Via your classmate Jeremy:
Lululemon, one of Canada’s most well-known and beloved apparel brands, has recently signed an exclusive deal with the Canadian Olympic Committee. The deal gives Lululemon exclusive rights to be the supplier of Team Canada’s Olympic-branded clothing and gear until 2028. This involves the 2022 winter games that recently ended in Beijing, as well as the addition of the next three Olympic games that will take place in Paris, Milan, and Los Angeles, respectively (Evans, 2022).
While Karen O’Neill, CEO of the Canadian Paralympic Committee, mentioned that she was delighted with this partnership because it is “work being done to ensure accessible and inclusive clothing,” many Canadians seem to disagree. The high price points of the official Olympic gear are not accessible for many individuals who may not have the financial means to spend large amounts on what is essentially superfluous clothing. On social media, many users have voiced their opinions of frustration regarding the pricey Olympic apparel. For instance, one user stated, “My God. You’ve basically taken away the ability for any middle-class family to participate in the Olympics via clothing. 68 bucks for gloves? I used to buy these from the Bay for 15-20. Ridiculous. This is not what celebrating is about.” (Twitter @ChromeMonster).
The backlash that Lululemon has received can be connected back to the Customer Based Brand Equity Model. Canadians are finding it hard to justify the high price points for Olympic-themed gear that has relatively basic style, design, and physical features; this is an example of unsatisfactory brand performance as the functional needs of consumers are not being met. The credibility of Lululemon may also be tarnished, as many Canadians believe that the brand is stripping them of their patriotic Olympic traditions, an example of negative judgements towards the brand.
Despite the backlash received, Lululemon’s partnership with the Canadian Olympic Committee is actually a part of the brand’s diversification strategy in reaching an even larger target segment through a line extension into menswear. Being the official supplier of the Canadian team’s Olympic gear aids the company in generating nationwide brand awareness for its athletic wear and more specifically, generates brand salience for menswear, not just the womenswear that Lululemon is widely known for.
While it is evident that Lululemon has come under scrutiny amid their deal with the Canadian Olympic Committee, it is clear that this deal is a strategic branding move on the part of the apparel company. Whether or not consumers are satisfied with the extravagant Lululemon Olympic gear, the partnership is here to stay until 2028.
Sources: https://www.cbc.ca/news/business/lululemon-canada-olympics-clothing-1.6185681 https://www.cbc.ca/news/business/lululemon-olympics-gear-price-1.6343926