by: Nicola Georg
Lululemon proved unsuccessful in the Japanese market compared to sales in the North American market. Japan’s culture is based on a system of respect. In Japan, this respect culture is called omotenashi (5). Lululemon’s founder and former CEO, Chip Wilson, was quoted stating he named Lululemon because he thought it would be funny to hear Japanese people pronounce it. Lack of respect can be accredited to Lululemon’s downfall in the Japanese market.
A Hofstede analysis reveals the complexity of the culture of Japan. Japan has a high-power distance as traditional hierarchies are important to society, especially age, the elderly in Japan are seen as the most powerful (6). Group mentality is a vital part of Japanese culture, demonstrating a collectivist culture. Japanese consumers make buying decisions based on what they believe will be accepted in groups they identify with (7). With elderly males being at the top of the hierarchy, Japan demonstrates a masculine culture. The Japanese people are known across the world for being respectful and rule-abiding (5), which aligns with a high score of uncertainty avoidance. Japan best fits a long-term orientation. In addition to avid rule-following, Japanese people share much restraint in terms of their culture which includes an emphasis on the importance of modesty and respect for people, places, and traditions (6).
Consumers in Japan are modest, they follow tradition and don’t want to stand out. Japan has a combination of an aging population and a declining birth rate. With a median age of 49.1 (2), the average Japanese consumer is older compared to Lululemon’s North American target market of women aged 18-35 (4). The Japanese consumer has several unique characteristics. Seventy percent of Japan’s population shops online, with many shoppers choosing to shop directly from social media apps (7). Japanese shoppers respect the advice of family and friends, making personal relationships and word-of-mouth recommendations vital marketing activities.
Japanese consumers value well-made quality items and are willing to pay more for them. In other Asian countries, Lululemon has made lines of clothing specially made for the Asian body. (8). In all marketing activities, the commitment to creating high-quality items should be illustrated. This respect for craftsmanship is just the start of the respect Lululemon should be showing to the Japanese market. Lululemon has made its brand by showing love and adoration for sports. The brand image for sports can be kept but modified for the Japanese market, instead of making athletic wear specifically for running and yoga pieces could be designed for traditional Japanese sports like martial arts. These specially made martial arts pieces could be sponsored by Japanese martial arts athletes. The collaboration with Japanese athletes will align with the word-of-mouth marketing strategy that is successful in Japan’s collectivist culture.
Currently, the most popular athletic clothing brand in Japan is Adidas followed closely behind by Nike (3). If Lululemon’s marketing is successful it would be hoped that Lululemon would see sales close but still under Adidas, as Adidas has had time to cement themselves in the market. In 2023, Adidas saw net sales of 150 million dollars (1). Once all marketing activities are in place it would be expected for Lululemon to see net sales of around 100 million dollars. In addition to revenue, awareness is another metric that should be recorded to track the success of marketing campaigns and the start of cementing Lululemon into Japan.
References
Women’s Asia Fit | lululemon HK. (n.d.). Www.lululemon.com.hk. https://www.lululemon.com.hk/en-hk/c/women/collections/womens-asia-fit
adidas.jp revenue | ECDB.com. (n.d.). Ecommercedb.com. Retrieved March 11, 2024, from https://ecommercedb.com/store/adidas.jp
Japan Population (2023) – Worldometer. (n.d.). Www.worldometers.info. https://www.worldometers.info/world-population/japan-population/#:~:text=Japan%20ranks%20number%2012%20in
Japan: most popular sports brands 2023. (n.d.). Statista. Retrieved March 11, 2024, from https://statista.com/statistics/735053/japan-popularity-of-sports-brands/#:~:text=According%20to%20a%20survey%20conducted
Quiroz, M. A. (2018, December 31). A Growth Strategy for Lululemon 2018. Medium. https://medium.com/@michaelangelo_q/a-growth-strategy-for-lululemon-68819680e511#:~:text=The%20target%20market%20for%20Lululemon
Scroope, C. (2021). Japanese Culture – Etiquette. Cultural Atlas. https://culturalatlas.sbs.com.au/japanese-culture/japanese-culture-etiquette
Uchitani, A. (2022, November). Japanese Social Hierarchy: Order or Constraint? LEVEL. https://different-level.com/project/japanese-social-hierarchy-order-or-constraint/
Understanding Consumer Behavior in Japan: Key Insights. (2023, June 19). Sanka. https://sanka.io/blog/consumer-behavior-japan/#:~:text=Japanese%20consumers%20tend%20to%20be%20very%20loyal%20to%20brands%20they
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