Lululemon Why Cross Border Cosmetics?

Recently, the famous Canadian Yoga sportswear retailer Lululemon Lulu Le Meng announced the formal entry into the beauty and personal care industry.

Lululemon has launched a beauty and body care product line called "selfcare", which mainly provides moisturizing cream, balsam and dry shampoo for sports people.

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

In packaging, it is also designed according to the needs of athletes.

In response, Lululemon also said that the product line will continue to expand in the future through cooperation with more sports friendly care brands.

Lululemon also opened up cosmetic business because of its strategic direction in the middle of 2018.

Lululemon no longer boasts "Yoga brand" but a "healthy lifestyle inspired brand".

To this end, Lululemon has also stepped up the development of the male market.

LululemoCEO Macdonald pointed out in his previous performance conference that the expansion of men's clothing is the biggest and most exciting growth area in the future.

The male product line will be the next key business of Lululemon. The goal is to achieve sales of US $1 billion in 2020, accounting for 25% of the total target revenue of US $4 billion.

At present, male products account for 20% of total income.

But the industry is worried about the development of Lululemon: "Lululemon has previously extended the men's clothing product line as the core business of the overweight clothing industry. Now it has some sports and fashion trends in the field of sports cosmetics. Although professional cosmetics are also trying to move cosmetics business, they are still in a cautious expansion or wait-and-see situation. After all, this is a niche market."

Insiders worry about Lululemon.

Not long ago, he opened a pink gym INS.BAHApinkgym&caf in Guangzhou.

INS.BAHA is mainly aimed at the "post-90s" young consumers, positioning in the "sports make-up".

In February 2017, the US cosmetics brand Tarte and the company worked together to launch a new sports beauty makeup product line, the "Hustle&Glow" series. The parity beauty brand e.l.f. also introduced professional sports cosmetics to help people in the movement of make-up without taking off their makeup.

"Lululemon to develop cosmetics business, also means again from small to the public, constantly looking for other business around, also reflects from the side, Lululemon niche market has encountered bottlenecks, overweight more extensive sporting goods, can find new growth points for it.

However, in the process of expansion, how can we make good use of our own DNA and tell good yoga sports stories in order to let consumers buy them?

Yang Dayun, a fashion industry investor and excellent international CEO, pointed out.

It is reported that Lululemon was founded in 1998 by ChipWilson in Vancouver, Canada, and is a yoga sports inspired professional sportswear company.

In November 2000, Lululemon opened an independent store on the West Fourth Avenue (West4thAvenue) in Kissi Lano (Kitsilano), Vancouver.

In 2007, Lululemon went public.

In the 2007-2008 year, Lululemon sales reached US $350 million and opened 113 stores.

At first, Lululemon was designed for women when they were doing yoga.

Today, Lululemon also designs yoga, running, cycling, training and most other sweaty sports.

In just a few years, it has emerged from many sports apparel brands.

In March this year, Lululemon announced its strongest holiday sales in the past six years, with sales in the fourth quarter accounting for more than 1/3 of the total annual sales. Its revenue grew by 26% over the same period, and profit sales exceeded expectations. Strong sales help companies in the holiday season achieved a target of more than $1 billion in revenue ahead of schedule.

Forbes analyst AndriaCheng has said that sports brands need to be vigilant. With the Canadian Yoga brand lululemon's strategy extending beyond the scope of Yoga wear, it will directly or directly participate in the competition between Nike, Adidas and UnderArmour.

This is also reflected in the market value of Lululemon.

In the middle of 2018, Nike and Adidas had higher market value than Lululemon in the world's sports brands.

According to the 2017 fiscal year data, although UnderArmour, Puma and Cage were all above Lululemon, their market capitalization failed to exceed US $10 billion.

However, Lululemon has been more cautious in the Chinese market.

In 2013, Lululemon set up a community team in Beijing and Shanghai, but only three years later, Lululemon's brand independent store was officially stationed in China.

Up to now, Lululemon has only 19 stores in the Chinese mainland market, and there is still a big gap compared with the number of 250 stores in the United States.

The industry generally believes that although Lululemon has begun to test the water business in the Chinese market, it still faces the problems of developing the market and consuming large costs.