What is identified as a significant barrier for new entrants in the performance-based yoga and fitness apparel market?

In the performance-based yoga and fitness apparel market, high barriers in building a retail distribution network are significant for new entrants. Establishing a strong distribution network is crucial for brand visibility and accessibility to consumers. This process often requires considerable investment in logistics, relationships with retailers, and the ability to meet the demands of a rapidly changing market.

For new companies, the challenge is not just securing shelf space in well-established stores but also the expenses associated with managing inventory, marketing, and potentially competing with established brands that already have robust distribution channels. Additionally, existing players in the market often have well-established relationships with distributors and retailers, making it even more difficult for newcomers to penetrate the market effectively.

This high barrier to entry can deter new companies from entering the market or lead to significant delays and increased initial costs. Thus, this aspect is critical in maintaining the competitive advantage of entrenched brands like Lululemon, which benefit from their established distribution systems.