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Thursday, May 17, 2012

Lululemon Australia - A Raw Deal For Online Aussie Shoppers

Today Lululemon launched their online store for the Australia market and instead of pleasing the Aussie clientele they have really upset them.  First of all, Aussies will only be able to shop from the Australian site as their IP addresses are recognized by the system. So even if they find an item cheaper on the US side they won't be able to take advantage of the deals - which is the same for the Canadians/US Lulu websites.  The problem is the pricing! Being that the Australian dollar is almost at par with the US dollar it makes no sense why the pricing is so outrageous.  Here are a few comparisons:

The Lululemon Chaturanga tank
The Lululemon Chaturanga Tank sells on the Canadian/US websites for $58 cdn/usd and on the Australian site for $75 aud - that is a 30% markup.

The Lululemon Groove Pant

One of Lulu's core products is the Lululemon Groove Pant which sells on the Canadian/US websites for $98 cdn/usd but on the Australian site they are $129 aud - again a 30% markup.  

The Lululemon Gather and Crow

The Lululemon Gather and Crow crop which sells for $78 cdn/usd it is being sold for $115 aud in the Aussie site! - that is about a 50% markup! Talk about price gouging!

Many Aussies showed their discontent with the Lulu site this morning on the Lululemon Facebook page with Lulu quick to respond and blame high taxes and import duty fees and shipping for the price difference.  Honestly, Lululemon items are mostly made in China where the cheap labor and low production costs have increased Lululemon's profit to ridiculous amounts these last few years.  To me this is another sign of corporate greed.  Here are a few screen shots of the complaints found on the Facebook page:

One positive note: Free shipping is now available to Australians. Woohoo! (insert sarcastic laugh here)

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