Lululemon recap

CEO Christine Day still stood by the company's reach for quality, saying: “delivering the top quality our guests expect is a critical factor in our differentiation in the market place.” This, however, may be debatable as the recall is not the first supply chain problem in recent quarters.  Last year, there was a dye bleeding issue affecting some bright coloured tops and sheerness problems in other products. Further, there was a scandal in 2007 regarding Lululemon's VitaSea clothing line, which falsely advertised it was made from seaweed fibers to reduce stress and provide anti-inflammatory, antibacterial, hydrating and detoxifying benefits. What does this negligence in quality control say about a company's product value? 

 

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