Upon discovering Lululemon, and submitting to the fact that their marketing directly targets people like you and I, I wondered, what is it about this company in particular that allows it to earn and maintain such a loyal fan base. It does no television marketing, or pop-up ads, no billboards or print ads and yet the popularity of the clothing doesn’t seem to wane. Even in the wake of “Pantsgate,” profits and the Stock, seemed to carry on, almost uninterrupted, save for the occasional late night talk show gag.
http://www.youtube.com/watch?v=guYcnGKg9Z8 <<— watch Kimmel poke fun at Lulu here.
March 18th, the day that Lululemon announced the recall of sheer, defective, yoga pants the stock closed at $65.90. It continued to hover for a couple of weeks around the 62 dollar mark, and has slowly risen back up almost reaching it’s 52 week high of $81.77. As I write this, the price is currently $80.94. It’s astonishing to me, that a company that has experienced such a damaging public relations disaster can continue to remain so popular, and highly valued. At least it was astonishing to me. Until I encountered the obscure world of after market Lululemon sales.
Have you ever purchased a pair of Nike shorts? How much did they cost? Thirty dollars? What if I told you that you could sell those for more after you had used them? You don’t have to give them to charity or throw them away, even if they have a hole in them! Well, that’s the nature of the after market for Lululemon clothing. Of course, you can’t do that with Nike shorts, but there are shorts by Lululemon that sell for MORE than retail. And keep in mind that these are USED clothes. The reason for this is the scarcity model that Lululemon employs. Lululemon introduces new products every week, and they only manufacture a limited number of each product. Once the product sells out, (save for returns) the product is gone, and you can no longer buy it. At least, not from Lululemon. Enter the after market. A solution to a problem I didn’t know I had until I discovered it. It’s absolutely incredible and I want to help you understand and participate in it.
I love the Lululemon after market. It helps you discover things you didn’t know you wanted, things you never knew existed and it encourages you to see your Lululemon clothing as a collection. This culture is the reason, I believe, that Lululemon has been able to maintain its stock price despite some difficult press releases (Lululemon Recalls Sheer Pants,) and dropping some of their core products, such as the ever popular Define jacket. In writing this, I’m hoping to recruit more fans for Lululemon clothing as well as to introduce you to and encourage participation in the after market sales of Lululemon clothing.
I intend to discuss the vernacular, culture and trends of these markets and in order to encourage conversation, I ask that you submit questions regarding these markets as well as questions regarding the market value of individual items themselves.
I hope we can all have a fun and fruitful discussion about Lululemon!