Lululemon Athletica, a Canada-based athleisure apparel company, is expecting China to become its second-largest market worldwide by 2026 through new store openings, an expanding product portfolio and enhanced omni-channel community engagement. The maker of yoga leggings, training outfits and footwear plans to triple the number of stores on the Chinese mainland from the current 71 to 220 in five years, said CEO Calvin McDonald, who acknowledged being “grateful to and excited about” the success and prospects of its China growth story. “Our new goal is to quadruple our international business again by 2026,” McDonald told China Daily in an exclusive interview. “The Chinese mainland will be a big part of that opportunity as we continue to invest in the market, in stores, in digital and in building a community.” With estimated global sales of USD12.5 billion by 2026, McDonald’s said the company is in good shape, propelled by both robust online figures due to Covid-induced store closures and a strong in-store comeback that’s on par with its pre-pandemic performance.
Currently, Lululemon is on track to quadruple its international revenue relative to 2018 by the end of the year, in which China has already “played a major part”. A survey published in April suggested that Lululemon’s unaided brand awareness in the region stood at 7%, which McDonald believed demonstrated ample space for growth. The company's store strategy combines flagship stores with full lineups and community-based stores featuring core products. It will unfold by building up a presence across relatively affluent first-tier cities like Beijing and Shanghai before penetrating second or third-tier cities at the right time. McDonald has also dispelled concerns such as Covid-induced lockdowns, saying these are “short term in nature”. “Given the strength of our business, we’ve been able to continue to invest in our business and our people in China,” he said.
The success of the company is partly due to being in line with the government's Healthy China initiative to advance health and development as the prerequisite for economic and social growth. It has, for instance, created a so-called ambassador group made up of yoga instructors, social media influencers and elite athletes, to lead complimentary in-store classes. Digital is another pillar for expansion, which McDonald forecasts will double the company’s revenue in five years after the number tripled between 2018 to 2021. The brand is present on major Chinese online stores from Tmall and JD to a WeChat mini program and has employed livestreaming and extended reality to offer immersive shopping experiences, the China Daily reports.
