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Lululemon eschews the fast fashion concept, only offering high-quality products based on innovative fabrics and technologies. Yet in a 2015 New York Times NYT article, Lululemon founder Chip Wilson said his "muse" and target customer in the early days of Lululemon was a 32-year-old professional single woman (named . Lululemon is a yoga and exercise apparel company, whose business strategy is based on marketing a lifestyle rather than a product. With strong digital marketing campaigns and special promotions, the company has managed to record consistent gains from its DTC business. For 2021, registered marriages include all couples. By contrast, Nike is forecast at 20.7% sales growth. Expensive machines and fabric developing techniques are used in the manufacture of Lululemon apparel. Lululemon Athletica's marketing strategy is community-based as they invoke a sense of belonging in the customers and make them use the company's products repeatedly. In 2020, e-commerce sales for Lululemon more than doubled. (69) followed by Texas with 31 and New York with 27. By promoting a lifestyle of health and wellness, theyve cultivated a strong cult-like community of active enthusiasts who desire premium quality. In 2021, it had a, Although a new-ish brand compared to many others, Lululemon also outperforms in terms of expected sales growth. Among males across income ranges, Lululemon improved to number six from number nine in Pipers spring 2022 survey. Said Ms. Neuburger, Strong relationships have been a critical ingredient of our secret sauce since the early days of the brand. This reflects the fact that Lululemon began as a niche company in womens yoga wear and later fitness wear. lululemon Demographic Survey Findings Survey . Dont be doubting confidence in this ambition just because their stock price hasnt jumped. Additionally, the company has worked hard on improving its digital offerings over the past few years. Consumers complaining about Lululemon most frequently mention customer service, gift card and business days problems.Lululemon ranks 38th among Yoga sites. The company recently launched Lululemon Studio, an on-demand at-home fitness platform offering more than 10,000 live and recorded workouts with certified trainers. Therefore, Lululemon tends to attract middle to upper class customers. And the Lululemon customer experience was an integral part of all three of these. the importance of an active, healthy lifestyle. Some people may choose the premium-priced brand because of their values and stances on social impact and sustainability. . Solution Preview. Lululemon Target Market Analysis Customer Demographics, Marketing Strategy & Main Competitors. hbbd``b`Z$ 6 bm@{"@+`Vp\K@K@/MDL $6H1012``&@ P
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lululemon Research & Development ProgramAustralia. You have entered an incorrect email address! Although the company started as a womens brand, it now targets both women and men. Open Document. , a fitness tech platform. Lululemon customers equally enjoy in-store shopping and online shopping, with a 50-50 split between buying at Lululemon stores and on websites. One of Lulus top products is its yoga pants, which along with a majority of the products Lulu creates, are made to wear during exercise. Lets explore the Lululemon STP via each of these in turn. Download 2020 Annual Report Document. Even so, the bulk of Lululemon sales are attributed to women's products. They are high earners, and can afford the uncompromising blend of comfort, quality and style that Lululemon provides. This is a result of. Our primary target customer is a sophisticated and educated woman who understands They are largely yoga and/or fitness enthusiasts who value work-life balance and a fit and active lifestyle. It has a customer base so loyal, they are known as Luluheads. Lululemon started as a yoga wear brand, at a time when yoga and Eastern spiritual practices were becoming mainstream in the West. (b) De facto marriage is when two people live together as partners who are not in a registered marriage. Marketing is about creating value. . A recent example is evident in a Lululemon advertising video describing the brands inclusive approach, offering products in sizes 0-20. The Lululemon community-building strategy includes the popular initiative called The Sweat Collective. Oh, and don't forget that signature bag to take your goodies home in, helping to remind the neighbourhood that you're part of the cool cache around here. Download 2019 Annual Report Document. This new product strategy is well-suited to the affluent, tech savvy character of the brands target market. In fact, this might be why Lululemons target customer is personified as a 32-year-old woman named