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The yoga and fitness apparel maker Lululemon Athletica is betting on the mainland China market after seeing a growth of 100% in the third quarter of 2020.
Fitness and wellness industry after the pandemic
The unexpected pandemic outbreak reminded everyone of the importance of health which led to a rise in yoga and other wellness activities.
According to research published by Euromonitor, 22.4% of consumers globally were exercising every day last year, up from 16.9% in 2019. 2% of the world population started taking vitamins and supplements as well.
With over 109 million people infected with coronavirus, it was understandable that customers were willing to pay more for the sake of boosting their health and immunity.
“With the growing awareness and understanding of health and wellness under the disruption of the pandemic, consumers tend to be more willing to pay for well-being during the pandemic and after. Consumers acknowledge the importance of immunity and preventive health and, therefore, have been actively involved in activities and consumption related to well-being more in 2020,” Jane Zhang, an analyst at Euromonitor International shared.
China’s booming market
Through a survey conducted with 10,000 respondents last year, asked respondents about their well-being; physical and mental health well-being. It was found that the Chinese got the highest score of 79/100, higher than the global average of 65. The change in the mindset of the population has influenced the spending habit, as resulted in Lululemon’s business result in China.
“We saw a 45 percent revenue increase in international markets, and despite all that happened in the world, China delivered a really strong performance with total revenue increasing by more than 100 percent in the third quarter,” Lululemon’s CEO, Calvin McDonald said.
In the next year, Lululemon will be keeping a close eye on the mainland market but they will still keep a steady pace. The company expects to add 30-35 stores to 515 current active shops across the world. The CEO said that they are still in the early phases of development in China, as well as globally.