Lululemon founder Chip Wilson thinks Under Armour has Lululemon beat in some areas.
“Three years ago, Lululemon was worth twice as much as Under Armour,” Wilson said at the International Shopping Centers Conference, via The Globe and Mail.
“Today, Under Armour is worth three times as much as Lululemon.”
Wilson, who stepped down from Lululemon’s board earlier this year, said he believes Lululemon isn’t living up to its full potential.
“Lululemon has a much better business model, makes bigger margins, makes bigger profit,” Wilson said.
And he indirectly blamed former CEO Christine Day for many of the missteps.
“He said ‘she’ stopped hiring product, quality and innovation experts,” The Globe and Mail writes.
“It drove me crazy,” Wilson said.
Lululemon was forced to recall 17% of its yoga pants in 2013 for being too sheer. That gaffe blew the door open for Under Armour, which sells similar product at a cheaper price, to take the brand’s market share.
- Under Armour
Under Armour has also appealed to women by hiring spokesmodels like ballerina Misty Copeland and supermodel Gisele Bundchen.
But now that more viable competitors are popping up – namely, Under Armour – Lululemon needs to stay on its toes.
A recent Lululemon price hike showed that while women were willing to pay a premium, they weren’t willing to empty their bank accounts for the product.
- Lululemon on Facebook
Lululemon will need to convince women to pay a premium for its products in order to succeed.
Wilson’s wife, Shannon, told the International Shopping Centers Conference that she does not see her family’s new brand as a direct competitor to Lululemon.