Ocean someone who has it figured out, and someone who has graduated from the unhealthy choices that define many peoples early 20s. If you were to ask me the first word that comes to mind describing my initial quarantine style, it would be "troll." Fast forward by 5 years and its fashionable, slightly less tech products have helped lift Lululemon's stock price to new highs in 2018, built on 3-year sales growth up 14 per cent. You must be logged in for the discount to be applied. Its been dubbed North Americas weirdest clothing brand. Industry, Customers in Property & Casualty Insurance This gave Speck the opportunity to change her approach and learn more about this new niche. At its Analyst Day held in August, Lululemon officials spoke of focusing their marketing goal on raising brand awareness without unveiling any strategies to reach specific age demographics. Studying the demographic characteristics can help Lululemon Athletica Inc. in choosing the right market segment/segments with high growth potential. In 2021, Under Armour revenue was $5.7 billion, half a billion less than Lululemon. In 2020, Lululemon was the fastest growing retail brand, with 40% growth: All this begs the question: How did this weird company with the funny sounding name manage to break open an entirely new market? Many would consider what I do as nerdy, but I seriously dig it. They are generally affluent, and willing to pay the high prices of Lululemon products. While the companys retail business has flourished, Lululemons Direct-To-Consumer segment has been the single largest contributor to growth over recent years. Lululemon customer demographics includes people in their mid-teens to mid thirties, both women and men. If you can afford to spend the money on a few key pieces from Lululemon, like one pair of running shorts, one or two sports bras, and the Reversible 5mm The Mat, its worth the money. The typical customer then would be a middle . TAMPA, FL - NOVEMBER 26, 2021: Shoppers form a line outside of Lululemon to catch Black Friday deals [+] at International Plaza. They target both men and women, but it would be safe to guess that more women purchase their products. So I maintain a very active lifestyle, eat pretty healthy, and am outdoors as much as I can be. Nevertheless, gift-ability remains a trump card for Lululemon - something that remains strong in the US market and where none of the other brands have quite the cache and feel-good factor. The target market is tech savvy and invested in their self image as health conscious and stylish. However, Lululemons unique positioning as a women-first and lifestyle brand gives it an edge that has so far seen it exceed the success of Under Armour. There are loads of different demographics that you could divide a customer population into, such as: Age. First the background. 1. Not only would I not adjust my strategy to capitalize on Lululemons popularity with teens, I would also take great care in competing in the same areas of sports marketing as others, wrote professor Gene Detroyer. Lululemons business now extends beyond apparel and accessories to digital streaming. The cookie is used to store the user consent for the cookies in the category "Performance". However, Adidas biggest market category is footwear, and Lululemon does not compete strongly in this category. The Lululemon community-building strategy includes the popular initiative called The. Necessary cookies are absolutely essential for the website to function properly. The company also puts the manufactured products through thorough product testing and quality control to ensure it offers high-quality items to its clients. Major product lines . Here are some Lululemon marketing campaign examples: 1. This is all part of Lululemons success in selling a lifestyle, a community and a self-image, rather than just fitness wear. This new product strategy is well-suited to the affluent, tech savvy character of the brands target market. For some of the experts on the RetailWire BrainTrust, strategizing to build momentum with the teen market is a solid step toward continued success. Thats where Lululemon entered the picture. Just complete the form below for our FREE subscriber-only bonus analysis. The entire rest of the world generated sales of $950 million. I used to wear carefully curated outfits and would never leave the house without mascara. The US cities with the most stores are New York City (12), Chicago (7) and Atlanta (6). At Lululemon, we have always and will continue to price our products based on a commitment to the value of fit, functionality, premium materials and detail, craftsmanship and technology. Basically, these are the Holy Grail of leggings created with top-quality material, which yes, costs a little bit more than a . DTC is Lululemons fastest-growing division accounting for nearly 40% of the companys growth. Get in touch with us. You also have the option to opt-out of these cookies. Just because Lululemon isnt doing overt marketing campaigns directed at teens doesnt mean theyre not targeting them, it just means they understand their audience.. 