BCBusiness

(JJ & CHIP) CouRtesy of kIt And ACe; (sHAnnon) RebeCCA CHALmeRs 36 BCBusiness APRIL 2016 Then, in early 2011, he was lured across the country, back to L.A. as CEO of social impact shoe company Toms. Toms, founded in 2006 by Blake Mycoskie, made famous the "one for one" business model—when Toms sells a pair of shoes, a new pair of shoes is given to an impoverished child—which has since been widely copied. Potdevin was intrigued by the notion of a com- pany that not only sold a product but also certain ideals. "At that time, I thought of philanthropy as you go to a black-tie din- ner, there's a silent auction, you spend some money and you feel good about it. At Toms, I really learned so much more about sustainable giving." So when he put it all together on that day in August—working for a vertical- integrated luxury retailer with a high degree of craftsmanship; a manufac- turer of functional, performance-driven athletic gear; and another that sold high-quality products with high-minded ideals—Potdevin felt he had no choice. "I was like, this is the dream opportunity. This is everything I've done, all in one." He picked up the phone and called the headhunter from Lululemon back. A s Lululemon has built a category over the past 18 years, it has also attracted a lot of competi- tion, most notably from apparel giants Nike and Under Armour, whose scale and deep pockets allow them to o¨er what the industry calls "athleisure" at signicantly cheaper prices. Rumours have even swirled in recent months that Lululemon might be a takeover target for one of them. Potdevin isn't buying it. "I think there are going to be fewer players in this market ve years from now. Everybody talks about 'athleisure' right now—we actually don't see ourselves as a part of athleisure. I'm not even sure what ath- leisure means." But he says Lululemon will be one of the survivors—and that it will thrive by not competing on price and continuing to innovate. "We are so much more than a product company. We've got amazing products in a market that we've created, but half of the equa- tion is the experience we're creating for our guests." He talks about getting Lululemon more into the mindfulness eld—o¨er- ing services and experiences to custom- ers that enhance their lives. "I don't think our people—especially our demo- graphic—want to buy more stu¨. They want to attach themselves to brands that have purpose." "We started as a yoga brand for women—and now we're men's and wom- en's, and we're across multiple catego- ries," he continues. "Ten years from now I could see us getting into so many more categories—but always at the high end of the spectrum, where we can bring a lot of innovation. Keep in mind that what's really unique for us is our vertical model: every time we transact, every time we sell product, we control that experience. And that's very unique. That gives us a margin structure that's very di¨erent from a lot of our competitors that have a wholesale business." Of course, it's not that different from the model born just across town two years ago—Kit and Ace. That's the Namaste JJ, Chip and Shannon Wilson are opening their Kit and Ace stores at record speed

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