Question

What opportunities did lululemon see in what was an already crowded apparel market?

The larger question is how does a new company make a breakthrough in mature markets?

Answer 1

The answer:

Opportunities did lululemon saw in a mature market:

Lululemon Athletica is an organization associated with selling clothes used during fitness activity. The company offers pants, tops, shorts, jackets, Yoga mats, socks, and bags to fitness lovers. Lululemon has identified the opportunities in a mature market. Lululemon has segmented the market based on lifestyle rather than age, gender, or other factors. Individuals who love to look fit follow a rigorous exercise routine. They need clothes as well as accessories while working out. Lululemon identified the opportunity to sell the products to this target market. The benefit of this segmentation is that athletic apparel and accessories fashion does not change overnight, so the company gets enough time to bring new fashion in the market.

How a new company makes a breakthrough in mature markets:

The new company can make a breakthrough in mature markets by identifying new segments, define a niche segment, innovating the existing products, and offering improved products. For instance, Tesla made a breakthrough in the automobile market by bringing new and innovative ideas related to cars, batteries, and other components. Another example is the range of ayurvedic skincare products. In India, Patanjali has changed the FMCG market through the innovative idea of ayurvedic (indigenous) products.