👉 Background: Lululemon is the premium athleisure brand that started in yoga studios in 1998 and became one of the first brands to make activewear trendy enough to wear all day (whether or not you actually went to yoga or not). Over the past 25 years, it has grown to a market cap over $40 billion.

‍👉 What happened: Last week, Lululemon filed a lawsuit accusing Costco of copying the designs of its jackets, hoodies and pants. This is juicy because the case includes visual comparisons - like eerily similar colours, seamlines, and silhouettes. The items are even named similarly. But, there’s one big, big difference: one item costs a small fortune; the other comes in a pack of three next to a jumbo pack of Cadbury chocolate.

‍👉 What else: As part of this lawsuit, Lululemon claims these designs are under its protected trademark and Costco has breached these trademarks. And, as Lululemon’s sales growth slows and “dupes” flood the market, Lululemon is trying harder to protect its turf.

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‍What's the key learning?

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‍💡In a world of dupe culture, premium brands are turning to legal protection, not just marketing, to defend their edge.

💡Over the past few years, platforms like TikTok have made it easier than ever for knockoff products to go viral:

• For consumers, it’s fun and a good way to bargain-hunt
• But for brands, it’s a real threat

In fact, a 2023 survey by YPulse, a company that specialises in Gen Z purchasing behaviour, found that 60% of Gen Z and Millennials would choose a dupe product, even if they could afford the real thing.

💡As a result, brands are relying more and more on their trademarks to protect their unique designs so that dupes can be stopped. And that's why the outcome of this lawsuit will be eagerly watched by popular fashion labels that are getting duped.