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| http://marketrealist.com/ |
Athleisure is an upcoming and popular fashion trend. This unique fad is becoming very successful with many new stores popping up such as Lululemon, Athleta, Lucy, and many more. With athleisure becoming much more popular, the market for these stores are becoming much more competitive. These companies are trying to come up with new fabrics, styles, and prices. With the competitive, new market these type of companies are currently successful, but soon the fad will fade out and these companies will suffer.
Lululemon had started off strong but recently with major issues with their leggings, their profits have gone down tremendously. CNBC has also noticed issues with the company such as, “The apparel brand publicly stumbled in March when the company recalled 17% of its yoga pants, after determining that they were too sheer and see-through.” Even without the competitive competition being a factor, Lululemon’s profits are decreasing tremendously as well as their popularity.
Even with the decreasing popularity, Lululemon is causing bankruptcy in other companies, “The category has seen recent bankruptcies from The Sports Authority and Sport Chalet, causing Under Armour to lower its full-year sales and earnings guidance”. With the decline of popularity of Lululemon other athleisure companies are starting to make bigger companies that are not only focused on athleisure are going bankrupt.
Future Research Question: How Lululemon still markets to consumers
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