Lululemon Athletica

Lululemon Athletica

  • Case
  • Teaching Notes
Abstract

The case traces the development of Lululemon Athletica (Lulu) from founder Chip Wilson’s first post-yoga euphoria in 1997 through to the sale of all his shares in 2015. Officially founded in 1998, Lulu was built on the foundation of its “miracle” figure-enhancing yoga pants made from a proprietary stretch fiber. The case outlines Wilson’s early experience in technical performance wear, which gave him the expertise needed to launch the Lululemon brand with its premium-priced, fashion-designed product line targeted at upscale women. The case also highlights the retailing and promotion approach that drove Lulu’s first decade of success. The snapshot of how the Lulu brand cult was born and diffused provides the backdrop for assessing whether the brand has already hit its peak or whether it ...

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