Lululemon in Trouble
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Case Code: BSTR538 Case Length: 15 Pages Period: 2016-2017 Pub Date: 2018 Teaching Note: Available |
Price: Rs.400 Organization: Lululemon Athletica Inc. (LULU) Industry: Clothing Retail Countries: US, Canada, Global Themes: Corporate Strategy, New Product Development, Brand Strategy, Market Assessment |
Abstract Case Intro 1 Case Intro 2 Excerpts
Background
Born in 1956 in Vancouver, Wilson was proficient in swimming and football. After completing his graduation in 1980, Wilson founded Westbeach Snowboard Ltd (Westbeach). The company sold apparel used in surfing, skating, and snowboard games and became highly popular among sporting goods and apparel retailers. Wilson sold off the company in 1997.
In 1998, Wilson joined a yoga class in Vancouver. He found that the popularity of yoga was growing by the day, especially among women. At the same time, he noticed that the clothes the yoga practitioners wore were made of cotton and were uncomfortable and loose. Women mostly wore baggy T-shirts and sweatpants, which were in no way fashionable. He said, “Because I came out of the technical clothing business I could see how everyone was sweating in class and their clothes were binding and not really working and I thought, ‘Wow, I’m unemployed. I know how to do this and this is what I like to do.’ And so putting the yoga and the technical clothing together was really natural for me.” He came up with clothes specifically for yoga practitioners. He gave a sample of these clothes to his yoga teacher to test. These were highly appreciated...
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