High-End Yoga Wear Brand Lululemon Crazy Pop Experts Say It's Not Good.
Too popular or too fast expansion will often pay a heavy price for those just red brands, and Lululemon is on the alert.
At present, high-end Yoga
Clothing brand
Lululemon owns more than 300 stores, and this is just the beginning.
Morgan Stanley analysts pointed out that Lululemon will grow rapidly in the next few years, and the size of the brand will be far beyond the present.
However, this craziness and expansion may be a terrible news for the brand itself.
"Widespread popularity for those positioned in the high-end market, and the audience is mainly young consumers.
Fashion
Brand will be a fatal temptation.
Industry expert Robin Luis wrote in his blog.
Mike Coles (Michael Kors), Coach and Tommy Hilfiger (Tommy Hilfiger) have experienced such a nightmare of sales decline.
The two brands were crazy for some time, but sales of brands quickly dropped to the bottom.
Michael Kors and Coach, Lululemon, which are similar to sports goods, are also regarded as a fashion brand worth pursuing. Most of their pants are priced between 88 and 98 dollars, much higher than those of other brands.
Consumers are willing to buy it at a high price just for this unique brand.
Once everyone has a pair of Lululemon pants, then consumers will no longer feel that Lululemon is cool.
And some loyal consumers have even expressed their dissatisfaction with Lululemon, who believe that the quality of their products is declining and prices are rising.
In recent years, Lululemon has undergone several product recall events.
The worst was in 2013, when Lululemon was 17% of the products on the market because of the thin pants.
Some consumers complain that they prefer to buy reliable quality old money on eBay and not willing to pay for the new suspicious quality.
Recently, Lululemon has also raised the price of some trousers, which is also very dissatisfied with many consumers.
Neil Sanders, general manager of Conlumino, a retail consultancy, looks like Lululemon is facing unprecedented competition, and the latter is still using price increases as a response.
Today, Under Armour, Gap's Athleta and
Gym shoes
Brands such as New Balance are marching into the sportswear market, and Lululemon will have to try its best to attract consumers.
This means that Lululemon must provide consumers with a brand value that is better than competitors.
"It may not be a threat 5 years ago."
Saunders explained, "now, because of the intense competition in the market, this move can be quite risky.
Higher prices mean that brands are automatically alienating some consumers, and they can easily switch to other brands. "
In the past second fiscal season, the gross profit margin of Lululemon fell by 3.7% from 50.5% in the same period last year, and the company's profit forecast for the third quarter also fell behind market expectations.
Fortunately, there are emerging markets such as Asia and the Middle East. There is still much room for expansion in the recent Lululemon.
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