Hi there. In this business & finance news post, I would like to cover a recent Lululemon news piece. According to Forbes on Apr 26, 2021,04:55pm EDT, Vancouver based Canadian company Lululemon Atheltica (LULU) is trying out in selling second hand clothing. Used Lululemon pieces are labelled as "Like New". (Crappy labeling if you ask me as used is not new.) This move is an effort towards sustainability.
Another news Source: https://www.pymnts.com/today-in-data/2021/emerging-trends-in-retail-and-dining/
Forbes Piece Below:
Lululemon LULU +2.2% Athletica is the latest retailer to dip its toes into the secondhand, AKA recommerce or resale, clothing market.
The yoga-inspired chain announced that it is launching a pilot program at participating stores in California and Texas to determine the viability of this new line of business that places sustainability at the heart of its marketing to consumers. The test, dubbed “Like New,” will give owners of Lululemon’s clothing the opportunity to trade in previously purchased merchandise to be resold, recycled or otherwise repurposed by the retailer. Lululemon has pledged that one hundred percent of all profits generated through Like New will go into investments in other sustainability initiatives it pursues.
This test from Lululemon will start online in June. There is a claim that the chain will clean all merchandise it collects.
The trade-in phase of the program will kick off next month. Lululemon will beginning to sell traded-in items online in June. The retailer has said that it will only resell “like new” items. The chain will clean all the merchandise it collects, offering for purchase only those items that meet its quality standards and recycling the rest. The chain has said that it will analyze customer response and feedback before it seeks to scale the pilot up or to incorporate it into its standard business model.
Testing The Market
A good thing I see from Lululemon here is that there are at least testing the market with a pilot project and this strategy. To go all in and have all the Lululemon stores sell used Lululemon apparel would be too risky.
Testing the market with a pilot project also allows for data collection, data analytics, business intelligence and statistics. The data and analytics would be informative for management and decision makers. If this test works for Lululemon then they can expand this secondhand used clothing strategy for other stores. If it does not, the company does take a hit financially and (most likely) not go bankrupt.
Cheaper Used Athletic Gear Worth It?
There are people who do shop for secondhand apparel at places like Goodwill, Value Village and the like. When it comes to athletic apparel, people sweat in those things. I am not sure if there is large market that wants to purchase used clothing at a lower price. Then again, Lululemon is a big in-demand brand for yoga, athletic gear and for those who like the athletic look. Knowing how irrational some people can be, they could buy these second hand Lululemon pieces because of the brand and the cheaper prices. New and cheaper Yoga apparel from alternative brands may not be on the radar for some shoppers.
Stuff like underwear is a definite no, haha. For me, men's shorts could be ok when bought used. Used yoga mats could be ok. Used shirts would be a no for me.
Sustainability Buzz Word
As a natural skeptic, I do think that sustainability is the latest buzz word thrown around from business and corporations. Reminds me of businesses back in 2010 or something where the businesses promoting "green" products. (Greenwashing) It is mostly marketing.
I am in favour of less garbage and less waste. Returning stuff that is not in use so it can be recycled is good. I do wonder about the cleaning methods that would be used for reselling.
Less waste also happens when consumers stop buying so much stuff and use what they have. Buying less of what you do not need is one of the most effective personal finance strategies out there but it is easier said than done.
