Recent disputes between Apple and Samsung as well
as Lululemon and Calvin Klein illustrate an increased reliance on design patents for market domination.
Whitespace came into play
as Lululemon used the body scanner to customize garments to each individual and infrared motion standards to inform the design of the new inner stabilizer to reduce breast movement.
«Expanding offerings and / or blurring the brand image can alienate existing customers, especially when a brand has a passionate core following
as Lululemon does.»
As Lululemon continues to work toward an international expansion, Potdevin's language skills and overseas experience will likely endear him to global business partners.
As Lululemon continues to grow and surpass estimates, this is a warning they would do well to heed.
Since Laurent Potdevin took over
as Lululemon's CEO early in 2014, shares have slipped 20 %.
That is a tactic the group has used in the past with other companies such
as Lululemon, Hermes, Louis Vuitton and Prada.
THE CONFLICT: Perhaps jealous it wasn't the one to come up with a garment as pleasing to both women and men
as Lululemon yoga pants, Calvin Klein, the fashion label that pretty much invented sexy, recently released its Performance line of yoga pants aping the patented waistband of Lulu's Astro yogawear.
THE OUTCOME: Calvin Klein dropped its pants as soon
as Lululemon filed suit and hasn't had much to say on the matter publicly, which suggests a settlement is likely.
Not exact matches
Not everyone was enamoured of Potdevin's time at Burton, though, and the downside of his growth strategy illuminates the challenges the
Lululemon brand faces
as it grows.
On Dec. 10, the company hired Laurent Potdevin
as her successor and said
Lululemon founder Chip Wilson would step aside
as chairman of the board but remain a director of the company.
«We found that our students are happy with
Lululemon clothing they bought maybe four or five years ago, but they aren't
as happy with the selection or quality of what they bought in the last year or two.»
While
Lululemon has used the same factories to make its fabrics since 2004, he said it doesn't seem
as though the company has the proper oversight in place.
Lululemon isn't the only retailer facing headwinds
as American shoppers deal with an uncertain economic recovery and more U.S. giants, such
as Target, move into what's already a competitive retail space in Canada and put pressure on pricing.
Lululemon Athletica Inc., based in Vancouver, British Columbia, cut its first - quarter revenue forecast
as a result of its decision to withdraw the pants.
Day, who had been seen
as a key part of
Lululemon's recent success, announced in the summer she would leave.
For
Lululemon, this recall is nowhere near
as damaging
as the whole sheer pants debacle of 2013, but because the company is still under the microscope after that event, the media has pounced on this story and created a batch of bad headlines.
There's all the major chains like DSW, Gap,
Lululemon,
as well
as small - town boutiques to scour for one - of - a-kind pieces.
In the new year,
Lululemon will open new stores in the United States and Canada,
as well
as in new markets in Europe and Asia.
Men's products need to be «unique and differentiated,» Tubin said, and the running shorts have to be like «like no other running shorts out there,» to ensure the
Lululemon experience translates just
as well to its new standalone men's stores
as it has to its regular retail locations.
By aiming at male shoppers,
Lululemon is trying to tap into what retail consultants see
as a larger shift in the male fashion world.
But Kotowych is dressed this day,
as he is most days, in
Lululemon shorts and a
Lululemon sweater.
Many in our athletic coverage (
Lululemon, Under Armour, and Nike) have called out international
as a main component of growth, particularly driven by China.»
Lululemon touted her decades of experience
as a consultant,
as well
as her long tenure on the board, in lauding her abilities
as a member of the board.
Alan Wizemann joins DSC
as its first Chief Digital Officer and brings a wealth of experience leading digital teams for companies including Target,
Lululemon, WebMD, and ShopIgniter.
In enthusiast blogs with names such
as Luluaddict and Lulumum, commenters discussing recent
Lululemon quality control issues ranging from split seams to bleeding colour dyes often mention the lower - priced merchandise that is now available in other stores.
As one
Lululemon diehard frets, «Gosh, this is all so scary.
