$$ In $1998,$ Chip Wilson, the creative mind behind lululemon, started his athletic apparel manufacturing and retailing business in Kitsilano, a trendy $.$ His original goal was to have one store in Kitsilano and never grow beyond that. But within a few years, lululemon was into a global brand, a great success story in the athletic and industry. Although originally best known for yoga pants designed for women, has also expanded into menswear. Deloitte added the brand to its $250$ Global Powers of Retailing list, citing it a a case study for digital and $.$ As you read at the of the chapter, the consumer is the centre of all marketing efforts. Understanding its and the overall it in has been key to success as a fitness clothing brand. It does so much more than create products for men or women. It starts by carefully analyzing the to identify the precise needs and desires of $,$ with the aim to provide greater value than its by meeting the needs and wants of buyers. Its ability to analyze and the helped lululemon capture market share from established global companies that had dominated the market for years. It has become a major force within the industry with a line of goods and that are not cheap relative to the competition. And now the company is looking to do it again, this time offering on$-$demand and live fitness classes ranging from kickboxing and HIIT $($high impact training$)$to yoga and meditation. In the midst of the pandemic, announced it was buying Mirror, a tech start$-$up that a reflective glass device for streaming fitness classes. It was started by former New York City ballet dancer Brynn Putnam in $2018\mathrm{.}111$ Its goal was to "turn any space into a personal fitness She came up with the idea while with her son and unable to find a natural way to follow classes on her laptop or phone. $113$ For $,$ a company known for its clothing and $,$ spending $$500$ million to acquire a tech company might seem puzzling. $114$ However, consider that most of its stores were closed due to $.$ And so were gyms The pandemic left many fitness buffs stranded, searching for new ways to stay fit from home. Some rushed out to buy equipment. Indeed, Peleton bike sales increased by $66$ percent in the first four months of the pandemic. $115$ Although some consumers invested in equipment, many had difficulty finding bikes, treadmills, and even dumbbells. Since the focus of classes offered through Mirror is on bodyweight exercises, it was a perfect fit for anyone who could not afford or could not find physical equipment. $116$ Touted as "the world's first nearly invisible gym," Mirror offers users unlimited classes live or on demand to suit even the busiest schedule. $117$ This held a lot of appeal for people working from home, especially those who were also caring for children doing online schooling. Equally appealing was the variety and flexibility offered, with over $50$ types of workouts ranging from five minutes to an hour in length, designed for everyone from beginner to expert. $118$ For some consumers, it was the next best thing to being in the gym with a fitness instructor. And, if you like, for $$40$ you can book a $1$:$1$ session with a personal trainer. Mirror's technology was designed to allow users to check their form against the instructor's and get real$-$ time feedback. Injuries can be noted in advance, prompting instructors to suggest less$-$intense exercises. Throughout the pandemic, it was unclear just when consumers would feel comfortable returning to the gym. As the months of lockdown dragged on$,$ many consumers came to enjoy the flexibility and convenience of working out from home. Research was conducted to determine if this trend from the gym to home workouts would stick when things opened up again. A survey found that $33$ percent of people put their gym memberships on hold; however, a further $33$ percent simply cancelled. Even worse news was that $29$ percent of respondents said they did not plan to return to the gym even after being vaccinated. $120$ COVID$-19$ transformed fitness and changed consumer behaviour, making lululemon's investment in Mirror very promising. The technology offers a great option for time$-$poor consumers, who are focused on health, wellness, and staying fit. These consumers must also be willing to pay a premium for versatility.

Questions

$1.$Discuss the microenvironmental factors that were the most relevant to lululemon's decision to purchase Mirror.

$2.$Which macroenvironmental factors played the biggest role in the success of Mirror to date?

$3.$How could lululemon leverage its strength in the women's market to further develop Mirror offerings?

$4.$How could lululemon change its strategy if more consumers than expected return to gyms in the future?