On your marks. The race is on following Lululemon’s (NASDAQ: LULU) announcement of a new running shoe launching this month which looks to take on the duel kingpins, Nike (NYSE: NKE) and Adidas. The brand labeled ‘Blissfeel’ will be available in North America, China, and the U.K to retail with a price tag of $148.
Try these on for size.
I don’t quite know what our obsession with sneakers is, but fast fashion doesn’t seem to apply to our beloved footwear. According to Fast Company, the sneaker market is valued at over $79 billion — and it’s still growing. Total market value is expected to rise 50% to $120 billion by 2026.
Even the resale market is worth $6 billion and forecast to top $30 billion by 2030. The point here is, even if Lulu was to capture a minority share, it would make a significant difference to overall revenue.
There’s no doubt this is a brave move when we stack up the competition. Nike and Adidas, among others, have built up global logistics networks to get their footwear in every corner of the world, and both harness extreme brand loyalty. Lululemon made sales of $4.4 billion in 2021 — nothing to scoff at — but Nike, on the other hand, did ten times the sales volume for its full-year results.
Then again, it’s not the first time Lulu has gone out on its own. It already has an ongoing dispute with Nike over its ‘Mirror’ product, and Peloton has been chased down by the brand over what it deems to be knock-offs of its merchandise line.
With its own brand appeal and great success with its comfortable fitness apparel over the lockdown period, the company has made good tracks and this latest move shows Lulu’s in it for the long run.
Financial Writer at MyWallSt
David’s favorite stock is Google. He’s a daily user of its YouTube platform, where you can learn or find something brand new at the touch of a button. He believes the company will continue to grow for many years to come.
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