Lulu Lemon To Develop Profit Margins Across Borders For Cosmetics

Recently, the Canadian Yoga brand Lulu lemon (Lululemon) announced its formal entry into the beauty and personal care industry.

It is reported that the brand launches the beauty and body care product line entitled "selfcare", which mainly provides moisturizing cream, balsam paste and dry cleaning shampoo for sports people.

It is undeniable that many clothing brands have been making cosmetics across the border. However, most brands have failed. Lulu lemon's cross boundary can bring much help to its performance and remains to be tested by the market.

Trying to expand the profit frontier

It is understood that "selfcare" products emphasize natural ingredients, without animal fat, preservatives and sulphates.

Its packaging is also designed according to the needs of athletes.

In this regard, Lulu lemon said that in the future, it will continue to expand this product line through cooperation with more sports friendly care brands.

It is worth mentioning that last year Lulu lemon adjusted its strategic direction, instead of positioning itself as "Yoga brand", but a "healthy lifestyle inspired brand".

And the development of cosmetics business is the first step to change its positioning.

According to public information, Lulu lemon was founded in 1998 by founder ChipWilson in Vancouver, Canada. The brand has started with women's Yoga Pants, and has been developing rapidly by relying on cooperation with fitness trainers and yoga teachers to provide free clothing and sponsoring community yoga classes.

Related experts of the China Clothing Association told the China Commercial Daily reporter that on the one hand, Lulu lemon's main product Yoga dress belongs to the niche market. Many clothing brands have launched yoga products, and consumers may make new attempts. This situation is not optimistic for Lulu lemon.

The experts believe that this strategic adjustment shows that the niche market will soon be saturated, Lulu lemon is expanding to other industries, looking for new profit growth point.

He also admitted that at present, many clothing brands are making cosmetics across the border. This has become a popular trend. But in the current situation, most brands attempt to belong to a flash in the pan.

Lulu lemon can cross boundary success

The Chinese Commercial Daily reporter found that many clothing brands are now building their own beauty products line.

Last year, the fast fashion brand ZARA announced its formal entry into the cosmetics market, while competitors such as Forever21, H&M and Topshop have already set up the beauty industry.

Beijing Health Products Cosmetics Association experts said that compared to clothing, cosmetics profit margins are higher, the return rate is lower.

But the fastest beauty brand may take three months or even longer to develop new products, which is different from the fast updating speed of fashion clothes. Moreover, the state has strict approval system for cosmetics, and product testing and regulatory approval also take a certain time.

From product development to consumer acceptance and purchase of products, this period of time is relatively long, and when the loyalty of consumers is not established, it is easy for enterprises to lose money.

She also said that due to physical differences, some consumers will be allergic to cosmetics and other adverse reactions, which will also have a certain impact on the brand image.

After a random interview with consumers, the Chinese Commercial Daily found that they were not very interested in cosmetics produced by clothing brands.

Data from GartnerL2, an American science and technology consultancy, showed that the proportion of ZARA's overall network traffic attributable to fragrances was only 0.034% in January to November last year.

On the website of H&M and Topshop, the flow of beauty page accounts for only 0.021% and 0.020% of the website traffic.

The experts also said that from the current market situation, instead of trying to establish a permanent production line, the clothing brand would have to cooperate with influential people to develop a joint name.

She believes that the best cosmetic brands in the market are driven by KOL. In the cosmetics market, consumers prefer the support of some authoritative groups.