Lululemon Athletica is facing renewed criticism in China after apologizing for a late-May yoga event on the Great Wall that drew more than 2,000 participants but sparked backlash over the use of a Japanese taiko drum. The company said the event was built around honoring Chinese culture, but admitted it should have been more thoughtful and sensitive in reviewing the drum performance. The controversy adds pressure as China remains Lululemon's fastest-growing major market, yet sales growth there is expected to slow this year, compounding challenges from weaker North America performance, a lowered annual forecast, and shares down about 46% so far this year. Competition is also heating up, with Alo Yoga announcing its China entry, while another Lululemon campaign in Shanghai earlier in June drew criticism after participants said they were left practicing in the rain without proper rain gear or backup facilities.
Lululemon Athletica Inc.Fresh China backlash from Great Wall yoga event controversy, plus criticism of Shanghai event, threatens demand in its fastest-growing major market.
Alo Yoga announced its China entry, but the article does not detail its own performance or reception.