Overview
Lululemon Athletica, Inc. was founded by Chip Wilson in Vancouver, Canada. Since it was founded, Lululemon has achieved significant growth, which is the 174 stores in 4 countries around the world. Lululemon achieved net revenues of $1billion and $ 184.1 million of net earnings in 2012. Of these, nearly 82% came from retail stores, only 11% came from sales on the Internet. Chip Wilson had a passion for athletic apparel. In 1998, he opened a yoga studio design. He imagined that his shop would become popular for everyone, become a place where people can get together and talk about healthy lifestyles. Chip opened his first store Kitsilano, Vancouver in November 2000. At the start, Lululemon brand is for women only. Then they started to
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Lululemon, however, desires to become the manufacturing standard for athletic clothing for women, teenage girls, and men. They also want to enlarge beyond North America. In order for Lululemon to develop a international forerunner in athletic attire for women, teenage girls, and men, they must reexamine their vision. They need to reconsider their market objective and their mission statement. Lululemon must also step out its relief zone (yoga apparel) in order to achieve a worldwide market. Product range may increase sales, but if they want to become a leader, they must stay well-informed in worldwide trends and pressures. In order to be the top in the international market, they will need to present their product to the exact markets at the exact …show more content…
• They made slight practice of old-style print or television advertisements preferring to rely on its various common, community-based marketing efforts and the use of social media (Facebook, Twitter) to rise brand awareness, strengthen premium-brand image, and widen the attractiveness of its products.
8.Question 8:
● The company’s net profit margin, which shows the percentage of revenue remaining after all operating expenses, interest, taxes and preferred stock dividends have been deducted, decreased in fiscal year 2013 compared to fiscal year 2012.
● Lululemon’s return on equity has also decreased which means the company is not generating that much of a profit with the money shareholders have invested.
● Days of inventory for the company increased by 3 days which means the company’s increasing their time changing ideas to products (slight change though).
● The company’s inventory turnover increased in 2013 which means they’re flipping their products for cash in a fast