Lululemon is a household name in the apparel and athletic wear industries. The firm was founded by Chip Wilson in Canada in 1998. LuluLemon is known for its high-quality clothing, which is original and distinctive.
Lululemon isn’t the only bright star in the sky.
Lululemon is known for its high-end yoga apparel, but it isn’t the only retailer of athleisure clothing.
Several global firms “have aligned their marketing strategies” in response to the athleisure movement, according to ResearchAndMarkets.com’s “Major Athleisure Market research.”
Market data shows that the market will increase by $80.74 billion over the next five years.
Furthermore, the report states that corporate fitness programs and millennials will drive market development for athleisure movements in the future, as they remain the largest segments in the market.
This article will cover the largest Lululemon competitors and alternatives, providing it with significant competition.
Victoria Secret offers fashionable athleisure in Victoria’s Secret Sport. The company started operating in 2016. Athletes will appreciate the opulent sportswear available.
Activewear includes sportswear, gym wear, swimwear, and innerwear.
Nike, of course, doesn’t need an introduction. One of the most well-known names in the athletic apparel industry is this international company. Nike is known for its innovative products and strong brand image.
Nike offers a variety of products, including footwear, apparel, equipment, and accessories. Recently, Nike released a yoga collection, which competes with Lululemon, which currently dominates this category. Nike’s new line is, however, more affordable than Lululemon’s.
Luluemon has recently outperformed Nike in terms of sales growth. However, both companies’ e-commerce revenue growth is remarkably similar.
Lululemon’s chances of catching up to Nike are slim since Nike has an advantage over them.
Under Armor, a popular brand known for its wicking fabric decided to focus on women’s clothing only since Lululemon has occupied this territory.
Under Armour is re-establishing itself as a progressive, stylish, and feminine brand to appeal to women, posing a direct threat to Lululemon.
Under Armour released the HOVR Breakthru in September 2020, a basketball sneaker exclusively for women.
A few months later, in September 2020, M+MI introduced its newest product. But, again, Lululemon’s market dominance faces a challenge with these two women-specific items.
Athleta – a Gap subsidiary
Athleta was acquired by The Gap for $150 million in 2008. It offers an exceptional selection of women’s athletic clothing.
Athleta is well-known for its comfortable clothing designs and has over 25 stores in the United States alone, offering an extensive selection of athletic apparel.
The athletic wear industry is becoming increasingly competitive, so the Athleta collection needs to be created to compete.
Athleta emphasizes female empowerment through products such as personal fitness gear, whereas Lululemon emphasizes high-performance athletes. Athleta has increased its online sales as more people exercise indoors.
The second-largest sportswear brand in Europe is Adidas, after Nike. Customers worldwide recognize the brand for its exercise suits, sports accessories, footwear, and footwear.
Lululemon competes directly with Nike and Adidas as the company prepares to enter the footwear industry shortly.
Competing successfully in head-to-head competitions requires financial competence. For example, the current valuation of Adidas is $51 billion, while that of Lululemon is $38 billion.
Lululemon, however, is predicted to surpass Adidas in five years based on its growth rate.
Prana – a Columbia sportswear subsidiary
Prana is a sports apparel brand based in the United States. Their tagline is “clothes for good change.” Columbia Sportswear acquired the company for $190 million in 2014.
The company began in 1992 in California and has since grown to become a well-known brand in the sportswear market.
Their yoga apparel includes a large selection of ‘well-fitted pants’ and ‘hippy-trippy tops,’ but they also sell jackets, jeans, skirts, and more.
Prana was not a strong competitor in 2019 due to its transformation. However, the team is making a concerted effort to raise brand awareness and elevate the brand as one of the future’s most trendy outdoor clothing brands.
According to Prana, the company is forecast to grow by approximately 5-7 percent annually until 2021 and could potentially take away a significant share of the market from Lululemon.
Sweaty Betty, a well-known UK brand, was created by Tamara and Simon Hill-Norton. The brand is renowned for its activewear for ladies. There are over fifty stores of this feminine-inspired brand in the UK.
With the opening of six more stores throughout the United States, Sweaty Betty continues to expand its footprint. The brand also sells great yoga apparel, such as ubiquitous leggings.
Puma is an athletic clothing, footwear, and accessory company based in Germany.
Puma was founded by two brothers, Rudolf and Adolf Dassler, and quickly grew to become the third-largest sports clothes and accessories manufacturer. However, they were unable to reconcile and split up in 1948.
Adidas was founded following the break at that time. Puma has maintained its reputation despite tough competition from Adidas and other firms over the years. There are more than 120 locations in 120 countries where the company operates and about 11,000 staff members.
Puma and Lululemon have different pricing strategies. However, Lululemon’s prices are above industry average, with more than half of its products retailing for at least $20.
Puma’s prices – $40 to $60 – helped the company record 18.4% growth in 2019, with double-digit growth across all markets and divisions. However, the high costs of Lululemon are making it difficult for them to catch up and compete with Puma for market share.
Fabletics is an online retailer of women’s athletic clothes, footwear, and accessories, as well as other ‘athleisure.’ The corporation is known for its subscription-based business model and its e-commerce.
