What aspect of existing companies could deter new entrants in the performance apparel market?

Brand recognition and customer trust are critical factors that can significantly deter new entrants in the performance apparel market. Established companies like Lululemon have spent years building their brand, cultivating a loyal customer base that not only recognizes their logos but also associates them with quality, innovation, and an active lifestyle.

When potential new entrants consider entering the performance apparel market, they face the challenge of overcoming the strong brand loyalty that established competitors have fostered. Customers are often reluctant to switch to a new brand that doesn't have a proven track record, particularly in a market where quality and performance are paramount. A lack of trust or recognition can result in new brands struggling to gain traction, despite potentially similar or even better product offerings.

Additionally, established companies often have substantial marketing resources and strategies that further enhance their visibility and reinforce customer loyalty, making it difficult for newcomers to compete effectively. This creates a barrier to entry that is rooted not only in the quality of the products but also deeply tied to consumer perception and brand credibility.