wsj article: lululemon

one of my favorite, if not favorite, workout clothes brand is lululemon…(as if i’m the only one who says that!) as an mba grad, i always find it interesting in how companies differentiate themselves – what strategies they employ and how it affects the big picture and smaller details. furthermore, is the strategy(ies) sustainable long-term?

as i start my own business, mpoweredplay, and hopefully expand to other product categories, i like to read about other companies i admire to see if their strategies would or could apply to mine. that’s the beauty of entrepreneurship – you and you alone are responsible for the success or failure; you and you alone can and should test what works and what doesn’t, and change when necessary.

from the wsj article, lululemon’s secret sauce, here’s the lessons i took:

• limited stock / scarcity – remember the supply and demand rule? scarcity increases demand, which helps influence pricing. further, lulu focuses on premium pricing and maintaining that pricing on core products…non-core products can be discounted without too much affecting the brand’s equity.
• sometimes simple is better – rather than rely on sophisticated customer service software or intense data analytics, it’s sometimes best to listen to the customer.  and then apply that knowledge.