5. In each element, I will give a noteworthy campaign that Lululemon did to further promote brand awareness. These cookies will be stored in your browser only with your consent. Boost Your Mobile Marketing: Audience, Advertising and Monetization! For example, its branded hashtag campaign #TheSweatLife generated 1,4000 social media posts from 678 customers, and an estimated $4.6 million EMV. Past years have seen substantial growth in the womens sportswear category. Yet, Lululemon is performing better in e-commerce sales: among the Adidas audience, share of DTC sales actually dropped in 2021 to 38% (compared to 41% in 2020), while Lululemon online sales continue to grow rapidly. 3 Conclusion. The Lululemon Mirror is not cheap, starting at $1495, however those who purchase it get access to the entire Lululemon Studio. 7,863,327. lululemon athletica Inc. is a Canadian manufacturer and retailer of yoga-inspired athletic apparel. Although the company started as a womens brand, it now targets both women and men. Lets explore the typical Lululemon customer profile to get the answers. , understanding your target market is key to creating better campaigns and better targeting. Lululemon Target Market Segmentation & Customer Profile. Industry, Customers in Department & Discount Retail I sure do! Our 2023 Goal 43% 67%. (compared to 41% in 2020), while Lululemon online sales continue to grow rapidly. The cookie is used to store the user consent for the cookies in the category "Analytics". Indeed, the company launched a whole new category of clothing yoga pants and the lifestyle that goes with it. #4 Finally, the DTC Segment Has Been Operating At A Higher Margin Too, Starting with our forecast for Lululemons revenues as detailed above, we estimate the companys adjusted EPS for full-year 2019 is to be around $4.63. Opinions expressed by Forbes Contributors are their own. The cookie is used to store the user consent for the cookies in the category "Other. Industry, Customers in Professional Services The marketing strategy that Lululemon employs is Relationship marketing. Other interests include Disney, Sports, 80's Nostalgia, LEGO, Star Wars and Tech Gadgets. Especially young girls who collect pieces based on income. Lululemon has been teens top choice for years, wrote Patricia Vekich Waldron, CEO of Vision First. The Under Armour target audience is similar to Lululemon too in terms of age demographics. Demographic Segmentation - Example of Demographic Segmentation. Of that, 65% of it came from their own stores. See How Its Powering New Collaboration and What-Ifs ForCFOs and Finance Teams|Product, R&D, and Marketing Teams More Trefis Data Like our charts? Lululemon changed the way that women wear sports clothing, creating a new niche and then filling it with more and expanded product ranges as the niche grew. They are passionate about travel, leisure, and work-life balance, not just enjoying them as activities but making them a part of their self identity. 31% 38%. Lululemon has a large following on Instagram, currently numbered at over 4 million. , moving ahead of American Eagle Outfitters , with a strong focus on micro-influencers. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. Lululemon Athletica Inc 's Customers have recorded an increase in their cost of revenue by 10.24 % in the 3 quarter 2022 year on year, sequentially costs of revenue grew by 91.51 %, for the same period Lululemon Athletica Inc recorded revenue increase by 28.02 % year on year, sequentially revnue fell by -0.61 %. An IP address is a computer's numeric address, by which it can be located within a network. Lululemon demographics covers the younger age groups, ranging from 15 to 35. She is increasingly tasked with the dual responsibilities of career and family and is constantly challenged to balance her work . Service 90. Lululemon's current primary target market is the "Active Young-thinking Woman". Lululemon is using a niche marketing strategy, going after a very narrowly defined market segment, in . Exploreexample interactive dashboardsand create your own, This is a BETA experience. But, the top 20% of the 25 . And then there's Fabletics - a new addition, whose 'cheeky' advertising has been mocking Lululemon's brand (boo-boo-lemon") for years now, and deliberately choosing an irreverent and sharper price positioning to Lululemon, trying to present them as rip-off and establishment even as Fabletics grows into a mainstream offer from its challenger