November 20, 2013
Lululemon’s Chairman Opens Mouth, Inserts Foot Again
It seems natural that as the co-founder of a company that sells yoga-inspired clothing, Dennis "Chip" Wilson would know something about flexibility. But few would recommend the Lululemon’s chairman demonstrate such an ability by putting his foot in his mouth again and again and again.
Mr. Wilson’s talent was on display earlier this month when he appeared on Bloomberg TV’s "Street Smart" and partly blamed the problems some female customers have with his company’s yoga pants on their bodies.
"Sometimes this material doesn’t work for certain people’s bodies," he told Trish Regan, the show’s host. "It’s really about the rubbing through the thighs, how much pressure is there over a period of time, how much they use it."
If Mr. Wilson were given the benefit of the doubt, it could be argued he was simply trying to make the point that Lululemon’s fashions look more flattering on some customers than others or that some women, because of their lifestyles, are harder on clothes than others. Even so, his less than artful response combined with past statements he has made on a variety of topics has made Mr. Wilson a subject of derision and jokes, including a comedic takedown on a recent "Colbert Report" on Comedy Central.
Among Mr. Wilson’s low-lights include an admission that he named his company Lululemon because of the mistaken view that Japanese people have trouble pronouncing the L sound. Mr. Wilson posited that the Japanese would think his company more authentically North American because it presented them with a phonetic challenge. He is reported to have told the National Post, "It’s funny to watch them try and say it."
Mr. Wilson has also advocated for child labor in garment factories and tied divorce rates to women having access to birth control pills since the 1970s and no longer needing "to make relationships work" because they had options other than giving birth and becoming stay-at-home moms.
BrainTrust
Recent Discussions
Discussion Questions
Do you think Chip Wilson is becoming a liability for Lululemon in its relationship with its customers? How do companies and their boards typically deal with outspoken founders who seem to suffer from foot in mouth disease?
Poll
Tempest in a teapot. The stores are the stars with their local partnerships with local yoga instructors and their focus on improving their employees lives in general, not just sales per square foot.
He’s hardly Ron Johnson….
Media hounds follow characters like this once they become known sources of fodder. It will be hard to do much other than protect (or remove) Mr. Wilson from the public stage at this point.
My first reaction to reading of Mr. Wilson’s multiple slip-ups, less than ideal choice of words, and even comments bordering on offending its customers, is that Lululemon has a Mike Jeffries (CEO of Abercrombie & Fitch) on its hands.
When a company’s CEO does or says anything in a highly visible manner that erodes the cumulative efforts of its employees in building brand equity, it becomes a liability. Eventually, such negative press will affect sales, while placing a halo of disdain around the brand. Abercrombie’s sales are plummeting, in large part to its outspoken CEO.
Such founders should be encouraged to step into the background for a while and remain quiet, so as to avoid further damaging the company they supposedly care so much about. Consumers are savvy, have alternative choices, and favor brands who are real, respectful and authentic. Mr. Wilson, you can do better.
Mr. Wilson is the Mayor Rob Ford of retail.
I don’t think Chip Wilson is a liability. His comments might be offensive to some, and could have been reworded to communicate in a gentler way. Companies and their boards need to review what has happened and determine whether if it is financially beneficial for the founder to be outspoken. Going by the company’s growth in revenue I don’t see much changing unless they see a negative financial impact.
How is business despite Mr. Wilson’s slip ups? I doubt he has become a liability yet. The time will come when he, like others, will have to step back or out.
There are several other companies which make and market top level and very fashionable yoga/active wear. They will continue to benefit as more and more customers like me eschew the Lululemon brand because Chip Wilson acts jerky. Why would we want our money going into *his* pocket?
Chip is not a liability. He is just an item the news people prey on and my estimate is that the press also positions questions and acts in ways that cause him to let his guard down. He is not a Ford of Toronto as some said – that is about illegal drugs! Mr. Wilson just has to avoid the press. Some of them are just looking for mistakes to get them better stories that people tweet. Ease off the guy – he is a retailer and a very good one at that.
This too shall pass – if we let it. Yes he has said things he shouldn’t have, and perhaps more often than most CEOs, but I doubt that there will be any long-term impact on the company’s sales.
Mr. Wilson needs to be relegated to the closet and major damage control should be underway. If not, they will be losing business fast.
Kinda takes me back to the days when we Georgians had to look the other way every time The Ted (Turner) opened his mouth. They put some good spin on him and from then on, everyone just said, oh that’s just Ted, haha!
Hey, it worked for Ted! We still love him!
I think there’s hope yet: if you look at the trend – from (potentially) offensive political views to bizarre ethnic views to simply stating the obvious – he’s becoming harmless; which is good, because there’s nothing a board can do with a blowhard short of removing them from a position of authority…and they would spout about that.
All execs should answer questions in the context of their prepared talking points. Training for achieving this is available each week on the Sunday morning political talk shows. Each guest on these shows has talking points they use to style their answers for all questions posed.
I’ve composed a quick example Chip may want to use in the future:
Media person: “So you’re saying that fat people are ruining your form-fitting clothing?”
