Lululemon

In 1998, Chip Wilson founded Lululemon in Vancouver. He wasn't exactly starting from nothing - he'd already made money in the surf, skate, and snowboard apparel business. But yoga wear? That was new territory.

Wilson saw an opportunity. Yoga was gaining popularity, but the clothing options were limited. "I saw yoga as the first opportunity to dress people for what I call the SuperSet era - work, socializing and working out all in one day," he said.

The first Lululemon store opened in 2000. It wasn't just a shop. It was a community hub. During the day, it sold yoga gear. At night, it transformed into a yoga studio. Smart.

But Lululemon faced challenges. The athleisure market didn't exist yet. People weren't used to wearing workout clothes outside the gym. Wilson had to convince them.

"We had to create a category that didn't exist," Wilson explained.

The turning point came when Lululemon's yoga pants gained a cult following. Women loved them. They were flattering, comfortable, and high-quality. Word spread.

Sales grew. Fast. By 2007, Lululemon went public. Its IPO raised $327.6 million. Not bad for yoga pants.

But success brought problems. In 2013, Lululemon had to recall 17% of its yoga pants. They were too sheer. Customers could see through them. Oops.

Wilson made things worse. He blamed women's bodies for the issue. "Frankly, some women's bodies just don't actually work for it," he said. Not smart.

The company's reputation took a hit. Wilson stepped down as chairman. Then left the board entirely.

Lululemon had to evolve. It expanded beyond yoga. It started making men's clothing. It went international.

The strategy worked. In 2022, Lululemon's revenue hit $8 billion. That's a lot of yoga pants.

Today, Lululemon is more than just clothing. It's a lifestyle brand. CEO Calvin McDonald says, "Our success demonstrates the ongoing strength of Lululemon and the tremendous growth potential of the business".

But Lululemon isn't without critics. Some say it's too exclusive. Too expensive. The name itself has been called problematic.

Despite this, Lululemon keeps growing. It's aiming for $12.5 billion in revenue by 2026. Ambitious? Yes. Impossible? No.

Lululemon's story shows that success isn't always straightforward. It's messy. It's complicated. It involves mistakes and controversies.

But it also shows the power of a good idea, executed well. Wilson saw a gap in the market and filled it. He created a product people loved. He built a brand that resonated.

Lessons

Lesson 1: Use scarcity as a marketing tool. Lululemon often releases limited edition products. This creates a sense of urgency and exclusivity. Customers rush to buy before items sell out. It's a clever way to drive demand and create buzz. It's not just about selling more. It's about making customers feel special for owning something rare.

Lesson 2: Use influencers, but not in the obvious way. Lululemon doesn't rely on celebrity endorsements. Instead, they created the "Sweat Collective" - a group of fitness instructors and athletes who get discounts and test new products. These micro-influencers spread the word organically. It's a grassroots approach that feels more authentic than traditional influencer marketing.

Lesson 3: Focus on the experience, not just the product. Lululemon stores aren't just stores. They're experiences. They host events, offer fitness classes, and create a welcoming atmosphere. This approach turns shopping into an activity, not just a transaction. It's a clever way to increase foot traffic and build brand loyalty. As one employee put it: "It's about connecting with people on an authentic level". This focus on experience has helped Lululemon stand out in a crowded market.

Lesson 4: Use your product as a trojan horse for culture. Lululemon's products weren't just about function. They were about identity. The company's manifesto, printed on their shopping bags, included statements like "Friends are more important than money" and "Sweat once a day." These weren't just slogans. They were cultural values. As Wilson put it, "The core of Lululemon's success is our culture." The product became a way to spread a way of thinking. Smart.

Lesson 5: Innovate in unexpected areas. Lululemon didn't just innovate in product design. They innovated in areas you wouldn't expect. Like their store layout. They put their cash registers in the back, forcing customers to walk through the entire store. They displayed clothes on tables, not racks, encouraging touching. As Day said, "Everything in our stores is designed to create interaction." Innovation isn't just about product. It's about the entire customer experience.

Speeches

• Speech #3 - LuLulemon by Sheena Greenlaw on Prezi

Book Recommendations

• Little Black Stretchy Pants: Story of lululemon by the Founder, Chip Wilson