Why Is Lululemon So Expensive? (Top 21 Reasons)

Lululemon is a popular athleisure company. It is known for its expensive yoga pants and other athletic wear. While there are many cheaper alternatives on the market, Lululemon still maintains a strong following.

There are many reasons why people think Lululemon products are so expensive. Some say it is because of the quality of the materials, while others say it is due to the high overhead costs associated with the company. In this article, I will explore 21 possible reasons why Lululemon products are so expensive.

Quick Answer

Lululemon is so expensive because it has to go above and beyond other brands in terms of product quality and marketing. Not only that but there’s also an extensive research and development team that works on new products every year, along with all of their stores that are fully company-operated.

21 Reason Why Lululemon Is So Expensive

1. High-Quality (and Exclusive) Suppliers

Lululemon maintains strong relationships with its suppliers. This allows the company to get exclusive access to high-quality materials and fabrics.

This is an intentional strategy on the part of Lululemon. They want to ensure that their products stand out against all the other cheap alternatives on the market. One way to do that to provide the best rates to their suppliers.

They do this by stipulating exclusivity and high minimums (this ensures that their suppliers prioritize Lululemon over other retailers).

2. It’s Not Just About Selling Clothes; The Company Has A Mission

They want the world to be a place where everyone feels empowered and moves in tune with their inner selves. Toward that end, they have created a corporate structure that aims at achieving that goal. Some of the practices employed by the company include:

-Providing a healthy work environment for employees

-Creating quality products for customers

-Using sustainable materials in their products (for example, Lululemon recycles old workout pants into insulation).

Notice how these practices align with what Lululemon is known for?

3. Fabric & Sewing Costs Are Higher For Athletic Wear Than Other Clothing Lines

When compared to other types of clothing, the fabric and sewing costs for athletic wear are much higher. This is because the fabrics need to be able to withstand a lot of wear and tear.

In order to keep their prices competitive, most other athletic wear companies will use cheaper materials. Lululemon, however, insists on using top-quality materials (which drives up costs).

4. Lululemon Makes Small Batch Runs Of Clothing (And Keeps Stock Fresh)

Most other athletic wear companies make large runs of their clothes. Once they have produced a certain number of clothing items, the rest of their inventory is often not as fresh.

Lululemon, on the other hand, makes smaller batches and rotates its stock so that it can maintain a fresh look.

While this is good for aesthetics, it does mean that they have to make more designs, which increases their costs.

5. Lululemon Products Retain Value In the Resale Market

One of the benefits of owning a Lululemon product is that it retains its value in the resale market. This is because there is a limited supply of these products, and they are in high demand.

This allows people to recoup some of their original costs by reselling the products later on.

If you know you will be able to resell the product, when you buy it, then you will likely be willing to pay more for it.

6. Retail markup is higher for luxury brands

When compared to other retail items, the markup for luxury brands is much higher. This is because people are willing to pay more for products that have a high-end label.

Lululemon is considered a luxury brand, and as such, its products come with a higher price tag.

7. Customers Feel Empowered

The brand is associated with success or social status. This holds true in the case of Lululemon. People who wear Lululemon feel empowered, and they believe it contributes to their success.

This is largely due to the pricing of Lululemon products, which means that not everyone has access to them. People are willing to pay more money for a product if they feel it makes them look better or provides some kind of advantage over others.

8. Lululemon Has An Intense R&D Platform Designed To Make Clothing Last

Lululemon invests heavily in research and development (R&D). This is in order to make sure that their clothing lasts longer and performs better.

This costs the company a lot of money, but it is worth it because it helps them to maintain their high-end image.

9. The Price Point Reflects the Quality and exclusivity of the brand

Lululemon uses expensive fabric and materials in order to make sure that their products meet the highest standards. They also want them to be exclusive, which is why they sell such small batches of clothing at a time (see number 5).

If you spend some time browsing the Lululemon website, you will notice that most items cost around $100 or more. While this may seem expensive, it does reflect the quality of the product and the brand.

10. They Have Higher Operating Costs Than “Regular” Stores

Shopping at a Lululemon store (or online) is quite different from shopping at a traditional retailer. For starters, the staff is highly-trained and knowledgeable about the products.

