Investment Plan of Lululemon Athletica

INTRODUCTION TO LULULEMONLululemon Athletica is established in 1998 by the current Chairman checkout Wilson in Vancouver, Canada. Mr. Wilson realized the lack of women participation in amusements; therefore, he devoted energy and time in promoting the sport of yoga with female person customers in mind to try to create a ??components for heap to live longer, healthier and more fun lives.? With Lululemon?s train quarter in Vancouver, Canada, it has became a multinational sport acquire company with retail operations in the United States, Australia and Hong Kong and manufacturing partners in China, Taiwan, South Korea, Peru, Israel, Cambodia and Vietnam. With ?community-base business approach?, the revenue for Lululemon has increased from $40.7 one thousand thousand in year 2004 to $354 million in the end of 2008 (Lululemon.com). This harvest-festival in the current market provides a strong agree for Lululemon?s expansion, thus the proposal of ?Project China? has been generatedPROJECT chinaw are OVERVIEWWith Gross Domestic Product growing over 10% for the past few years and projected GDP for 2009, 2010 and 2011 to be 6.5%, 7.5% and 10.3% respectively, Chinese consumers are experiencing a substantial growth in their wealth (International Monetary Fund). As their living standards improve, especially in the three target cities of Beijing, Shanghai, and Guangzhou, Chinese consumers are starting to pass on their earnings on leisure activities especially yoga.

As the sport of yoga grows, the demand for yoga related products grow as well and Lululemon recognizes this chance and decides to bring on ?Project China? that would generate commodious amount of profit and worldwide market share; however, returns are always attached with a cost and risk. Nonetheless, we believe the dominance benefit from ?Project China? would greatly out charge the associated cost.

TARGET MARKETAccording to National Bureau of Statistic of China, the city of Beijing, Shanghai and Guangzhou express the most purchasing...

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