Which of the following factors weakens the competitive pressures from substitutes?

The reason why inferior quality of substitute apparel weakens competitive pressures from substitutes lies in the basic principles of consumer choice and market dynamics. When substitutes are perceived as inferior in quality, consumers are less likely to consider them viable alternatives to the original product. In the context of Lululemon, if competing brands offer apparel that does not match the quality or performance of Lululemon's products, customers are more likely to remain loyal to Lululemon.

Substitutes that fail to meet consumer expectations in terms of quality will struggle to attract customers, allowing established brands like Lululemon to maintain their market position without significant competitive pressure. This dynamic reinforces brand loyalty and helps Lululemon differentiate itself within the market, reducing the threat posed by lower-quality alternatives.

In contrast, high pricing of performance apparel may create a scenario where consumers seek substitutes for affordability. Widespread advertising of substitutes could increase awareness and attractiveness of competitor products, and consumer preference for trendy designs could shift demand away from brands like Lululemon if substitutes capitalize on fashion trends. These factors tend to increase competitive pressure rather than diminish it.