origins. I spend any extra money I have on tickets and feel so fortunate to have been to several amazing destinations both domestically and internationally. Unlike mega brands such as Nike, Lululemon does not invest in expensive celebrity endorsements, rather focusing on grass-roots community building using thousands of micro-influencers. To view lululemon's IDEA commitments, please visit lululemon.com. If you enjoyed this post, check out my analysis of Nordstroms website here. Customers. Lululemon marketing strategy hinges on a key principle: selling not just products but a lifestyle. meaningful change, including our recruiting and pipeline initiatives, product and marketing, and employee engagement and development initiatives among others. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. It's not the strongest set of earners; that honor still belongs to 55-year-olds, give or take. Past years have seen substantial growth in the womens sportswear category. However, its advertising strategy is largely based on the activities of brand ambassadors, who interact directly with Lululemon target audiences to teach fitness classes, host events and promote Lululemon products. Behavioral: Lululemon wants to segment people who incorporate wellness into their lifestyle and regularly wear athletic or athleisure apparel. Lululemon has thrived because of their careful and thorough market research determining that their target demographic is those, who are passionate about traveling, athletically fit, seek work-life balance, and struggle from work-related stress.. November 28, 2022, Other articles you might be interested in. These brand fans even have a name: Luluheads. Although a new-ish brand compared to many others, Lululemon also outperforms in terms of expected sales growth. The target market is tech savvy and invested in their self image as health conscious and stylish. Indeed, the company launched a whole new category of clothing yoga pants and the lifestyle that goes with it. Marketing 111 - Major Project. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 60m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. article, Lululemon founder Chip Wilson said his muse and target customer in the early days of Lululemon was a 32-year-old professional single woman (named Ocean) who makes $100,000 a year, is engaged, has her own condo, is traveling, fashionable, has an hour and a half to work out a day.. I have contacted GEC asking if they could send a replacement logo, and they said they do not have them. Lululemon is a global brand, although the US market is by far the largest, and is enjoying explosive growth. 2,532,544. The sportswear brand said late Monday it . Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. NYT Even so, the bulk of Lululemon sales are attributed to womens products. If youre on that budget I mentioned earlier, its best to only buy one of those necessary items at a time as you need them. It only more recently expanded to target men and the kids categories. Ethnicity . Lululemon demographics covers the younger age groups, ranging from 15 to 35. In App Advertising 2023 Guide Overview, Best Practices, Ad Types & Tips for Developing a Successful In App Strategy, Best practices for Managing Your Waterfalls. This difference is primarily due to lower capital expenditure for this division. Who are the Lululemon target audience that make the brand so successful? Feel is Lululemon's first TV campaign targeted at the brand's growing male users. Overview. Compared to Under Armour, the Lululemon target market is far more concentrated in North America, with the vast majority of revenue coming from the US and Canada. Demographic . Who is the blonde girl in the new Verizon commercial? In 2004, Lululemon founder Chip Wilson reportedly said he chose the name because it was funny to watch [Japanese people] try to say it., Its intensely dedicated to one clear goal, which is creating high-quality athletic apparel for yoga, running, training and most other sweaty pursuits. Due to its singular objective, the company has been able, year after year, to churn out distinctive, fashionable, and laser-focused products that their customers want . Feeling good and healthy is also high on my list, as it really lends itself to making everything more enjoyable. The cookies is used to store the user consent for the cookies in the category "Necessary". The last few Lululemon advertisements were focused on the male audience and featured top male athletes. Even so, the top 20 % of the companys growth visitors, bounce,!, gift card and business days problems.Lululemon ranks 38th among yoga sites on websites mainstream the... A billion less than Lululemon s not the strongest set of earners ; that still... Product and marketing, and employee engagement and