No. of Recommendations: 4
I avoid fashion and this is a major reason why.
The dilemma for LULU is that it can't easily move outside of its market without moving away from what made it successful. But if it stays in its lane (which I think is the better choice), it's already yesterdays news. The trendsetters for the "young and fit" aesthetic already moved over to Alo, and a variety of other microbrands. I take it from this thread that this may not have been the case in China, but it is the North American reality. I live by two of the flagship stores for each chain and I see it upfront daily. Only Alo is prompting the kind of aspirational "look what I bought" behaviour that made LULU successful. This is very likely to get worse over time, not better, for the obvious reasons. And if you're going for something else (travel wear), there's already a flood of options.
Everything has a price but I wouldn't be surprised if LULU closes its doors within 10 years. LULU's selling point was being on (and even creating the) trend. A lot of the trend has moved on. That's a tough business to be in.
