From the bright and healthy fashion item, this article explores the Yoga economy.
Yoga Pants become the most popular fashion item for girls in 2022? you ‘re right.
There are more and more girls wearing yoga pants on the streets of China.
Not only the gym, but also the food market, the streets and even the CBD office buildings are full of yoga pants.
Wearing Yoga Pants = fashion = self-discipline, which seems to become a silent declaration.
The originator of this phenomenal fashion piece is lululemon.
Lululemon, which originated from Canada, is known as one of the most successful business myths in North America.
This young company, founded in 1998, has not only become the world’s number one yoga clothing brand in just a few years, but also become one of the international top sports brands after its market value exceeded $40billion in 2020.
At a time when the COVID-19 has swept the world and caused heavy losses to numerous brands, lululemon has still achieved coveted performance.
At the beginning of June this year, lululemon released the financial report data for the first quarter of 2022.
During the reporting period, the company achieved a revenue of $1.613 billion, a year-on-year increase of 32%, exceeding the market expectation of $60million; Net profit was USD 190million, with a year-on-year increase of 36%.
Is Yoga Hot? Or did lululemon bring fire to yoga? The answer is: a virtuous circle of interaction.
On the one hand, the surge in demand in emerging markets and the outbreak of epidemics have promoted the growth of the global yoga clothing market.
According to the report of iResearch, yoga is becoming the second largest sport for Chinese women, and more than 60% of Chinese female fitness enthusiasts have participated in yoga practice.
It is estimated that the scale of the yoga industry will reach 44.9 billion yuan in 2021, and the scale of China’s Yoga market will exceed 50billion yuan in 2023.
As an entry-level equipment, yoga clothing naturally gets the largest “cake”.
On the other hand, with the hot sales of yoga pants, the search heat of yoga pants has been further driven, and the heat from the consumer side will soon be transmitted to the whole yoga industry chain.
Moreover, the consumption power that contributes to and promotes this “virtuous circle” does not come from a certain country, but from the world.
Therefore, with a yoga pants, lululemon brought Nike, Adidas, underarmour and other sports brand giants into the sub circuit of yoga clothing, and more low-end brands also took advantage of the trend.
Why is lululemon so red? Yoga pants have created a new consumption landscape.
The price of a pair of lululemon yoga pants is as high as nearly 1000 yuan, which still can not stop the consumption boom of Chinese girls.
In their view, lululemon is “a luxury in yoga clothes”, and some emphasize “only wearing lululemon”.
Any brand that wants to seize this new business opportunity must make an in-depth study.
Why is lululemon so popular? Different from previous fashion products in terms of technology content, the core competitive advantage of lululemon yoga pants is not design, but its comfort, which is supported by technology.
Lululemon has a research and Development Center at its headquarters in Vancouver, Canada.
There are 3D printers, laser cutting machines, thermal cameras and other equipment inside.
Up to 50 team members are here to develop new fabrics and test people’s “body feeling” when they wear products.
In addition, lululemon also cooperates with testing companies to test the wear resistance and color fastness of fabrics.
According to the records of the U.S.
Patent Office, lululemon has applied for more than 130 U.S.
patents so far, realizing the diversified needs of women such as “peach hips” and “chopsticks legs”.
This also caters to the rise of the “self pleasing economy”.
The younger generation of consumer groups are changing from group oriented behavior to individual oriented behavior.
They are more inclined to “I want to dress comfortably”.
The excellent products and services of the direct sales model make lululemon have self-confidence and strong brand power.
The direct sales store has become an important strategy that lululemon has always implemented.
The vertical management mode of Direct stores also has many advantages: better control the brand image; Can interact with consumers directly in the store; Aquatic products can be put on the shelves within 1 month; After listening to the feedback of consumers, the product shall be modified in time.
Now lululemon’s store floor efficiency is second only to apple, Murphy America (gas station) and Tiffany, ranking fourth in the retail industry in the United States and first in the clothing retail industry, showing high profitability.
The marketing cost of social attribute lululemon only accounts for 2% of the revenue.
It does not advertise or seek celebrity endorsements, but communicates with consumers through “store educators” and “store ambassadors”.
Many of these people are excellent fitness coaches and well-known people in the circle.
They not only participate in store activities, but also actively organize offline activities.
Lululemon has built an offline community closely related to consumers.
The community provides people with sports courses, lectures and various outdoor activities, expedites and expands the “die hard fans” group, strengthens the consumer stickiness, and thus constructs a “high customer order + high re purchase” model.
The rise path of new players is difficult for any industry to maintain a dominant position for a long time.
It seems that lululemon’s high premium brand development path is still difficult for domestic brands to catch up with.
However, in fact, the brand concentration in the Chinese Yoga market is not high.
In the words of experts, “in the Chinese market, the head yoga clothing brands are far from having the same influence as overseas markets”..
