Lululemon has carved out a significant niche in the global activewear market, catering to both men and women with a wide range of clothing categories. Founded in 1998 by Denis “Chip” Wilson in Vancouver, British Columbia, the brand quickly gained traction by addressing the impracticality of cotton yoga wear. Wilson’s innovative designs, launched in 2000, resonated with consumers, leading to rapid expansion. Lululemon went public in 2007, raising $327.6 million, and continued to grow, acquiring the hardware company MIRROR in 2020 for $500 million. Today, the brand boasts over four million Instagram followers, generates $6.3 billion in annual revenue, and is valued at $48 billion, operating 500 stores and employing 25,000 people.
To understand Lululemon’s competitive landscape, we need to look at the brands that are vying for a share of the activewear market. The ranking of these competitors is based on various data points, including revenue, number of employees, valuation, Instagram followers, and other relevant factors. This analysis aims to provide a comprehensive overview of Lululemon’s competition and highlight the unique advantages that set it apart in the industry.
1. Fabletics
- Headquarters: El Segundo, California, United States
- Founders: Adam Goldenberg, Don Ressler, Kate Hudson
- Year Founded: 2013
Fabletics has emerged as a formidable rival to Lululemon in the athleisure space. With actress Kate Hudson as its face, the brand leverages her celebrity status to appeal to consumers looking for high-quality, stylish activewear at a more accessible price point. Despite Hudson’s reduced involvement since 2021, Fabletics continues to thrive under the leadership of co-founder Adam Goldenberg. The brand frequently collaborates with other celebrities like Demi Lovato and Vanessa Hudgens to keep its offerings fresh and exciting. Owned by TechStyle Fashion Group, Fabletics operates over 50 retail stores, employs over 800 people, and generates approximately $500 million in annual revenue. With 1.9 million Instagram followers, Fabletics has built a strong online presence.
2. Nike
- Headquarters: Beaverton, Oregon, United States
- Founders: Philip Hampson Knight, Bill Bowerman
- Year Founded: 1964
Nike, originally known as Blue Ribbon Sports, is a global powerhouse in sportswear. Founded by former track athlete Phil Knight and his coach Bill Bowerman, Nike has grown into a behemoth with a diverse portfolio of brands, including Jordan, Converse, Starter, and Umbro. The brand’s iconic “Just Do It” campaign and endorsements from top athletes like Michael Jordan, LeBron James, Cristiano Ronaldo, and Tiger Woods have solidified its position as a leader in the industry. Nike operates over 1,000 retail stores worldwide, employs over 75,000 people, and generated $44.5 billion in annual revenue in 2021. With 210 million Instagram followers, Nike’s brand power is unparalleled.
3. Adidas
- Headquarters: Herzogenaurach, Bayern, Germany
- Founder: Adolf “Adi” Dassler
- Year Founded: 1948
Adidas is another household name in sportswear, founded by Adi Dassler after a falling out with his brother Rudolf, who went on to found Puma. Known for its iconic three-stripe logo, Adidas has a rich history of innovation and collaboration, including the creation of the Yeezy brand with Kanye West. The brand’s Originals line has over 34 million Instagram followers, while the main Adidas account has over 26 million. With over 55,000 employees worldwide, Adidas generated €21.2 billion in revenue in 2021, marking a 15% increase from the previous year.
4. Athleta
- Headquarters: Petaluma, California, United States
- Founder: Scott Kerslake
- Year Founded: 1998
Athleta has become a leading athletic fashion brand by focusing exclusively on women’s clothing. Founded by Scott Kerslake, an avid cyclist and surfer, Athleta addressed the gap in the market for high-quality, functional women’s activewear. The brand was acquired by Gap Inc. in 2008 and has since grown to employ nearly 3,000 people, operating 200 stores across Canada and the United States. Athleta is projected to generate over $2 billion in sales by the end of 2024, thanks to its commitment to sustainability and partnerships with celebrities like Alicia Keys.
5. Puma
- Headquarters: Herzogenaurach, Bayern, Germany
- Founder: Rudolf Dassler
- Year Founded: 1948
Puma, founded by Rudolf Dassler, has a storied history in sports sponsorship, particularly in football. Known for its influential marketing strategies, Puma has sponsored iconic athletes like Pelé and Neymar, and collaborated with celebrities such as Selena Gomez and Dua Lipa. The brand has recently shifted its focus towards athleisure clothing, emphasizing fashionability. Puma operates around 830 stores globally, employs over 15,000 people, and generated $7.7 billion in revenue in 2021, up from $5.9 billion the previous year. With over 12 million Instagram followers, Puma’s brand momentum is strong.
6. Gymshark
- Headquarters: Solihull, United Kingdom
- Founders: Ben Francis, Lewis Morgan
- Year Founded: 2012
Gymshark has experienced rapid growth in the sports fashion sector, particularly with the rise of social media. Founded by two British university students, the brand initially sold protein powder before pivoting to clothing. Gymshark has built a strong following by partnering with Instagram influencers who promote its gear through the Gymshark Athletes program. The brand plans to open retail outlets in high-traffic locations in 2022, despite its current online-only strategy. Gymshark generated £400 million ($550 million) in revenue in 2021, employs over 1,000 people, and has over 5.6 million Instagram followers.
