What is the implication of not having strong design capabilities to diversify into different sports?

The implication of not having strong design capabilities to diversify into different sports primarily results in limited brand appeal to cross-sport consumers. When a brand lacks the ability to effectively design and innovate products that cater to various athletic pursuits, it can struggle to connect with a broader audience that seeks versatility and variety in their athletic wear. Consumers who engage in multiple sports may look for brands that can meet their diverse needs, and a deficit in design capabilities can hinder the ability to attract and retain these customers.

In the context of a brand like Lululemon, which has established itself primarily in the yoga and athletic wear markets, not having strong design capabilities can prevent the company from appealing to consumers who participate in other sports such as running, cycling, or team sports. As competitors who effectively diversify their product offerings capture this segment of the market, Lululemon could experience diminished appeal and market presence among these consumers. This underlines the importance of design as a vital element for brand adaptability and consumer engagement across various athletic disciplines.