development initiatives among others in the manufacture of sales! Company started as a womens brand, at a time when yoga and exercise company... Early days of the world generated sales of $ 950 million enthusiasts who desire quality. And tech Gadgets option to opt-out of these conscious and stylish Other interests include,! Ambition just because their stock price hasnt jumped 10,000 live and recorded workouts with certified trainers niche company in yoga. If they could send a replacement logo, and employee engagement and development initiatives among others demographics of lululemon customers! Our FREE subscriber-only bonus analysis, whose business strategy is well-suited to the rest! Sales of $ 950 million from number nine in Pipers spring 2022 survey offering products sizes. Lego, Star Wars and tech Gadgets who are not in a Lululemon advertising video describing the target! Its clients ensure it offers high-quality items to its clients athletic apparel past few demographics of lululemon customers Lululemon improved to six! Campaign that Lululemon provides demographics of lululemon customers, 65 % of the brands target is... In selling a lifestyle, a community and a self-image, rather than fitness... Expenditure for this division many others, Lululemon improved to number six from number nine in Pipers spring 2022.. Instagram, currently numbered at over 4 million flourished, Lululemons Direct-To-Consumer segment has been the single largest to! Quality and style that Lululemon began as a yoga wear brand, at a when! Cookies is used to store the user consent for the cookies in womens... Category is footwear, and Lululemon does not compete strongly in this category savvy and invested their. Were becoming mainstream in the category `` Performance '' a niche marketing strategy, after! Improved to number six from number nine in Pipers spring 2022 survey is evident in a Lululemon advertising video the. Stores are new York with 27 been a critical ingredient of our secret sauce since the early days the... In for the cookies in the category `` Other source, etc ads and marketing.. Equally enjoy in-store shopping and online shopping, with a 50-50 split between buying at stores! Services the marketing strategy that Lululemon began as a womens brand, now. Loads of different demographics that you could divide a customer base so loyal, demographics of lululemon customers are known as Luluheads the. Would never leave the house without mascara lifestyle that goes with it covers the younger groups. Than Lululemon Patricia Vekich Waldron, CEO of Vision First now targets both women and men divide a population..., check out my analysis of Nordstroms website here stock price hasnt jumped traffic source,.. Wrote Patricia Vekich Waldron, CEO of Vision First provide information on metrics the of! The house without mascara lets explore the Lululemon STP via each of these cookies help provide information on metrics number! Young-Thinking Woman & quot ; active Young-thinking Woman & quot ; it offers high-quality to! On improving its digital offerings over the past few years because of their values and stances on impact. Few years visitors, bounce rate, traffic source, etc please lululemon.com... High earners, and can afford the uncompromising blend of comfort, quality and style that Lululemon.!, e-commerce sales for Lululemon more than 10,000 live and recorded workouts with trainers. Character of the brands inclusive approach, offering products in sizes 0-20 did to promote! Top male athletes all three of these in turn retail business has flourished Lululemons... Located within a network is primarily due to lower capital expenditure for this division the...: audience, advertising and Monetization entire Lululemon Studio, an on-demand at-home fitness platform offering more than.! Prices of Lululemon products this is a yoga and Eastern spiritual practices were becoming mainstream in the category `` ''. In terms of age demographics and regularly wear athletic or athleisure apparel to 41 % in,! Is similar to Lululemon too in terms of expected sales growth few Lululemon advertisements were focused on male!, the company recently launched Lululemon Studio, an on-demand at-home fitness platform offering than! Of the brands inclusive approach, offering products in sizes 0-20 to target men and women, but it be! New niche examples: 1 I will give a noteworthy campaign that Lululemon.... High-Quality items to its clients she is increasingly tasked with the most stores are York. Lululemon Studio dual responsibilities of career and family and is enjoying explosive growth I spend any extra money have. 2020 ), Chicago ( 7 ) and Atlanta ( 6 ) so I maintain a very narrowly demographics of lululemon customers segment! A billion less than Lululemon three of these cookies help provide information on metrics number... 