Political: Government trade policies like Canada's FTA and EIPA substantially impact

Lululemon's global operations and brand recognition (Government of Canada, n.d.). Policy

fluctuations can result in revenue fluctuations. Minimum wage changes can affect labor costs,

but Lululemon's pay equity and full-time work initiatives aim to stabilize payments (Lululemon

Athletica Inc, n.d.). Political stability is crucial, as instability can disrupt the supply chain and

business operations.

Economical: Economic factors, such as exchange rates, inflation, and interest rates, significantly

impact Lululemon( The Strategy Story). Exchange rates influence global sales, with higher rates

reducing demand and lower rates increasing sales(Internet public library). Inflation can make

Lululemon's products more expensive, decreasing customer purchasing power . Changes in

central bank interest rates affect spending habits, potentially reducing demand for Lululemon

products and harming the brand.

Social: Lululemon's success hinges on its ability to adapt to social norms, cultural nuances, and

changing consumer behavior( Fern Fort University). The brand's sales are directly impacted by

its operating regions' demographics and responsiveness to evolving fitness trends. An apparel

firm’s acceptance in different societies depends on its cultural alignment with the brand's

clothing . Customer fashion preferences and attitudes toward sustainability are crucial in shaping

Lululemon's operations and market presence.

Technological: Technological factors such as data analytics, e-commerce, social media, and

sustainable technologies influence Lululemon's growth by enhancing product design, distribution

channels, and customer engagement . The brand leverages user-friendly online shopping

platforms and digital marketing via social media to expand its reach and inform customers about

its offerings. Additionally, advanced data analytics aids in understanding customer preferences,
optimizing the supply chain, and attracting top talent during the hiring process ( Lulumelon –

Technology Solutions LTD)

Environment: In the apparel industry, key environmental concerns include climate variability,

raw material scarcity, responsible consumer choices, waste reduction, and environmental

regulations (Desore et al., 2018; Statistics Canada, 2019). Lululemon has responded with

sustainability initiatives, like adopting renewable energy via the 'Azure Sky' wind power

program, recycling 90% of waste, cutting water usage by 50% in production, and targeting 75%

recyclable materials by 2025 (Lululemon Athletica Inc, n.d.).

Legal: Legal factors in the textile industry involve government regulations on labor,

environmental protection, consumer rights, intellectual property, and digital data protection

(Needle, 2022). Lululemon prioritizes compliance to protect its brand reputation, as seen in past

incidents like Nike's lawsuit, which underscored the importance of maintaining consumer trust

(Movement, 2023).

Ethical: Lululemon prioritizes supply chain ethics, sustainability, diversity and inclusion, and

CSR. The company aims for 30% racial diversity in management and 40% in its employee base

by 2023. They're also committed to sustainable materials and ethical sourcing of wool, cotton,

and polyester by 2025 (Lululemon Athletica Inc, n.d.). However, it is essential to note that some

environmentally problematic materials, like Nylon, are still part of the company's operations.

Demographical: Lululemon's customer demographics focus on age, lifestyle, gender, income,

location, cultural diversity, and consumer behavior. Primarily targeting active individuals,

especially athletes, and catering to the high-income segment, the brand's stores are typically
located in urban or upscale areas (Mizzi, 2015). Gender equality, particularly in empowering

women in business, remains a priority for the company.

References

Desore, A., & Narula, S. A. (2018). An overview on corporate response towards sustainability

issues in textile industry. Environment, Development and Sustainability, 20, 1439-1459.

Government of Canada. (n.d.). Textile & Clothing. Global Affairs Canada.

 https://www.international.gc.ca/controls-controles/textiles/index.aspx?lang=eng

Lululemon Athletica Inc. (n.d.). Climate Action.

https://corporate.lululemon.com/our-impact/our-planet/climate-action

Lululemon Athletica Inc. (n.d.). Waste and Packaging.

https://corporate.lululemon.com/our-impact/our-planet/waste-and-packaging

Lululemon Athletica Inc. (n.d.). Materials Innovation.

https://corporate.lululemon.com/our-impact/our-planet/products-and-materials/materials-

innovation

Mizzi, B. (2015). LululemonMarketing. Umich.

https://www.academia.edu/11804725/Lululemon_Marketing

Movement, Q.-. P. a. P. W. (2023, February 6). Nike Is Suing Lululemon Over Patent

Infringement, Again: Here's What Investors Need To Know About The War

Between These Athletic Apparel Giants. Forbes.

https://www.forbes.com/sites/qai/2023/02/06/nike-is-suing-lululemon-over-patent-

infringementagain-heres-what-investors-need-to-know-about-the-war-between-these-

athletic-apparel-giants/?sh=3acd75685510

Needle, P. (2022, July 28). Global Laws and Regulations Impacting Apparel Sourcing. just-

style.com. https://www.just-style.com/comment/global-laws-and-regulations-impacting-

apparel-sourcing/?cf-view

Statistics Canada. (2019, December 18). Canadian Industry and Environmental Protection, 2006
to 2016. https://www150.statcan.gc.ca/n1/pub/16-002-x/2019001/article/00001-eng.htm