The trend is beautiful and refreshing.

lululemon\'s huge challenges revealed in new video footage

by:Yufengling     2019-08-14
NEW YORK (TheStreet)--
Be a company
Delivery or over delivery
Its quarterly earnings are crucial relative to Wall Street\'s expectations, and it determines whether performance is fundamentally driven.
When it comes to the clothing manufacturer of yoga lulululemon (LULU -Get Report)
The company\'s business model of selling premium clothing in relatively small retail stores is flawed.
This model works very well in the infancy of lululullemon as it is basically the only professional clothing retailer sellingyoga-
The theme equipment of the shopping center.
However, financial success has resulted in a competitive shock that management had not anticipated before, and new management may or may not fully understand.
In the competition of the addressable sales personal identification data market (
Yoga/women\'s sports clothing)
Not Dead Yet, in fact, it is still one of the hottest shopping centers in physical stores and online.
But the new players blur the line between yoga gear and sportswear.
Lulullemmon was able to get too high a price for its swag early in its life cycle because of the women\'s performance clothing series of companies such as Nike (NKE -Get Report)Under (UA -Get Report)
Adidas, even Macy\'s (M -Get Report)
Private brands have long been latecomers.
For consumers, lulululemon offers a much-needed quality option for those who strive to live a healthier, more active life.
The price is irrelevant.
Given the increase in the number of products offered by large companies with a stronger supply chain than lulululemon, yoga products-
In the minds of consumers, the clothing market has been integrated with the categories of sportswear.
In other words, the technical details contained in the lulululemon items are being overwhelmed by cheaper eyes
Catch a replacement.
According to research firm Trefis, the global sportswear market, including women\'s clothing, is expected to grow to $178 billion by 2019.
Fast there.
In the context of growth, lulullemon simply does not have the operational capability to compete with Nike and Armour, which are producing strong seasonal products to larger wholesale accounts.
Lulullemon\'s stock, despite two sharp falls in the past six months, continues to trade in a relative premium multiple with its counterparts from professional retailers, the premise is that the company is a stock winner in its respective industries, not a price point and a user who is motivated to gain that share.
What exactly are competitors doing?
In the struggle of lulullemon, the competition flourished, highlighting the basic problems of yoga --
Clothing suppliers are facing challenges.
Consider these two figures: at the Citi Global Consumer Conference in May 28, Karen hogter, chief financial officer of Macy\'s, told attendees that its sportswear business is still expanding, \"We have made great progress in this regard.
Trevor Edwards, president of the Nike brand, also told investors in the earnings call on March 20 that Nike had doubled its growth.
Its running, football, basketball, and women\'s training clothing series all saw digital growth.
In comparison, Lululemon\'s same --
Sales, excluding online stores, have fallen for two consecutive quarters.
Shares of the company fell 2% in the first quarter of 2014
Sales of the store and the last release of the double
The percentage of figures for the fourth quarter of 2012 increased by 10%.
Lulululemon requested a comment on its current market share in the industry, but was not responded.
Two suggestions for fixing the expansion of the lulululemon door: lulululemon has to put down its pride and give up some of its interiorstore theater (
Yoga classes are still held in the store)
And open shops on high floors
High-end Nordstrom department stores (JWN)
And Saks, as well as an integrated network experience.
In order to protect the DNA of the brand, the store should be equipped with Lululemon employees (
Kind of like what happened with Best Buy (BBY)
Sony with major suppliers (SNE)
Samsung trains \"blue shirt\" in selling high quality products \").
Private label introduction, men and women: lululullemon should launch a private brand for men and women at a slightly higher price than Macy\'s and J. C. Penney (JCP).
Having a technically superior lululullemon product at a reasonable price should lead to an increase in the market share of the brand.
The trick for lulululemon is to remove enough technical details from the product and not send those who love the brand to Macy\'s and J. C. Penney.
Starting from 2012, Nike has opened 114 stores in Dick\'s Sporting Goods store (DKS -Get Report)(
There are now 50% stores in the store)
And Under Armour opened 131 at Dick (
There are now 42% stores in the store).
The stores, which are about 4,000 square feet, are the best sellers. in-
Sports clothing products from home brands basically make consumers forget that Lululemon is doing business.
Dick\'s big box retail model of sporting goods has attracted a lot of years.
Round traffic, as soon as customers enter the store, they are visually hit by Nike and Armour shops stores.
Nike and Under Armour have always had--
They have penetrated into the sales area of Macy\'s, and the core black gym pants cost $20-
$30 lower than the bread and butter of Lululemon (
Its profit margin is very high)
Black Luon pants.
In addition, in all major department stores, private brands and new and expensive sportswear brands are available at eye-catching prices.
So welcome to ground zero.
This is what typical consumers see when navigating the sports clothing channel.
Nike and private brands have formed a defensive wall against lulululemon\'s move.
The first thing consumers encounter with Dick\'s Sporting Goods is usually the new Adidas sportswear department.
It is also important to keep in mind that lulululemon does not give consumers a complete wardrobe option in its store.
At Dick\'s Sporting Goods Company, an explosion of branded accessories appeared on the exterior wall of the sales pad, complementing an easy trip to the nearby sports shoe area. One-
Stop shopping in the best places.
This is the new lingerie women\'s sportswear store for Dick sporting goods.
Pay attention to the bright color of the product, higher technical content.
This helps Under Armour to become a daily wardrobe for teenagers;
The whole family of devotees is forming.
Lulullemon gives you an objective lesson in investing in the secret logo of 1013 efficient leaders. Why is the sales of dependent incontinence products so strong?
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