CHALLENGE
20 years after its founding, Lululemon was at a turning point. The brand that made yoga pants aspirational was grappling with a perception problem: as the poster-child of the “wellness as luxury” lifestyle, it had become the brand for yummy mummies. The founder’s high-profile PR bloopers only added to its image as the “mean-girl brand.” Lululemon had become a badge of elitism and exclusivity at a time when diversity was the order of the day.
Amplifying the problem was Lululemon’s approach to marketing: they had never invested in anything beyond grassroots. This resulted in a discordant approach to communications – each market self-crafting their own messaging– and left a gap around the larger brand narrative, which the media inevitably filled with the latest scandal.
Lululemon knew it couldn’t continue on this path if it wanted to reach its goal of $4B in sales by 2020. It needed to take back control over its brand story, putting forth a united rallying cry to galvanize a new generation – and a diverse new audience – beyond its dedicated core.
THE DIGGING
We interviewed employees, athletes, instructors, retail associates, yogis and non-yogis alike. We sought to understand the cultural currents surrounding the brand: the mainstreaming of yoga & meditation, the tribalization of fitness, the shift from physical to mental well-being. And we dove into researching Lululemon’s roots, the practice of yoga.
WHAT WE LEARNED
We landed on 2 key findings:
+ Today’s youth seeks to live meaningfully.
+ Yoga is more than a physical practice: it’s a philosophy for a well-lived life.
STRATEGY
Take yoga off the mat: inspire a new generation with the principles behind the practice.
IDEA
This is Yoga.
A campaign that featured absolutely no sun salutations, yoga pants, or mats. Instead, a series of provocative docu-films depicted the spirit of the practice through the lives of 7 real people - young creative types and athletes who live the yoga mindset through their lives and crafts (Olympic gold medalist Kerri Walsh Jennings, Capoeira instructor Jian Pablico, artist CJ Hendry, Mexico City ballroom dancers House of Apocalipstick, DJ and producer P Money, Beijing punk band drummer Atom and professional surfer Maddie Peterson).
The campaign came to life around the world via video (anthem spot + docu-series), digital/social, OOH, and retail.
IMPACT
The campaign endeared the brand to a new generation: after becoming the 2nd-fastest growing brand across all categories for Gen Zs (with a 77% rise in value year-on-year), it now leads the apparel category in terms of value growth (BrandZ’s Top 100 Most Valuable Brands).
From a business perspective, Lululemon’s trajectory made a complete U-turn. After years of sluggish results, the stock more than doubled (significantly outperforming the industry’s growth of 16.8%), driven by a strong performance that beat forecasts. Sales grew 19% (including a 47% jump in e-comm); Lululemon’s gross margin widened by 3.6% to 54.8% - beating the industry leader Nike; net profit almost doubled; and the company hit three of their 2020 financial targets in 2018, two years ahead of schedule.
CREDITS
Strategy: Red & Co
Creative: VICE