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Lululemon : risking its premium image with diversification / Arpita Agnihotri, Saurabh Bhattacharya.
- Format:
- Book
- Author/Creator:
- Agnihotri, Arpita, author.
- Bhattacharya, Saurabh, author.
- Series:
- SAGE business cases.
- SAGE business cases
- Language:
- English
- Subjects (All):
- Diversification in industry--Case studies.
- Diversification in industry.
- Pricing--Case studies.
- Pricing.
- Physical Description:
- 1 online resource.
- Place of Publication:
- London : SAGE Publications: SAGE Business Cases Originals, 2026.
- Summary:
- The case discusses challenges faced by Vancouver, Canada-based Lululemon Athletica Inc. (Lululemon), a multinational premium athletic apparel retailer that introduced and excelled in selling yoga pants in the North American region. After the COVID-19 pandemic, Lululemon followed a premium pricing strategy and faced pressure to reduce product prices due to recession and inflation. As Lululemon diversified into other product categories, such as footwear, it sold them at a much lower price point. Lululemon also diversified into the fitness equipment business by acquiring Mirror, which eventually failed. It also allied with Peloton, a health equipment and services company, for a co-promotion alliance. Though some experts expressed hope of increasing sales revenues through this alliance, others felt that Peloton users were already wearing Lululemon apparel, and the alliance may not result in an expanding customer base for Lululemon. Lululemon was expanding aggressively in several countries, and one of its key international markets was China. However, Lululemon faced backlash in China owing to high pricing and quality issues. Lululemon had to recall its apparel twice from the Chinese market. Should Lululemon reduce its prices, given the premium image associated with its products? Is Lululemon following related or unrelated diversification for growth? Can its alliance with Peloton be a success?
- Notes:
- Description based on XML content.
- ISBN:
- 979-83-488-1112-9
- OCLC:
- 1569208923
- Publisher Number:
- T298723
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