In the past year, Lululemon has been under fire not only for the “sheerness” of its yoga pants, but also for the explanations of the brand’s founder, Chip Wilson. “Yoga pants become see-through when women buy sizes that are too small for them.”
Backlash from women all across North America registered shock that a company who promotes “quality is at the heart of everything we do” blamed customers instead of stating that there was an issue with the fabric.
What happened to … “the customer is always right.”
In March 2013, the company was forced to pull nearly 17 percent of its popular black yoga pants from stores. The pants have since been put back on shelves, but Lululemon faced a new barrage of customer complaints, this time involving the pilling of the fabric. Mr. Wilson claimed that when his $100 pants wear out, “it’s women’s fault. It happens when their thighs rub together.”
Mr. Wilson later released a video stating his sincerest of apologies to his company …
“I’m sad for the repercussions of my actions, I’m sad for the people of Lululemon who I care so much about that have really had to face the brunt of my actions. I take responsibility for all that has occurred, and the impact it has had on you.”
He does not seem sad for the customers he insulted, instead he tells them how to react:
“For all of you who have made Lululemon what it is today, I ask you to stay in a conversation that is above the fray. I ask you to prove that the culture that you have built can’t be chipped away.”
They didn’t stay above the fray. There have been multiple class action lawsuits against Lululemon, most from customers of the brand.
And customers weren’t the only audiences offended. Shares of Lululemon stock plummeted from 11-15% over the last year. The stockholders also sued.
Mr. Wilson has since relinquished his seat as CEO of the company he founded to a hopefully more consumer-savvy executive, Laurent Potdevin, former President of shoe company, TOMS.
Moral: Every CEO needs media training!