Lulus, a well-known apparel retailer that started as a vintage shop in California in the 1990s, is set to launch a dynamic new marketing strategy aimed at enhancing its offline presence and expanding its national customer base. This month, Lulus will debut its first major national out-of-home campaign featuring billboards and posters in prominent cities like New York City, Los Angeles, Chicago, and Nashville. The campaign will also include hosting in-person brunches for influencers and shoppers in these cities to increase brand visibility and engage directly with their audience. This move represents a significant effort by Lulus to reconnect with its roots while embracing modern advertising trends to foster growth and consumer interaction.
Building a National Footprint
Reestablishing Offline Presence
After transitioning to an online-only model and closing its physical stores back in 2008, Lulus has made a notable return to brick-and-mortar retail. In October 2023, Lulus unveiled its first retail store in 15 years in Los Angeles, with plans to open a bridal boutique on the upper level in February 2024. This return to physical stores marks a strategic shift aimed at strengthening the company’s local presence and serving as a foundation for its expansive advertising efforts. The decision to reopen physical stores highlights Lulus’ commitment to creating tangible experiences for its customers, tapping into the nostalgia and charm of in-person shopping, which many consumers still cherish.
Lulus promotes its brand as offering attainable luxury fashion, with an emphasis on affordability. Many of its popular items like rompers and dresses are priced under $100, making it accessible to a broader audience. With around 90% of its sales derived from its branded apparel and accessories, Lulus also offers products from well-known brands such as Betsey Johnson, Free People, and Dr. Martens. The inclusion of these brands further enhances its appeal and attracts fashion-conscious customers. Additionally, having a presence in Nordstrom and Nordstrom Rack has provided Lulus with valuable retail partnerships, allowing it to reach a larger segment of potential customers and increase its brand recognition.
Addressing Declining Sales
Despite recording its highest net revenue in fiscal 2022, Lulus has faced financial challenges in fiscal 2023. Revenue dropped 19% to $355.2 million, and the number of active customers decreased by 12% to 2.8 million. This decline has prompted the company to take decisive action to strengthen its market position and improve financial stability. Lulus’ market value has significantly declined from $486 million at its IPO in 2021 to approximately $50 million currently. The company aims to counteract this slump through robust marketing strategies aimed at increasing brand awareness and driving customer engagement.
Lulus previously experimented with out-of-home advertising through smaller-scale wild postings in Los Angeles. Buoyed by the success of these initial efforts, the company is now poised to launch a more extensive campaign, which is expected to boost brand awareness and sales, especially with the arrival of prom and wedding seasons. Patrick Buchanan, Lulus’ senior vice president of brand marketing, emphasized the importance of meeting customers in person during peak seasons. He affirmed that this in-person interaction, complemented by visible advertising, is critical in achieving the company’s revenue goals. The campaign’s effectiveness will be evaluated through metrics like website visits, social media engagement, and sales, offering a comprehensive view of the strategy’s impact.
Embracing Modern Advertising Trends
Expanding Out-of-Home Advertising
Out-of-home (OOH) advertising experienced a dip during the pandemic but is now regaining popularity as more people return to outdoor activities and commuting. OOH has become a fast-growing ad channel, with one in five top spenders in 2023 coming from technology or direct-to-consumer brands, indicating its effectiveness. Lulus aims to leverage this resurgence in OOH advertising to amplify its brand presence and reach a broader audience. This advertising channel’s expansive reach and visibility make it an ideal choice for Lulus’ ambitious marketing strategy, providing substantial opportunities to connect with potential customers.
Anna Bager, president and CEO of the Out of Home Advertising Association of America, highlighted the continued growth and innovation within the OOH sector, noting its resilience and adaptability. Lulus views its upcoming national campaign as a critical step in its marketing evolution, integrating contemporary advertising techniques with its traditional strengths. The company’s innovative approach to integrating OOH with other marketing channels reflects a forward-thinking strategy designed to navigate the rapidly changing retail landscape. By tapping into the growing potential of OOH advertising, Lulus positions itself to capitalize on increased consumer activity and engagement.
Leveraging Digital and Social Media
Simultaneously, Lulus is incorporating digital advertising and collaborating with a diverse group of influencers to create engaging content for social channels such as TikTok. The blend of digital and traditional advertising approaches aims to create a cohesive and far-reaching brand message, engaging customers across multiple platforms. By working with influencers, Lulus taps into the power of social proof and peer recommendations, which can significantly impact consumer behavior and brand loyalty. These collaborations also allow Lulus to reach younger, digitally-savvy audiences who are keen on following fashion trends via social media.
Digital advertising has become a cornerstone of modern marketing strategies, offering targeted and measurable approaches to reaching specific audiences. By combining digital efforts with its extensive OOH campaign, Lulus aims to create a comprehensive marketing approach that maximizes visibility and engagement. The integration of these diverse marketing channels underscores Lulus’ commitment to innovation and adaptability, creating a solid foundation for future growth and success. This dual strategy not only seeks to rebuild Lulus’ financial stability but also aims to usher in a new era of brand recognition and customer loyalty.
Conclusion
Lulus, a well-established apparel retailer that began as a vintage shop in California during the 1990s, is set to unveil an innovative marketing strategy to boost its offline presence and broaden its national customer base. This month, Lulus will roll out its first significant national out-of-home campaign featuring billboards and posters in high-traffic areas of key cities such as New York City, Los Angeles, Chicago, and Nashville. Additionally, the campaign will host in-person brunches for influencers and shoppers in these cities, aimed at enhancing brand recognition and fostering direct engagement with their audience. This initiative marks a considerable step for Lulus as it seeks to reconnect with its origins while adopting contemporary advertising techniques to drive growth and consumer interaction. By integrating traditional out-of-home advertising with interactive events, Lulus aims to create a more personal and memorable brand experience, thereby strengthening its market presence and customer loyalty.
