Lululemon Athletica, a renowned Canadian athletic apparel retailer recognized as the trailblazer of yoga pants, is planning to enter India, seizing the opportunity presented by the increasing demand for fitness and athleisure wear in the region.
Recently, a global team from Lululemon visited India to scout for potential locations where the company could open stores, as disclosed by two officials.
According to one of the executives, “They are not keen on collaborating with Indian companies and will probably enter on their own.”
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He added, “They have reached out to a few malls in Bangalore, Delhi, as well as Mumbai.”
According to another source, the Lululemon team conducted a meeting with mall developers to inquire about the progress of new mall developments in major metro cities.
The individual added that numerous international brands are in talks and eager to participate in India’s retail growth narrative.
Queries directed towards Lululemon received no response.
In 2019, the Canadian company established a tech hub in Bengaluru, marking its first venture beyond North America. This move aimed to drive global expansion through the utilization of data science, machine learning, and full-stack cloud engineering. These technologies were employed to bolster merchandise planning and manage product and location information effectively.
Lululemon Athletica designs, distributes, and retails athletic apparel, footwear, and accessories.
As per the company’s 2023 annual report, it has a presence in more than 25 countries and has achieved robust net revenue growth across various regions, including 12% in the Americas, 67% in Mainland China, and 43% in other parts of the world.
Last year, the company inaugurated 56 new company-operated stores, leading to a 15% expansion in square footage. Additionally, net revenue from total company-operated stores rose by 21%, while ecommerce net revenue saw a 17% increase.
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India, with its population of 1.4 billion, stands as one of the largest and most rapidly expanding markets for businesses.
While many global brands have established a presence in India for over two decades, their growth has been facilitated by promoting their products through partnerships with cricket and other sporting activities. Conversely, newer entrants are positioning themselves as comfortable lifestyle and everyday athletic wear brands.
In India, the sales of nearly half a dozen leading sports brands have surged over the past two years, both during the pandemic and thereafter.
According to regulatory filings obtained from the Registrar of Companies, brands like Puma, Decathlon, Adidas, Skechers, and Asics have experienced year-on-year growth ranging from 35% to 60% since FY21. Collectively, they recorded combined revenues of INR 11,617 crore in FY23.
Two years ago, the collective sales of these brands amounted to INR 5,022 crore.
The demand for fitness wear and sports equipment for disciplines beyond cricket experienced growth as people placed a higher priority on health with the onset of Covid-19.
Encouraged by a post-Covid consumption surge, approximately two dozen international brands established their stores in India in 2023. This marked a significant increase from the one global brand in 2020, three in 2021, and eleven in 2022. Prior to Covid-19, an average of 12-15 brands used to enter the Indian market annually.