Tag Archives: clothing

Wear Lululemon Gear While Working Out on Mirror

Acquisitions can be tricky. Companies need to assess what markets to enter, and which products and services are needed for those markets. While it is common for food and beverage companies to use acquisitions to gain market share (consider Pepsi’s recent purchase of Rock Star beverages), it can be a tad trickier when combining other companies. A key consideration is that companies find synergies that can be capitalized on when combining organizations. Recently, Lululemon may have found a good acquisition as it expands beyond athletic apparel to acquire fitness equipment manufacturer Mirror.

Mirror is a high-tech, interactive mirror that streams workout classes, offers live classes and on-demand classes, plus more intensive one-on-one personal training session. Mirror launched in 2018 (and received an investment from Lululemon in 2019). The Mirror equipment is a low-profile mirror – yes, a mirror – priced at $1,495 purchase plus a $42 monthly membership fee. Personalized training is $40 per session. Lululemon has a strong brand and loyal customer following. In addition to its trendy athletic gear, it offers fitness classes in stores and online.

The acquisition is happening at a time when Americans have been impacted by Covid-19 and are working out at home instead of going to the gym. Even with new safety measures, many people are opting out of gym memberships in favor of home workouts.

Shall we work out inside today?

Group Activities and Discussion Questions:

  1. Discuss the four key marketing strategies: product development, market development, market penetration, and diversification.
  2. Discuss acquisitions as a marketing strategy. When is this effective? When is it not effective?
  3. Show Lulemon’s web site: https://shop.lululemon.com/
  4. Show Mirror’s web site: https://www.mirror.co/
  5. How do these two companies complement each other?
  6. Divide students into teams. Have each team develop a promotional plan that the companies can use to promote their union.

Source: Associated Press; CNN News; New York Times; other sources

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Why Buy Clothes? Rent Them Instead!

Do you have a tough time keeping up the latest fashions? Or, an even tougher time paying for the new designer clothes you covet? Despair no more. Instead of buying, try renting your clothes!

Renting clothes is a new way to spruce up wardrobes without breaking the bank. While there are a number of subscription-based services such as Rent the Runway, traditional retailers are also entering the new market, including options to rent clothes from Bloomingdales’, Banana Republic, Urban Outfitters, and more. Consumers are not limited to just renting clothing – some retailers rent shoes, jewelry, and handbags, too. And, lest you think this is just for women, a number of companies rent clothing and accessories to men as well.

The clothing rental industry, while still relatively new, is also quite large and still growing. According to research firm GlobalData, the clothing rental industry is roughly $1 billion today, and is projected to grow to $2.5 billion by 2023. Not too shabby (chic).

The sharing economy industry is still establishing itself for consumers who are not interested in owning, but still want access to new brands and services. After all, consumers already rent apartments, homes, cars, bikes, and furniture. Now we can add clothing to the list.

What will you wear?

Group Activities and Discussion Questions:

  1. Discuss the sharing economy. What is it; what drives it; what should we watch?
  2. Show a video overview of clothing rental: https://youtu.be/7OKLqBZoOYY

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Target Launches New Athleisure Clothing Line

It’s a new year and a new time to set some resolutions, right? Target thinks so and has come up with a set of resolutions about the joy of movement, being inclusive and accessible. These resolutions are a lead-in to a new Target brand of athleisure apparel.

Athleisure apparel sales in the U.S. have grown 140% in the last decade and is expected to reach $83 billion. Athleisure is a crowded market however, with loyal followers of brands such as Lululemon and Athleta. What will Target need to do to create value for customers of its new “All in Motion” line of active wear and sporting goods?

The company did extensive research for the new line. Target gathered data from more than 15,000 men, women, and kids, from all areas of the country, to gain insights into what customers want from their sporting apparel. The result is a new brand of sports apparel that was developed for the entire family, at all stages of fitness, and in diverse sizes.

All in Motion also uses sustainably-sourced materials, and includes features such as water-resistant, UPF50+ sun protection. Designs include secure zippered pockets, thumbholes in sleeves, and is a broad range of sizes. But the best part is that prices will be mostly under $40.

Ready to move?

Group Activities and Discussion Questions:

  1. Discuss the components of a situation analysis: company, general industry, trends, key competitors, technology, legal, etc.
  2. Review Target’s new line of athleisure clothing: https://www.target.com/b/all-in-motion/-/N-4apdi?lnk=Madeforeverymov
  3. Ask students what data they would need in order to make a marketing decision to start this product line.
  4. Divide students into teams. Have each team do secondary research to answer the questions such as industry overview, size, growth, competitors, social trends, new technologies, environmental impact, etc.
  5. Debrief the exercise by compiling information on the white board. Does this give a good picture of how Target arrived at its decision?

Source:  Ad Week; Minneapolis Star Tribune; other news sources

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