7. Beyond Yoga
- Headquarters: Los Angeles, California, United States
- Founders: Jodi Guber Brufsky, Michelle Wahler
- Year Founded: 2005
Beyond Yoga specializes in yoga-related clothing for both men and women, making it a direct competitor to Lululemon in this category. The brand was acquired by Levi Strauss for $400 million in 2021, adding 80 employees and an estimated $100 million in annual revenue. Beyond Yoga sells its products through its online store, retail partners, and yoga studios, with 370,000 Instagram followers.
8. Under Armour
- Headquarters: Baltimore, Maryland, United States
- Founder: Kevin Plank
- Year Founded: 1996
Under Armour, founded by former University of Maryland football player Kevin Plank, has expanded into the athleisure market while maintaining its stronghold in sports-related clothing. The brand’s sponsorships, including with basketball star Stephen Curry, have helped it establish a global presence. Under Armour generated $5.7 billion in revenue in 2021, with $1.1 billion attributed to apparel, including athleisure. The company employs over 16,000 people, operates over 350 stores, and has 8.4 million Instagram followers.
9. Outdoor Voices
- Headquarters: Austin, Texas, United States
- Founders: Matt McIntyre, Tyler Haney
- Year Founded: 2013
Outdoor Voices focuses on running-inspired clothing but also competes with Lululemon in the broader athleisure market. Founded by Tyler Haney, the brand underwent significant restructuring in 2020, leading to the departure of its founder and the closure of some stores. Despite these challenges, Outdoor Voices remains a viable competitor, employing over 200 people, operating 12 retail stores, and generating around $100 million in annual revenue. The brand has 500,000 Instagram followers.
10. Uniqlo
- Headquarters: Ube, Yamaguchi, Japan
- Founder: Tadashi Yanai
- Year Founded: 1949
Uniqlo, known for its essential clothing, has expanded into athleisure with items like Heattech t-shirts and Airism leggings. Founded as a textile manufacturer in post-WWII Japan, Uniqlo has grown into a global apparel manufacturer with over 1,000 stores and 30,000 employees. The brand’s low prices make it a strong player in the athleisure market. Uniqlo generated ¥2.1329 trillion ($17 billion) in revenue in 2021, with a significant portion likely derived from its athleisure line.
11. Reebok
- Headquarters: Boston, Massachusetts, United States
- Founder: Joseph William Foster
- Year Founded: 1895
Reebok, the oldest company on this list, has a long history of innovation in sports footwear and apparel. Founded by Joseph William Foster, the brand was renamed Reebok in 1958. Reebok has changed ownership multiple times, most recently being sold to Authentic Brands Group in 2021. The brand aims to grow its revenue from $4 billion to over $10 billion by 2025, with a resurgence in athleisure clothing sales. Reebok employs over 4,000 people.
12. Vuori
- Headquarters: Encinitas, California, United States
- Founder: Joseph Kudla
- Year Founded: 2013
Vuori, inspired by the active coastal California lifestyle, offers athleisure and casual wear. The brand has gained traction through its free online classes and partnerships with investors like SoftBank, which have poured $445 million into the company. Vuori plans to expand into new markets and open over 100 new retail stores in the coming years. The brand employs over 300 people and has over 400,000 Instagram followers.
13. Alo Yoga
- Headquarters: Los Angeles, California, United States
- Founder: Danny Harris
- Year Founded: 2007
Alo Yoga is one of the fastest-growing activewear brands in North America, specializing in yoga clothing. The brand has leveraged partnerships with major influencers and celebrities like Kendall Jenner, Gigi Hadid, and Taylor Swift to build its reputation. Alo Yoga generates close to $200 million in annual revenue, employs over 500 people, and has three million Instagram followers.
14. prAna
- Headquarters: Carlsbad, California, United States
- Founder: Beaver Theodosakis
- Year Founded: 1992
prAna, originally focused on outdoor enthusiasts, has expanded into yoga and other sports. The brand was acquired by Columbia Sportswear for $190 million in 2014. prAna generated $142 million in revenue in 2021, up from $132 million in 2020, and employs over 300 people.
15. Sweaty Betty
- Headquarters: London, United Kingdom
- Founders: Simon Norton, Tamara Norton
- Year Founded: 1998
Sweaty Betty, founded by Simon and Tamara Norton, focuses on female activewear. The brand has grown through strategic store openings and was awarded “Retailer of the Year” in 2001. Sweaty Betty was acquired by Wolverine Worldwide for £300 million in 2021. The company operates 60 stores worldwide, employs over 700 people, and generated £126.5 million in revenue in 2020, up from £72.9 million the previous year.
Lululemon’s Competitive Advantage
Lululemon’s competitive advantage stems from its brand power, pricing strategy, and ability to expand into new categories. The brand’s ability to charge premium prices for its products, such as $118 to $128 for leggings, is a testament to the loyalty and love it has built among consumers. This pricing power is supported by Piper Sandler’s “Taking Stock With Teens” report, which ranks Lululemon as the third most popular brand among teenagers and the top brand for upper-income females.
Lululemon’s brand power also extends to its ability to seamlessly enter new markets, such as men’s athleisure, footwear, golf, and tennis. The launch of its resale program, “Like New,” in 2022, further demonstrates its innovative approach to customer engagement and sustainability. With these initiatives and its growing scale, Lululemon is well-positioned to maintain its dominance in the activewear market.