Lululemon bets on China after revenue from mainland more than doubles during coronavirus pandemic
- In the third quarter last year, China delivered a ‘really strong performance’ with revenue increasing by more than 100 per cent, CEO says
- China’s health and wellness industry is forecast to grow by 19.2 per cent to US$145.1 billion by 2025
China will be among the main growth focus areas for yoga and fitness apparel maker Lululemon Athletica, with the market outpacing others in terms of sales.
The coronavirus pandemic has led to a boom in yoga and other wellness activities in various parts of the world, but more so in China, which got a total well-being score of 79 out of 100, higher than the 65 global average, according to a survey conducted by the Nasdaq-listed company.
The online survey, held from November 13 to December 1 last year in 10 countries, asked 10,000 respondents aged 18 years and above about their well-being in terms of physical health, emotional balance and social bonds. France and Singapore came in second and third on the index, with a score of 67 and 66, respectively. Japan had the lowest well-being score of 60.
The well-being perception of a population appeared to have affected consumers’ confidence in spending, particularly as seen in Lululemon’s sales in China.
“The impact of being proactive is seen in China, the market with highest regional well-being index of 79, and 62 per cent of its citizens feeling well across all three dimensions,” said Calvin McDonald, Lululemon’s chief executive. “The research indicates strong well-being in China is supported by a proactive mindset among 78 per cent of the population.”
In the third quarter, revenue from China more than doubled, outpacing the 45 per cent growth in overall international markets for the Vancouver-based company.