Global performance apparel company Lululemon Athletica Inc is reaffirming its long-term commitment to "grow with China", with plans to cautiously expand stores while stepping up investments in yoga, running, training, tennis, golf and lifestyle categories, according to a top executive.

"Last year was our first time participating in the China International Import Expo. It gave us a stage for many people who didn't know Lululemon to understand who we are," said San Yan Ng, managing director of Lululemon China. "It gives us exposure and an opportunity to innovate continuously and focus on how we can do better. We're not just growing in China, we want to grow with China."

The Chinese mainland is now Lululemon's second-largest and fastest-growing market globally. The company reported continued strength in China with a 25 percent gain in the second-quarter fiscal results and a 21 percent rise in the first quarter. This month, the company's China headquarters moved into a stand-alone five-floor building at Westbund Central, Shanghai.

Ng said that the country's increasing focus on health and wellbeing, accelerated by well-being awareness and initiatives such as the government's Healthy China 2030 initiative, continues to expand opportunities for activewear brands. "As society matures, more people are paying attention to both physical and mental health," she said.

A key part of Lululemon's strategy in China, Ng said, is blending its global brand values with local cultural insights to create stories that resonate with Chinese customers. "The secret sauce is our people," she said. "Investing in our local team and communities helps us understand China better. That's how we make the global Lululemon DNA relevant here."

Product innovation remains at the brand's core. "We're good with our Science of Feel — our product design philosophy," Ng said. "When people want to work out actively, we have products that fulfill their unmet needs."

Lululemon currently operates 165 stores directly across 45 Chinese cities and continues to expand cautiously. In an earnings call, the company's global executive projected international expansion would be concentrated in China.

"Store openings are important for momentum, but we're very careful in how fast we grow and choosing which cities to enter," Ng said. "We look at real estate and local data to ensure our guests can truly experience our products."

Beyond new openings, the brand is enlarging many of its existing stores to accommodate growing product categories such as running, golf and tennis.

Lululemon is also testing stores in select tier-three cities, where Ng said consumers have strong purchasing power but may still be learning about the brand. E-commerce data tell us where the guests buy from and where the potential is, said Ng. On top of that, the company is also strengthening its business through e-commerce via Tmall, JD, RedNote, and TikTok. "It's not just to sell, it's also how guests consume information," she added.

While yoga remains the foundation of Lululemon's brand, running has emerged as a major growth driver in China. "We see huge potential in running apparel," Ng said. "We've also seen an uptrend in tennis and golf."

Ng said that community engagement remains central to Lululemon's China strategy. Throughout the year, the company has launched Align's 10-year anniversary with the brand's largest yoga festival in China, and summer sweat games, which is already into its fifth year, the first China well-being report in collaboration with Tsinghua University, and Together We Grow activation in honor of World Mental Health Day, to better engage with local sports communities.

"We believe in well-being, not just physical fitness, but also mental and social fitness," she said.