With offices and gyms closed, sportswear brands like Lululemon have a unique chance.
Home fitness is becoming more popular due to the closure of gyms around the world, which means that shoppers are increasingly buying sports shirts, pants and other comfortable sportswear. In addition, even when working from home or just being bored in quarantine, people prefer more comfortable, non-restricting clothing.
And of course, as one of the largest retailers of sportswear and accessories, Lululemon brand could not help but use this trend. It is reported that in the second quarter of 2020, sales growth was 2%. And online sales grew by an impressive 157%.
Lululemon CEO Calvin McDonald said in an investor call that the company intends to explore changing trends in fashion and fitness and go beyond sportswear. In particular, it is planned to test adding new categories to the brand's assortment, for example, trousers, in addition, the brand plans to expand the size range to size 20.
Also, in the development of marketing campaigns, more attention will be focused not only on sports activities, but rather on the general lifestyle. Responding to changes in consumer behavior, Lululemon will position itself as an active and healthy lifestyle brand that includes not only exercise, but also work from home, leisure, and more.
An important factor that strengthened Lululemon's position as a brand for home sports was the acquisition of Mirror startup. In June 2020, the companies closed a $500 million deal, expanding Lululemon's business to include specialty interactive mirrors that are used for home workouts. By the end of the year Mirror will be sold in 15 Lululemon stores, and in 2021 the number of points of sale will be even greater.