StockOpine's avatar
$43.5m follower assets
Unaided awareness $LULU
  • Estimated International TAM for $LULU is estimated at $650B where its market share is at most 1%.

  • Unaided awareness-> customers aware of a brand, product or an advertisement without assistance.

❔Did you know that lululemon unaided awareness in China is only 7%❔

The opportunity seems huge when considering that only 16% of its Trailing Twelve Months revenue is generated outside of North America.
Joey Hirendernath's avatar
Really interesting, huge potential there given the data points you mentioned. I remember reading that the Chinese luxury market is categorized by a younger consumer profile as opposed to Europe. In my opinion, it looks like Lululemon is one of those brands that is able to resonate amongst 18-55-year-olds. If there is a movement amongst the aspirational middle class towards fitness and wellness-related activities I can see $LULU being at the forefront to benefit from this.

Would love to know where you sourced your data points :) if you don't mind sharing
StockOpine's avatar
@joeyhirendernath sure. @slt_research just shared the screenshot below for unaided brand awareness. The TAM was provided by management.
SLT Research's avatar
And only 3% in France and Germany. $LULU brand awareness outside of North America is surprisingly very low and offers such a massive opportunity.

This is of course part of our thesis on $LULU.
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StockOpine's avatar
@slt_research indeed. The opportunity is massive!
Jensen Butler's avatar
@slt_research love this. Thanks for sharing
Buying Your Time's avatar
Lululemon always intrigued me and clothing can be a phenomenal investment especially when you have brand power.

I'll need to purchase some clothes to really understand the bull case, like any company, if you can try/test the product do it.

On that note - Does anyone here shop at Lululemon? Is the stuff that good?
StockOpine's avatar
@buyingyourtime agree. It’s all about branding and quality of apparel. @jensen does and he commented on the other post we wrote on $LULU . He loves it.
Jensen Butler's avatar
@stockopine indeed! My bank account doesn’t though 😆
Buying Your Time's avatar
@stockopine Nice one. I will check out Jensen.

Agree about branding and quality. You have to try it to know for yourself. An example, i pay £100 a month for my gym vs basic gyms at £15. But when I take friends along, they see why i pay.

Similarly, I do boxing and always used to buy £30 - £50 gloves. I would replace them often, and despite that, I wasn't able to justify, in my mind, paying more for quality. So I finally bought a pair of premium gloves for £200, and guess what, I've not had to replace them and I wouldn't go back to the cheaper ones by Adidas etc.

As an investor, i think if you can try or use a product/service, it will significantly help or deter the investment case.
StockOpine's avatar
@buyingyourtime makes absolute sense and thanks for sharing examples. Although, you may not be able to try the product at every occasion (location, type of business etc.). Nevertheless, having exposure to the service or product helps you form a better opinion. It may not always be correct or applicable to the vast majority but at least you tested it.

For example, we constantly use Booking.com to book accommodation and we love it. That further justifies our rationale behind the position in $BKNG .
Buying Your Time's avatar
@stockopine My man. Booking.com is my number one app for booking hotels. It's all i use.

Have you done a write-up on the stock?
StockOpine's avatar
@buyingyourtime of course. It was also the winning pitch of Commonstock July Idea Competition. Will share the links below.
StockOpine's avatar
@buyingyourtime 👇 the winning pitch here at Commonstock (it is the same write up but you might also find the comments interesting).

Buying Your Time's avatar
@stockopine Some man. Thanks will bookmark and read this. I think they provide the best alternative to AirBnb imo and i prefer them other other hotel booking apps.

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