Lululemon crazy popular but for the brand this is terrible news

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Is too popular or expanded too quickly often those popular brands will pay a heavy price, Lululemon wary.

At present, the high-end clothing brand owned by Lululemon Yoga has more than more than 300 stores, and this is just a start. Morgan Stanley's analysts said, Lululemon will rapid development over the next few years, brand will far exceed the present scale.

However, this crazy popular and the expansion of the brand itself, it could be a terrible news.

"Widespread popularity for those positioned in the high-end market, audience, mainly for young consumers of fashion brands will be a fatal temptation. "Industry experts wrote in his blog luobin·luyisi.

Light luxury brand Maike·keersi (Michael Kors), coach (Coach) Tommy Hilfiger (Tommy Hilfiger) have experienced such a drop in sales in a nightmare. Mad popular these brands over time, but the brand's sales soon dropped to the bottom.

Similar to Michael Kors sports field and Coach, Lululemon is also seen as a worthy fashion brand, whose pants are priced between $ 88 to $ 98, much higher than the prices for other brands of products. Consumers are willing to pay to buy it, this is a unique brand. Once everyone has a pair of Lululemon pants, then consumers will never feel how cool the Lululemon.

And a number of loyal consumers have even complained about Lululemon, they think the quality of their products is on the decline, and prices are rising.

In recent years, Lululemon has undergone several product recalls. The most serious one in 2013, due to the reaction of trousers is too thin, Lululemon 17% products on the market at the time recalled. Some consumers complained that they would rather purchase on eBay reliable older, also is not willing to pay for quality questionable new Pocket.

Recently, Lululemon has inflated the price of some pants, which has forced many consumer is most dissatisfied with.

Nier·sangdesi, General Manager at the retail consulting firm Conlumino, Lululemon is facing unprecedented competition, while the latter's shill as a countermeasure.

Now, Under Armour, and owned by Gap Athleta and brand New Balance sneakers, is moving into the women's sportswear market, Lululemon will have to do all we can to attract consumers. This means that Lululemon are required to provide consumers with a better than the competitor's brand value.

"About 5 years ago, this is hardly a threat. "Sanders explained," and now, because of growing competition in the market, this move (bids) can be said to be quite an adventure. Higher prices mean that brand in the automatic alienated consumers, they are also very easy to switch to other brands. "

In the second quarter, cost of sales growth leads to Lululemon's 50.5% down 3.7% in gross margin over the same period last year, the company's third-quarter earnings also lag behind market expectations.

Fortunately, emerging markets like Asia and the Middle East, recently entered Lululemon also has a lot of room to expand.

(Translation: Han Hong)

Source: businessinsider

Original title: Lululemon is insanely popular-and that's terrible news for the brand Contract until 2024 in the Under Armour announces

Last updated: 10/07 07:08