Moreover, customers can create outfits tailored to their fashion tastes and lifestyles with the company’s ‘all-inclusive’ sizing range and bespoke product services.
Fabletics and Lululemon differ in the discounting method they use. Lululemon offers fewer discounts and hasn’t sold more than 20% of its entire product line.
The majority of competitors increased their discounts in July 2020 to attract clients.
Lululemon provided an average discount of 17 percent that was higher than that of Fabletics during this time. Although Lululemon’s low prices help it raise profits, Fabletics’ offers are likely to draw customers from Lululemon.
Outdoor Voices, launched in 2013 by CEO Tyler Haney, is an American athleisure clothing business. Although the company is quite new, it has already become very well known.
The company operates in New York, Los Angeles, San Francisco, Aspen, Dallas, Boston, Chicago, Washington, D.C., and Nashville. The company’s internet portal is also quite active and earns a healthy profit margin from e-commerce.
Sportswear companies can gain a competitive edge by providing the most comfortable material.
Beyond Yoga was established in 2006 in Culver City, Los Angeles, and has more than 150 employees. They are considered a legitimate competitor of Lululemon.
Many exercise enthusiasts prefer sportswear that is soft and comfortable. For example, leggings and biker shorts from Beyond Yoga are more satisfying than those from Lululemon.
The average retail price for Lululemon and Beyond Yoga is around $80 to $100. Lululemon and Beyond Yoga are premium brands, but Beyond Yoga’s soft material is pulling customers away from the athletic retailer.
Bernard Mariette established Lol in 2002. The company produces exceptional women’s activewear and is known for its ‘Live Out Loud every day’ slogan.
Yoga garments made from organic cotton and Tencel are very popular with yogis around the world. Currently, the corporation has forty offices spread across eleven countries.
A global leader in footwear and apparel, New Balance manufactures and sells products in over 120 countries.
This firm is the 109th largest private firm in the United States in 2019, with $4.1 billion in yearly revenue. It employed 5,497 people.
New Balance’s revenue has been steadily increasing over the years, reaching a 2.5 percent gain in 2019, demonstrating the brand’s expanding appeal.
It is one of the top five worldwide sportswear companies. The company is expected to surpass Puma and Under Armour in the next few years to become one of the top three sportswear manufacturers and Nike and Adidas.
New Balance has more experience, a larger market, and more financial resources than Lululemon. Furthermore, its product line is more diverse than Lululemon’s. Consequently, Lululemon’s product offerings will face stiff competition in 2020 from New Balance’s products.
Steve Jobs, for example, preferred the New Balance 992 shoe. It finds a large following worldwide as a result.
The Gap is a clothing retailer that also sells athletic clothing under the Athleta brand. Donald and Doris F. Fisher launched the company in 1969. Gap Inc. is headquartered in San Francisco, California.
Gap stores are located in approximately 3,500 locations globally. In the United States alone, there are around 2,000. Gap Inc. also owns and operates several different brands, including Old Navy, Banana Republic, and Intermix.
The New York Stock Exchange trades under the ticker name GPS. In 2021, the company recorded total revenue of $13.800 billion and an operating profit of $862 million.
Gap and Lululemon compete through Gap’s Athleta brand, which, like Lululemon, sells women’s clothing. Athleta is more affordable than Lululemon and offers a wider range of sizes, making it more inclusive.
Abercrombie & Fitch
Abercrombie & Fitch is an American-based online retailer that offers a wide selection of casual clothing for women and men and jackets, shorts, and other accessories.
The company is based in New Albany, Ohio. Lululemon’s main competitor is Abercrombie & Fitch. Abercrombie & Fitch reported revenue of 3.4 billion in 2017 and employed 5000 people.
Eddie Bauer LLC was formed in 1920 and has its headquarters in Bellevue, Washington. Eddie Bauer is a retailer of clothing.
With 370 offices in the United States, Germany, Japan, and Canada, the company serves a large market. The company offers footwear, apparel, handbags, and travel accessories. Eddie Bauer is a direct competitor of Lululemon.
Who Are Lululemon’s Main Competitors?
Lululemon’s primary competitor is Nike. The company is the largest clothing maker globally, accounting for about 27.4 percent of the market in 2019.
Nike was founded in 1964 by Phil Knight and Bill Bowerman. Last year, 76,700 people worked for the company, which earned $39.1 billion in revenue.
How Does Lululemon Make Money?
Lululemon began as a women’s yoga clothing company. The brand then expanded into men’s apparel, positioning itself as a lifestyle brand.
Fortune ranked it one of the fastest-growing companies between 2010 and 2013. The company generated $3.9 billion in revenue in 2019.
The revenue was generated by selling clothing products such as tops, shorts, pants, jackets, and accessories such as yoga mats, socks, and bags.
The company operates multiple brick-and-mortar stores as well as an online platform for direct client contact. Currently, the company has 48 physical stores across the United States, Canada, Australia, New Zealand, Singapore, and the U.K. The brand has also expanded into men’s apparel, positioning itself as a lifestyle brand. It also provides wholesale services to yoga studios, health clubs, and fitness facilities.
This is done both to boost the brand’s image and to generate revenue. Furthermore, Lululemon receives income from temporary sales sites, warehouses, showrooms, and online sales.