Lululemon discontinued its children's athletic wear brand, Ivivva, primarily to redirect resources and focus on its core business, thereby unlocking capacity to support its long-term growth strategies. This strategic decision allowed the company to streamline operations and concentrate on key areas of expansion within the Lululemon brand.
The Journey of Ivivva
Ivivva, launched by Lululemon in 2009, was Lululemon's venture into the children's activewear market. The brand aimed to provide high-quality athletic apparel and accessories for girls aged 6-14, mirroring the design, quality, and community-focused approach of its parent brand. Ivivva operated through standalone stores and an e-commerce platform, fostering a sense of empowerment and activity among young girls.
Strategic Decision to Exit the Children's Market
Lululemon made the strategic decision to close its Ivivva business in order to optimize its brand portfolio. This move was explicitly aimed at unlocking capacity to support Lululemon's broader long-term growth objectives. The company sought to consolidate its efforts and resources into its primary, highly successful Lululemon brand.
Key Factors Driving the Closure
Several strategic considerations underpinned the decision to close Ivivva:
- Resource Reallocation: By phasing out Ivivva, Lululemon freed up significant operational, financial, and human resources. These resources could then be channeled into initiatives with higher strategic priority and growth potential within the core Lululemon brand.
- Focus on Core Business: The move allowed Lululemon to sharpen its focus on its primary brand, including expanding its popular men's apparel category, growing its international presence, and innovating in new product lines and experiences.
- Streamlining Operations: Closing a separate brand simplified Lululemon's overall retail footprint, supply chain, and marketing efforts, leading to greater efficiency.
Timeline of Ivivva's Transition
The closure of Ivivva was a phased approach, reflecting a thoughtful strategic shift by Lululemon.
| Year | Event |
|---|---|
| 2009 | Ivivva is Launched: Lululemon introduces Ivivva, its activewear brand for girls. |
| 2017 | Restructuring Announcement: Lululemon announces a strategic restructuring of Ivivva, including the closure of most stand-alone stores (40 out of 55) and a shift to an e-commerce and shop-in-shop model. |
| 2019 | Complete Closure: Lululemon announces the complete closure of the Ivivva business, ceasing all remaining operations to focus entirely on the Lululemon brand's long-term growth. |
Impact on Lululemon's Growth Strategy
The decision to exit the children's market was a calculated move to accelerate Lululemon's overall growth strategy. By divesting Ivivva, Lululemon has been able to invest more heavily in key growth pillars:
- Expansion of Men's Category: Significant investment has been made to grow Lululemon's men's apparel and accessories, which has become a substantial revenue driver.
- International Market Penetration: Resources have been redirected towards expanding Lululemon's footprint in international markets, including Asia and Europe.
- Digital Innovation: Enhanced focus on e-commerce, digital experiences, and technology integration has improved customer engagement and sales channels.
- New Product Categories and Wellness Initiatives: Lululemon has diversified its offerings, including the acquisition of MIRROR, a home fitness company, and the introduction of new categories like footwear.
Ultimately, shedding Ivivva allowed Lululemon to optimize its brand portfolio and strategically allocate capital and talent to initiatives that align more closely with its ambitious global growth targets, solidifying its position as a leader in athletic apparel and accessories.
