What is one approach Lululemon takes to promote its brand value?

Maintaining premium pricing is a key approach for Lululemon to promote its brand value. This strategy reinforces the perception of quality and exclusivity associated with the brand. By setting higher prices, Lululemon positions itself in the market as a premium athletic and lifestyle brand, attracting consumers who value high-quality products and are willing to pay a premium for them. This approach not only enhances the brand's image but also contributes to maintaining high profit margins, allowing Lululemon to invest in innovation, sustainable practices, and community engagement.

In contrast, hosting annual sales or frequently offering discounts can devalue a brand in the eyes of consumers, making them less willing to pay full price in the future. Partnering with discount retailers directly undermines the premium positioning of the brand by associating it with lower-priced offerings, which can diminish brand equity. Thus, maintaining premium pricing effectively communicates the brand’s commitment to quality and lifestyle, crucial for appealing to its target demographic.