In the case of Lululemon, the first step in solving a problem is admitting you have one.
Calvin McDonald has clearly stated during the most recent earnings announcement that the assortment is boring and predictable. This doesn’t happen overnight…meaning, the assortment has been predictable for some time now.
The reality is that brands like ALO and Vuori have become Lulu’s bugaboo and are gaining momentum themselves. Even Oysho’s soft touch modal is comparable to Lulu’s Softstream.
I think this is definitely a Lululemon problem. The brand has fallen into a “classic trap” of large companies. They fall in love with their existing franchises of product and then they over-rely on them to drive results across the business and across regions, especially the U.S., where there is a lot more choice.
While Lululemon’s material innovation is top class, the brand is getting beat by competitors on design and functionality and needs to keep innovation lanes open even as it executes on seasonless collections.
Lululemon doesn’t have that point of difference that it used to have. The last thing you want to be told is that your assortment is boring and that your competitors are ripping you off, right?
It’s really important for Lululemon to continue to innovate.
(As seen in Retail Dive)
