Analysis of Lululemon Athletica Inc (LULU)

2625 Words Jul 8th, 2018 11 Pages
Industry & Market Analysis
Market Needs
The first Lululemon store was initially created as a place for people to gather to learn and share ideas about a healthy lifestyle. As the company expanded, Lulu could no longer target every individual walking into the store with knowledge of healthy living. At this point, the company shifted its focus to educating their employees who could positively influence everyone who walked into the stores. The thought and reasoning that went into the first Lulu store has continued as the company has grown. It has continued to target active people while pushing everyone towards a healthy lifestyle. Its main target market is young woman, between 15 and 34 years old, in the middle to upper classes. One of
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In the United States of America, being fit and active is an important value of the culture. Many employers give out free gym memberships or encourage their employees to take a longer lunch to go be active. According to Business Insurance, many companies in New York have been organizing midday dance parties to give their employees some time to get out from behind their desks and move. Feeling good about the way one looks can be an important part of exercise because it promotes higher self-esteem. There is no longer a need to wait until you get into shape to look good when companies like Lululemon are now producing exercise wear that is fashionable. An industry professional was quoted as saying “Our customers desire clothing that they can work out in and then head out into the world.” If clothing fits well enough, then people are going to want to wear it all the time. Although fashion trends are ever changing, Lululemon is always creating new products to keep up with them. According to The Bureau of Labor Statistics, the retail industry is considered a high growth industry. The retail trade sector is the nation’s largest employer. The growth rate of real output for the retail trade sector of the economy is 4.6% annually. From 2004 to 2014, the real output grew from 1.1 trillion dollars to 1.8 trillion dollars. This can be attributed to new apparel companies always entering the
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