Lululemon Athletica Inc. (NASDAQ:LULU) is on high alerts citing strong competition from Yogasmoga.
Yogasmoga is a lucrative retail store that deals with stylish yoga wear. The retailer has been in existence for only two years and is already posing a serious threat to longtime yoga wear giants such as Lululemon. One might be inclined to wonder how this new kid in the block is doing so well.
At the helm of Yogasmoga is its Indian proprietor, Rishi Bali. A first look at him and you would not think that he is into the yoga business. In fact, he looks more like a business executive. He just happens to be both. Bali has a business background working on the Trade Decks at Goldman Sachs. He has worked there most of his life until he decided to venture into entrepreneurship.
Perhaps Bali’s interest in making a mark was influenced by his background. He grew up in India near the Himalayas, a place that is thought to be the birth place of yoga. A talk with this business guru reveals that he has a strong interest in the art of yoga.
Bali has a very good eye for business despite his lack of a marketing background. He was able to identify a niche in the lucrative fitness industry and fully exploited it as a wise investment. His ability to identify and adapt to business trends has been very instrumental to the success of his business.
Part of the success strategies is the adaptation to online sales and marketing. Another strong point for Yogasmoga is the blend of color and style to the products. The blend and variety are instrumental in attracting customers. Bali stated that his view of Yogasmoga was not as a competitor. He described it as a place where shoppers can access what other retailers do not focus on.
Yogasmoga was initiated with a venture capital of about $11 million raised by Bali and his counterparts from Goldman. Currently, the business is valued at $74million with the annual turnover for 2014 amounting to $10 million.
