This was how I reacted when I read the article. Oh no! Why on earth would they do that?
Here is the headline…..
Lululemon Branded Beer to hit Shelves this Summer!
Wow, I thought. What a spectacular mistake.
Lululemon is a brand founded in Vancouver. If you have never heard of Lululemon, it makes very high end yoga wear. The founder, Chip Wilson, conceived the brand in 1998, after discovering yoga and finding that cotton apparel was uncomfortable and sweaty for a intense session.
So the first store was opened at Kitsilano Beach, and if you read the website it will tell us this…
“The idea was to have the store be a community hub where people could learn and discuss the physical aspects of healthy living from yoga and diet to running and cycling as well as the mental aspects of living a powerful life of possibilities.”
Vancouverites fell in love with the store and the brand, it resonated with our outdoor, laid back lifestyle , here on the West Coast. Lululemon quickly became an established company, a well known brand, with a growing customer base – an almost fanatical following.
Over the years, Lululemon has been in the news. There was a weird rumour that Lululemon is in fact some kind of religious cult, there was recently a recall of a batch of their best selling yoga pants (which were made of faulty fabric that became almost see-through) and of course Chip Wilson’s unfortunate faux pas about Lululemon’s apparel “not really suited for some shapes and sizes”. Oops.
The recall, plus this comment not only lead to Chip Wilson being removed as CEO, but also a dip in the share price.
Despite the set-backs, Lululemon still has the reputation of a quality company catering to the needs and education of a health conscious community.
So Why Beer?
This looks like a classic example of a floundering company that is desperate to boost growth and revenue – and rather than concentrate on their core activity (making quality apparel), it’s looking around for a ‘shiny opportunity”.
The Craft Beer industry is one of the fastest growing in Western Canada.
It’s almost as if the Lululemon Board looked around and asked
“what’s making money at the moment? Beer! Let’s do that!
Why do I think this is a mistake?
If Lululemon are serious about breaking into the Alcohol industry, then they are abandoning not only their core activity, but also their core principles.
The Lululemon mission statement reads this…
“Creating components for people to live longer, healthier, fun lives”
Well, last time I checked , Beer was not on the list of components that helps people live a longer healthier life.
Everything about their Mission statement, and their manifesto speaks to their core clientele – people who live healthy outdoor lives – they also say;
“We are passionate about sweating every day and we want the world to know it. Breathing deeply, drinking water and getting outside also top the list of things we can’t live without”
Have they now abandoned their core customers? According to one publicity statement:
“ Lululemon is now interested in talking to the “male, beer-drinking crowd”.
Why? Because it thinks that the male beer drinking crowd are suddenly in the market for yoga pants?
Why not start talking to the pot smoking public too? They have money to spend!
Downward Dog pose, followed by a chug of beer, and a quick puff on your fatty? Sweet!
My point is that LuluLemon was perceived as a company committed to its values, and now their mission statement and their manifesto can just be seen as cynical marketing ploys that can be abandoned or massaged as they see fit.
It’s Business! I hear you cry….they are not here to be some kind of hippie commune, they are here to make money!
Couldn’t agree with you more.
Jim Collins in his best selling book , “Good to Great” told us that
“Good to great companies at their best followed a simple mantra…We will not launch unrelated businesses. We will not make unrelated acquisitions. We will not do unrelated joint ventures. If it doesn’t fit, we don’t do it. Period”
I wonder what he would say about attempting an activity that is not only unrelated – it actually flies in the face of all that the company stands for.
Jim Collins also followed great businesses who understood that commitment to their core activities, their core values and their core customers….will eventually pay off in increased returns to their shareholders.
I haven’t had the benefit of talking to the marketing department at Lululemon – maybe all the research points to the yoga crowd really wanting a cold beer at the end of a tough session. Maybe this is a bold move that will turn out to be a genius strategy.
But I really think they need to take down their mission statement and manifesto.
