To Chip Wilson, Lululemon’s founder and former CEO, the product was about yoga and nothing more. It’s hard to imagine athleisure as a yoga-only product today, but for a time he attempted to fiercely protect that focus.
There’s economic value in capturing arbitrage opportunities even for niche products like meal delivery, over-the-counter medicines, or traditional grocery. Every industry is a microcosm with unique customer behaviors, needs, and purchase triggers. By understanding these unique characteristics, brands can generate impressive ROAS, just as they did in the early days of Facebook.
If you have ever stayed at a hotel, you’ve seen the signs near the sink that remind you it is your job to save the planet by reducing water consumption. We’re entering a phase of cost-overruns in online retail that could result in similar “heart strings” tactics.
