Lululemon Athletica Launches New Streetwear Brand
The lines are blurring between luxury and casualwear. Streetwear brands like Supreme, Cotton Citizen, and Hanesbrands' (NYSE: HBI) Champion are finding a huge market for premium, limited-edition hoodies and sweats. Demand has been particularly strong with high-earning millennials who are seeking out quality clothing from niche apparel brands. The streetwear and athleisure trends have played important roles in the explosive growth of top athletic-wear brands lately, including lululemon athletica (NASDAQ: LULU).
Last year, global sales of personal luxury goods grew 6% to reach $284 billion, according to Bain & Company, and the market is expected to continue growing through 2025. Over the last few years, streetwear has been a crucial driver of growth in luxury goods, and Lululemon sees an opportunity to get in on the action.
Lululemon just launched its first streetwear brand called Lab, which is available online and in select stores. Because Lululemon already serves a demographic that is willing to drop nearly $100 on a pair of yoga pants, it is perfectly suited to make a splash in the luxury-streetwear market and expand its addressable market.
Source Fool.com
