital, as well as international markets, have contributed to this. During the pandemic, there was a requirement for casual/ activewear clothes that you could work out or simply even lounge in. The work from home nature led to the production of a more stylish but comfortable range of apparel.
This strategy pushed the brand right into the ring with all the other major competitors. Furthermore, Lululemon promotes the idea that states how people need to reach their full potential. They believe that with the right tools and resources, anybody can have it all.
Lululemon Competitive Advantage
Lululemon has known to dominate over its competitors for several reasons, A few of them being superior product quality, innovation, consumer satisfaction and loyalty, patented material, and so much more. Lululemon owns 45 patents of its athletic gear. This is a serious advantage for them as a brand. As patent owners, Lululemon has its title as well as its rights for a specific period. During which they exclude competitors while selling, making, or even using a product. From the date of application, patents are usually given for 20 years. While upon expiration patents cannot be renewed, however, by this point the design is made available to all, by all.
A design patent lasts for up to 14 years from the day it’s granted. This means that Lululemon patents will not last forever. But gives them more than enough time to adapt and be innovative. Which is their competitive advantage in front of other brands. Lululemon will currently be the only brand with a particular design and it will be long before another company can duplicate the same. Additionally, the design may even go out of style by the time the patent registration expires.
2. Trademark Registrations
Furthermore, Lululemon is also highly known to own trademark registrations for a wide range of its fabrics and products. A trademark can be anything from a word to a symbol that under legal registration represents a particular brand. Through the help of the trademarks, they also help distinguish the specific brand’s design. In this way, Lululemon’s goods can also be prevented from being victims of counterfeiting.
Innovation on the other hand is one of the building blocks to the company’s success. There exists an entire department dedicated to the same cause. Research, analysis, developing, advancing, experimenting, etc., all the materials required for the products. The brand also has specific product lines based on the material used in the production process. Such as:
1) Luon family – Signature yoga fabric
2) Luxtreme – Fastest absorption fabric
3) Swift – Lightweight material for athletics
4) Silverescent – Anti-bacterial / Anti-stick family
Lululemon is persistently working towards adding more products to its line. They continue to grow as a brand that stands out and remain one step ahead of all their competitors.
One of their main structures for development is their efficiency. While the designing process is carried out in Canada, outsourcing has been a significant part of the company’s journey to success. The designs are sent to be manufactured. Which reach their warehouses, from where all the products are delivered. This has been observed to be the most successful for the company to manufacture their goods.
Additionally, this efficient manner also helps in minimizing or eliminating any additional costs and waste. The company also has no shipping costs for online purchases as it is directly from the factory. Which helps in saving time, resources, cost, etc.
5. Consumer Satisfaction
In addition to all of this, Lululemon has known to have the best responses to their customers. Quick to respond, listen to queries, quick problem solving are all factors that contribute to its growing success. They make sure that the people are their first concern. Many fitness instructors and those in the industry as offered various bonuses and discounts.
This way consumers and other individuals try out the products offering immediate feedback. The various factors such as the fabric, quality, fit as well as design are all evaluated. Any adjustments, be they big or small are worked upon immediately by the Lululemon customer service team.
The iconic fitness apparel brand, Lululemon has continued to pursue this competitive advantage from day one. Now they work on community building. Ensuring that all the big and small people are all talking about its products. Finding brand ambassadors is one main way that Lululemon has marketed its line of products from day one. This way they don’t spend almost anything extra and continue to build revenue.
Lululemon believes in the ideology of “Focus on what you do best, and only that.” This along with meeting consumer expectations while maintaining their attention as well as establishing premium prices ensures their success.