Lululemon Plans To Expand The Chinese Market Or Enter Tmall

Lululemon Athletica Inc. (NASDAQ:LULU), a high-end Yoga apparel retailer, plans to expand in Asia and expand its focus in the Chinese market. Brands are also exploring the feasibility of entering Japan and South Korea.

In February this year, from Fossil Group Inc. NASDAQ:FOSL, Lululemon Athletica Inc. (NASDAQ:LULU), an Asian general manager's Ken Lee, said that the brand already had 7 showrooms in Hongkong, Singapore and Shanghai for customer communication, activities, yoga courses and limited range products, which is a common test strategy before entering a market.

Because the customer response is very positive, the brand plan will be the first Asian entity in Hongkong or Singapore by the end of this year.

And in the middle of 2015, the Chinese website would be more likely to enter Tmall mall in Alibaba.

The Lululemon Athletica Inc. (NASDAQ:LULU) showroom is located in Zizhong road. The second showrooms in Shanghai, Nanjing West Road, will open at the end of this month. Beijing's first showroom is also in the process of preparation. It is expected to open next year.

The 25-40 year old Chinese professional woman is the target customer of Lululemon Athletica Inc. (NASDAQ:LULU). According to the informal research data of Mintel Group Ltd. of the global market research organization, about 10 million people in China now participate in yoga practice and grow at a speed of three times that of the United States.

At present, the main yoga clothing brands in China are not only Nike Inc. (NYSE:NIKE) Nike, Adidas AG (ADS.DE) Adidas and other international sporting goods giants, but also local HOSA, Lining and powerful competitors from Taiwan.

Ken Lee shows that Lululemon Athletica Inc. (NASDAQ:LULU) is confident that it will stand out among many brands with high-end fabrics, beautiful designs and excellent functions. Besides, the brand will also adjust the use of colors and fashion vanguard elements in response to the tastes of Asian women.

Asia is the second leg of the international expansion of Lululemon Athletica Inc. (NASDAQ:LULU).

In March, the brand officially entered the European market. At the end of March, it opened a 3100 square foot flagship store in Convent Garden, London, selling products including men's, women's wear, yoga, jogging and cycling sportswear.

Lululemon Athletica Inc. (NASDAQ:LULU) has long been aiming at the international market, but in early 2013, because of the excessive recall of a yoga pants, it has not only suffered tens of millions of dollars in direct economic losses, but also a series of related effects.

Lululemon Athletic Inc. (NASDAQ:LULU) dropped to $44.32 from a high level of $82.50, and nearly half of its market value evaporated.

As the group's meritorious CEO, Christine Day also decided to resign at this time to alleviate the pressure of the group and management.

But with the new CEO Laurent Potdevin taking over and the group's strategy of expanding international influence, brokers hold confidence in Lululemon Athletica Inc. (NASDAQ:LULU), and believe that with the passage of time, brand strength and global opportunities can be achieved.