Every company that operates within the retail industry is largely dependent on sales for its revenue. Lululemon strategic sales is one of the product selling strategies used by the brand to increase sales by encouraging bulk purchases which consequently increases revenue.
Here, we shall take a closer at what Lululemon’s strategic sales means and how it has been used by the brand in its relation with different kinds of consumers. But before then, let us answer a salient question about the brand.
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What is Lululemon?
Lululemon is a multinational athleisure brand that began in Vancouver, Canada in 1998. It is a retailer of different athletics, leisure, accessories, and personal-care products including yoga pants, shorts, water bottles, sweaters, yoga mats, jackets, bags, undergarments, hair accessories, bags, and dry shampoo.
At the end of quarter 2 of 2023, the brand reported having 672 company-operated stores scattered across the United Kingdom, Canada, China, the United States, South Korea, and Australia. The brand also has about 34,000 employees.
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Lululemon strategic sales
- Studio essentials
- Team program
Lululemon strategic sales is the brand’s bulk purchase program through which it partners with individuals, groups, and organizations that are interested in either being retailers for the company or purchasing for official use.
Through strategic sales, the company partners with athletes, local entrepreneurs, business owners, and ambassadors who are passionate about elevating their communities through health and wellness activities and also want individuals within their communities to have the right gear for these activities.
Lululemon strategic sales is carried out through any of the 4 means listed above. We shall discuss each of them below:
The Lululemon Wholesale Program is designed as a partnership program between the brand and spaces that offer yoga, wellness, training, and fitness classes. They are also expected to have a designated retail floor for conventional retail business.
It is within the retail floor that these wholesale partners will market, merchandise, and sell Lululemon products to their space patrons as well as other consumers.
Fitness outfits that meet the criteria of having a retail floor and wish to join the wholesale program have to apply to join the program. It takes about 15 business days for the brand to respond to applicants.
The fitness outfits that get approved to join Lululemon’s strategic sales through the wholesale program are required to sign a retailer’s agreement. They are also paired with an Account Manager to understand and support their retail goals.
In addition, they get access to a curated assortment of women’s and men’s apparel, and accessories. They also gain access to Lululemon’s strategic sales portal to shop at an exclusive price.
Studio Essentials is one of Lululemon’s strategic sales programs geared at providing fitness studios with quality essential items such as yoga mats, blocks, straps, bags, and accessories.
Fitness studios that sign up for this program will receive a response from the brand within 15 business days. If approved, they will be required to sign a retailer’s agreement and will be paired with an Account Manager to understand and support their retail goals.
They also gain access to a curated assortment of yoga blocks, accessories, bags, and equipment which they can sell or rent to their patrons.
The Corporate Program is designed to offer Lululemon products to companies who are looking for products made with exclusive fabrics and designs either to use them as their official uniforms or as part of the gifts or compensation packages to employees.
These products are embedded with special features that include being lightweight, breathable, sweat-wicking, and have a four-way stretch.
Although the corporate program is designed for companies who buy the brand’s merchandise for their employees, it is classified under Lululemon’s strategic sales programs because it brings bulk sales to the brand.
Business corporations that wish to become part of the corporate program can apply and will receive a response from Lululemon within 15 business days. They however must be willing to purchase a minimum of 50 units of products to join the program.
Additionally, the specific product assortment and discount value available in the program are discussed with the company during the application review process.
This Lululemon strategic sales program is specifically reserved for athletic-based teams looking for products that are suitable for their different training requirements such as apparel and shoes or for travel gear such as bags and water bottles.
The team program is designed to support Lululemon’s purpose of elevating the world by realizing the full potential of every individual.
The assortment of gear available under the team program is specifically curated to offer core styles with technical features that enhance the training and travel experiences of teams.
Any team that is approved to be part of this Lululemon strategic sales program gains access to the brand team program portal to shop for products at exclusive prices.
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What type of strategy does Lululemon engage in?
Lululemon uses a combination of different strategies in its business. In order to increase and encourage the bulk purchase of its products, the brand uses strategic sales programs.
For marketing to individuals and gaining a competitive advantage within the athleisure industry, Lululemon uses a combination of marketing strategies that include influencer marketing, ambassadorial programs, and social media marketing.
Overall, Lululemon builds its strategy around marketing the benefits of having an active lifestyle which can be assisted by the company’s exclusive products. Hence, it encourages the formation of a vibrant community of like-minded individuals to become part of its sweat collective and community of fitness enthusiasts.
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Lululemon’s strategic sales program comprises 4 different programs through which companies, fitness studios, athletes, and teams can have access to the company’s wide array of exclusive products at discounted rates. The programs include wholesale, corporate, teams, and studio essentials.
The brand however indicates on its website that application to any of the strategic sales programs does not guarantee that the applicant will be approved for the program. It also indicates that:
Inclusion, Diversity, Equity, and Action are core to lululemon. We commit to behaviours and speech that embody and uphold these values, and when becoming a Strategic Sales partner in our community, we ask that you uphold them too.Lululemon
Lululemon strategic sales contributed part of the 10% of the total net revenue generated by the brand in the second quarter of 2023 which amounted to $218.6 million along with revenue from its outlets, recommerce, temporary locations, and Lululemon Studio, license and supply arrangements.
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Blessing's experience lies in business, finance, literature, and marketing. She enjoys writing or editing in these fields, reflecting her experiences and expertise in all the content that she writes.