Can a sports brand selling tank tops and yoga pants have a social impact? Lululemon (LULU) is ready to bet on it through its new Centre for Social Impact. The Centre will invest in removing barriers through philanthropy, research, and advocacy to support physical, mental, and social well-being across Lululemon's local and global communities. The American athletic apparel retailer is not new to addressing social issues. Last November, the company released its first-ever Impact Agenda, outlining 12 commitments to address a range of global issues such as diversity, mental well-being, and climate change.
The Centre for Social Impact will boost Lululemons' commitment to social impact by putting its money where its mouth is. One of the initiatives is a $5m investment across several new and long-term local grassroots partners and non-profits. Lululemon is committed to providing access to well-being tools for more than 10 million people by 2025 and investing at least $75 million to advance equity in well-being in its local and global communities by 2025.
Why it matters
According to a recent study by FirstInsight, most Gen Z shoppers are willing to spend an additional 10% or more on sustainable products. Gen Z's are also increasingly making purchase decisions based on values associated with social issues. Through its new Centre, Lululemon is not only trying to secure a healthier future for everyone, but it may also end up securing a larger customer base.
