Lululemon Athletica (NASDAQ: LULU ) is aggressively moving into new product categories with the release of its fresh fall fashion line. When you think Lululemon, you may think yoga pants and Luon tanks, but that could soon change. The yoga apparel maker's latest strategy is to get customers to wear their gear not only to the gym, but also in the workplace or during a night on the town with friends. Let's see what Lululemon has up its sleeve and whether this plan will pay off for the retailer down the road.
Versatility at its best
From working out to going out, Lululemon hopes customers will wear its new apparel outside of the gym. The company is reinventing the rules of its business by expanding into apparel that can be worn in the workplace with products like its new Forme Jacket and Blazer Vest, pictured below.
Lulu's new line includes sweaters, stylized crop pants, and dresses. In its latest ad campaign for the products, Lululemon quips, "Perfect day-to-night versatility … we just swap our sneakers for heels." Now this is a strategy with extra legroom. If these products are a hit with consumers, the company could significantly improve sales while at the same time broadening its customer base from strictly workout folk to a much larger addressable market. These products aren't cheap, the brand's latest sweater look will cost you around $108. However, it is made with fabric that is less workout and more quality such as cashmere and rayon blends made from bamboo.