Company Spokesperson: “Our philosophy as a company and a member of each of our communities is based on being inclusive and accepting of all types of people. We strive to provide these students of uniqueness with outstanding clothing for apparel for yoga, running, dancing, and most other sweaty pursuits.”
Media person: “Don’t you think that $95 for yoga pants puts them out of reach of the average consumer?”
Company Spokesperson: “Our shoppers are never considered ‘average’ by our company or the enriching communities we strive to be a part of. We believe that our community is comprised of creative, vibrant individuals. We strive to provide these messengers of humility and humanity outstanding clothing for apparel for yoga, running, dancing, and most other sweaty pursuits.” and so on….
This sounds very familiar to the situation at Apple in the early ’80s. Steve Jobs was the true visionary, but ultimately the board and Mr. Sculley found him to be a liability. Some will argue the time away from Apple and the flop of his next venture NEXT helped Jobs become a stronger and better leader. Regardless, Jobs went on to do amazing things including bringing back to life the company he co-created.
Maybe the founder of Lululemon needs a break.
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Tempest in a teapot. The stores are the stars with their local partnerships with local yoga instructors and their focus on improving their employees lives in general, not just sales per square foot.
He’s hardly Ron Johnson….
Media hounds follow characters like this once they become known sources of fodder. It will be hard to do much other than protect (or remove) Mr. Wilson from the public stage at this point.
My first reaction to reading of Mr. Wilson’s multiple slip-ups, less than ideal choice of words, and even comments bordering on offending its customers, is that Lululemon has a Mike Jeffries (CEO of Abercrombie & Fitch) on its hands.
When a company’s CEO does or says anything in a highly visible manner that erodes the cumulative efforts of its employees in building brand equity, it becomes a liability. Eventually, such negative press will affect sales, while placing a halo of disdain around the brand. Abercrombie’s sales are plummeting, in large part to its outspoken CEO.
Such founders should be encouraged to step into the background for a while and remain quiet, so as to avoid further damaging the company they supposedly care so much about. Consumers are savvy, have alternative choices, and favor brands who are real, respectful and authentic. Mr. Wilson, you can do better.
Mr. Wilson is the Mayor Rob Ford of retail.
I don’t think Chip Wilson is a liability. His comments might be offensive to some, and could have been reworded to communicate in a gentler way. Companies and their boards need to review what has happened and determine whether if it is financially beneficial for the founder to be outspoken. Going by the company’s growth in revenue I don’t see much changing unless they see a negative financial impact.
How is business despite Mr. Wilson’s slip ups? I doubt he has become a liability yet. The time will come when he, like others, will have to step back or out.
There are several other companies which make and market top level and very fashionable yoga/active wear. They will continue to benefit as more and more customers like me eschew the Lululemon brand because Chip Wilson acts jerky. Why would we want our money going into *his* pocket?
Chip is not a liability. He is just an item the news people prey on and my estimate is that the press also positions questions and acts in ways that cause him to let his guard down. He is not a Ford of Toronto as some said – that is about illegal drugs! Mr. Wilson just has to avoid the press. Some of them are just looking for mistakes to get them better stories that people tweet. Ease off the guy – he is a retailer and a very good one at that.
This too shall pass – if we let it. Yes he has said things he shouldn’t have, and perhaps more often than most CEOs, but I doubt that there will be any long-term impact on the company’s sales.
Mr. Wilson needs to be relegated to the closet and major damage control should be underway. If not, they will be losing business fast.
Kinda takes me back to the days when we Georgians had to look the other way every time The Ted (Turner) opened his mouth. They put some good spin on him and from then on, everyone just said, oh that’s just Ted, haha!
Hey, it worked for Ted! We still love him!
I think there’s hope yet: if you look at the trend – from (potentially) offensive political views to bizarre ethnic views to simply stating the obvious – he’s becoming harmless; which is good, because there’s nothing a board can do with a blowhard short of removing them from a position of authority…and they would spout about that.
All execs should answer questions in the context of their prepared talking points. Training for achieving this is available each week on the Sunday morning political talk shows. Each guest on these shows has talking points they use to style their answers for all questions posed.
I’ve composed a quick example Chip may want to use in the future:
Media person: “So you’re saying that fat people are ruining your form-fitting clothing?”
Company Spokesperson: “Our philosophy as a company and a member of each of our communities is based on being inclusive and accepting of all types of people. We strive to provide these students of uniqueness with outstanding clothing for apparel for yoga, running, dancing, and most other sweaty pursuits.”
Media person: “Don’t you think that $95 for yoga pants puts them out of reach of the average consumer?”
Company Spokesperson: “Our shoppers are never considered ‘average’ by our company or the enriching communities we strive to be a part of. We believe that our community is comprised of creative, vibrant individuals. We strive to provide these messengers of humility and humanity outstanding clothing for apparel for yoga, running, dancing, and most other sweaty pursuits.” and so on….
This sounds very familiar to the situation at Apple in the early ’80s. Steve Jobs was the true visionary, but ultimately the board and Mr. Sculley found him to be a liability. Some will argue the time away from Apple and the flop of his next venture NEXT helped Jobs become a stronger and better leader. Regardless, Jobs went on to do amazing things including bringing back to life the company he co-created.
Maybe the founder of Lululemon needs a break.