The company is likely to proceed independently and isn’t enthusiastic about forming partnerships with Indian companies.
Lululemon Athletica, a Canadian athletic apparel retailer renowned as the originator of yoga pants, expressed intentions to venture into India to capitalise on the rising demand for fitness and athleisure wear.
A global team from Lululemon visited India recently to explore potential locations for store openings. The company is likely to proceed independently and isn’t enthusiastic about forming partnerships with Indian companies. They disclosed that discussions have taken place with several malls in Mumbai, Delhi, and Bengaluru.
The Lululemon team convened with mall developers to inquire about on-going mall developments in metropolitan cities.
Three years prior, the Canadian firm established a tech hub in Bengaluru, its inaugural one outside North America. This initiative aimed to drive global expansion by leveraging data science, machine learning, and full-stack cloud engineering to facilitate merchandise planning, product management, and location information.
Lululemon Athletica functions as a designer, distributor, and retailer of athletic apparel, footwear, and accessories.
According to the company’s annual report for 2023, it maintains operations in over 25 countries, experiencing robust net revenue growth across various regions, including a 12 per cent increase in the Americas, a 67 per cent surge in China Mainland, and a 43 per cent rise in other parts of the world.
Last year, it inaugurated 56 new company-operated stores, contributing to a 15 per cent expansion in square footage. Additionally, total net revenue from company-operated stores increased by 21 per cent, while e-commerce net revenue grew by 17 per cent.
With a population of 1.4 billion, India stands as one of the largest and swiftest-growing markets for corporations.
The majority of global brands have been present in India for more than two decades and have expanded by actively promoting their products through cricket and other sports. Conversely, newer entrants have positioned themselves as providers of comfortable lifestyle and regular athletic wear.
In recent years, sales of several leading sports brands have experienced significant growth in India, particularly during the pandemic period and beyond. Brands like Puma, Decathlon, Adidas, Skechers, and Asics have all witnessed year-on-year growth ranging from 35 per cent to 60 per cent since FY21. As per regulatory filings from the Registrar of Companies, their combined revenues reached Rs 11,617 crore in FY23, compared to Rs 5,022 crore collectively two years earlier.
The demand for fitness wear and sports equipment across various disciplines, beyond cricket, escalated as people increasingly prioritised health amid the Covid-19 outbreak.
Encouraged by a surge in post-Covid consumption, around two dozen international brands established their presence in India with physical stores in 2023. This marked a notable increase from just one global brand in 2020, three in 2021, and 11 in 2022. Pre-pandemic, approximately 12-15 brands would typically enter the Indian market each year.
News source: Economic Times