Innovation at heart of Lululemon culture
Love it or hate it, ‘‘athleisure’’ has become a formidable force in fashion and sportswear, and the company that inspired it puts innovation first to stay on top.
Canadian company Lululemon, is widely known as the leader in the athleisure or ‘‘activewear’’ trend, where gym clothes are worn as everyday outfits.
Staying ahead of the curve required more than just goodlooking clothes though. Lululemon senior vice president of innovation Tom Waller, will be talking about Lululemon’s innovation culture at the upcoming Better by Design CEO Summit, run by New Zealand Trade and Enterprise.
The company’s Whitespace team is tasked solely with innovation and its workshop uses prototyping, environmental simulation, human performance assessment and materials testing in all stages of product design and development.
Customer-facing results of this includes its technical, sweatwicking fabrics and its in-store pants wall.The new pants wall was implemented in 2015, and organised pants based on ‘‘sensation’’ - ‘‘hugged’’, ‘‘naked’’, ‘‘relaxed’’, ‘‘tight’’ - rather than organising them from tightest to loosest.
According to the company’s fourth quarter results last year, the new wall increased sales by 19 per cent from September 2015 to January 2016.
‘‘Since day one, we have focused on creating progressive athletic apparel for our guests who we know lead active lives and are looking for gear that carries them seamlessly from day to night,’’ Waller said. ‘‘We believe our philosophy of enabling our guest to live a life they love, and that will always keep us ahead of the curve.’’
The company’s third quarter fiscal 2016 results show its net revenue increased 13 per cent on the previous year to US$544m (NZ$758m) and gross profit increased by 24 per cent to US$278.4m.
Waller said the company was on track with a five-year plan to double revenue and more than double earnings, expanding its reach around the world.
According to First Retail Group managing director Chris Wilkinson, Lululemon will continue to thrive.
He said Lululemon has created a brand that people desired and has achieved the ‘‘holy grail’’ for retailers: a strong depth of connection.
‘‘Lululemon has done that through things like grabbing names of customers before going into changing rooms and having those free yoga sessions on Sunday mornings. It’s all about the depth of connection.’’