What is true about the bargaining power of suppliers in the performance-based yoga and fitness apparel industry?

In the performance-based yoga and fitness apparel industry, the bargaining power of suppliers can be characterized by several factors, and one key aspect is the level of competition and options available for manufacturers. Choosing to assert that the bargaining power of suppliers is consistently weakening highlights a few important trends in this industry.

As brands like Lululemon continue to establish themselves as leaders through innovation, marketing, and strong customer loyalty, they often gain the ability to dictate terms to their suppliers. This diminutive effect on suppliers' power is driven by the increasing number of manufacturers and the rise of alternatives in sourcing materials. The growth of the market has led to a diverse array of suppliers, reducing the dependency of manufacturers on any single source.

Additionally, advancements in technology and the emergence of new materials contribute to lowering the barriers for new entrants and suppliers, thereby increasing competition among suppliers. This trend can create an environment where suppliers are more willing to negotiate on pricing and terms to maintain their business relationships with major brands, signifying a weakening of their bargaining power.

This context emphasizes the increasingly favorable position for companies like Lululemon, which can leverage their brand strength and market position to minimize dependencies on any particular supplier, ultimately leading to more favorable operating conditions for themselves.