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lululemon athletica’s Journey To Digital Transformation

As a fast-paced upstart, lululemon athletica surged to the top of the Athleisure verticle with “technical yoga and run clothes” for women, men and teens. The brick-and-mortar stores provided a powerful foundation for success by connecting with their local communities by offering enrichment classes and more.

Chief executives in pursuit of greater market share, at lower operating costs, decided to bring their eCommerce operations in-house and redesign and re-platform their site. This move allowed lululemon to avoid pending renewal fees from their outsourced commerce provider, while empowering their in-house team to solely manage their commerce channel. Short on time and talent, lululemon reached out to Amplifi.

lululemon athletica's digital transformation successes

150%

INCREASE

in YOY
online sales

40%

HIGHER

Cart to conversion
at checkout

100%

INTEGRATED

B2B and B2C
functionality

The Challenge

“Go Live Or Go Dark” Count Down To 100% In-house Commerce Capabilities, That’s No Small Order.

With high renewal fees looming, lululemon’s executive team was focused on transitioning their outsourced services into a self-sufficient business unit complete with an Ecommerce re-platform and redesign, along with the corporate-wide integration of operational capabilities.

Following an in-depth site assessment, Amplifi defined distinct challenges:

Challenge #1 | 100% In-House eCommerce Within A Few Short Months, That’s A Big Task

Historically lululemon had completely outsourced all aspects of digital commerce ranging from site enhancements and management to operational integration. This was significant because the organization had to ramp-up for end-to-end commerce management in-house. This included many areas like; building a commerce business unit for site-centric management, fulfilling product orders, capturing journal entries for accounts payable and more. All of this within just months.

To jump-start the process, Amplifi crafted a customized eCommerce Operational Readiness Program for lululemon including over 12 focus areas:

eCommerce Readiness

  • eCommerce Business Management
  • eCommerce Operations (Business support)
  • IT Operations (System support)
  • Product Management
  • Cutover

Operational Readiness

  • Inventory Control
  • Finance / Accounting
  • Asset Protection
  • Distribution Center / Logistics
  • Customer Care
  • HR / Hiring for eCommerce Organization

Challenge #2 | Rally Call For Operational Readiness As Deadline Draws Near

lululemon Athletica’s transformation from outsourcing their digital commerce platform and operations to re-platforming and managing their end-to-end operations in-house required a “rally call” for executive management and their team members. Integrating their commerce site with their business operations would touch almost every aspect of their organization.

With a super aggressive 3-month deadline looming, Amplifi led the charge to ensure all aspects of the operation would be able to fulfill new roles related to commerce. Key work streams for success included:

  • Garner executive support
  • Identify resources needed
  • Commit time of key personnel
  • Set goals, milestones and tasks

Amplifi defined the Operational Readiness plan for each department affected by moving commerce in-house and the respective priorities, milestones, and tasks for each. A dedicated program management counterpart was assigned to parallel Amplifi’s lead to ensure every aspect of lululemon’s operational improvements moved in parallel to the development of the commerce redesign and re-platforming effort.

The Solution

Fully Functional Launch Lead To International Expansion

The fact that lululemon athletica committed whole heartedly to the transformation made the effort a success.  Amplifi led the journey to self-supporting competency both technically and operationally resulting in their ability to support complete order fulfillment and site management in-house.

This win led to lululemon’s decision to build a global foundation for several international sites with Amplifi, as well as, continually enhance their domestic .com channel.