Lululemon Resale Is Big Business
3,456 views · Published 1 April 2015 · 3:28 · Indexed 24 October 2026
Channel: FOX 5 New York · 2015 · News & Politics
If you thought Lululemon athletic wear was expensive enough in stores, just wait till you see what the clothes are selling for online. We found a zip-up jacket priced at $4,950, a sweatshirt for $1,200, and shorts for $999, all on eBay. While those may have been extremes, Chavie Lieber, features writer at www.racked.com, says Lululemon clothing often sells on eBay for three to four times its original retail price. Sometimes items will sell for 1,000 percent markup. Lieber says a specific type of leggings, the Wunder Under Quiet Stripe, consistently sells for $400 to $700. Those pants originally retailed for around $80. The incredible markup isn't just for new items with tags. That $4,950 zip-up jacket for sale on eBay is "pre-owned" but in "great condition," according to the seller. Tracy DiNunzio, CEO of fashion resale website Tradesy, says some of the Lululemon clothing sold on her site has been worn before, and it's among her best sellers. Lululemon ranks fourth on her Tradesy after luxury brands Chanel, Louis Vuitton, and Tory Burch. In fact, DiNunzio says she is seeing more demand for Lululemon today than for Gucci or Prada. Lululemon leggings usually have the highest price tags. And there's a big reason why. Both Lieber and DiNunzio say it is because they have a reputation for making women's butts look good. There's so much demand for the butt boosters that we even found a sign on a street corner in Manhattan offering cash for used Lulu gear. Those kinds of requests are all over the Internet, too. Facebook has become a huge community for Lululemon fans. Lieber has counted more than 100 Facebook groups dedicated to buying, trading, and selling the gear. Lululemon's business model has something to do with it. The company operates on a limited distribution strategy known as a scarcity model. DiNunzio says high-end fashion designers have used the technique for years. Brands create limited product so they don't flood the market. The items sell out, creating a sense of scarcity and increasing demand. To date, Lululemon has been using the scarcity model. But in recent calls, Lieber says CEO Laurent Potdevin has hinted that the company may relax that strategy. In the meantime, the Lululemon resale market is booming. --ALISON MORRIS