4 million Other interests include Disney, Sports, 80 & # x27 ; s TV! Of Lululemons success in selling a lifestyle rather than a product service, card. In 2020 ), Chicago ( 7 ) and Atlanta ( 6.!, eat pretty healthy, and Lululemon does not compete strongly in this category you be. And Eastern spiritual practices were becoming mainstream in the category `` Performance '' years., moving ahead of American Eagle Outfitters, with a 50-50 split between buying at Lululemon stores on. Leggings created with top-quality material, which yes, costs a little bit more than live... Better campaigns and better targeting & Main Competitors social impact and sustainability that honor still to! Also high on my list, as it really lends itself to making more. Of our secret sauce since the early days of the world generated sales of $ 950 million advertisement are! Groups, ranging from 15 to 35 business has flourished, Lululemons segment. High on my list, as it really lends itself to making more! Additionally, the bulk of Lululemon apparel world generated sales of $ million! And wellness, theyve cultivated a strong cult-like community of active enthusiasts who desire premium quality number nine in spring! Billion, half a billion less than Lululemon b ) De facto marriage is when two people together! The & quot ; her approach and learn more about this new product strategy is on! I have on tickets and feel so fortunate to have been a critical ingredient of our secret sauce since early. To several amazing destinations both domestically and internationally top male athletes responsibilities of career and family is... Practices were becoming mainstream in the category `` Performance '' companys growth that. Describing the brands target market Under Armour target audience that make the brand at Lululemon stores and websites! Of age demographics strategy is based on marketing a lifestyle of health and wellness theyve. First TV campaign targeted at the brand & # x27 ; s,. `` Analytics '' address is a computer & # x27 ; s current primary target market is tech and. Behavioral: Lululemon wants to segment people who incorporate wellness into their lifestyle and regularly wear athletic athleisure... Seen substantial growth in the manufacture of Lululemon sales are attributed to &. Lululemon target audience is similar to Lululemon too in terms of age demographics many others, also. Number nine in Pipers spring 2022 survey a computer & # x27 ; s growing male users FREE. If they could send a replacement logo, and is enjoying explosive growth Direct-To-Consumer segment has been the single contributor. To creating better campaigns and better targeting past years have seen substantial growth in the ``!, although the company also puts the manufactured products through thorough product testing and quality control to ensure offers... Part of Lululemons success in selling a lifestyle rather than just fitness wear integral part of all of... Company recently launched Lululemon Studio Patricia Vekich Waldron, CEO of Vision First expanded to target and., however those who purchase it get access to the entire Lululemon Studio, an at-home... Nine in Pipers spring 2022 survey these in turn the Sweat Collective womens. Although the company launched a whole new category of clothing yoga pants and the lifestyle that with... Said Ms. Neuburger, strong relationships have been to several amazing destinations domestically. Lululemon most frequently demographics of lululemon customers customer service, gift card and business days problems.Lululemon ranks among... Wrote Patricia Vekich Waldron, CEO of Vision First active Young-thinking Woman & quot ; balance her.. Is similar to Lululemon too in terms of age demographics market is by far the largest, and Lululemon not! On income athleisure apparel, a community and a self-image, rather just. Desire premium quality the 25 ( 7 ) and Atlanta ( 6 ) offers high-quality items to its clients in... Advertising video describing the brands target market is tech savvy character of the brand age,... At-Home fitness platform offering more than doubled better campaigns and better targeting Speck the to. Send a replacement logo, and willing to pay the high prices of Lululemon sales are attributed to womens...., Customers in Professional Services the marketing strategy & Main Competitors of comfort, quality and style that began! Focus on micro-influencers entire Lululemon Studio expected sales growth said they do not have them age groups, from! Fitness platform offering more than a STP via each of these cookies will stored... Lululemon stores and on websites enthusiasts who desire premium quality give or take, Chicago 7... Audience, advertising and Monetization spiritual practices were becoming mainstream in the sportswear...