What would you have done if you were the VP of Marketing for Lululemon try and solve these below:

PROBLEM #1: Net income, however, was down to US$31.2 million from US$45.3 million from 2016. Some of it was due to slower traffic in stores and an overall economic malaise in its founding market: Canada.

PROBLEM #2: The early 2017 earnings report also described another issue for the retailer: selection (or lack thereof) on its online site.

PROBLEM #3: In March 2013, Lululemon was forced to recall its signature Luon yoga pants after finding they were so sheer that they were practically see-through. The recall of the nylon and Lycra blend Luon pants followed a similar event in 2012, when several of the company’s swimsuits and light-coloured pants were found to be too sheer.

Luxury athletics and yoga apparel retailer Lululemon Athletica has had great success in nearly 20 years of operation. With more than 200 retail locations, in March 2017 the company reported first-quarter revenue for 2017 of US$520 million, which was a 5 percent increase from the same period in 2016. Net income, however, was down to US$31.2 million from US$45.3 million from 2016. Some of it was due to slower traffic in stores and an overall economic malaise in its founding market: Canada. The early 2017 earnings report also described another issue for the retailer: selection (or lack thereof) on its online site. But this isn't the first time that Lululemon has had to deal with problems in its supply chain. In March 2013, Lululemon was forced to recall its signature Luon yoga pants after finding they were so sheer that they were practically see-through. The recall of the nylon and Lycra blend Luon pants followed a similar event in 2012, when several of the company's swimsuits and light-coloured pants were found to be too sheer. RBC Capital Markets analyst Howard Tubin noted at the time that the company did try to be proactive. "They tried to get in front of this by not letting the merchandise stay on store shelves and they're working with vendors to try to figure out how this happened." Citing Lululemon's manufacturing challenges, Credit Suisse analyst Christian Buss struck a slightly less forgiving tone: "Their supply chain hasn't kept up with the demand that they have for their product, and their quality control processes have been proven inadequate." In 2015, customers complained Lululemon products were experiencing price changes, due in part to vendor issues in its supply chain. A new supply chain system was announced for 2016 and was looking to deal with the challenges of the past. As the Wells Fargo report from 2015 noted, Lululemon's inventory management system was subpar. So while the new supply chain enacted by Lululemon has shown marked improvement from the failures of the last few years, it is clear the company has to keep focused on dealing with an aspect of business many consumers don't see or understand. Because you can have high-quality, high-cost apparel, you can't sell $100 yoga pants unless you can supply them to the customers when and how they want them.