Yoga giant offers students wisdom

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This article was published 05/06/2013 (4485 days ago), so information in it may no longer be current.

CHIP Wilson didn’t build a company with a $12-billion market capitalization with non-stop, flawless execution of his business plan.

In fact, the founder of Lululemon Athletica admits to making “millions of mistakes” during his time in the retail business.

One of the most high-profile ones undoubtedly occurred in March when the yoga-clothing manufacturer and retailer had to recall millions of dollars of black luon yoga pants because they were seethrough. The pants were far from a trivial item, as they represented nearly one-fifth of the company’s business.

Wilson, never one to shun responsibility, was quick to own up to the error.

“When you’re pushing technology, you’re going to make mistakes,” he said.

“When you’re making a technical knit, there are 1,000 things you have to put in it. There’s always one thing that won’t work, maybe two, but if you get three you’ve got a problem,” he said.

“It’s incredible how many tests we have to do. Would we be able to do them all? Perhaps not. But every three years, something will happen that we will not be able to test for. I don’t know what that is. What we will promise is not to sell them to the customer,” he said.

Wilson said in response to the snafu, Lululemon has implemented more stringent quality controls, added more people and is making a machine that will ensure the sheerness issue won’t return.

The company relaunched the yoga pants this week, this time with “more fabric across the bum so it’s not stretched from the get-go.”

Wilson, now in his late 50s, addressed students at the I.H. Asper School of Business on Tuesday afternoon. He told them the history of the company, how he looks to hire other people who have made an abundance of mistakes and he took questions.

Wilson was in town to receive the International Distinguished Entrepreneur Award from the Associates at the University of Manitoba Tuesday night, one of the highlights of Winnipeg’s business social calendar. He was feted in front of a sold-out crowd of 800 at the Winnipeg Convention Centre.

Wilson didn’t hit the jackpot with his first venture, but he has always had an active theme. He founded his first apparel company, Westbeach Snowboard Ltd., which sold surf, skate and snowboard gear, in 1979. He calls it his “20-year MBA.”

He made enough mistakes there that he was on the Royal Bank’s “special” accounts list.

“That means you’re going bankrupt, baby,” he said with a laugh.

He sold the company before that could happen in 1997, the year before he started Lululemon.

He wasn’t really much of a surfer and he doesn’t consider himself a yogi, either. Instead, he said his skill is being able to predict retail trends.

“I’m the world’s biggest poser,” he said with a grin.

Wilson was the CEO of the yoga giant until 2005 when he sold a 48 per cent stake to a pair of private equity firms, Advent International and Highland Capital Partners.

He also stepped down as chief innovation and branding officer last year but he remains chairman of the board.

Past IDEA recipients include last year’s winner, Stu Clark (Storm Resources Ltd.), Sir Richard Branson (Virgin Group), Murray Edwards (Canadian Natural Resources), Dame Anita Roddick (The Body Shop), Howard Schultz (Starbucks), Jim Balsillie (Research In Motion) and the husbandand- wife team of Schwartz and Heather Reisman (Onex Corp. and Chapters).

 

geoff.kirbyson@freepress.mb.ca