Luon produces about 30% of fabric for Lululemon’s athletic ware. There are five companies, that when combined, produce over 65% of Lululemon’s fabric. These companies have high quality fabric, which that can dictate the price they want for it. This higher quality material they use cannot be compared to the other cheaply made material used by other companies. I believe that Lululemon cannot just switch manufactures. Also another big factor in supplier bargaining power is that Lululemon cannot backward integrate into the fabric industry. One downside to these manufactures is that they are not locked into a long-term contract. There might be other manufactures that would have better prices and are looking for a contract with Lululemon. It gives Lululemon some flexibility in their