Why Did Lululemon Suddenly Close New York And Toronto Menswear Shops?

On June 21st, Lululemon, which plans to double its male business over the past five years, has quietly closed its operations in New York and Toronto. Men's wear Shop.

According to CNBC's report, a Lululemon spokesman said that after careful consideration and analysis, male consumers responded well to Lululemon, but what we need to do now is to constantly test Lululemon and maintain a learning attitude.

Since learning is about to pay tuition fees, the goal set by Lululemon is to double its male income by 2023.

According to statistics, the proportion of Lululemon men's same store sales increased by 26% in the first quarter of 2019.

Why does Lululemon suddenly turn off the men's clothing store when it looks like good data?

Lululemon's personal care

First of all, I want to focus on what Lululemon has been busy with recently, and actively expand the category.

Lululemon has expanded from clothing to the beauty industry. And there is also a product line, including deodorant, lipstick, moisturizing cream and shampoo.

According to "18~35 year old man" Trend Consumption report shows that the consumption growth trend of men in cosmetics and other fields is significant. Men's skin care products sales increased by 38% over the same period last year.

QQ big data show that nearly 40% of the 95 can accept men's daily make-up. In the era of "Yan value", makeup and skin care are no longer women's patents.

85 men on Taobao and 90 boys bought about 1 million 200 thousand men's BB cream. More than 35 men's eyebrow brushes were collected by young men aged 18~35. Men's BB cream, eyebrow pencil, lipstick, make-up suit and cream have also become the most popular makeup TOP5 on Taobao.

Creation can influence men's way of life better.

When we looked at the information, we noticed that when asked about the future development of male categories, Lululemon spokesman said that the company "focused on our common strategy" and mentioned that "when we expand our stores, we want to create more influential ways to sell men's clothing category".

On the data, the proportion of men in the first quarter increased by 26% and Lululemon increased by 33%, but it did not reach the expected effect of Lululemon.

Because Lululemon's revenue increased from 18 million US dollars in 2004 to US $2 billion 600 million in 2017, and its compound annual growth rate exceeded 46%.

Secondly, it is known that Lululemon is a way of life. brand Lululemon did not spend money on celebrity endorsements at the beginning, but put the marketing fees into yoga instructors, giving them free clothing and helping them to advertise.

And these yoga teachers, fitness coaches can continue to influence the students around them. It can be said that Lululemon has long figured out how private area traffic should be played.

Lululemon wants to create a more influential way to sell men's clothing category, and also wants to go this way. Just now, it is still being tested, perhaps the next step for men's care is to consider the next step, by creating the focal point of men's life, extending from a single explosive product to the whole life chain of men.

At present, Lululemon launches men's category stores, and guesses that sales do not exceed the average store's 30 million yuan store effect. The store's sales efficiency is more than 35 million RMB. If this figure is exceeded, the result should not be so.

The distance is still there, but time is pressing.

Lululemon's men's clothing stores are successful in their mouths, but there are still psychological distances, and more importantly, the competitive environment does not give Lululemon more time.

The most direct thing is Nike, Adidas and other brand competition, in January Nike announced specifically for the male and Female Yoga series.

Nike is different from Lululemon in strategy. Nike is trying to attract non professional yoga practitioners. Its professional series are distributed in different fields for professional athletes, from sprint to basketball to soccer players.

As for Lululemon, these men's clothing shops should not be successful in their own interior, but only in the testing stage, and the adjustment at any time is also a strategy formulated by Lululemon at the very beginning.

On the data side, in the first quarter, in terms of net income of direct consumers, Lululemon grew by 33%, accounting for 26.8% of total net income, while 24.3% in the first quarter of fiscal 2018. Gross profit was $421 million 700 thousand, an increase of 22%, while the gross profit margin was 53.9%, an increase of 80 basis points compared with the first quarter of fiscal 2018.

For the second quarter of fiscal year 2019, Lululemon expects net income to be between $825 million and $835 million, and achieve comparable sales growth of two figures with unchanged exchange rates.

In the whole year, the company expects net income to be between $3 billion 730 million and $3 billion 770 million, based on fixed exchange rate, which is also a low two digit comparable sales growth.

Therefore, in the environment of low digit growth and increasing competition, Lululemon will not allow itself to have any delay.

Although its independent men's wear shop is closed, Lululemon will still be very focused on one thing, that is to say goodbye to the single, to achieve continuous growth.

Lululemon is striving to expand its promising product line. Although it is called Rolls-Royce in yoga, Lululemon also wants to throw away a single female Yoga suit. Hat 。 After all, the current single category can not help them achieve greater growth, because the front Nike has 40 billion dollars.