Nike Will Grab The Yoga Market With Lululemon

Recently, the international sports giant

Announcing the launch of the new Yoga series, the highlight of this series is the new male Yoga category.

It is reported that this is the first time Nike has targeted yoga.

Sportswear is designed to compete directly with the yoga clothing brand Lulu lemon, which is currently focusing on developing the international market and plans to take it in 2020.

Business increased to $1 billion.

And Nike's entry or exacerbation of the market competition for yoga products.

Industry competition pressure is not small "predecessor" performance bright eye

In the Nike Yoga market, a topic that cannot be passed is a comparison with its predecessor, Lulu lemon.

Nike said that from skateboarding athletes to sprinter, many athletes have a secret weapon to enhance athletic performance yoga.

Yoga is a basic training program for all professional sports, according to Ryan Flaherty, Nike's senior director.

And Lulu lemons promote yoga as a way of life promotion. The difference is that Nike tries to expand the audience of yoga, including men.

In addition, they launched a series of yoga courses on Nike Training Club.

On the one hand, Nike was in high spirits and the other side was Lulu lemon.

It is reported that in the third quarter of 2018 earnings conference call, Lulu lemon digital business in China increased by 76%, the past two years increased by 200%.

One of the main partners of Lulu lemon in China is Tmall. During the "double 11" period in 2018, Lulu lemon's Tmall business grew by 150%.

In addition, Lulu lemon launched its loyalty program for the first time in order to better understand consumers. The plan is being tested at its Canadian store in Edmonton.

The plan encourages guests to pay annual fees of $128 to open exclusive benefits.

It is understood that the exclusive benefits that guests can enjoy include getting a pair of free pants or shorts designed by Lulu lemon for the program, taking part in related courses, participating in company sponsored activities, and free electronic orders for urgent pportation.

It is reported that the preliminary results of the project are positive, and it is expected that the project will be further launched in the future.

Loyalty plan is another form of subscription mode, which is becoming more and more popular in many markets.

Using this subscription mode, Lulu lemon has the opportunity to obtain recurring revenue at relatively low cost.

The rise of Nike's "Yoga economy"

With the huge pressure of "predecessors" entering, Nike has taken a fancy to the "economy" of the Yoga market.

In 2018, the first financial business data center (CBNData) released the "2018 online sports consumption trend big data report" shows that, with the coming of the national sports health boom, young people's awareness of sports fitness has improved, sports methods have begun to break through the gender restrictions, and traditional women's fitness methods such as dance and yoga are being pursued by more and more men.

Among them, yoga in 2016 to 2018 years, in the male sports mode heat rating increased to second, second only to diving.

And in Lulu lemon performance analysis report in the 2015 fiscal year, pointed out that because of the hot sale of ABC men's trousers, Lulu lemon menswear market income increased by 17% in the fourth quarter of the year, and increased by 15% throughout the year.

So Lulu lemon decided to increase the development of the male market.

From 2015 to 2018, sales of Lulu lemon in the male market maintained an average annual growth rate of 20%, with a total sales exceeding 330 million dollars. Its chief executive, Stuart Haselden, believes that by 2020, the total sales of the male Yoga market will reach 1 billion dollars.

It is reported that from 2004 to 2017, Lulu lemon has grown from a small enterprise with an annual income of 18 million US dollars to the head office of the global Yoga market, whose sales volume has exceeded 2 billion 600 million US dollars. This is mainly due to the selling of its main products in the female market.

However, the development of Lulu lemon for the female market has become more and more limited.

This makes Lulu lemon continue to expand the female market, looking for new sales growth point.

Public information shows that although its market sales exceeded 2 billion US dollars in 2016, its growth rate gradually stabilized from 2016, and did not reproduce the "myth" of the compound growth rate of 52% from 2004 to 2015.

The impact of Nike entry on the Yoga Market

At present, Nike says it will compete with Lulu lemon for the male Yoga market, because Nike's main sales target is men, and Lulu lemon's strong momentum in the male Yoga market will touch Nike's core interests.

According to the world clothing and shoe net, Forbes magazine thinks Lulu lemon will increase its pressure in the market competition, because its competitors are not just from the sports market Nike, Andrea and other brands, but also have the same fashion and leisure sports Calvin Klein, Gap and other fashion brands.

An expert who does not want to be named in the China Apparel Association Industry Department believes that the key to whether an enterprise can maintain its core competitiveness lies in whether there are competitive barriers, such as technological superiority and price advantage.

He said Lulu lemon's higher price might be a resistance to expand the market.

On the other hand, he believes that the growth of the Yoga market is very large, and more and more consumers are involved in the fitness campaign. Some international giants are also driving the market to expand.

"Some enterprises need to seize the market of those who have not yet met with yoga, which also depends on the marketing strategies of some enterprises, such as whether they understand the consumption psychology of the Chinese market well enough."

He said.

The sales staff of Lulu lemon Beijing APM store said that the yoga sports threshold is relatively low, easy to popularize, do not need too much space and professional equipment, yoga clothing becomes the main product.

"Modern white-collar life is more stressful, so Lulu lemon also focuses on this part of the market. We are more focused on conveying a healthy lifestyle advocated by yoga. For Nike's entry, I believe we have our own consumer groups and core competitiveness."

She said.

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