lululemon strikes back at founder Chip Wilson over scorned ad

Lululemon has responded to founder Chip Wilson's recent criticism of the brand which was made public through a paid ad placement in the Wall Street Journal. The brand has come out to state that the founder made "misleading statements" about the company. In a statement to the media, the yogawear giant said that Wilson has not been involved with the company for a decade, and continues to make "inaccurate and misleading statements about lululemon", its history, board and leadership.

The brand added that it is confident in its ability to capture meaningful growth opportunities and that its board and leadership team remain committed to acting in the best interests of the company and its shareholders. MARKETING-INTERACTIVE has reached out to lululemon for more.

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In his paid ad placement titled lululemon: in a nosedive, Wilson said that lululemon should have been a US$100 billion market-cap company, but its trajectory has declined as "lululemon directors have systematically dismantled the business model and lost employees who held the institutional knowledge that made the company great."

Wilson likened the brand to a plane crash and criticised its shift from creative leadership to merchants. He claimed that lululemon's directors "cheapened store design and shifted to non-technical fabrics, eroding the brand's premium positioning," citing an "inappropriate Disney collaboration" as a "desperate move for growth."

"lululemon forgot its muse: the woman who inspires culture, not just follows it. By drifting towards the mainstream and trying to appease everyone, lululemon lost 50% of its market cap earned from 'brand power.' It lost its edge and, with it, the ability to hire the best people," said Wilson in the piece.

"On paper, lululemon still looks good, but it's losing its soul. The deeper issue is not just management; it's a disengaged Nominating and Governance Committee that has failed to safeguard the company's long-term vision," he added. Wilson also shared ways in which lululemon can recover, including putting product and brand back at the centre, bringing entrepreneurial ownership back onto the board, empowering creative leadership over merchants, stopping the chase for Wall Street at the expense of customers, and recommitting to the muse.

The founder's LinkedIn post has since received positive responses in the comments from CEOs and founders of companies who agree with his perspective. Some users have also shared their experience with the brand and the quality of its products, having been long-time lululemon customers. The article was also discussed in a lululemon Reddit thread, with users agreeing with the lack of creativity in the brand's products. Some users highlighted inconsistencies in sizing and an "out of touch" pricing strategy.

This isn't Wilson's first public feud with lululemon. Last year, he posted on LinkedIn addressed to lululemon CEO Calvin McDonald, claiming that he is "a good CEO but lacking vision as he allows the lowest common denominator too much leeway in his decision-making."

Wilson also expressed his opposition to lululemon's US$500 million acquisition of home fitness startup Mirror. "This massive failure represents a window for lululemon to onboard directors who understand product, brand, and the athletic marketplace," he said.

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