Lululemon Bicycle Clothing Companies Want To Ease Performance Sluggish

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A $500 million business has been made, but with the public relations crisis, sluggish performance and closes of children's wear line stores, the company's share price has dropped to 53.84 from 71.78 a year ago. Recently, Lululemon announced its first investment in order to cope with the increasingly competitive sports market.

According to the world clothing and shoe net, Lululemon has acquired a minority stake in a Canadian bicycle clothing startup company 7mesh, which may make Lululemon in the company.

Technological innovation has made breakthroughs.

7mesh is a company that was born in early 2016, selling a $250 bike jacket and 140 dollar bicycle tights. It looks like a bicycle version of Lululemon, whose products claim to be water-resistant and extremely lightweight, and seven of the company's founders are former employees of the famous outdoor brand.

"Bicycles are a very small category, but if we can establish cooperation with them, then we can effectively enter it," said Stuart Haselden, chief financial officer and chief operating officer of Lululemon, in an interview with reporters.

According to the world clothing and shoe net, some Lululemon stores in New York have started selling other sports products such as running, riding, training, boxing and other sports besides Yoga wear.

Haselden says bicycles are not a huge driving force for their business growth, but it is indeed an activity that some customers of the company will take part in.

Lululemon, which is famous for its yoga clothes, is facing fierce competition in the sports industry. The first movement and leisure trend driven by them now has too many players to enter. Among them, two major categories of running and training are hard to get involved because of the participation of Nike, Adidas and other companies.

By contrast, some relatively small movements began to take into consideration.

According to the world clothing and shoe net, investing in 7mesh is part of the company's 10 year plan. The plan shows that Lululemon hopes that the 50% profit in the future can be achieved through some areas where there is no competition at present.

This also means that investing in bicycle companies is only the first step, and may buy more later.

The ultimate goal is to make products more diversified, not just yoga products.

At the same time, Lululemon is also strengthening the product design and sales of men's wear line. Previously, CEO of the company had expressed the hope that the performance of the next 40% would be provided by the men's market.

In the process, the expansion of overseas markets will provide funding for Lululemon. At present, the company has not announced the income of the regional market, but their speed of opening stores in the Chinese market is accelerating.

Since its entry into mainland China in December last year, Lululemon has opened 8 stores in China, including 4 in Shanghai, 3 in Hongkong and 1 in Beijing.

More interesting reports, please pay attention to the world clothing shoes and hats net.