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Who said yoga pants were made only for yoga? Not?Lululemon! Founded in 1998 in Vancouver, Canada, the yoga-inspired, technical-apparel brand is on everyone¡¯s lips.?

Is it because they managed to grow in 2020, reaching??while others faced downturns during the Covid-19 crisis? Or is it because so many hip influencers swear by those highly technical, and high-quality products?

No marketing necessary: Lululemon¡¯s authenticity and money generator

One important element of?Lululemon¡¯s strategy?is that the brand does not utilize any marketing. Unlike its competitors, there are no extensive campaigns, no flashy billboards, no significant collaborations, and no TV ads.?, BMO Capital Markets Managing Director and Senior Analyst said that ¡°For every dollar earned atNike,?Adidas, and other activewear players, 10 cents goes to marketing, while lululemon does not.¡±

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This?strategy?is built on?Lululemon¡¯s active, strongly nurtured community. Thanks to this authenticity, the brand can avoid relying on marketing ¡ª and still earns money. In fact, the Canadian brand generates almost two times?Nike¡¯s operating margin.?

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How to focus on the customer? Ask Lululemon.

One of the most significant differences between?Lululemon?and its competitors is that the yoga-inspired brand focuses solely on apparel and sports accessories. Unlike companies like?Nike,?Adidas, and?Puma, which started as sports-shoe brands ¡ª and get the largest share of their revenue from shoes ¡ª?Lululemon?does not sell shoes.?

Some might say that this is a development opportunity for?Lululemon. However, as activewear is a highly competitive category, differentiation is essential. Selling articles in an arena where one has no??would be risky, and Lululemon understands that ¡ª which is why?Lululemon¡¯s strategy?focuses only on what its consumers are looking for when they head to Lululemon: yoga and fitness-inspired apparel.

Retviews?data shows us that the famous legging made?Lululemon?a household name accounts for the second-biggest category and that competitors are not prioritizing leggings.?

On a side note, as?Lululemon?does not offer shoes and focuses solely on apparel, their strategy allows the Canadian brand to offer a wider variety of products and colors. It focuses on its customers more than its competitors.

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Sports: not just for men?

Lululemon?went into business making yoga-inspired apparel for women, which became a hot commodity and made it a successful company. Recently, the Canadian brand has expanded its offerings to men as well.?

There are more clear differences in strategy compared with?Lululemon¡¯s competitors?in terms of articles geared toward men.?

Indeed, well-established activewear brands like?Adidas,?Nike, and?Puma?focus mainly on male consumers ¡ª though it¡¯s worth mentioning that the??in this area is steadily narrowing.?

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Iconic yoga pants come at a price

In terms of price positioning,?Lululemon?stands out once again among its peers. While the most frequent price of a pair of leggings is $40, the Canadian brand prices its iconic stretchy athletic pants at more than $110.?

According to Lululemon, the price is justified by the article¡¯s quality, and the brand¡¯s fans are more than willing to pay that price. As Simeon Siegel said in Business of Fashion, ¡°Its products might be pricey, you might not like the design, but you cannot complain about the quality of the product.¡± Are yoga pants going to become a status symbol?

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Activewear brands are moving toward a more sustainable future

Compared with its competitors, who aim to make 100% of their assortments with sustainable materials in 2025, Lululemon¡¯s strategy takes it slightly slower. The Canadian brand goal is to reach 75% made of sustainable materials by 2025.

When looking at the biggest share of fabric used,?Lululemon?still relies heavily on nylon, polyester, and elastane, which are all petrol-based fabrics. Lululemon isn¡¯t alone in this regard ¡ª its competitors also use a lot of petroleum-based materials.

Retviews?data shows us that?Lululemon?uses the same amount of recycled polyester as it does new polyester. This is a small step, but it moves them closer toward sustainability.

One side note: a tricky element to consider when discussing activewear is that this industry has to balance performance with eco-friendly materials. Indeed, most innovations and technology for the production of breathable, water-repellant, sweatproof garments are made with highly engineered fabrics derived from petroleum. The question arises: should one compromise performance to create a more eco-friendly product?

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Lululemon¡¯s secret? Focus on what you do best ¡ª and only that.?

The iconic yoga brand has done one thing since its debut, and now the big players in the industry are pushing it forward: focus on building a community. Indeed, nurturing consumers to develop a community and make them into brand ambassadors is what?Lululemon?has done since its early days. This helped Lululemon spend nothing on marketing but still earn almost every penny of their products.?

At the same time,?Lululemon¡¯s strength lies in understanding its comparative advantages and improving its products to meet consumer expectations. ¡°Focus on what you do best, and only that¡± is a crucial component to?Lululemon¡¯s success ¡ª combined with premium prices, because business is still about making money.?