In an effort to give its leadership a facelift,
Lululemon has brought on Laurent Potdevin, the former president of TOMS Shoes,
as chief executive officer.
Demand for activewear is booming, benefiting companies such
as Nike, Under Armour and
Lululemon.
He wanted to conjure the elusive magic that delights customers at Apple stores, or at a handful of brick - and - mortar retailers such
as Burberry, H&M, Target, J. Crew,
Lululemon (lulu), and a few others devoted to the art and design of the product and the space.
After stepping down
as chairman of the trendy athletic - wear company last month, the former CEO is weighing his options for how to use his 28 percent stake to influence
Lululemon's operations going forward.
By leveraging technologies such
as radio frequency identification (RFID) tags to drive inventory transparency (a key tenet of omnichannel success),
Lululemon uses stores
as distribution centers to optimize the supply chain and improve inventory turns while enabling an elevated in - store experience for educators and guests.
Lululemon's selling, general administrative expenses (which includes ad spending) jumped to 33.2 %
as a percentage of net revenue from 30.5 % the prior year.
On Monday,
Lululemon (lulu) will officially unveil a new ad campaign it is calling «This Is Yoga,» which features some introductory principles of yoga but just
as importantly, off - the - mat activities like volleyball and surfing.
Sometimes the share price drop is swift — witness Air Canada's 20 % dive on Feb. 12 — other times it's more gradual,
as in
Lululemon's case.
Lululemon's efforts to heal its relationship with some customers will have to be more blatant, he says, or the company risks losing clientele to other brands such
as Under Armour and Nike.
Opened the year after he sold Westbeach and just up the hill from its flagship outlet in Vancouver's Kitsilano neighbourhood, the first
Lululemon store, alongside a yoga studio, was a calming refuge for Wilson after his wild ride
as a globe - trotting stylemaker to the board culture.
As the months went on, Beauchesne turned shopping at
Lululemon into her reward for continuing her commitment to spinning classes and the gym.
Lululemon and other stalwarts of the «athleisure» craze will lose market share
as people who actually exercise realize there's no point in working out in expensive clothes.
She aggregated the pictures and information from each individual store's Facebook page, and the result was a website that even
Lululemon employees admit to using
as a resource.
If Starbucks sought to create a new kind of community space in an increasingly alienated world, and
Lululemon promoted physical fitness and yogic mindfulness
as paths to personal empowerment, Luvo's social mission is even more ambitious.
Bullish
as many analysts are,
Lululemon's earnings have topped the Street's consensus for seven consecutive quarters.
Amid the harsh criticisms are notes such
as «Why do people working for
lululemon claim to be «authentic» when actually they end up robotically cloning their charismatic leader, Chip Wilson?»
Lululemon has been able to sell its yoga pants for $ 100 because customers see their purchase
as the first step in a journey toward health and wellness.
There's also competition from traditional sportswear makers like Nike (nke), Under Armour (ua) and
Lululemon Athletica (lulu), which compete with traditional athletic gear and are increasingly designing their own more fashion - forward lines
as well.
Still, Johnson notes that the work of restoring
Lululemon's image
as a retailer that fits every body remains, and it may be that only a blatant public apology from company executives (aside from Wilson) will do the trick.
Vancouver - based
Lululemon built its reputation
as an «ethical brand» by using local labour to manufacture its clothing.
To guide
Lululemon into the next phase of its development, the company has hired former MEC auditor Kerri McKenzie
as its production manager, to develop a code of conduct
as the company ramps up its operations overseas.
He named his high - end yoga wear company
Lululemon because he thinks the trouble Japanese people face pronouncing L's works
as an extra marketing tool for his product in that country, according to a National Post Business Magazine article which awarded him a special citation for product innovation and marketing.
Lululemon's management team has installed Glenn Murphy, the former Gap CEO,
as the company's interim executive chairman and has given the company's key executives more responsibilities
as it searches for a suitable replacement for CEO.