Why Is Lululemon So Expensive? (13 Reasons Why)

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Yasmin Fisher

Yasmin Fisher is a fashion-loving shopaholic who has spent the last 10 years in customer service. She loves finding great deals, and thrifting is one of her favorite weekend activities.

Lululemon’s name is everywhere because they’re one of the most successful athleisure brands on the market today.

However, have you been wondering why is Lululemon so expensive? Here is what I discovered!

Why Is Lululemon So Expensive?


1. They Have Strong Competitors

When you think of sportswear, your mind will probably wander to Nike, Adidas, or even Puma.

All of these companies were founded near the middle of the 19th century. They’ve got strong roots in history and in people’s minds.

In contrast, Lululemon is still relatively new to the market. The company was founded in 1998!

To compete and stay in the same lane with those tough rivals, they have to maintain certain aspects of their company. Whether it’s marketing ploys or inventions, companies have to beat their rivals to stay on top.

2. Lululemon Aims for a Certain Demographic

In the beginning, Lululemon targeted high-income women between the ages of 18 and 35. But their plans have changed since then, and now they target both men and women as well as children.

Nonetheless, when it comes to the “high-income” part, there wasn’t much of a change there.

Many of the brand’s customers seem to be in a cult-like mindset. They believe that being fit or healthy is a must.

Fitness buffs are always looking for the latest workout gear or supplements. They’ll spend a lot of money to get what they need to reach their goals, no matter how much it costs.

3. It’s a Famous Brand Name

Lululemon sportswear is a brand name that gives people a form of a status symbol and a lot of self-esteem when compared to their peers.

They’ve created a culture around their products that helps to define who you’re as a person. This is something very few brands can do successfully.

People are willing to pay a premium for luxury brands because they’re also paying for the exclusivity of the brand’s name. Status is one of the reasons why people buy anything!

4. Their Products Are Very Fashionable

Lululemon is the go-to brand for any type of sportswear. Their pants or tank tops aren’t only comfortable, but they look good in any setting.

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Whether you’re lounging around the house or running a marathon, Lululemon’s sportswear is a perfect choice.

That’s why they’re so popular with consumers! People love to show off the brand when they go out in public or wear it when they work out.

Their sports apparel is a convenient mix of fashion and comfort. A lot of people would immediately loosen their purse strings just for this blend!

5. Their Sportswear Is Functional And Lightweight

When it comes to workout apparel, Lululemon is the place to shop. Its designs aren’t only fashionable and comfy, but they’re functional as well.

Their pants, for example, are the one-stop shop for all your needs. They’re breathable, flexible, and have sweat-wicking fabric as well.

Another popular item is their tank top. It’s also breathable and has sweat-wicking fabric. What’s more, it has something that many women need when it comes to training—support.

Some of their tank tops offer light support for all athletic women out there. If you’re a runner or someone who enjoys hitting the gym, then you know that support is essential!

6. Lululemon Is Very Self-Sufficient

Lululemon Athletica is a very self-sufficient retailer. It almost entirely sells its merchandise through its physical stores or its official online store.

This exclusivity ensures the brand a few benefits. For example, its name guarantees that consumers will be looking only at Lululemon products. They won’t be distracted by any other brands around the store, since there’s only one name to focus on.

However, creating a physical and online retail presence is expensive. Many retailers spend most of their money on maintaining the image of their physical stores and their staff.

7. Expensive Production Costs

Expensive Production Costs

Lululemon makes sure that their clients are getting top-quality products by using expensive machines as well as fabric development techniques.

Before they even start producing the items, the fabric itself is put through various tests to ensure its quality.

Lululemon’s previous CEO has stated that the company is committed to product quality and authenticity. They even partnered with SGS Group, a third-party inspection company, to ensure those standards are met.

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Moreover, Lululemon develops and produces its own material, such as Nulu fabric or Everlux. To create and test all of this, they use a lot of expensive machines and workers.

8. Lululemon Is Committed to Research and development

So far, we’ve learned about their creations and how they responded to their customers’ needs. But how did they achieve all of this?

Lululemon has formed an excellent team of researchers and design experts. The team’s goal is to experiment with fabrics and materials for all kinds of clients.

The company invests a lot of money in its studies and development research. They also have a facility, known as Whitespace lab, in Canada that’s used to improve their main goal.

9. Lululemon Uses the Scarcity Strategy

Lululemon’s previous CEO believes that in order to increase the value of its products, they need to be rare and unique. So, the brand has been pushing its exclusivity by making it harder for people to acquire its products.

They don’t just mass-produce different clothes or products. As a matter of fact, once they’ve sold out a certain item, they’re completely gone.

Scarcity is one of the main psychological triggers that stir people to buy anything no matter the price. Simply put, when something is rarer, people want it more.

10. They Collaborate With Famous Celebrities

Celebrity endorsements are a common way to market new products and services. However, they’re not cheap. For instance, Lululemon has a specific pair of leggings that are endorsed by Gwyneth Paltrow herself!

Hiring celebrities as brand ambassadors can boost product demand and value by creating a cult-like community of consumers.

In addition, using online influencers is another popular and costly way of promoting brands on social media platforms than can be costly.

11. They Received a Lot of Publicity From the Start

Bad publicity is still good publicity. This common saying is very accurate when it comes to Lululemon and its founder, Chris Wilson.

In its early days, Lululemon grabbed the media’s attention because of the controversy surrounding its founder’s controversial opinions about women and child labor.

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However, this never stopped their climb to the top. In fact, people wanted to see what all the fuss was about so they went out of their way to find out!

12. They Need to Protect Their Products

If you haven’t heard, Lululemon produces what’s known as “designer wear.” Basically, the company creates clothes made by expert fashion designers. So, they have to file patents when they design a new product.

To protect themselves, Lululemon has a legal team to protect the company from lawsuits and to help fight for its property rights.

For instance, back in 2012, they filed a lawsuit against Calvin Klein for copying a number of its pants design. The settlement of these issues can be costly, and the legal counsel teams involved are paid a significant amount of money for their work.

13. They Must Maintain Their Policies

A product recall can be costly for a company. It may lead to a loss of sales and cause the company to lose money in the form of lost revenue or paying for the cost of a recall.

When products are recalled, like what happened with the recall of Lululemon’s sheer yoga pants, they can’t be sold again at all. The material is discarded and any delivery or warehouse storage costs must be paid.

However, the company still needs to maintain its return policy, which could lead to extra expenses.

Final Words

So, why is Lululemon so expensive? That’s because Lululemon is a company that pays attention to every detail in order to keep its image and reputation up.

They also guarantee their clients great quality products with their constant research and development. Moreover, they get many influencers and celebrities to endorse their clothes which can be costly as well.

Author

  • Yasmin Fisher is a fashion-loving shopaholic who has spent the last 10 years in customer service. She loves finding great deals, and thrifting is one of her favorite weekend activities.

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