Company Case Lululemon: Indulging Customers at a Premium Price is a warm summer evening in Brooklyn's Prospect Park. the devotees of this 5,000-year-ald practice. Over the pea b. Hindreds of yoga practitioners - commonly known as yogis nsve turned out for a free class, arranged on the turf in a perfect years in the United States alone, the largely female populey. gid,matsontheground.Followingtheinstructionsoftheclassbider,itsonelongsetofdownward-facingdogs,half-mocns,timeinthenext12months.Theywontneedtogofar-then of yogis has increased by 50 percent to more than 36mitig. zodwarrior Is, Ils, and lils. Whle these New Yorkers come from are more than a dozen different types of yoga being taught and wious walks of life, most of them have one thing in common. practiced through classes in commercial studios, including hathe Theyre wearing outfits by Lululemon - the hottest yoga apparel yoga, acro yoga, jengar yoga, power yoga, hot yoga, prenatal biand this side of India. The brand's dominance among attend- yoga, and restorative yoga. Spending on classes, clothing, and eis shouldn't come as a surprise as Lulutemon sponsors this free equipment has also shot up in the past four years, increasing veekdy event, providing yoga-appropriate music and teachers 60 percent to a whopping $16 billon. trom local studios with names like Bend 8 Bloom, Prana Power As this fitness explosion began to take shape, Lutulemon Yoga, and Tangerine Hot Yoga. But these Luldemon loyalists founder Chip Wison took notice. Having developed a passion for have one other thing in cornmon. They paid a premium price for Toig outfits and they couldn't be happler. technical athletic fabrics through 20 years in the surf, skate, and snowboarding business, Wilson was no stranger to the apparel industry. But after taking his first yoga class in the mid-1990s. approximately 400 stores payed a major role in defining. With he was hooked. Convinced yoga's time had come, he put his is own brand of yogares around the world, Luluemon peddes efforts into developing altemathes to the standard cotton yoga able logo-an of yoga-inspired apparel with its instantly recogniz-. clothing of the time a materlal that to him seemed completely Inappropriate for sweaty, stretchy power yoga. a liestyle. The company exudes the philosophy capture by its After establishing the company in 1998, Wison began selling utulemon clothing through yoga instructors. In November 2000. manilesto: We are passionate about sweating every day and we the frst Lululemon store opened for business in a beach town want the world to know it. Breathing deeply, drinking water and near Vancouver. The original concept was for the store to sell gotting outside also top the list of things wo can't live without." In clothing whle also serving as a community hub where the mental other words, this brand is active, healthy, and back-to-nature and and spirtitual aspects of living a healthy and powerful ste could len't shy about saying so. It's that image complimented by a "no be taught and discussed. But the popularity of Lululemon's discounts" credo that has a fanaticaly loyal customer base wil-. cothing made it impossible for employees to focus on anything ing to buy everything Luliemon and not even bilik at paying ful other than selling clothing. People were drawn to the fabric, a premium prices. four-way stretch blend of mylon and lycra. Sub-branded "Luon," Riding the Wave the "sweat-wicking and coltony-soft" materlal is the company's signature fabric. Whlle yoga has been practiced in the United States since the Since its frst products, Luldemon has focused on innova1960s, over the past 20 years, it has emerged from a niche ac- tive fabrics for every application, including Luatreme, a version tivity practiced by devout New Agers to become part of the cul- of Luon dosigned for the mont hardcore workouts; Swit, a tural mainstream. Yoga is al the rage now with everyone from strong and lightweight fabric designed for freedom of movestudents to stressed-out young professionals to retirees among ment; Boolux, a blend of natural fbers designed for warmth and 354 PAAT 3 Desiging a Custone Vwis-Oiven Strotegr and Mox conton, spandiox, and sooweed-yes, soowned. Startuds, cuitomens are drawn to the artience that-when in addition to developing tabres to enhance yoga workouts. I comes to buing atritic apparel - can only be bund in a occation. Authonty bo get stat made by the for wormen, but you jast doont Where Price is tio 0bject hed havigent there" in the vale of is stock has recoverod to newiy 510 tillon. The spitual, heothy, and wey feriove and can attord so pey see lor ther T-shits. Averkum price is bocialy a hatriak of staves brands, and Lurlemon is proced at the top of the hack. Nese sels is most comparable werion for 390 , whtlio Atriota (Gied. Under Amour, 11-19 Bused on pricipies from the chaptro, explin how proce ofwings in a simlar marnec. Widering the price goo between 11-20 Could Lillemon have actiwed the same level of sur: Weverion and the compection even turther as the bends aver. sion to discounts. Products are arly maked down in stawe. 11-21 Con Lultenon continue to suconed by employing the 7io return, no ecchanges." Soureest Based on ritomaton form Mrmy Nowtrok riow Epensive - but Worth it as have made the cen corrparisons and have brosdast theirby the business and tastion press. These comporisons reved altlevenoes across the brands. Fabric blends viry a bt, as do sther. a. and leature. Bu as with most appored herns, perceptions of quilly come down to pesional preterence. Ask turheds and peting gooch. itore-epererce; ard intomyton tom www intolitidenoncorvabot ind hilp:lithoplaterion com, acoessed dre 2016