A Microeconomic Model of Airfare Pricing under Imperfect Competition

Xujiabao Chen

Co-Presenters: Individual Presentation

College: College of Business and Public Management

Major: BS.FINANCE

Faculty Research Mentor: Andreas Kakolyris

Abstract:

This study examines Lululemon Athletica’s international growth strategy, with a particular focus on the rapid expansion of its business in mainland China. As a premium athletic apparel company, Lululemon has evolved from a niche yoga wear brand into a global lifestyle retailer. The objective of this analysis is to explore how consumer demand, brand positioning, and market conditions have contributed to the company’s strong performance in emerging international markets.
Using company financial reports, industry analyses, and market data, the study evaluates regional revenue trends and compares growth rates across geographic segments. The analysis applies concepts from consumer behavior and market expansion theory to interpret the drivers behind regional performance differences.
Preliminary observations indicate that mainland China has become one of Lululemon’s fastest-growing markets, significantly outpacing growth in North America. Rising disposable income, increased health awareness, and strong demand for premium lifestyle brands appear to support this expansion. The findings are expected to illustrate how international market development can serve as a key growth engine for global retail brands and highlight the strategic importance of emerging consumer markets.