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Lululemon’s competition—Alo Yoga and Vuori—is getting bigger, but the Canadian active lifestyle brand still retains its leading position in the athleisure market.
That was the conclusion based on four in-person professionally-managed focus group surveys that TD Cowan conducted this past June in New York over two days, with the help of Gundell Focus Groups.
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One key finding is that Lululemon still has a loyal fan base for its bottoms. However, the core bottoms category may have peaked, since that category does not appear to be attracting new customers. Lululemon does have growth potential in other categories, such as workwear and men’s wear. All groups also noted Lululemon’s decreasing quality, particularly with its leggings. Still, the Canadian brand retains a competitive advantage due to customer loyalty. Among the criticisms for the brand is that some products can be too basic, and that it speaks to moms and teens, but not so much to Gen Z.
In comparison, Alo Yoga and Vuori have scaled up and each has grown its respective customer base. The two brands attract customers who are “influenced by current fashion trends and social media or seek comfort and versatility” unavailable in Lululemon products in the same manner, noted TD’s Focus Group summary. And while both brands are viewed as having “tremendous momentum and upside potential,” the reliance on influencers runs the risk of being too trendy. That means diversification of product line and expansion of customer base are requirements to prevent the risk of becoming a “fad.”
Alo Yoga customers are primarily in their 20s, whose priorities are fashion, style and current trends. They follow the brand’s influencers—Kendall Jenner, Gigi Hadid, and Hailey Bieber among them—and want to copy their lifestyle. Some respondents said the brand’s stores are clean and modern, and a few seemed impressed by the rooftop gyms at some locations. And at least one said the brand created a community that celebrated diversity, inclusivity and empowerment.
In comparison, Vuori attracts customers who want athleisure to transition from workout to everyday wear. The brand emphasizes sustainability and materials, which the TD report said “is a compelling quality story.” The respondents loved the soft fabrics, with the men favoring the options for collared shirts, polos, and shorts. Among the men in the group, they cited the quality and durability as better than Lululemon, and said they liked the brand’s healthy, active, California vibe. Among the criticisms were that the brand seemed to target an older customer, lacked color options, and that it needed to do more work on their tops, including adding support to its sports bras.