Stores have a unique look and feel to them, which makes people want to shop there.

11. Their Employees Are Highly Trained, So That Adds To The Cost

All of Lululemon’s employees are highly trained. They go through extensive training so that they can provide the best possible customer service.

This costs the company money, but it is worth it because it helps to create a loyal customer base.

The employees are also responsible for educating customers about the products, which increases costs.

12. They Do Lots Of Research and Development To Stay Ahead of the Curve

Lululemon invests a significant amount of money in research and development.

This is because they want to make sure that their clothing is on-trend and at the top of its class.

This costs the company a lot of money, but it is worth it because it helps them to stay ahead of the curve.

13. It’s a Leader In The Yoga Clothing Space and Sets Trends In

Lululemon is a leader in the yoga and fitness clothing space.

It was one of the first companies to develop high-quality, stylish clothing for people who do yoga and work out regularly. This means they have a lot of competition, but they are still able to stand out from the pack.

14. Many Celebrities Endorse The Brand, Adding to Its Cachet

You are probably familiar with Lululemon’s celebrity endorsements.

Celebrities are often seen wearing the brand, which has helped to build its image and cachet.

Lululemon has worked with many celebrities in order to promote their products, including famous athletes like Michael Phelps and Cristiano Ronaldo.

15. They Use High-End Materials and Technologies in Their Clothing Designs

Lululemon uses high-end materials and technology in its clothing designs.

This includes PULSE fabric, HEATTECH, and DRYROOM technologies.

They have a lot of competition when it comes to yoga clothing, so they need to stay ahead in terms of design in order to win customers away from other brands.

16. The Brand Is Strong And Has a Loyal Customer Base

Lululemon is very strong in its home market of North America, but it also has a strong presence overseas.

This means that the company does not need to constantly discount its products in order to gain popularity and generate sales.

This means they can keep their prices high and still generate a lot of revenue.

17. Lululemon Uses Unique, Sustainable Fabrics, and Technologies in Manufacturing

Lululemon is a leader in terms of sustainable fabrics and technologies.

This means that their products are not only high-quality, but also environmentally friendly.

This helps to set them apart from the competition and makes them more appealing to customers.

18. Many Stores Are Located in Expensive Real Estate Markets

Lululemon is a high-end brand, so it makes sense that they would locate their stores in expensive real estate markets.

The cost of rent and real estate is expensive in cities like New York City, Los Angeles, and London.

Lululemon often has to pay more for rent as these are very popular locations and all retailers want them.

19. They Offer Yoga Classes and Events to Customers (Which Helps Increase Sales)

Lululemon offers yoga classes and events to customers in order to increase sales.

This is a smart strategy, as it allows people to try out the products before they buy them.

It also helps to create a sense of community among Lululemon’s customers.

20. They Have A Strict Quality Control Process

Lululemon has a strict quality control process.

This helps to ensure that their products live up to the brand’s reputation of high-quality, stylish clothing that is made for athletic activities like yoga and running.

Their QA department ensures every product shipped meets the company’s high standards before it ships out to customers.

21. They Also Have To Factor In The Cost Of Returns And

Lululemon also has to factor in the cost of returns.

If a customer is not happy with a purchase, they can return it to the store for a refund.

This can be costly for the company, as they often have to pay to ship the product back to them.

All of these factors play into why Lululemon’s products are more expensive than those of their

How To Save Money At Lululemon?

Here are 7 ways to save while shopping at Lululemon:

1. Join the email list to receive special offers and discounts

2. Sign up for the Lulus membership program

3. Use promo codes at checkout for free shipping

4. Shop during sales and clearance periods

5. Buy discounted gift cards

6. Look at other stores like Lululemon

7. Buy used items from stores like Crossroads, Plato’s Closet, and SnobSwap. Or check out local shops and sites like OfferUp to find gently used items.

Wrap Up

It’s no secret that Lululemon is an expensive brand. The company has a lot of expenses and, as such, prices its products at a premium to meet those costs. But there are many reasons why the “expensive” label doesn’t seem to deter customers from spending money on this popular retailer.