The Lululemon controversy has been a point of discussion for both the company and the wider fitness community. With founder Chip Wilson at the center of the issue, the controversy has highlighted deeper concerns about the company’s views on diversity and inclusion. Wilson’s past remarks about women’s bodies and certain customers stirred public outcry, leaving many to question how much progress the company has truly made.
As the discussion unfolds, readers can expect a comprehensive, well-sourced examination of the facts from Business2Community. This exploration will delve into how the company today continues to navigate the challenges of diversity, equity, and inclusion within its culture. Read on to understand the full scope of the Lululemon controversy, Lee Chip Wilson’s departure, and how the company has made considerable progress toward becoming a more inclusive and diverse brand.
Lululemon Controversy – Key Facts
- The Lululemon founder Chip Wilson has made several statements that were perceived as dismissive of diversity and inclusivity.
- A variety of stakeholders, including customers, employees, and media outlets criticized the remarks, with calls for boycotts from the public.
- Lululemon resolved the issue by establishing new departments focused on diversity, equity, and inclusion, which resulted in their public image and engagement being restored.
The Story of the Lululemon Controversy
In 2013, the founder of Lululemon, Chip Wilson, faced backlash after stating in an interview on the Bloomberg show Street Smart that “some women’s bodies just actually don’t work” in the company’s yoga pants. This comment incited anger and disappointment among many of Lululemon’s customers.
Wilson’s “Women’s Bodies” Comment
In 2013, Lululemon faced a public relations crisis when it was forced to recall a line of its yoga pants due to the fabric being too sheer. Customers complained that the pants became see-through during exercise, prompting the company to pull the leggings from shelves and offer refunds.
The recall affected the company’s stock price and reputation, highlighting quality control issues within Lululemon’s production chain.
In a controversial response during a Bloomberg interview, then-CEO Christine Day blamed the production issue on a “miscalculation”, while founder Chip Wilson made matters worse by suggesting that some women’s bodies were not made for the pants.
Wilson commented on the manufacturing of the pants during the interview:
There has always been pilling. The thing is that women will wear seatbelts that don’t work or they’ll wear a purse that doesn’t work or, quite frankly, some women’s bodies just don’t work for it.
Wilson’s controversial remarks sparked outrage and drew attention to deeper issues within Lululemon’s culture.
His statements raised doubts about Lululemon Athletica Inc.’s commitment to being an inclusive and diverse organization, prompting inquiries into the actual progress the yoga pants company had made in creating a welcoming environment for everyone. Lululemon customers were upset by Wilson’s comments and many believed his online apology didn’t adequately address the concerns of the women who were offended.
Consequently, an online petition emerged demanding a more genuine apology and urging Lululemon to produce larger-sized clothing for certain customers.
In 2014, Laurent Potdevin was assigned as Lululemon’s CEO to help mitigate Wilson’s public missteps while Wilson remained involved with the company on the board of directors.
Following continued backlash from his controversial statements, Wilson officially stepped down from Lululemon’s board of directors in 2015. His resignation marked a significant moment as the company aimed to distance itself from its founder’s public missteps and focus on rebuilding its image.
In addition to internal changes, Lululemon’s ads and marketing strategies have also evolved to showcase a more diverse and inclusive representation. The company’s sustained efforts to address past mistakes highlight a genuine attempt to transform into a brand that embodies inclusivity and equity.
Wilson’s Renewed Controversy
In 2024, Lululemon was once again in the spotlight following controversial remarks by its founder and former CEO, Chip Wilson.
In a Forbes interview, Wilson criticized the company’s advertising, describing the models as “unhealthy” and “sickly”, and not inspiring. He emphasized that it’s crucial to be clear about not wanting “certain customers coming in.”
Wilson suggested that Lululemon is trying to emulate The Gap by being “everything to everybody”, expressing disdain for what he termed the company’s “whole diversity and inclusion thing”. His comments have reignited the debate over company views on diversity and inclusion.
Wilson does not speak for Lululemon today, as the company has undergone significant changes since his departure.
A company spokesperson emphasized that creating an inclusive organization takes time and sustained action, noting that the company is committed to serving all its customers.
Other Controversies
In addition to the issues surrounding diversity and inclusion, Lululemon has faced other notable controversies over the years.
Origin of the Company Name
Founded in 1998 in British Columbia by Chip Wilson, Lululemon Athletica stemmed from Wilson’s deep involvement in the activewear industry and his perception of a gap in the market for high-quality yoga wear.
The unique company name Lululemon was chosen by Wilson after brainstorming over 20 possible names. He believed that the repetitive ‘L’ in the name made it more challenging to pronounce in some Asian languages, giving it an air of authenticity and Western appeal that would stand out in those markets.
While the name choice has faced scrutiny over time for its alleged cultural insensitivity, it remains a recognizable and integral part of the brand’s identity.
The inception of Lululemon was thus not only a result of market insight but also of a branding strategy aimed at creating a distinct niche in the global activewear landscape.
Labor Practices in Overseas Factories
In 2019, reports emerged from a factory in Bangladesh supplying its clothing alleging that the workers experienced severe physical and verbal abuse. They reported being beaten, called derogatory names, and forced to continue working even when ill. Many workers earned just $108.50 a month, a sum less than the price of a single pair of the leggings they produced.
