When we hear of the apparel retailer, Lululemon, we usually think of really overpriced athletic clothing. Lululemon is a luxurious brand for those who want to invest in high quality athletic clothing. This retail company was originally founded in Vancouver, Canada in 1998. In addition, the founder of the company is Denis “Chip” Wilson, who is no longer affiliated with the incorporation due to his unprofessionalism. Over the past twenty years, Lululemon has faced a couple ethical issues, but their ethical culture has also impacted their relationship with customers and employees. There are also ways for Lululemon to improve its stakeholder relationships. A company’s everyday decision making should be ethical, but some decision can lead to ethical …show more content…
Lululemon has been accused of being a ‘cult’ where employees are pressured to live up to company standards. Founder, Chip Wilson, admitted that the firm tries to hire employees with Type A personalities, or those with competitive personalities who are concerned with achievement and personal improvement (pg. 514). There was an incident in March 2011, where an employee caught another employee stealing clothes from the company, and decided to murder her that night she caught her stealing. The murderer attempted to make the scene look as if two masked men had broken in and harmed them. Murdering a co-worker for catching them stealing clothes is absurd and taking it way too far. There’s a better and safer alternative to handle that situation for catching an employee stealing clothes from the company. The employee could have told the manager or the boss what was happening. Lawfully, the murderer was sentenced for life in prison without parole. Critics have sometimes charged Lululemon with having an unethical corporate culture promoting competition over collaboration (pg. 512). Despite their ethical issues, how has the ethical culture of Lululemon impacted its relationship with customers and employees? Lululemon recognizes that community involvement will not only help gain new customers, but will also promote its mission of creating a healthier lifestyle (pg. 513). Thus, Lululemon takes its responsibilities …show more content…
CEO, Potdevin already thought of creating more clothing for men, which helped Lululemon gained profit. Men’s sales have grown over 20 percent annually in the past three years to roughly $330 million (Brown). Along with new variety of men clothing, Mr. Potdevin also added more male educators and recruited more male ambassadors. Before the current CEO took over, Lululemon focused mainly on women clothing rather than for both genders. Mr. Potdevin made a smart move by focusing on men clothing as well as women too, Overall, I don’t know how I feel about Lululemon’s product for a high price. I know fitness gurus that praise the company’s products mentioning the high quality of their product. I also know that there are many other comparable quality products out there that is half the price or less. I’m also glad that founder, Chip Wilson, is no longer affiliated with Lululemon. He did not seem like a great CEO at that time, and I’m glad the current CEO took over. In addition, I hope to see Lululemon regaining their reputation and succeed in the
It is very important for the marketers of Lululemon to consider all of these aspects in order to maintain sales of their products to their target market. The first element of the marketing mix is the product, which involves the total product concept. The total product concept has three layers, beginning with the core product layer, which describes the main benefits that the product has for the consumer (Kerin et al., 2015). Lululemon has a wide variety of
In addition to economic wealth, Chip should remain only at Lululemon for
Have you ever wondered what the organizational culture was for Ulta Beauty? If their staff members are a priority to them? We see many different companies hold contrasting standards on how they treat their employees, but does anything make Ulta stand out? That is what I will be looking into today.
As in 2014, Lululemon’s business strategy had seven key elements: Firstly, Lululemon needs to broaden the product line beyond yoga, running and general fitness, and offer product for both male and female of many ages. Nowadays, more people start to concern on their health, not only elder people. They need to have good-looking and convenient outfit for exercise and training. Second element is to grow the store in North America and United State. These locations are very potential for any company because netizen in these locations have high income which can afford to such products like Lululemon.
