Why is Lululemon So Expensive? Top Reasons 2023

One of the priciest athletic wear companies on the market today is Lululemon. However, why is Lululemon so expensive?

Numerous factors influence their prices, many of which are connected to their marketing.

Let’s explore these reasons in this article.

Why is Lululemon So Expensive?

So why is Lululemon expensive? These are a few of the factors that contribute to this brand’s products being so expensive.

1. High Cost of Production

The creation of Lululemon clothing requires the use of expensive machinery and fabric development methods.

In order to guarantee that it is providing its customers with high-quality goods, the company also thoroughly tests and controls the manufactured goods.

Every fabric must be tested before leaving the manufacturing facility, according to a report made by the vice president of global product quality. Before starting the manufacturing process, 13 to 15 product tests are conducted.

2. Research and Constant Innovation

Lululemon continually tries to improve its products and upgrade its apparel.

To accomplish this, it must assemble a motivated team of design specialists and market research teams to conduct experiments on a variety of clients, materials, and fabrics in order to continually develop better products and stay abreast of trends.

Ironically, research should focus more on developing cost-effective processes and products.

The company spends a lot of money on research to enhance the product’s usability, effectiveness, comfort, and style.

It has a lab for this purpose called the Whitespace lab in Vancouver, Canada.

3. High-Quality Materials

When making their products, Lululemon only chooses the best materials. To help people engage in sweat-producing activities more easily, they make sure that their products include pertinent features like moisture-wicking capabilities, breathability, and anti-odor technology.

It goes without saying that using these in place of common materials is much more expensive and results in higher costs.

Lululemon’s products are functional and distinctive because of the higher quality of the materials used, though. As an illustration, the weightlessness, moisture-wicking ability, and breathability of Lululemon leggings are what drive up their price.

Customers are frequently willing to pay a little more for these products because they have so many useful advantages and a fashionable appearance.

Also Read: Does Lululemon Run Small?

4. Exclusive Retail

Lululemon almost entirely sells its merchandise through its physical stores or its official online store, Lululemon.com.

Exclusive retailing benefits the brand in various ways, such as:

• It guarantees the genuineness of the product. Customers can be confident they are purchasing genuine goods from Lululemon’s own websites as a result.
• The influence of rivalry is eliminated. Customers who visit these websites and stores in search of a specific item are not able to buy from other brands because they only carry Lululemon goods.
• As a result, the brand is able to maintain its high prices consistently. It also stops its products from being sold on clearance racks at department stores.
• Because it restricts consumer access to products, there is more competition to buy those products, which raises their demand and value.

This translates to expenses related to hiring staff, building brands, running advertisements, and maintaining security for these offline and online stores.

5. Scarcity Model

Lululemon typically produces a limited quantity of a certain item.

As a result, consumers compete more fiercely to buy the products once they hit the market.

Because there are only so many things that can be made, there is always more demand than there is supply, which justifies raising the price of the product because it is now more valuable and scarce.

This is due to the fact that consumers value rare goods more highly than goods that are widely accessible.

6. Brand Image

Lululemon maintains high prices for its products to uphold its reputation as a luxury brand, in addition to the high production costs, higher quality, and all the other factors that may increase product cost overall.

Luxury brands command higher prices because consumers are also paying for the brand name, which is exclusive and denotes a higher socioeconomic status.

This results in social validation and accomplishment, which can satisfy the needs of the majority of people.

Additionally, branding comes at a significant expense, especially since brands do not emerge out of thin air.

For publicity and advertising, businesses must spend a significant amount of money.

Since customers will expect quality from Lululemon, it is also important to maintain it.

7. Minimal Discounts

Frequent discounts can be detrimental to a brand’s image.

In order to maintain high prices and high demand for its products, Lululemon works hard.

By limiting the number of discounts provided to customers, it accomplishes this.

However, they still have a few discounts on several less popular items on their “We made too much” section of their online site and have several offers on their products during shopping events like Black Friday.

Customers must purchase items at full price if sales and discounts are avoided.

