Yoga Empire, Lululemon’s Keys to Success
Founded in 1998, Lululemon’s phenomenal rise to the top as the Yoga mecca of its hemisphere has baffled economic experts on its exponential increase in sales. Business analysts describe Lululemon’s billion dollar rise as simply spectacular and unprecedented.
Many entrepreneurs eagerly seek to adapt Lululemon’s secret winning formula and are encouraged by its apparent humble beginnings to what it is today. The Yoga kingpin, which is now worth $10 billion dollars and selling shares on the market at $75 each has climbed up a far way from its initial $2 per share in 2007.
Lululemon’s star quality did not happen by accident,. however; the keys to success has been its philosophical approach to achievement which forms its foundation and which mimics some of the most famous business gurus of the past, including: Andrew Carnegie, Napoleon Hill, and Werner Erhard.
Four (4) core principles that have fueled Lululemon’s meta-mission and impacted its stellar performance in the market are:
Number 1: Educating employees
At Lululemon, employees are referred to as “educators” frequently engaged in training to develop a professional cadre of staff. Educators are presented with a “learning library” that includes “The Seven Habits of Highly Effective People,” “The Phoenix Seminar on the Psychology of Achievement,” and Landmark Forum seminars, after their first anniversary as staff.
Number 2: Authenticity
Christine Day, Lululemon’s CEO says, “If you want to be successful in this industry, it is about being authentic.” The Yoga brand’s $52 tank top and $99 leggings are not cheap by any means, but clients have bought into the name; its reputation simply speaks for itself.
Number 3: The Scarcity Model
Customers know that only a limited supply of stock is kept at outlets, which translates to “buy items now or risk not seeing it again” culture of shopping. Scarcity creates “these fanatical shoppers” says CEO, Christine Day. Lululemon rarely offers sales, therefore at full price, a Yoga pants will cost between $75 to $128. Thrifty customers could easily get a similar product at Old Navy or Gap for $25.
Number 4: “Fierce Loyalty” through Product Upgrade
Call it the apple model-- says Christine Day who “has worked out a strategy of improving the features and fabrics of Lululemon which is aesthetically pleasing, functional--and pricier.”
These success principles have resulted in little need for aggressive marketing; Lululemon has been able to spread the word almost effortlessly through allure, good customer service, and a shift in cultural thinking as "the brand of choice."
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