Lululemon's e-commerce sales saw a considerable surge of 100% in the year 2020.
Lululemon, the popular athletic apparel brand, has announced ambitious plans for 2021 and beyond, focusing on expanding its digital fitness strategy and entering the footwear market.
In July 2020, Lululemon completed the acquisition of Mirror, the interactive home fitness startup, for approximately $500 million. The integration of Mirror into Lululemon's digital and in-store strategies was fully underway by 2021. Now, the brand plans to expand Mirror's at-home tech internationally, starting with Canada in time for the holidays.
CEO Calvin McDonald stated that 2020 has reset the company's expectations for the growth potential of its e-commerce business. As a result, Lululemon aims to replicate the in-store relationship with customers on its digital platforms, by enhancing storytelling and making other improvements.
In addition to its digital expansion, Lululemon announced plans to launch footwear for women in 2022. The move is part of the brand's strategy to grow revenues and diversify its product mix. As of recent analyst reports and company communications, Lululemon is continuing to expand its nascent athletic footwear line, with footwear positioned as a strategic growth area.
Lululemon's 2023 goals include doubling men's sales and quadrupling international sales. The brand also has a significant pipeline of products, including expanding further into yoga, training, and run categories, as well as introducing new activities. CEO Calvin McDonald stated that Lululemon achieved its largest annual share gain in recent history, thanks to growth in both men's and women's.
In a major development, Lululemon expects to launch a footwear line early next year, which will enable the company to offer "head-to-toe" products for customers. This strategic move follows the success of Mirror, which brought in $170 million in revenue for the full year of 2020, and is exceeding expectations.
Analysts are not concerned about the increased capital expenditure of $335 million to $345 million, as they believe in Lululemon's track record of investing in long-term growth drivers. Telsey Advisory Group analysts believe that the company's shift from store investments towards digital will benefit its gross margin and impact SG&A.
Lululemon also plans to open 40 to 50 new stores globally in 2021, while continuing to offer services like curbside pickup, virtual waitlists, and appointment shopping in its physical stores, which became popular during the pandemic.
In a recent partnership, Lululemon and Peloton announced that Peloton would become Lululemon's exclusive digital fitness content provider, and Lululemon the primary athletic apparel partner for Peloton. This marks a pivot from the initial Mirror-driven digital fitness strategy, but Mirror (now branded under Lululemon’s Studio Mirror) remains part of Lululemon’s broader digital fitness ecosystem.
With these strategic moves, Lululemon is well-positioned to continue its growth in the coming years, offering customers a comprehensive range of products and services for their active lifestyles.
- Lululemon is focused on expanding its digital fitness strategy and entering the footwear market, following its acquisition of Mirror, an interactive home fitness startup, for approximately $500 million in July 2020.
- In 2021, Lululemon aims to expand Mirror's at-home tech internationally, starting with Canada, as part of its strategy to replicate the in-store relationship with customers on its digital platforms.
- Lululemon announced plans to launch footwear for women in 2022, as part of its strategy to grow revenues and diversify its product mix, with footwear positioned as a strategic growth area.
- Lululemon's 2023 goals include doubling men's sales and quadrupling international sales, as well as expanding further into yoga, training, and run categories, and introducing new activities.
- Lululemon expects to launch a footwear line early next year, marking a pivot from its initial Mirror-driven digital fitness strategy, while Peloton has become Lululemon's exclusive digital fitness content provider, and Lululemon the primary athletic apparel partner for Peloton.
- With its focus on digital expansion, footwear entry, and a comprehensive range of products and services for active lifestyles, Lululemon is well-positioned to continue its growth in the coming years, leveraging technology and partnerships in the sports, business, retail, lifestyle, fashion-and-beauty, finance, and technology industries.
