Talking Market Trends

I want to take the time to talk Lululemon after-market trends. The market suffers and benefits from general and somewhat predictable fluctuations. I want to discuss with you how we can take advantage of the good times and mitigate the losses in the bad times. In the following scenarios, my suggestions refer to the common person. There are exceptions to every rule, I’ll even try to cover them, but again: My advice applies to the average collector.

Seasonal– Seasonal fluctuations are easy enough to understand, but surprisingly few people use their own common sense to their advantage. People are not searching for shorts in the winter, nor are they seeking out sweaters in the summer. There are over 15,000 listings of “Lululemon” items on eBay- every single day. If you want to stand out, you have to make sure you’re selling your item when as many people as possible are interested in buying it. I suggest listing your sweaters at the beginning of Autumn, and shorts at the beginning of Spring. I also suggest you consider the weather patterns of the biggest markets for your item. Canadians will want more cold-weather items. If you’re a US seller, you might also consider adding a Canadian shipping option. (There are some extra risks involved with shipping abroad that can be alleviated, but I will cover them in a future post.) Therefore, if I were selling a sweater, I would list it mid to late September as average temperatures tend to begin becoming cooler around this time.

Secondary Seasonal Considerations There are other so-called seasonal conditions to evaluate. One of them is the fact that the Designers in MANY companies seem to release their best efforts in fall. The fall fashion shows are always the most anticipated and Lululemon’s strategy is not different. It seems like every fall they release the best stuff. I know people who don’t buy much in summer, so they can save up for fall! They usually release some special edition items around Christmas, although, last year was a bust. During these times, people are spending more money on Upload night, and in-store on new items, so they’re not looking at eBay or on the Facebook Pages for deals on older items. The point of this story is: avoid selling when people don’t have the money to buy. The irony is that it will likely be when you need the money the most that you decide to sell. But don’t say I didn’t warn you 😉

Unicorns- Unicorns change over time (Don’t know what a Unicorn is? Check out my Previous Post about Lululemon Slang), but often you can take advantage of when your item obtains unicorn status and cash out, unless you love it. Then, I say keep it. But if you have a “Unicorn,” and you notice that it has been doing very well on eBay, you should make a decision on whether or not you’re going to sell- And Fast! Because there is always a limited number of people who are willing to pay the big bucks for something they really want right now, and then there are people like me, who will wait for it to pop up on eBay for cheaper. However, there are some things that maintain their value fairly well and I will continue to discuss those things in future posts.

What drives the prices of USED clothing over retail?

The collectibility of Lululemon is undeniable. Some people must have all the Vinyasa scarves, others want an impressive collection of Wunder Under pants. Some people collect all items in Teal Zeal, others must have Pique everything! I’m a sucker for Define jackets, and Groove Pants. All of us are willing to pay more than retail for our most desired items. Who knows, maybe you have the latest coveted treasure hiding in your closet!?

Apart from the obvious collectibility of Lululemon clothing, is the quality. The general quality of Lululemon clothing has, historically, been impressive. I have many items in my closet that have lasted through the years, despite regular, rigorous use. Fast forward to today: over the past year Lululemon has presented its loyal client base with no fewer than four serious issues.

Having had personal experience with color bleeding and poor seam construction, I must admit to being extra cautious when purchasing NEW Lululemon products, in-store. It used to be customary for me to go in to my local retail establishment, be greeted by name, choose my selected garment (having done my research the evening before), and walk out the door without even trying it on. I used to spend my money on retail clothing, in-store. And, I still do, but only on selected items. And I try everything on. I check the seams, quickly, and I do a bend test to “make sure the coverage suits my needs.” The bulk of my spending now occurs in the after-market where I can buy better quality products at inflated prices. But I’m very happy to pay those prices, as long as i get what I want. And so are a lot of other people.

The collectibility of the items is created by Lululemon’s scarcity model, they only make so many of each style and color. The desirability is enhanced by the current trend of on-going product quality issues. As it stands, even if I thought that they were going to bring the Define jacket back into production, I would still prefer to purchase them in the after-market sales arena, rather than in-store, because their used clothing lasts longer than their newer offerings. As an aside, I have heard rumors that the define jacket will be put back into production. However, I’m concerned that they will reduce the quality of the materials and create a bastardized version of my beloved Define jacket. This worries me.

 

UPDATE:

The Define may or may not be coming back into production based on the results of a survey/ vote process that Lululemon is currently conducting on Hey Lululemon! .com I’ll discuss these results in a future post.

UPDATE: HeyLululemon.com has been retired. Also, the Define did come back! I wrote a post about it!

 

An Introduction to the little known world of Lululemon after market sales

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!