Nike Will Launch The Yoga Market Next Month.

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As the industry becomes more and more subdivided, yoga has become a new entry point for brands to attract consumers.

Market competition is becoming increasingly fierce.

According to the world clothing shoes and hats net, recently,

At the investor conference, it officially announced that it will officially open the "pant studios" in the next 5000 sports shops in the next month.

Nike management has said that with the increasing popularity of sports equipment, tights will become new jeans.

In addition, Nike will also launch sports bra products to challenge Lululemon, the leader of Yoga equipment.

Trevor Edwards, President of Nike brand, revealed that more and more women took part in physical exercise in Nike sports and leisure wear with annual sales volume of US $7 billion.

According to analysis, the latest action of Nike will pose a threat to Lululemon, which has only 421 stores in North America.

As of press release, Lululemon declined to respond to Nike's move.

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

With the help of the 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.

Chip Wilson is an ambitious entrepreneurial expert and marketing genius. Unlike Nike and Adidas, he has invited huge sports fans to endorse sports stars. He has chosen to work with yoga instructors or fitness coaches around the world and invite them to be a brand leader by providing free clothing for one year.

With this innovation promotion mode and sponsorship of community yoga courses, Lululemon has rapidly accumulated large fans and established high quality public praise.

At present, Lululemon is positioning itself as the top technology sports apparel brand, and is planning to spend part of its health and fitness expenses to decide its long-term role in this field.

The founder, Chip Wilson, is an ambitious entrepreneurial expert and marketing genius.

With the yoga instructor's cooperative promotion mode and the sponsorship of the community Yoga course, lululemon quickly accumulated huge fans.

"When we entered the market, we just caught up with the trend of sports and leisure, but this is not our ultimate goal."

"What we want is a long-term foothold in this market," said Ken Lee, senior vice president of Lululemon Asia Pacific, in an interview with Jing Tian media.

It has only taken 7 years since the first entity store was launched in 2000. In the past 6 months, the stock price of Lululemon has increased by 25% to $62 per share, and its market value is about 8 billion 400 million US dollars at present. Lululemon

There are people in the industry who believe that Lululemon has grasped the gale of sports and leisure in a timely manner, and has gradually grown into a monopolist in the Yoga market by creating a healthy lifestyle instead of simply selling products and gaining pricing power.

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

Nike's sports pants cost about $60, and Under Armour's products are no more than $70.

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 saved money to buy a pair of Lululemon pants.

In the face of Nike, Under Armour and other peer opponents, the advantage of the wholesale business in a relatively low Lululemon is that the product can be liquidate in a very short time, and its DSO (days sales outstanding) is 2.38 days, far higher than Under Armour's 32.85 days and Nike's 38.1 days.

At the same time, Amazon, which has been making frequent efforts in the fashion market this year, is also planning to have a share in the sports market.

According to Bloomberg quoted sources, Amazon has been in contact with Lululemon logo Luno fabric supplier Eclat Textile Co. since August this year, or will launch its own sportswear brand.

If the news is true, Lululemon's monopoly in yoga will be threatened.

It is noteworthy that although Lululemon has dozens of patents, most of these patents are related to design rather than fabric, so Lululemon can not use intellectual property to defend against Amazon's invasion.

Canaccord Genuity Corp. analyst Camilo Lyon said that after the launch of Amazon sports brand, if quality is different from Lululemon, Lululemon will lose some of its original consumer groups.

However, Lululemon is also constantly reforming itself.

In the second quarter earnings report of the brand, Lululemon no longer called itself "Yoga inspired athletic apparel", and turned into "sports healthy brand inspired athletic apparel" inspired by healthy lifestyle.

Laurent Potdevin said that the brand will customize different products and activities according to the local market and community. A total of 2500 brand ambassadors from yoga instructors and fitness trainers around the world will also understand the needs of target consumers in a timely manner and feedback to the brand in a timely manner.

Lululemon is also aware of the importance of fashion and will pay more attention to fashion sense on the basis of practicality.

In the second quarter of August 31st, Lululemon sales surged 13% to 581 million US dollars, but net profit decreased 10% to 48 million 700 thousand US dollars, and same store sales increased 7%.

Laurent Potdevin, the chief executive, said that the increase in sales reflects the gradual entry into force of the group's reform measures and consumers are starting to renew their interest in the Lululemon.

During the period, sales in Asia increased by 70%, mainly due to Lululemon's sales growth of 175% in Alibaba's flagship store in Tmall. The group plans to add 12 stores in Asia this year.

In view of the growth trend of Lululemon, the Group expects sales to reach 2 billion 500 million to 2 billion 600 million dollars this year.

While in North American leisure sports, the sports apparel industry has been developing rapidly in the past three or four years, causing many high-end sports brands to pay close attention to it.

For Lululemon, the Chinese market is also crucial.

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At the end of last year, Lululemon officially entered the mainland of China. Not only did it enter Tmall's flagship store, but also opened three brand stores in Beijing and Shanghai.

According to Laurent Potdevin, chief executive of the brand, Lululemon has increased its online sales in China by 350% over the past year, boosted by Tmall flagship store.

The picture shows Lululemon, a store in Shanghai.

To increase consumer stickiness of brands in China, Lululemon launched its "heart Exhibition China" Yoga Tour in Shanghai, Guangzhou, Shenzhen, Chengdu, Hangzhou and Beijing this year.

With the theme of "practice" as the core theme, this activity has been actively participated by consumers in every city, and has made the originally slightly boring yoga exercise a heated Party of thousands of people.

In June this year, Lululemon launched its first global brand activity "This Is Yoga" in 19 years. 7 grassroots practitioners told 7 real stories to match the offline activities "heart to China".

In terms of products, Lululemon has always regarded men's products as a new growth point. "Men's clothing is our most unknown secret," Laurent Potdevin predicts that Lululemon men's clothing will achieve annual sales of $1 billion in 3 years.

In addition, Lululemon, which has almost no advertising and experiential marketing, has also released product advertisements for male consumers for the first time.

In this group of "Strength (to be)" promotion, Lululemon invited men such as surfer Mark Healey, anti violence propagator Ibn Ali Miller, and the first openly gay identity, and the Olympic boxing Puerto Rican Orlando Cruz to take part in the shooting, in order to emphasize and enrich the brand connotation.

The Chinese market will become the main battleground of Lululemon men's clothing business compared with the brand's female image in the North American market.

Some people in the industry pointed out that China's sports and leisure consciousness has just begun to rise, to some extent, for Lululemon, it is the future.

It is reported that after feeling the strong flow of Tmall flagship store, Lululemon will explore new retail outlets with Alibaba to better expand the brand international market. It is expected that under the impetus of the Chinese market, the Lululemon online retail business and the annual sales volume in North America are expected to reach 1 billion dollars by 2020, and the total annual sales of the brand will reach 4 billion dollars.

Some analysts pointed out that despite the changing times, the development of sports industry is still similar, and the survival of the fittest is still the same.

20 years ago, the winners were Nike, Adidas and other all-around brands. Now the sports market is becoming more and more subdivided, and Lululemon, a lifestyle leader, will be a leader in the field of yoga.

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