Lululemon Competition Case Study
Essay by gianglammm • February 14, 2017 • Case Study • 997 Words (4 Pages) • 1,148 Views
Rival Sellers | Vigorous competition from
Sponsors for athletic events, provided uniforms and equipment with their logo to collegiate and professional sports teams Like Lulu, they design products but outsourced the production of their garments to contract manufacturers Less expensive than comparable Lulu-branded items (direct sellers of premium performance athletic apparel made of high-tech fabric)
|
Potential new entrants |
|
Substitute product |
|
Suppliers | Lulu don’t own or operate any manufacturing facilities to produce fabrics or make garments. Fabrics were sourced from a group of approximately 65 fabric manufactures - Luon. No long-term contracts with any suppliers, instead to transact business on an order-by-order basis and rely on the close working relationships.
|
Buyers | High due to: Buyer’s switching costs are low; they can easily switch to another brand if they are at all dissatisfied with Lululemon’s products. |
Question 1
Lululemon has a lot of competitors
- Competitors are multiple large companies; all of them use technical advanced, high-performance fabrics to make their apparel products. Like Lululemon, their product lines consisted of a bigger selection of fashionable, high-performance athletic and fitness apparel. Besides, these companies just design their own products but outsource the production of their garments to contract manufacturer.
- Nike
- The Adidas Group AG: their product lines consisted of high-tech performance garments for wide variety of sports and fitness activities, as well as recreational sportswear
- Under Armour: they design product to be aesthetically appealing, high-functional, and comfortable. Under Armour’s products line included men’s apparel, women’s apparel and youths’ apparel.
- The competitors are multiple smaller ones; they are three new formidable competitors emerge
- GAP Athleta: they focus on developing comfortable, fashionable, high-performance women’s apparel for workouts, sports physically active recreational activities, and leisure wear. Their product line is expanded widely, included swimwear, tops, bras, tights, so forth.
- Lucy: Lucy is a women’s activewear brand designed for style, performance, an fit that is intended for yoga, running, training, and other fitness and active recreational activities. Especially, apparel of this brand is made from 5 Lucy signature fabrics, each with different combinations of performance features that included moisture-wicking, odor-inhibiting, seamless, stretch, thermal warmth, wind resistant, and water resistant. Their product line is not too much different from GAP Athleta.
- Bebe stores: Bebe touted its stores as upscale, visually stimulating boutiques that are a go-to destination for chic, contemporary fashion. The company’s Bebe Sport collection consisted of apparel for variety of fitness and creational activities and included sports bras, tops, pants, shorts, jackets, hoodies, and tennis outfits. To compare with other brands, Lucy’s product line seems not wider as.
- Zella
Comparing with Lululemon’s competitors in price term, it can be seen that all competitors’ prices are less expensive than comparable Lululemon-branded items. Especially, the items in the GAPfit, Athleta, Lucy, Bebe Sport and Zella colletions are priced 10 to 25 percent below similar kinds of Lululemon’s products
...
...