8. Expensive Marketing

Lululemon is well known for its vigor in promoting its products and its excellent marketing strategy.

The company collaborates with internationally renowned celebrities and works with well-known social media influencers to promote its clothing.

Celebrities who people look up to can serve as brand ambassadors by praising and wearing their products constantly. This increases product demand and value because these influencers forge cult-like communities of followers who are eager to buy anything they wear.

It costs money to work with these influencers and celebrities, and this expense ultimately drives up the cost of Lululemon’s products.

9. Media Scandals

Chad Wilson, the company’s founder, is well known for holding divisive opinions on a number of subjects that have sparked media scandals and backlash from the general public.

Some may contend that these scandals were planned and skillfully crafted to grab media attention for the company.

He is alleged to have perpetuated fat-shaming by, for instance, saying that some women’s bodies weren’t appropriate for his products.

He defended the practice, arguing that it gives children in developing nations a way to make a living.

Additionally, he asserted that the rise in divorce rates was caused by a number of factors, including smoking and birth control.

These are just a few of the contentious remarks he has made in public, and while they may have incensed some, they also gave his brand free media exposure.

Despite the criticism, this raised consumer interest and boosted product demand and value.

No publicity is bad publicity, as the saying goes. Demand for a given product causes a rise in its price.

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How Can I Save Money on Lululemon Products?

As much as Lululemon sells expensive and exclusive products, different strategies can get you the product you want, however expensive it may be.

However, depending on the season, these techniques might occasionally change.

1. Consider going shopping over the holidays. Depending on the item, discounts during Boxing Day (the day after Christmas) could reach 50%.
2. You could apply for the Lululemon sweat collective, which offers special deals, by using a neighborhood running group. If there isn’t one near you, you might want to consider starting one. You can get up to 25% off with the sweat collective. You get access to discounted products if you join the sweat collective. This gives Lululemon a channel for customer feedback on its products, which is advantageous.
3. Additionally, Lululemon provides discounts to members of the armed forces, first responders, and healthcare professionals. Active emergency first responders, veterans, spouses and dependents of military personnel serving in North America, as well as nurses, doctors and support staff employed in hospitals, acute care facilities, and long-term care facilities, are all eligible for a 25% discount. Only in-store purchases are eligible for the discount, which requires the presentation of a valid ID.
4. Sporting organizations and athletic teams can also access the Lululemon team program portal to shop for merchandise and receive special discounts. The program selection also offers benefits like access to fundamental designs with technical elements that enhance teams’ training and travel experiences. Make sure your eligibility as an amateur athlete is not impacted by your participation in the Lululemon team program by confirming with your amateur athletic association.
5. When you shop in-store at Lululemon, you can receive a free bag and all shipping is free. Additionally, there are no fees associated with processing returns.
6. According to the hemming policy, any top or pair of pants can be given a complimentary hem at any Lululemon location without a receipt or tag.
7. You might be qualified for a discount as a Lululemon employee. A 60% employee discount is offered to full-time Lululemon staff members. Employees can save up to 75% off of markdown prices. Under-twenty-five hour part-timers receive a 40% discount.

Are Lululemons Worth It?

I totally get it – you’re curious about Lululemon but haven’t taken the plunge yet.

Let me just say that there is definitely excitement! Activewear from Lululemon is renowned for being of the highest caliber and being both fashionable and functional.

I won’t deny that Lululemon has a slightly higher price tag, which makes me think about less expensive options.

The quality, performance, and confidence boost, according to many who swear by the brand, make up for the price.

It represents a financial investment in your quest for optimal health.

I think it’s fantastic if you have the extra money to spend on Lululemon. It’s also okay if you prefer less expensive options!

In the end, it still comes down to what truly makes us happy.

Read More: How to Spot Fake Lululemon?

Conclusion: Why is Lululemon So Expensive

While Lululemon is a premium brand, you don’t necessarily have to have deep pockets to become a loyal customer.

For all of their athleisure needs, millions of average Americans have made the brand their go-to source.

Despite the fact that the prices are a little higher than the industry standard, the company’s high-quality services make up for the higher prices.

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