Will Lululemon’s NFL Partnership Hurt Its Brand In The Long-run? | Fast Five Shorts
Lululemon announces its first-ever licensing deal, partnering with all 32 NFL teams to release officially branded apparel. Anne sees opportunity in solving the women's fan gear problem, while Chris warns it cheapens the brand and signals an identity crisis. Who's right? Plus, debate whether this should have been a college athletics play instead, and whether you'll ever see Viking yoga pants in a Lululemon store near you.
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Transcript
Lululemon is partnering with the NFL to release apparel for all 32 of its teams.
Speaker A:According to CNBC, this marks the first time the retailer has offered officially licensed products for the NFL or any of its franchises.
Speaker A:The collection, set to launch Tuesday, will include both men's and women's apparel and accessories with NFL team symbols.
Speaker A:Some of Lululemon's most notable products, including its steady state men's franchise and women's styles such as the define scuba and align and you might have to tell me what the hell those even are, are all part of the collection.
Speaker A:And I'm curious, do you think Lululemon's partnership with the NFL ads or detracts from its brand cachet?
Speaker B:I, I don't think it, I don't think it detracts from it.
Speaker B:I actually don't hate this idea.
Speaker B:I think as long as they keep it online, I think if we start to see more penetration in stores, I think that's going to actually be an issue.
Speaker A:Oh God, I didn't even think about that.
Speaker B:They've, they've already done this like they, they done this for custom apparel for gyms and corporations.
Speaker B:Like they have that arm of the business.
Speaker B:So I think yes.
Speaker B:Is this a potential growth opportunity in a very lucrative area team where 100%.
Speaker B:I think that makes a lot of sense.
Speaker B:I also think that, you know, the, the categories that they're talking about here align the men's study.
Speaker B:Like these are very commonly purchased products across their portfol.
Speaker B:So people know how these products fit on them.
Speaker B:They, they're, they're some of their best selling products.
Speaker B:And so I think to, you know, as a woman buying any kind of fan gear like this has always been problematic.
Speaker B:Yes, they, you know, they're making like a woman's cut jersey or something like that.
Speaker B:But it's, it's very limiting in the types of materials that you can use and really how the fit is.
Speaker B:So as somebody who knows that I really like the fit of the align leggings or tank tops or whatever it might be, I like that.
Speaker B:I know with a good degree of certainty that when I order this for my team, you know, this align top with my team logo on it, that it's going to fit and I'm going to like the way it feels and the materials.
Speaker B:And the same goes for men's I would assume too, you know, given, given their, their popularity with that particular line.
Speaker B:But what I'm actually surprised that they to see here is that they didn't go for the college teams first Like, NFL is fine, but I think given the, the demographics that are interested and that are purchasing and are like at the top of Lululemon's customer funnel right now, I think that doing this for more college athletics would bet would have been better than starting right away with NFL teams.
Speaker B:But you've already hinted you're not a fan, so what, what should we all know about this, this Lululemon move?
Speaker A:No, I'm not, I'm not, not a fan of this at all.
Speaker A:Yeah, the coaching is interesting.
Speaker A:I mean, the college thing is just way more complicated, you know, versus 32 cities versus all those other cities.
Speaker A:But that's the, you know, having had some exposure to the fan business at Target.
Speaker A:Yeah, I don't, I don't, I don't, I don't like this move at all.
Speaker A:And I never even thought about the fact that I could walk into the Lululemon down the street from me and see Minnesota Vikings gear in it, which just, just, oh, makes me want to ralph.
Speaker A:Like, I just don't like that idea at all.
Speaker A:And then, you know what?
Speaker A:I, I happened, I happened to catch the Joe Montana and his Facebook feed this morning as I got up and I was like, I can't even tell that's Lululemon stuff.
Speaker A:It just looks like garden variety, like NFL apparel.
Speaker A:And I was like, why do I care that Joe Montana, his wife and his two kids are in Lululemon gear?
Speaker A:Like, I just, I don't get that.
Speaker A:But so anyway, that aside, I just think it cheapens the brand.
Speaker A:I mean, the, you put the NFL logo on, on everything.
Speaker A:And down the road, like, yeah, sure, the short term revenue gain, it might be nice, but the NFL is going to force you to compete at some point with the business of some other athleisure company down the road.
Speaker A:And so they're either going to take the business from you or squeeze you in terms of what you're expecting here in the future.
Speaker A:So I think it's a really short term move.
Speaker A:I think it's, I think it's short term designed to juice the revenue.
Speaker A:And I think it's further indication to me that Lululemon has kind of have an identity crisis right now in terms of what it wants to be.
Speaker A:And I think once you grab that cachet position, you got to do everything you can to maintain it.
Speaker A:And I think an NFL broad based partnership just doesn't make sense to me.
Speaker B:Yeah, I don't know.
Speaker B:I think it's a good, it's.
Speaker B:I think it's, it's worth the test for sure.
Speaker B:And hopefully Lululemon's team is.
Speaker B:Is in a position to move quickly.
Speaker B:Should this not pan out the way that they.
Speaker B:They think it will.
Speaker B:But.
Speaker B:But I don't know.
Speaker B:I like the option.
Speaker B:I think I would push it forward and let's check back in in a few months and see, like, what happened and how they do in fourth quarter, especially around gifting season.
Speaker B:Because that's another thing too.
Speaker B:Like, I think maybe, maybe the holiday season, this is like an extra fun thing to.
Speaker B:To gift somebody.
Speaker B:But.
Speaker B:But will it last?
Speaker A:So Viking yoga pants on this show.
Speaker A:And that's what you're saying.
Speaker A:Viking yoga pants on this show.
Speaker A:Not a garland has been thrown.
Speaker B:I'm not buying anything.
Speaker B:NFL.
Speaker A:NFL.
Speaker A:Okay.
Speaker B:I know, but I'm just.
Speaker B:That's why I'm saying, like, I would not.
Speaker A:I don't.
Speaker A:You might try it.
Speaker B:No, I'm saying, like, I would try it for other.
Speaker B:Like, I can see why somebody would try this in the sports categories if they waited.
Speaker B:Timberwolves if they did NBA.
Speaker B:If there was Timberwolves gear 100, I'd be all over it.
Speaker A:Okay, mark it down.
Speaker A:Mark it down.
Speaker A:All right, cool.
Speaker A:All right.
