Lululemon has been able to maintain its popularity and success by pricing its products as they please. Unlike other brands, for example, Nike, Lululemon does not rely on retailers for its products. This allows them to set their prices according to their favorable terms. Recent stats show that Lululemon is expected to have a revenue forecast between $6.25 billion and $6.29 billion in 2017. ..
The company noticed a serious rise in earnings during the pandemic. Their recent exploration in the digital, as well as international markets, has 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
1. Patent
Lululemon has a long history of dominating over its competitors. Some of the reasons include superior product quality, innovation, consumer satisfaction, and loyalty. Lululemon owns 45 patents, which gives them an advantage in terms of protection. Additionally, Lululemon has a exclusive period during which they can’t sell or use products from their patents. This gives them the advantage of exclusivity and allows them to stay ahead of their competitors.
Lululemon has a design patent that lasts for up to 14 years from the day it’s granted. This means that the patent will not last forever and Lululemon will have plenty of time to adapt and be innovative. This is their competitive advantage in front of other brands because they have a unique design. Additionally, the design may even go out of style by the time the patent registration expires.
2. Trademark Registrations
Lululemon Athletica, Inc. is a company that owns trademarks for a variety of its clothing and products. By using the trademarks, Lululemon can be sure that its products are not counterfeited.
3. Innovative
The company’s innovation department is responsible for researching, analyzing, developing, advancing, experimenting and expanding the company’s product lines based on the use of specific materials in their production process.
- The Luon family is a yoga family that has been practicing yoga for many years.
- The Luon family’s signature yoga fabric is made from 100% natural materials.
- The Luon family’s yoga practice has helped them develop strong physical and emotional skills.
Luxtreme is the fastest absorption fabric on the market. It quickly and easily absorbs liquid and sweat, making it ideal for athletes or anyone who wants to stay cool and dry.
Swift is a lightweight material for athletics that is very durable. It is perfect for athletes who need to move quickly and are not afraid of getting hurt.
Silverescent is a new family of anti-bacterial and anti-stick products. It contains a novel active ingredient, a derivative of the antibiotic erythromycin, which is effective against both Gram-negative and Gram-positive bacteria.
4. Outsourcing
Lululemon is constantly working to add more products to its line. They continue to grow as a brand that stands out and remain one step ahead of all their competitors.
The company has been able to outsource their manufacturing process by using a third party to do the design work and then having the products delivered to their warehouses. This has allowed them to save money on costs and have a more efficient manufacturing process.
This company is efficient in its shipping and purchase methods. Additionally, the company has no shipping costs for online purchases. This helps to save time, resources, and cost.
5. Consumer Satisfaction
Lululemon Athletica, a company known for its high-quality clothing, has been known to have great customer service. Quick to respond and attentive to inquiries, Lululemon takes care of their customers first. This allows them to focus on their business goals and not on the individual. Many fitness instructors and those in the industry offer various bonuses and discounts in order to make sure that their customers are satisfied.
Lululemon is a company that offers products that offer 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 customer service team.
Conclusion
Lululemon has been able to maintain its competitive advantage from the beginning by focusing on community building. This involves making sure that all of its customers and potential customers are talking about the company’s products. Lululemon also relies on brand ambassadors to promote its products. This way, the company doesn’t have to spend a lot of money on advertising and can continue to grow its revenue. ..
Lululemon believes that it is better to focus on what the company does best and only do that. This philosophy along with meeting consumer expectations while maintaining their attention and establishing a premium price has helped the company become successful. ..
