Lululemon Will Go To China To Open Shop.

At present, fitness craze has already swept the world's major cities, compared with the traditional boutique.

and

In the field of professional sportswear, market potential and profits are more attractive.

The industry also began to feel a threat. Yesterday's reporter reported that L Catterton, LVMH's investment fund, has acquired a Italy bicycle brand Pinarello.

A September report shows that Chinese consumers choose to spend more money on healthy and organic foods in the new year than spend on high-end luxury goods.

According to the latest news, aiming at China's millions of Yoga crowd and planning to enter the Chinese market 3 years later, one of the most successful business myths in North America, Lululemon, a sportswear brand, entered the Chinese market this month. It is sure that 3 shops will be opened in mainland China this month, including the IFC gold center store in Shanghai, the Kerry Center store in Jingan and the Sanlitun store in Beijing. Lululemon said earlier that the Chinese market would reach the 2 fold scale of the United States.

According to the world clothing and shoe net, China is very critical in the Lululemon global expansion plan.

Since the Chinese sportswear market was slowly taking shape in 2014, Lululemon has entered the market in a planned way. Then, in October of this year, Lululemon opened its exhibition hall in Beijing.

Lululemon has held exhibition hall in Shanghai, including Tmall mall.

In 1998, Lululemon was founded by founder Chip Wilson in Vancouver, BC, specializing in the sale of Yoga sportswear.

Because of its precise market positioning and the promotion of healthy living concept, Lululemon has emerged from many sportswear brands in just a few years, becoming the first choice of sportswear brands for young women in North America.

Lululemon has positioned itself as the top technology sports apparel brand, and is planning to spend part of its health and fitness expenses to decide where to stay in this field for a long time.

"When we enter the market, we just catch up with the trend of sports and leisure, but this is not our ultimate goal," he said.

"What we want is to have a firm foothold in this market," said Ken Lee, senior vice president of Lululemon Asia Pacific, in an interview with reporters.

After experiencing the turbulence of the quality problems of the yoga pants, the replacement of senior executives and the reputation of the founder Chip Wilson, Lululemon returned to the track of performance. In the three months ended October 30th, Lululemon net profit rose 28.5% to 68 million 300 thousand US dollars, gross profit increased 24% to 278 million 400 thousand US dollars, and net income increased 13.5% to 544 million 400 thousand US dollars compared with the same period last year, higher than Wall Street's expected US $540 million 200 thousand.

The group's net profit in the nine months increased 12.5% to 167 million 200 thousand US dollars compared with the same period last year, and net income increased 14.6% to 1 billion 550 million US dollars compared with the same period last year.

After Lululemon announced its third quarter results and increased expectations, the group's share price rose 12.6% to $67.4 per share, and its current market value is about $8 billion 200 million.

In the past 10 years since the listing of the company, the annual composite growth of the company's shares has been 15%, more than twice the increase of the standard & Poor's 500 index.

Group CEO Laurent Potdevin pointed out that the good performance in the third quarter benefited from the effective implementation of the group's business strategy in all regions, and the gross profit and earnings per share of the quarter were also highlighted.

Laurent Potdevin said in a conference call with Wall Street analysts that the group will continue to implement its initial 5 year plan, which includes global expansion from product innovation expansion. It expects the group to double its revenue and profits in 5 years, and to set up a 1 billion Mens Business to further develop the group digital ecosystem.

Laurent Potdevin revealed that the group will make innovations in sports underwear next year. As the new high technology fabrics have been enjoyed by many consumers, the income of sports underwear has increased by 20% this quarter.

The group has raised its outlook for the fourth quarter of fiscal 2016, and now expects diluted earnings per share between 96 cents to $1.01, and net income between $765 million and $785 million.

It is estimated that 2016 diluted earnings per share will be between us $2.18 and US $2.23, and the income will be between us $2 billion 320 million and US $2 billion 340 million.

{page_break}

It is noteworthy that the retail industry in North America, including Canada and the United States, has been hit hard in the past 2 years. Jacob, Mexx, Smart Set in the clothing industry have been sadly disappearing. Canada's old leather clothing brand Danier Leather has filed for bankruptcy this year. In a downturn of retail sales, Lululemon has become the biggest winner. Last year, it recorded a turnover of 2 billion 60 million US dollars in competition with Nike, Adidas and Under Armour.

ThinkEquity Partners data show that Lululemon's "iron powder" will spend 92 US dollars to buy a brand of sports pants.

The price of Nike's sports pants is about $60, and the products of Under Armour are only 70 dollars. Lululemon, who has numerous fans, has held all kinds of free yoga, Prat and SALSA dance classes all year round, and popularized the concept and methods of health campaigns to attract potential consumers.

According to analysis, many people in China are now willing to save money to buy a LV or GUCCI bag, but in Canada and the United States, girls are more willing to use the money saved to buy a Lululemon pants.

Lululemon yoga clothing seems to have evolved into a lifestyle not just a clothing brand.

In the upper east side of the United States, Lululemon shopping bags are almost everywhere, with inspiring words on the bags, such as doing a surprise thing every day.

In West Chester, Lululemon yoga clothing seems to be a social tool. A woman who has just moved here says that women here wear Lululemon Yoga suits.

Interestingly, Lululemon started with yoga costumes and created such a rapid demand, not just yoga, but it was so beautiful that the women who wore it felt that they were very beautiful and well-balanced.

Therefore, many fans, even if they do not do yoga, must wear a Lululemon that looks cheap but looks very thin.

However, a woman who participated in the China thematic activity at the heart exhibition held by Lululemon in Shanghai, said that it is very strange to spread in China. If a group of girls stroll around the streets of China in yoga pants, there will be many people looking at them strangely, but she thinks that one day they will change.

In fact, this is also the biggest market opportunity for Lululemon in China.

More interesting reports, please pay attention to the world clothing shoes and hats net.