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Lululemon 1.0.1.

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Viktoria Varvolgyi

on 25 January 2015

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Transcript of Lululemon 1.0.1.

Lululemon:
The Sheer Pant Scandal

1st Crisis:
The
black
pant
2nd Crisis: Disrespect
The Company
Founded in Vancouver, BC in 1998.

Founder & former chairman: Denis
'Chip' Wilson

Yoga-inspired athletic apparel
3rd Crisis: Communication
Timeline
March 18, 2013
- Lululemon posted "A Letter To Our Guests" on their website and blog

- Press release: "Black Luon Pants Shortage Expected" as "Certain shipments of product received from our factories and available in store from March 1, 2013 do not meet our technical specifications."
March 24, 2013
- Lululemon makes light of the issue
- Begins attempted recovery from the crisis (until Wilson's statement)
June 9, 2013
- Christine Day resigns from position as CEO
June 13, 2013
- Lululemon posts to Facebook: CEO Wanted
November 5, 2013
- Chip and Sharon Wilson, Co-founders of Lululemon interview with Bloomberg TV
- "Quite frankly some women's bodies just actually don't work for it."
November 8, 2013
- Chip Wilson apologizes for Bloomberg interview
- Video is shared via social media sites, incites conversation
November 12, 2013
- Lululemon releases "Second Chance Pant" & admits fault
- "This is what celebrating failure looks like!"
December 9, 2013
- Chip Wilson, founder, steps down from his position as chairman
- New CEO, Laurent Potdevin, is appointed
Repair Strategies
Other Responses
- Second Chance Pant
- Full-on luon: #letsgetfullon
- Jimmy Kimmel spray-on pants
Results
- Recall affected 17% of the
yoga pants
- Shares dropped 13%
(Nasdaq)
- Estimated loss of $67-$70
million in 2013
- Company figureheads left
their positions
- Bad media coverage
- Damaged brand reputation
What They Could Have Done Better...
- Visible level of sheerness on the
yoga pants made of the company's
signature Luon material

- They were recalled after being
considered low-quality.
- CEO resigned
- Sheer pants were recalled
- Excuse
- Humor
- Compensation
- Apology: "The worst apology ever"- TODAY show
1.
Japanese L
According to a National Post Business Magazine article, which had honored him for his product innovation, Wilson said that: “It’s funny to watch them try and say it.”

2.
Their pants are not for all
In November 2013. in the Bloomberg interview Wilson's statement was as follows: "Quite frankly, some women's bodies just actually don't work,... its about the rubbing through the thighs and how much pressure is there over a period of time." - Chip Wilson 2013
The latter one sparked outrage from the public
1. Lululemon skimps on plus sizes, in fact,
female product size only go up to 12
which they call XL

2. Some of their Ads are quite offensive
- Logo is a stylized ‘A’
for athletic or athletica

- Mission statement:
empower women by
creating components for
them to live a longer,
healthier, and fun life.
Introduction
- Trademark fabric called "
Lulon
" which is a nylon-
and-lycra-blend.
Viktoria Varvolgyi
Lululemon's role in
Fashion & Fitness
athletic apparel (esp. yoga)
goes after the same market as Nike, Under Armour and Gap Inc. (Athleta)
women's line
men's line
services
Lululemon launched Ivivva in 2009 for young girls (age 6-12)
References
Walker, Mark. “Lululemon Athletica- Driving a Culture of Individual and Organizational Development, Accountability and Innovation." 29 Sept. 2011.
URL: http://www.hrmtoday.com/featured-stories/lululemon-athletica-driving-a-culture-of-individual-and-organizational-development-accountability-and-innovation/

Johanson, Christina, Komvopoulos, Joanna, Kadakia, Shital. "Brand Audit: Lululemon Athletica" 12 Dec. 2012.
URL: http://www.slideshare.net/JoannaKomvopoulos/lululemon-athletica-brand-audit

No Author. "Case Study: Lululemon Athletica" Jan. 2007.
URL: http://www.metrovancouver.org/smartsteps/bestpractices/Case%20Studies/casestudyretaillululemon.pdf

"Lululemon Athletica": Wikipedia, The Free Encyclopedia.
URL: http://en.wikipedia.org/wiki/Lululemon_Athletica

1. A more sincere apology

2. Improve PR

3. Re-brand themselves

4. Be more sensitive towards
consumers
Full transcript