China Is A Very Important Market For Lululemon Business.

According to the world clothing and shoe net, on Tuesday, October 17th, when CNBC host Eunice Yoon was connected,

Athletica Inc. NASDAQ:LULU (NASDAQ:LULU) Lulu lemon chief executive officer Laurent Potdevin further elaborated that China is a very important business of the company.

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Laurent Potdevin said that since the group landed in Tmall.com Tmall in 2015 and landed in Shanghai and Beijing in late 2016, the company has been growing rapidly under the online and offline business. As of now, Lululemon has operated 8 stores and 1 Outlet in mainland China, 5 of which are located in Shanghai, and the other 2 are located in Chengdu, Beijing and Guangzhou each 1. At the end of this year, the company will open new stores in Beijing and Shenzhen, bringing the total number of stores in mainland China to 12.

For the Chinese people, who are increasingly focusing on health and fitness groups have doubled to 6 million 600 thousand since 2008, Laurent Potdevin believes that these are all good.

In addition to the development of the Chinese market, the Yoga population has also been growing rapidly in China. While the international brands continue to implement sports fashion styles and products in China, the Chinese government has invested heavily in sports infrastructure construction.

Data show that as of the two quarter of July, Lululemon Athletica Inc. Inc. recorded a net income of US $581 million 100 thousand, an increase of 12.9% over the same period last year. The market is expected to be US $567 million 100 thousand, which is one of the best performing brands in the sluggish North American sports (leisure) market.

However, the news of Laurent Potdevin's bet on the Chinese market did not boost its company's stock price on Monday, and its shares fell 1.64% to close at $58.20 on the 16 day.

Laurent Potdevin (left) attended the Alibaba Gateway Canada event in Canada at the end of September.

For the "killer" of the traditional retail industry, the world's largest online retailer, Amazon.com Inc. (NASDAQ:AMZN), Amazon group, to build its own clothing and sports brands, Laurent Potdevin said Lululemon Athletica Inc. will not be affected. The company will continue to focus on innovation and high-end market. The company controls the distribution market and gives the brand different positioning.

Unlike Nike and Adidas, Lululemon takes a direct mode in China.

Laurent Potdevin also talked about the group's China online strategy. He said Lululemon Tmall flagship store is an integral part of China's strategy. At the end of September, Alibaba's Gateway Canada campaign in Canada, Laurent Potdevin said its Tmall flagship store sales increased by three times over the same period last year.

However, Laurent Potdevin denied the competitive relationship between online and offline, indicating that although online business data are inspiring, it does not affect the offline business.

In the two quarter of the earnings conference, Laurent Potdevin also revealed that the group used "community activation" measures such as store activities, live yoga courses and running events sponsorship to strengthen links with consumers, and both physical and online sales were promoted.

At present, Lululemon also continues to carry out yoga experience activities in mainstream Chinese cities.

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