Lululemon

Lululemon is based in Vancouver. Align leggings and ABC pants are replenishment items sold in company stores and online, and the brand has been cautious about wholesale, which keeps price and presentation in its own hands.

Alo and Vuori are the closest specialty rivals, Nike covers performance, and Athleta is the more promotional alternative. Because Lululemon does not rely on a department-store floor, a rival cannot beat it by winning a wholesale bay; it has to pull the customer out of the Lululemon store.

Limited wholesale also means a full-price customer cannot comparison-shop the same SKU at a nearby department store. Outlet and warehouse sales are the pressure valve, and international store openings are how the company adds volume without discounting the core door.

Company-operated stores and the website are the distribution, so real estate and traffic are the capacity.

Restricted wholesale keeps the assortment out of off-price and department-store comparisons.

Core styles replenish for years, which builds a direct relationship the specialty rivals are still scaling.

Customers who want a specific Lululemon fabric generally have to buy it from Lululemon.

Landlords in premium malls and streets treat a Lululemon lease as a traffic driver other apparel brands then want to sit beside.