Lululemon's Like New Program: Pioneering Resale in Activewear and Community Engagement

Table of Contents

1. Key Highlights
2. Introduction
3. The Like New Resale Program: An Overview
4. Community Engagement Through Experiential Marketing
5. Transitioning to a Circular Economy
6. Building a New Playbook for Retail
7. Challenges and Future Considerations
8. Conclusion
9. FAQ

Key Highlights

• Lululemon has amplified its resale initiative, Like New, through community-centric events and strategic influencer partnerships.
• Recent activities at SXSW spotlighted the importance of experiential marketing in promoting secondhand apparel.
• The program reflects a growing trend in the retail market, where brands reclaim ownership of their resale strategies to tap into changing consumer behaviors.

Introduction

As consumers increasingly prioritize sustainability and conscious consumption, the fashion industry finds itself at a critical juncture. A recent report from ThredUp indicates that the global secondhand apparel market is projected to hit $367 billion by 2029, signaling a significant shift in how shoppers perceive value. Amidst this evolution, Lululemon is making waves with its Like New resale program, aiming to not only promote the benefits of purchasing secondhand but also to cultivate a deeper connection with its community. Recently showcased at SXSW, Lululemon's pop-up events demonstrate how the company integrates lifestyle appeal with sustainable practices—a blend that resonates with modern shoppers seeking both quality and responsibility in their purchases.

The Like New Resale Program: An Overview

Launched nationwide in 2022 after a successful pilot in 2021, Lululemon's Like New program enables customers to trade in gently-used items for store credit, which encourages both sustainability and customer loyalty. The initiative allows individuals to hand in their used Lululemon products, receiving between $5 to $25 in store credit depending on item conditions. This trade-in model not only supports sustainable practices but also helps keep resale opportunities in-house, limiting competition from third-party platforms.

Maureen Erickson, Senior Vice President of Strategic Enablement and New Business, emphasizes that Like New aligns seamlessly with Lululemon's broader business strategies, reinforcing customer retention while addressing the environmental concerns surrounding fashion waste. "Like New allows us to keep guests in our ecosystem," she explains, illustrating how this initiative complements Lululemon's full-price business.

Community Engagement Through Experiential Marketing

At the recent SXSW event, Lululemon partnered with Archive, a resale infrastructure provider, to host "The Like New Edit," a two-day pop-up experience at the Peach House pilates studio in Austin, Texas. This event featured a plethora of free activities, including fitness classes, sauna sessions, and health drink tastings, making it an engaging experience for attendees. In a clever marketing move, local influencers curated collections of Like New apparel for the participants, significantly amplifying the program's reach.

According to company representatives, some classes experienced waitlists of up to 300 people, an impressive feat indicative of both Lululemon's brand strength and the rising interest in sustainable activewear options. The experiential nature of these events allows consumers to physically interact with the secondhand garments, helping to alleviate common misconceptions about the quality of resale apparel.

The Influence of Personal Connections

Influencer partnerships play a pivotal role in this marketing strategy. Beyond curating collections, influencers help in mitigating the stigma often associated with secondhand purchases by validating the quality and desirability of Like New products. Emily Gittins, co-founder of Archive, noted that many SXSW attendees discovered the program for the first time at the activation and subsequently engaged in on-site purchases. This highlights the effectiveness of combining product education with a tactile experience, offering consumers a platform to engage directly with the brand.

Transitioning to a Circular Economy

Lululemon's commitment to sustainability extends well beyond its resale program. Like New is a significant facet of the company's broader circularity efforts designed to extend the lifecycle of its products. The initiative also channels 100% of its profits to the Apparel Impact Institute's Fashion Climate Fund, showcasing a commitment to environmental responsibility. The alignment of profit-making with environmental stewardship forms a cornerstone of this resale program, indicating a new direction that many brands may soon follow.

The Evolution of Resale Programs

The adoption of resale programs within established retail brands is growing, thanks in part to changing consumer dynamics. Research highlights a decisive shift: 47% of consumers report increased likelihood of making a purchase with a brand that offers trade-in credit, reflecting a convergence of sustainability with shopping incentives. Additionally, as younger generations become increasingly influential, traditional retail models may need to adapt to meet new expectations.

Juan Pellerano-Rendón, CMO at Swap, identifies the advantages of brands reclaiming their resale market. “Owning the resale market lets brands ensure quality, extend product lifecycles and capture more value from each item,” he states. This evolution in business strategy serves not only to engage consumers but also to position brands competitively against third-party resale platforms like ThredUp and Poshmark.

Building a New Playbook for Retail

As the landscape for resale continues to shift, Lululemon’s Like New program exemplifies a successful model for integrating sustainability with brand loyalty. By leveraging community events, influencer partnerships, and a strong online presence, Lululemon is redefining the relationship between brand, product, and consumer. Gittins underscores the significance of this approach, stating, “Lululemon is very far along in building their resale business, and they’re now trailblazing this new playbook for how to think about multi-channel ways to engage the shopper.”

Challenges and Future Considerations

Despite the positive momentum, challenges remain for Lululemon and other brands venturing into the resale space. Overcoming consumer skepticism about secondhand quality and establishing a reliable infrastructure for trade-ins and resale can be daunting. Additionally, as interest in sustainability grows, attaining consistent consumer participation and managing inventory will be critical to maintaining success.

Lululemon’s immediate future appears promising as they prepare for further events similar to those at SXSW, with plans to expand the visibility and engagement associated with Like New and its resale offerings. The brand acknowledges the continuous need for innovation and adaptation, not only to increase awareness but also to maintain relevance in an evolving marketplace.

Conclusion

As Lululemon charts its course in the resale market through the Like New program, it emerges not just as a fashion retailer, but a leader in sustainable purchasing practices. By engaging community members and utilizing a marketing strategy that combines experiential opportunities and influencer advocacy, the brand is effectively forging a new paradigm in the retail landscape. As the worldwide demand for secondhand apparel surges, Lululemon is well-positioned to capitalize while inspiring other brands to consider taking similar leaps toward sustainability.

FAQ

What is the Like New resale program?

Lululemon's Like New resale program allows customers to trade in gently-used items for store credit, which can then be used toward future purchases. Launched in 2022, the program promotes sustainability by extending the lifecycle of apparel.

How does Lululemon ensure the quality of Like New products?

All items in the Like New program are inspected and curated to meet quality standards before being resold, ensuring that customers can trust the product’s condition and value.

Why have brands shifted towards in-house resale programs?

Brands like Lululemon are exploring in-house resale to recapture market share and engagement lost to third-party resale platforms. This allows for better control over product quality and consumer experience while fostering brand loyalty.

How can consumers participate in the Like New program?

Consumers can participate in the Like New program by bringing their gently-used Lululemon items to participating stores. These items are then evaluated for resale, and participants receive store credit based on the condition and type of apparel.

How does Lululemon contribute to sustainability through Like New?

Lululemon reinvests 100% of profits from the Like New program into the Apparel Impact Institute’s Fashion Climate Fund, emphasizing its commitment to environmental responsibility and sustainable fashion initiatives.

What is the projected growth of the secondhand apparel market?

The global secondhand apparel market is expected to grow to approximately $367 billion by 2029, representing a significant shift in consumer spending towards sustainable clothing options.

By fostering community interaction and innovating retail strategies with programs like Like New, Lululemon not only enhances customer engagement but also solidifies its role in the sustainable fashion landscape.