Why is Lululemon So Expensive? 10 REASONS WHY

Lululemon clothes are expensive because they use high quality technical fabrics that are ethically sourced, invest heavily in proprietary fabric innovations and marketing to build an esteemed brand reputation, and deliver luxurious retail experiences that make customers feel connected to an aspirational lifestyle. This cultivates loyal fans willing to pay premium prices as a status symbol, allowing lululemon to keep charging high markup costs as long as shoppers continue indulging in their yoga and athletic fashions.

Lululemon is one of the most popular and recognizable brands for activewear and workout gear. Yet if you’ve ever purchased something from one of their stores or website, your wallet probably wept just a little.

As much as we may love lululemon’s clothes, we have to admit their prices are pretty steep, especially for workout wear. So why exactly are those yoga pants and running jackets so dang expensive? Well, lululemon would argue it comes down to the exceptional quality and construction of their products. But let’s investigate some of the real reasons behind the brand’s eye-watering price tags – there’s probably more than meets the eye!

Top 10 Reasons Why is Lululemon So Expensive

1. Higher Quality Fabrics and Materials

Lululemon uses higher quality, technical athletic fabrics like nylon, Lycra spandex, and Luon in their clothing. These advanced fabrics have properties like moisture wicking, four-way stretch, and breathability – all important features for workout gear – but they generally cost more than simpler cotton blends and materials.

Lululemon also emphasizes ethical production, promising its products are sweatshop-free. While admirable, ensuring fair labor wages also drives prices up.

2. Unique, Proprietary Fabrics They Design In-House

In addition to using specialty athletic fabrics, lululemon designs and produces some of its very own patented fabrics and blends in-house. For example, Luon – the buttery soft, stretchy fabric found in many of their iconic yoga pants – was created and engineered by lululemon to exactly meet their specifications.

When you invent your own fabrics, you invest a lot in R&D, testing, and production methods to make that happen. And those costs ultimately get passed to the consumer.

3: High Costs for Running Brick-And-Mortar Stores

Lululemon doesn’t just sell online – they operate over 500 brick-and-mortar retail stores across the globe. Maintaining all those store locations comes with steep operating costs like rent, payroll, insurance, services, equipment, visual merchandisers and designers, and more.

Large retail spaces in prime locations with high foot traffic are especially pricey for brands. With huge overhead costs to cover, lululemon marks up the cost of their products to the consumer.

4. Lavish Brand Marketing Campaigns

To become such a major player in athletic apparel, lululemon invests a lot into crafting a strong brand image and identity via lavish marketing campaigns, especially visual ones centered around lifestyle branding.

Those glossy ads featuring stylish yogis effortlessly contorting themselves or zen runners with backlighting at sunrise aren’t cheap. But effective marketing helps make lululemon feel more like an aspirational lifestyle than just another workout brand, allowing them to command premium pricing.

5. Prestigious Brand Reputation and Loyal Customer Base

Speaking of strong branding, lululemon has done an excellent job cultivating a devoted customer base and cementing themselves as one of the premier brands for yoga and athleisure apparel.

Once you’ve created an esteemed reputation where people widely perceive your brand as high-quality and prestigious, you can essentially charge higher prices thanks to that customer loyalty and trust. Lululemon’s word-of-mouth marketing where existing customers rave about them to friends also bolsters their premium status.

6. Positioning as a Luxury, Status Symbol Brand

In connection with the last reason, lululemon smartly markets itself more as an upscale lifestyle brand rather than just another athletic label. They want their customers to view purchasing lululemon as an investment or status symbol, similar to designer brands.

This aspirational messaging lets lululemon play in the premium price points along with designer athletic brands like Stella McCartney and Virgil Abloh’s collaboration with Nike. Their prices ultimately reflect wanting to be perceived as a luxury retailer.

7. Strong Brand Community and Customer Connections

Lululemon sets out to form authentic emotional connections with customers through community events and wellness activities beyond just selling merchandise. This community-based approach fosters a tribal mentality and cult-like following from brand devotees who are now bonded by shared interests and values embodied by the lululemon lifestyle.

With fans so personally invested in the brand, lululemon leverages that brand loyalty to justify and sustain higher prices compared to more transaction-based retail competitors.

8. Investment in Product Testing and Quality Checks

According to lululemon, their products undergo extensive wear testing to ensure quality and durability that holds up over time. Employees put completed lululemon apparel through workouts and fitness activities before approving them for sale.

This extra testing process certainly tacks on some dollars compared to quicker routes from factory to store shelves. Lululemon is banking that consumers will ultimately trust and value clothes scrutinized for premium performance. Only time will tell if the quality promises match the price.

9. Unique Store Experiences That Cost More to Deliver

Shopping in a lululemon store often feels unlike other activewear retailers thanks to special touches and amenities. Many locations offer fitness classes, expert bra fittings, hem personalization, complimentary deliveries, workout equipment trials, motivational messaging, and more.

This focus on elevated customer service comes straight from founder Chip Wilson himself. But all those value-added frills and experiential retail require extra staff, space, and operations – leaving shoppers picking up the tab.

10. Simply Because They Can!

Here’s maybe the most honest reason behind lululemon’s premium pricing strategy – they charge those high prices simply because people continue willing to pay them. As long as their target market of loyal yogis and fitness lovers continue shoveling out money for new leggings, tanks, and accessories each season, lululemon can keep pricing at luxury levels to turn huge profits.

When price tags have so far done little to slow consumer demand, there may be no incentive for lululemon to lower margin pricing down to more affordable mass market rates anytime soon.