Lululemon is one of the hottest emerging shoe brands in the world. Instead of being affected by the Covid pandemic in 2020, Lululemon shoes has taken many opportunities to rise to be a worldwide shoe brand quickly. Lululemon’s business story will be an inspirational example for many young entrepreneurs in different fields.
Table of Contents
- Overview 2020’s top global shoe brands
- Overview the history of Lululemon Shoes
- Why can the Lululemon shoe brand be so successful?
- Focus on the retail market
Overview 2020’s top global shoe brands
During the year of the global Covid pandemic and complicated operations of big brands, many major brands from fashion, cosmetics, and technology have seen their unprecedented decline in revenues. The epidemic affects the income of many individuals and causes many self-employed workers to be unemployed. Even small and medium business owners face a lot of challenges.
Overview 2020’s top global shoe brands
In such a gloomy economic picture, there are still unexpected businesses like the footwear sector. A rare economic sector still maintains economic growth but is quite impressive. Leading the footwear business market, Nike achieved 34.7 billion USD, increasing 12% of sales in 2020, Adidas 21.9 billion USD, Puma 5.5 billion USD, Converse 1.91 billion USD, Balenciaga 1.37 billion USD at the same rate of revenue growth.
The above are all long-standing shoe brands with 60 years of operations, such as Nike, founded in 1964; Adidas, Puma in 1924; converse in 1908, Balenciaga in 1919. Nike is the No. 1 globally, with revenue accounting for over 50% of the world market, nearly twice as high as the second global brand, Adidas. On the other hand, the market shares of Puma, Converse, and Balenciaga represent a relatively modest number of total global shoe sales.
Related: Adidas shoes for women.
Overview the history of Lululemon Shoes
Among the long history of shoe brands, there is a new one established in 1998. Over 20 years, Lululemon shoes have been much younger than others. But Lululemon’s business growth makes any economic expert admire it. If you invested $1000 in stock in Lululemon in 2010, it would be $20,000 in 2020. Its growth is ỉmpressive while most brands are facing significant difficulties.
Overview The history of Lululemon shoes
The average growth rate of major shoe brands globally in 2020 is 12%, and with Lululemon, it is 40%. The growth of Lululemon is an inspiration for young businesses that are willing to accept challenges and develop. Lululemon’s sales are currently quite close, with Puma being the 3rd global shoe brand. However, it has a big difference with Adidas, when Puma’s sales figure accounts for only 25% of the world’s top second shoe brand.
|Annual revenue (million USD)||$84||$453||$1797||$2649||$3979|
Table of the annual revenue of Lululemon through years
Of course, this sales figure for Lululemon is not only for shoes. Lululemon’s current products focus on yoga pants for women. The development campaign for shoes only started at the end of 2019. Nevertheless, the growth in sales of Lululemon is a memorable lesson in terms of innovation and creativity in business.
Why can the Lululemon shoe brand be so successful?
Innovation in advertising and business campaigns
The success of the Lululemon shoe brand stems from an innovative marketing and sales campaign that keeps up with the needs and trends of the market. Marketing today plays an increasingly decisive role in the success or failure of any business. In addition, more and more customers appreciate the role of the company’s social and community contributions.
Why is Lululemon successful?
Lululemon’s 2020 revenue increased significantly due to its shift of the campaign for producing sports shoes. Lululemon’s shoes are pretty expensive, from 140 USD a pair, showing that Lululemon is currently trying to hit the high-end segment. It is said that later this year and early 2022, Lululemon will launch new shoe campaigns to increase its market share.
Well, understanding the needs of customers.
Understanding customers’ needs with sports training such as yoga, gym, Lululemon sells shoes based on providing information and value to customers. Today, if you only sell products and stick to an advertising campaign about the product, you will no longer have much effect on sales because customers’ needs are getting higher and higher.
Understanding the needs of customers well
They want more helpful information about the products, such as using them and what benefits can be made. Therefore, in addition to advertising, you should bring life into the product, giving customers many different ethical, cultural, and social values about that product. The better a business solves this problem, the faster it will gain a good market share.
Effective communication messages
In addition, Lululemon’s shoes also advocates a business campaign with a highly innovative message of bringing real value to customers about products. For many years, the popularity of the media is considered to deceive many customers when it exaggerates the true value of the product while the actual value it provides to customers is not high.
Lululemon’s shoes hit the advertising campaign with the message that it only wants to bring the product’s actual value to customers. And this quickly goes into the hearts of customers. With effective communication messages, Lululemon successfully builds its brand in customers’ minds and makes it memorable for them when they want to buy shoes or yoga pants.
Focus on the retail market
The retail market today is becoming more and more attractive to consumers. The reason is that it brings convenience to consumers. Customers increasingly do not like to go to big shopping centers to buy goods; they want to buy goods close to home or buy online because it significantly saves their shopping time.
While many stores in large shopping centers tend to experience a decline in sales, profits in the retailing sectors are increasing. Lululemon’s shoes also quickly realized the significant change of this market, so it focused on retail business instead of selling in shopping centers with high expenses rates.
Above is information about the Lululemon shoe brand. Let’s wait and see what this brand is about to do shortly. If you like our article, don’t forget to follow us on our website to get more information about shoes as well as advice for foot health.