Inside the peculiar second-hand market for Lululemon apparel
Most times trends are just that, wispy fads that rocket onto the scene, penetrate public discourse and fade off, unmistakably, like the path “Gangnam Style” is soon sure to take.
But then there are trends that aren’t left alone, that are managed and massaged by some of the business world’s top minds. Suddenly, these trends manufacture staying power by adapting, learning and growing.
Want an example? How about Lululemon, which only opened 12 years ago and is now one of the most profitable retailers in the world?
Certainly, Lululemon arrived on the scene thanks to its signature yoga pants, but how it’s remained is thanks to a unique strategy but also a return policy that might be driving customers nuts.
A recent Wall Street Journal profile highlights the growth of Lululemon, and how it’s created an atmosphere of scarcity among the apparel it sells. By purposely low-stocking its stores and turning over merchandise every few weeks, Lululemon’s able to create a sort of rabid customer, who tends to jump at the chance to pay full-price for a hoodie for fear it won’t be around much longer.
*Bing: What is the largest retailer in the world?
But while Lululemon has manufactured an air of exclusivity, its frustrating return policy has left some shoppers miffed.
The Vancouver-based retailer accepts returns on no products after 14 days, and only then returns must be in peak condition: unwashed, unworn with original tags attached.
That’s all fine and good, but what’s happened is Lululemon has created a black market, so to speak, for unwanted apparel not returned within the store’s two week window.
According to Business Insider, the secondary market is rife with Lululemon goods, and they’re right.
Take a trip onto eBay or Kijiji or Craigslist and there it is: tons of yoga gear being resold, often at or near the original retail price.
Lululemon takes great pains to create an aura of scarcity among its clothes – selling them fast and turning them over faster – but its also created one of the more prominent retail second markets on the web.
By Jason Buckland, MSN Money
Posted by: Sylvia | Sep 29, 2021 11:30:50 AM
I was under the mistaken mind that Lululemon was manufactured here in Canada!
Unfortunately, due to my stupidity I did not check the labels on my last purchase - MADE IN
CAMBODIA. At these prices, which are similar to previous versions that had been made in Canada, I will buy merchandise somewhere else for far cheaper if they are off shore. I do not mind paying a higher price if I know that I am employing a Canadian, after all, this is where I live and make a living. But to pay the same price for something manufactured for tremendously less money, is only making a few very elite people rich. Canadians, stop bitching, do something about this off shore crap, stop shopping at Walmart and like places. Most of your responses will probably be, "that is the only place that I can afford to shop." No, start supporting North American, and we will all have jobs and make more money! The factory worker in China is not getting the money, only the top executives and the
Chinese government are!
Posted by: Dana | Sep 29, 2021 1:48:19 PM
I do agree with everything you wrote, even though I don't shop at Lululemon and I am Cambodian-born - been Canadian a lot longer...
Prices should come down when it's no longer made in Canada, which we don't see, or they should have deep discounts. I always search and would choose Made in Canada items over others whenever given the chance. Mind you, some items made here are not necessarily better made as I sadly notice. The Chinese are so wealthier now than other countries and they are able to use this to fund everything else: better athletes for example. America is losing jobs and they're getting beaten by Chinese athletes who are better funded than ever through this outsourcing, duh!
Posted by: kelly green | Sep 29, 2021 11:02:05 PM
I, too, enjoyed the fact that my money was staying in Canada. Although this product is good, I have found other alternatives for half the price. The straw that broke the camel's back was when I bought a running skirt one year, but since then, (it's been 3 years) I have not been able to match up a top with it. It was a very different colour; hence, why I bought it, thinking I could add on to it the following year...not the case...the colours were completely different. I now buy elsewhere.
Posted by: Kimberly | Sep 30, 2021 12:12:37 AM
As much as I liked Lululemon clothing because it was comfortable, after finding out that it was made in China, Cambodia and Bangladesh. I decided that it was time to put an end to buying products where the goods were more expensive than the cost of the lives making them.
I currently live in China and I can guarantee that the Chinese people and the government are not the ones making the profits. I can guarantee you that it is the companies themselves that are making the profit.
I will give you one good example:
I have a student here in China who owns his own clothing manufacturing company. About a year ago he came to me asking some questions about Canada and the economy. One of his "companies" had contacted him to make a product for them. They had given him all the details about the product and he had to come up with a price for the product. The price came out to be around 24.00 USD. This price was too high for the "company" and said that they couldn't give them 24.00 USD.... it was just too much with the economic crisis. They only offered something like 21.00 USD. At this price the company wasn't winning or losing any money, they were just breaking even. It was only enough to pay their staff and the cost of the material of the product. When he and I looked on the internet at the actual price of the product which is easy enough to do on the computer, the cost of the product was 149.00 USD. Now in my head I was thinking is the economic crisis really that bad when the cost of the product is still that high???? I am also wondering where the rest of the 128.00 USD are going..... maybe to shipping and handling but can it really cost that much???
So as a result the student couldn't say no to the "company" because they couldn't lose the business and they needed to pay their staff or many people could possibly lose their jobs. And the "company" couldn't give them 1.00 USD more so the owners could make a little profit for themselves.
So my question is..... are the Chinese really making the money or is it the big "corporations" themselves that are taking all the profit???
Hmmm the cost of materialism......
Posted by: Jennifer | Oct 2, 2021 2:07:53 AM
I have no idea what a lululemon is ? If I did know, would I care ? I rather think not.