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Lululemon Competitor

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Lululemon is an emerging player in the global athletic apparel market; it was considered to have a monopoly in the sports apparel market as it only caters to high-income women who are relatively insulated to prices and downturns in the economy. However, new niche players and other established retailers are increasing competition in the yoga space. Industry veterans such as Victoria’s Secret and Adidas have entered Lululemon’s market, offering similar products at lower prices. Yet it is still difficult to compare Lululemon to its competitors as the smaller stores are too small and the sporting good giants offer more than one product category (clothes, shoes, sporting equipments) unlike Lululemon. Lululemon has a well defined target market and their performance so far reinforces the fact that the company has a strong ground.
Its direct competitors are small businesses that run individual yoga apparel stores and retail stores located in gyms and fitness centers. One example is Dick’s Sporting Goods (DKS), which is a sporting goods retailer that sells both top sports brands’ products (e.g. Nike, Adidas etc.) as well as its own private label product lines, which accounts for 15% of its total sales. On a large scale, Lululemon competes with the sports industry giants Nike and Adidas which are the two largest manufacturers of athletic footwear and apparel in the world, respectively. Both the companies are enormous in terms of sales and market presence in comparison to Lululemon and both have their own stores and their products are carried in a multitude of online and brick-and-mortar stores; in 2008, the revenues for Nike and Adidas were $18.6 billion & $15.6 billion respectively, whereas Lululemon reported revenue of $353.5 million. However, the number for Lululemon has greater significance as it represents an increase of 30.5% from previous years reported revenue of…...

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