What Lululemon’s founder backlash can teach brands

The headlines painted a disturbing picture. “Lululemon Founder Says It’s Not For ‘Certain Customers,’ Pans Company’s Diversity Efforts,” wrote the HuffPost. “Lululemon’s Founder’s Full Rant Against Yoga Retailer Skewers ‘Appalling’ Men’s Line, DEI And More,” wrote Forbes. “Lululemon Founder’s Controversial Diversity Statements,” wrote The Cut. If consumers read beyond the headlines, they would know that Chip Wilson, the controversial executive who founded Lululemon in 1998, has not had a role at the business since 2015. If they did not, Wilson’s highly publicized comments could create lasting damage for Lululemon, a brand that is currently enjoying multi-generational popularity and strong sales. The company immediately issued a statement opposing Wilson’s remarks and noting his lack of involvement in the company since he left the board in 2015, two years after drawing criticism for saying that “some women’s bodies just don’t work for” Lululemon pants. By responding early to Wilson’s latest comments, distancing the brand from Wilson and highlighting its commitment to diversity, equity and inclusion, Lululemon did the right thing, according to Thom Fladung, a managing partner at crisis communication firm Hennes Communications. But brand executives at the Canadian company should continue to watch comments on social media. A representative from Lululemon did not respond to Ad Age’s request for comment by press time. Below, Ad Age offers more advice for brands dealing with similar controversial situations caused by a founder gone rogue. I'm so very happy I've never bought a Lululemon anything! https://t.co/2ZB7Eill0f— Gail Vaz-Oxlade (@GailVazOxlade) January 3, 2024 This is nothing new Brands have always been linked to founders; in some cases, more so than others. A century ago, Henry Ford’s antisemitic comments risked tarnishing his eponymous automotive brand. More recently, direct-to-consumer startups have juggled the marketing risks associated with founders as influencers. Last year, for example, Tyler Haney, who founded the activewear label Outdoor Voices in 2013 but was ousted from the company in 2020, made headlines for criticizing the brand on social media that she helped build. “Forever and ever businesses have had to deal with prominent people in their history doing and saying things that the business now currently doesn’t particularly appreciate or agree with, and the business just has to say that,” said Fladung. Related: DTC founders as influencers poses risks and rewards Know when to respond Marketers need to gauge when the backlash reaches a level appropriate enough to warrant a response. That threshold typically involves brand values. In Lululemon’s case, Wilson’s comments threatened the DE&I efforts the brand has been prioritizing in recent years, as well as its growing men’s business, which the company expects to be a driver of revenue. Lululemon had no choice but to speak out. “When anyone attacks your core values, you have to think about how to respond and what to say,” said Fladung. Silence is rarely a smart strategy. A “no comment” could be seen as an admission of agreement to the founder’s statements, he added. Yet brands need to be matter-of-fact and firm in their statements and avoid attracting a debate. Spin it forward Controversy could offer an opportunity for brands to double down on their values and publicize forward-looking plans. In Lululemon’s case, the company pivoted to its progress on what it calls its Inclusion, Diversity, Equity and Action (IDEA) function. That program included a goal to reach 40% racial diverse representation in stores, a percentage Lululemon met in 2022, one year earlier than planned. Highlighting such goals could be important not only to consumers and potential shoppers, but also to company employees who want to ensure their employer is values-based. “There are going to be people out there on Chip Wilson’s side who think Lululemon is woke, but there’s nothing you can do about that,” said Fladung. “But for the customers they care about, especially their employees, what is my company going to say about this guy who founded us, that’s why you have to come out.” Continue to monitor the situation Of course, despite the best efforts by any brand to repair the situation caused by a founder’s incendiary comments, brand damage could continue to spiral. Marketers should keep watching media headlines and pay attention to social media posts to know if more action to control the crisis is needed. By Friday morning, consumers were still posting their outrage about Wilson’s comments and potential brand complicity. Many were using a #BoycottLululemon hashtag. He built this brand. No way in hell there is not one or more left behind who he may have trained and filled their heads with his racist poision.🗣Lululemon Founder: 'You Don't Want Certain Customers Coming In' https://t.co/Aa6w77dr4b @lululemon— lifebloggingwithdamien (@damienpmusic1) January 5, 2024 Glad I never bought anything from lululemon.— 🇨🇮 (@HelenaKoudou) January 5, 2024 Well I’m glad he clarified for those who were still confused about whether they should spend their hard earned money @lululemon we will also clearly know where the people who spend their money there stand! #Lululemon #BoycottLululemon https://t.co/oQK5Jc3h7v— Dids⁷ (@DidsDodo24) January 3, 2024

What Lululemon’s founder backlash can teach brands

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