While Lululemon boasted a partnership with the United Nations Foundation to promote mental health and upheld a strict code of practice, these allegations cast a dark shadow over their brand.
Critics urged the company to ensure ethical practices within their supply chain, and Lululemon initiated an investigation into the claims.
The Youngone Corporation, owner of the factory, responded by committing to addressing grievances and promoting fair working conditions. An internal review was launched to probe deeper into these disturbing allegations.
Anti-Asian Remarks
In 2020, Lululemon faced backlash following an incident involving one of its art directors. The art director posted a link on social media to a t-shirt design that depicted a Chinese takeout box with bat wings and the phrase “NO THANK YOU”.
The design played into harmful stereotypes and racist notions tied to the origins of the COVID-19 pandemic.
The post was widely condemned as xenophobic and insensitive, especially amidst rising anti-Asian sentiment globally. Lululemon swiftly distanced itself from the art director’s actions, ending his employment and issuing a public apology.
However, the incident underscored the need for greater cultural sensitivity and awareness within the company.
Critics argued that more substantial actions were necessary to ensure a genuinely inclusive environment, leading Lululemon to pledge a renewed focus on internal cultural competence and diversity training for its workforce.
Anti-Capitalist Marxist Workshop
Also in 2020, Lululemon offered a yoga workshop designed to help participants “resist capitalism”.
The expensive private company, embodying capitalist principles, faced widespread criticism for what many saw as a glaring lack of self-awareness. Many took to social media to express their disbelief and ridicule of the workshop, highlighting the irony of a capitalist company trying to profit off of anti-capitalist sentiments.
Lululemon hosting a workshop to "resist capitalism" while selling us $180 yoga pants is peak 2020.
— Kevin Duffey (@KevinDuffey) September 9, 2020
Hyde Park Store Closure
In 2021, Lululemon opened a store in Hyde Park, a predominantly Black neighborhood in Chicago. Despite performing well, the store closed after two years.
Former manager Michael Collins experienced race-based harassment, microaggressions, and retaliation. Collins alleges corporate leadership pushed for hiring decisions based on racial preferences favoring white and Asian associates.
Six former employees of the location filed racial discrimination complaints, citing an unwelcoming corporate culture and barriers to career advancement for nonwhite employees. This incident called into question how much progress the company had made in fostering an inclusive and diverse environment.
Nike Lawsuit
In 2023, Lululemon also faced legal challenges, including a lawsuit from Nike over patent infringements related to four pairs of its running shoes.
Nike’s patent claims focused on textile elements like knitted elements, webbed areas, and tubular structures, as well as the footwear’s performance.
In January 2022, Nike also sued Lululemon over six patents related to the at-home Mirror fitness device and mobile applications. Lululemon considers the patents in question overly broad and invalid, expressing confidence in their defense.
The legal battles emphasize the competitive pressures and scrutiny that accompany Lululemon’s high-profile status in the market.
The Consequences of the Lululemon Controversy
The Lululemon controversy had far-reaching repercussions, impacting the brand’s public image. Wilson himself faced significant backlash f9r his comments, including calls for boycotts and widespread criticism from media outlets such as the National Post and business magazines.
Unlike the company today, which strives to be an inclusive organization, Wilson’s stance was seen as archaic and out of touch. Lululemon took active steps to distance itself from its founder, emphasizing that his views do not reflect the company’s beliefs.
In response to the controversy, Lululemon changed leadership and added a department focused on diversity, equity, and inclusion (DEI), aiming to foster an inclusive and diverse culture. This shift was essential to show customers and investors that the company was committed to evolving and improving. However, it highlighted how much time and effort are necessary to build a truly diverse and welcoming environment.
Internally, the controversy brought to light significant disparities affecting employees of different backgrounds. Current and former employees reported feeling sidelined in favor of less qualified white counterparts, emphasizing the need for the company to reflect on its internal practices.
Lululemon has since implemented several initiatives to address these issues, demonstrating a clear mandate to support an inclusive, diverse, and informed culture.
What Can We Learn From the Lululemon Controversy?
The Lululemon controversy offers a rich tapestry of lessons for businesses, particularly regarding the vital aspects of leadership impact, consistent messaging, and promoting inclusivity.
The saga exemplifies how a company’s views and public statements, especially those made by its founder, can differ drastically from its current ethos. Chip Wilson’s remarks, which portrayed models as “sickly and not inspirational” and showed a disdain for the “whole diversity and inclusion thing”, were a stark contrast to the inclusive and diverse environment Lululemon aims to foster today.
For businesses, this highlights the importance of consistency in messaging and actions. Customers and employees alike need to see that a company’s stated beliefs genuinely reflect its practices. When Wilson’s views did not align with Lululemon’s current direction, it put enormous pressure on the company, prompting a comprehensive overhaul to distance itself from the founder and address the gaps in its inclusive goals.
Moreover, the establishment of a new department focused on fostering an inclusive, diverse, and welcoming culture is an ongoing process. Lululemon’s journey from controversy to corrective action highlights the necessity of being transparent about organizational views and having clear, actionable steps to demonstrate commitment to these values.