Cumulatively, these horrific incidents --- which could have been prevented with legally-required health and safety measures – resulted in the deaths of 1,500 garment workers in less than a year. We are currently seeing more media, government, and public attention on the garment industry since sweatshop issues hit the front pages in the 1990s. These catastrophes are the latest evidence of two decades of failures of global corporations’ Corporate Social Responsibility (CSR) programs in protecting
In June 2014 the founder of American Apparel Dov Charney has been ousted as chairman of the company and finally fired in December of that year as well. Since then American Apparel has been on a lot of magazine covers because of their controversy, but as well because of the time it took American Apparel to finally fire Dov Charnay because of his misconduct in the company and outside concerning the way the he dealt with the company’s money but as well the way he acted with his employees and the media. Since that time, the media’s keep going back to the controversial campaigns that set the brand American Apparel apart from all the others similar brands, concerning the target audience and the prices. American Apparel is going bankrupt in this year
Gap Inc. is now prominently recognized for its commitment to the community and is dominating the global apparel retail industry. According to ("Gap Inc. Recognized for Commitment to Community," n.d.), Gap has effectively invested talent, time and resources to improve
Intro Lululemon athletica is a company which sells sportswear to customers worldwide. It started out as a small studio used as a yoga studio at night as well as a design studio during the day in Vancouver, Canada that was founded by Chip Wilson in 1998. Lululemon athletica started with selling yoga apparel to women but has now expanded to selling cycling, training, running sportswear as well as others for not only women but men as well. Lululemon athletica does not just represent a store but also a place where a community was born.
Government policies supporting active and healthy lifestyle can have effect on Lululemon. With growing market, there will be opportunity to grow. Canadian government introducing Workplace Fitness Program Policy, and many other countries that Lululemon operate have also such policies. It is opportunity for Lululemon.
Lululemon needs to maintain their high quality in order to gauge more customers from their existing brand
Based out of Vancouver, Canada, Lululemon is a yoga-inspired athletic apparel retail store that serves women, men, and children. It provides premium quality athletic apparel at a premium price. Along with clothing, it also offers accessories such as yoga mats, blocks, rollers, meditation kits, bags, wraps, and water bottles. (MarketLine, 2017) Lululemon, along with Nike and Under Armour, initiated a trend known as “athleisure.”
Introduction This case study explores the acquisition of the Body Shop, which is one of the largest franchise cosmetics companies in the world, by L’Oreal. The main concentration of the case study aims at investigating the impact on business ethics and corporate social responsibility by the concentricity of the Body Shop and L’Oreal and how the general attitude and buying behaviour is distorted in the course of this acquisition. L‘Oreal being the big conglomerate in the cosmetics industry acquired the Body Shop International which is comparably small but having iconic brand of environmental and socially responsible concerns, on 17 March 2006, through a covenant of $1.2 billion. The combination of two brands in a newly formed conglomerate implies a combination of values, principles and associations that might affect a company’s appeal. The verity that L 'Oreal 's acquisition of the Body Shop provides plenty of potential growth opportunities is undeniable; nevertheless the question of how well the acquisition sits in the group of the world 's largest cosmetics company is another matter.
Global warming, pollution and climate change are issues that are widely discussed nowadays. This brings consumers to get more involved in researching the material content of the clothes they are wearing and their impact on the environment. As a matter of fact, manufacturers are frequently blamed by the consumers for releasing harmful chemicals in our ecosystem. This drives companies to grow their concern over sustainability and ethical issues, especially in the fashion industry (Moisander & Personen, 2002). Global companies such as Adidas, H&M or Reebok have been launching recycled and sustainable products, and words such as “fair trade” or “organic” are increasingly being used in marketing.
The reason why the company chooses popular product lines to be in this program is because every fair trade certified product sold sends a percentage of the money back to the workers who made it. This action by the company shows that they have a commitment to ethical production. Patagonia is an outdoor clothing and gear shop that provides very good products for people who love being outdoors, not only do they hold a high standard on their products but they also care very much about the environment. They take the lead in the industry by caring about the environment when manufacturing as well as treating workers fairly
For example, supermarket giant Tesco’s burgers were found to contain horse meat, and Tesco blamed it on unapproved suppliers (BBC news, 2013). Similarly, Nike has been accused of using sweatshops throughout the 1990s. Later, then-CEO Phil Knight admitted that Nike should have devised a more strict code of conduct with the suppliers (Nisen, 2013). Moreover, British retailer Primark blamed the factory owners for its sweatshop dilemma (Hickman, 2009) and the collapse of the factory in Bangladesh (Strydom et al, 2013). Although factory owners are at fault, brands must also bear some responsibility.