Leveraging Data and AI-Driven Marketing to Capture Gen-Z Chinese Women Customers for Lululemon

Abstract

This research paper examines the problems Lululemon encounters, such as decreased sales compared to expectations. The article provides recommendations based on Lululemon's potential big data and AI-driven marketing strategies to capture Gen-Z Chinese women customers.

Lululemon's sales have been rising rapidly, with its market value reaching up to $60 billion in 2023. However, in 2024, Lululemon's global sales have not reached the expected level, while sales in the Chinese market are increasing rapidly. Compared to existing consumer groups in China, Gen-Z Chinese women possess more potential to become Lululemon's targeted customers due to their lifestyle, mental traits, and behaviors on social media.

Gen Z consumers do not simply buy sports clothes; they also seek to satisfy their psychological demands. Consumers no longer pay just for the functionality of a product but also for the brand's emotional values, social responsibility, and the consistency of emotional elements with their positions. Lululemon attracts more customers by promoting a lifestyle centered around health awareness and physical well-being and by building emotional resonance with customers through activities that appeal to them.

Furthermore, there are more approaches that Lululemon can adopt to regain its sales. This paper aims to provide recommendations for Lululemon to recover or increase its sales based on its potential big data and AI-driven marketing strategies to capture Gen-Z Chinese women customers.