Lululemon Launches Protective Products From Clothing To Beauty Industry

Canada's Yoga sportswear brand Lululemon continues to expand its products category, this time from clothing to the beauty industry.

According to Lululemon's official website in April 3rd, the company plans to launch a protective product line later this spring, including 4 products, including deodorant, lipstick, moisturizing cream and shampoo.

Lululemon's research and development team said that these "functional" protective products are mainly used in daily sports scenes.

For example, the new deodorant without aluminum can help users keep the body dry and comfortable, and also allow the body to sweat naturally. Gel moisturizing cream can maintain skin moisture, reduce body temperature and remove sweat, dirt and grease when sweating.

In terms of raw materials, the R & D team considers efficiency and safety and therefore does not contain known stimuli such as gluten, benzoate and sulphate.

Lululemon does not have a clear market for the products to be landed, but the company continues to increase its electricity supplier channels, and new products may be launched in all markets.

Over the past few years, Lululemon has continued to expand its product line, adding men's sportswear and footwear APL shoes, but this is the first time that the company has entered the beauty industry.

"As part of their vision, Lululemon has a clear goal to expand to new categories," said Patricia Hong, head of the A.T.Kearney and partner of the US management consulting firm.

This is in line with their overall brand value. They can use existing distribution channels to enter the market of cosmetics and skincare / personal care products related to gym / fitness, and I believe we will see more brands targeting these niche markets.

At present, the 4 protective products are likely to be Lululemon's initial attempt. The support behind it is the company's continuous investment in e-commerce channels.

The electricity business in 2018 occupied the company's 1/3 revenue. According to the plan, Lululemon plans to launch e-commerce business in France, Germany and Japan this year.

Cosmetic products may further increase the gross profit margin of Lululemon, which may help Lululemon compete with Nike, Gap and other companies.

Nike recently launched its first men's Yoga series. Gap's Athleta brand is also seen as a direct competitor to Lululemon.

The gross margin of the beauty industry is usually higher than that of clothing.

It has been said that the gross profit rate of skin care and hair care products is more than 60%; the gross margin of L'OREAL, a big company in the cosmetic industry, is above 70%, and the latest figure is 72%.

As a comparison, Lululemon's gross profit margin in 2018 was 55.2%, which is quite high in the sportswear industry.