Recently, I’ve been paying attention to Lululemon’s moves. That luxury sports brand, known for its yoga pants, has been drawing attention from a U.S. investigative organization.

The whole thing started this month, when a related department in Texas announced it would begin investigating PFAS (the so-called “forever chemicals”) contained in Lululemon products. These substances have been valued for their waterproof and stain-repellent functions, but they tend to accumulate in the body, and health risks have been pointed out.

Lululemon has traditionally touted “safety” and “environmental consideration” as major selling points in its products, including yoga pants. That’s why consumers have been willing to pay premium prices. However, this time’s allegations are shaking the very foundation of trust in that brand.

The company has admitted that it was used, on a limited basis, in some functional products, and it explains that by early 2024, replacement is already nearly complete—but market anxiety hasn’t been dispelled.

Making matters even more complicated is that this trust crisis is overlapping with a slowdown in brand growth. In the North American market, signs of fatigue are already starting to show, and sales at the same stores are also trending downward. Major players such as Nike and Adidas are stepping up their offensive, and Lululemon’s advantage is beginning to waver.

Meanwhile, the China market looks different. Over the past year, sales in mainland China have increased rapidly, and expansion into up-and-coming cities is accelerating as well. Lululemon has evolved from a yoga pants brand into a symbol of “refined living,” and by leveraging the power of social media, it’s winning over the hearts of younger consumers.

That said, growth that relies heavily on brand image has a fragile side. If negative information about safety spreads, its impact is highly likely to quickly ripple across global markets. In fact, discussions online about product durability and after-sales service are increasing.

Industry perspectives are in agreement. What Lululemon needs right now is to publish, early on, highly transparent explanations regarding the investigation and restore consumer trust through actual actions. In other words, we may be entering an era where a growth strategy that depends only on brand value no longer works.

This sudden investigation is not just a temporary crisis—it could become a turning point that will greatly determine Lululemon’s future business direction. How to protect core markets, and how to maintain brand trust. Whether it will keep or lose its standing as a high-end sports brand—the point of divergence is already right in front of us.