In your marks. The race is on following Lululemon’s (NASDAQ: LULU) announcement of a brand new working shoe launching this month which appears to tackle the duel kingpins, Nike (NYSE: NKE) and Adidas. The model labeled ‘Blissfeel’ will probably be obtainable in North America, China, and the U.Okay to retail with a price ticket of $148.
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I don’t fairly know what our obsession with sneakers is, however quick style doesn’t appear to use to our beloved footwear. In accordance with Quick Firm, the sneaker market is valued at over $79 billion — and it’s nonetheless rising. Whole market worth is anticipated to rise 50% to $120 billion by 2026.
Even the resale market is value $6 billion and forecast to high $30 billion by 2030. The purpose right here is, even when Lulu was to seize a minority share, it could make a big distinction to general income.
There’s little doubt this can be a courageous transfer once we stack up the competitors. Nike and Adidas, amongst others, have constructed up international logistics networks to get their footwear in each nook of the world, and each harness excessive model loyalty. Lululemon made gross sales of $4.4 billion in 2021 — nothing to scoff at — however Nike, then again, did ten instances the gross sales quantity for its full-year outcomes.
Then once more, it’s not the primary time Lulu has gone out by itself. It already has an ongoing dispute with Nike over its ‘Mirror’ product, and Peloton has been chased down by the model over what it deems to be knock-offs of its merchandise line.
With its personal model enchantment and nice success with its snug health attire over the lockdown interval, the corporate has made good tracks and this newest transfer exhibits Lulu’s in it for the long term.