Lululemon had a strong reputation as an effective digital marketer and was one of the pioneers in effectively leveraging social media to enhance the business. The company was expected to continue building on this success. The challenge was to maintain the current momentum in the space and better capitalize on new social media and opportunities.

Lululemon Athletica History

Lululemon Athletica was founded in 1998 by Chip Wilson, an accomplished entrepreneur who had built companies in the surf, skate, and snowboard industries. After completing his first yoga class, Chip was inspired to build a yoga-based athletic apparel company that would produce and sell clothing for individuals looking for a better workout experience. Focusing on technical fabrics and functional designs, Chip built a successful yoga clothing movement using feedback from yoga instructors who were asked to try the products and provide their insights.

The Lululemon name was decided by a survey of 100 people who rated 20 prospective brand names and 20 logos. The distinctive Lululemon logo is a stylized "A" that has become extremely effective as a brand marker. The first retail store opened in the year 2000 in a beach area in Vancouver called Kitsilano. From this humble beginning, there are now over 300 Lululemon retail stores spread across Canada, the United States, Europe, Asia, and Australia. Further, the company broadened from yoga wear to offer all types of athletic apparel to customers (running wear, cycling wear, swimwear, etc.). In 2018, Lululemon reported net revenues of $3 billion. The company concludes that 2018 was one of their strongest years ever, thanks in part to moves into men's wear, workwear, and other new categories as well as investments in e-commerce.114

Social Media and Lululemon

The social media strategy at Lululemon had evolved over time to mirror its customers' behaviors and match their interests. Each social media platform Lululemon embraced was built to create community with its customers. It clearly hoped to inspire, educate, and create conversations with its customers, and it was effective in doing so. The company believed social media could facilitate its vision by encouraging healthier lifestyles and challenging customers to set new goals and objectives. In many ways, the social media experience was an extension of what the company hoped customers experienced in an actual store visit.

A quick audit of the major social media platforms Lululemon was currently cultivating:

• Lululemon had a very active Facebook page, with more than 2 million likes recorded. The page was updated regularly with brand-generated content that resonated with the target market.
• The company had made over 273 000 tweets and counted over a million followers. Although the Twitter feed occasionally featured promotional tweets, most of the tweets were inspirational, quirky, and refreshing.
• Lululemon had 2600 posts on the platform with over 2.8 million followers on instagram. Lululemon's feed contained images of inspiring places and active pursuits.
• . Numerous boards had been cultivated with over 1800 pins and 2 million followers on pinterest. Many of the unique boards displayed Lululemon wear for various pursuits, from figure skating to running.
• : With 67 000 subscribers, Lululemon had posted hundreds of videossome of which had reached over 2 million views on . The company used to provide a mix of inspirational videos, but they also had a humorous and playful twist that resonated well with consumers.

While many companies have been criticized for simply pasting in the same content across different social media platforms, Lululemon had been lauded for having a true "multi-platform" content strategy, which means it was doing a nice job of posting unique content across various platforms in a way that told a consistent brand story. Each platform was approached such that the effort matched the specific customers who utilized the channel. It was clear that each of these mediums was successful in its own right. Lululemon used the platforms where its customers were and built a community in each channel where it could foster relationships with its customers. However, across all channels, the company directly involved its customers in assessing and promoting its products. The conversation was always inclusive, and Lululemon welcomed feedback in all forms and was dedicated to responding to customers in a timely manner. Lululemon was effective in engaging prospective customers through its social media efforts. The content in each of the channels provided inspiration and education to individuals who might not yet have purchased a Lululemon product or visited a Lululemon store.

Next Steps

The company was planning to open e-commerce markets in other countries such as France, Japan, and Germany. There were also plans in the works to have a new service where customers could order online and then pick up in-store. One new step the company took was in Edmonton, which was the testing ground for a new loyalty program. Members would sign up and pay an annual fee that gave them access to a clothing item of their choosing, in-store classes, and other specialized events.115

What was the next big trend to keep in mind? How does the loyalty program fit into this?

1. What is your opinion about Lululemon's social media efforts? How much of the company's success is attributable to its social media activity?
2. What would be your criteria in assessing the Lululemon website? What recommendations would you make?
3. What new trends would you advise Lululemon to get involved in? Why?