Under Armour, founded by Kevin Plank in 1996, is a renowned American sportswear brand specializing in performance apparel, footwear, and accessories. With a focus on top-line growth and strengthening its brand, Under Armour has become a trusted name among professional athletes and sports enthusiasts worldwide.
- Under Armour’s growth strategy prioritizes delivering higher-quality revenue and improving profitability.
- The key drivers of growth for Under Armour include direct-to-consumer, footwear, women’s lines, and international businesses.
- The brand aims to achieve 80% renewable energy usage by 2025 and a 30% reduction in greenhouse gas emissions by 2030.
- Under Armour has extended its partnership with the University of Maryland for an additional 12 years through 2036, solidifying its presence as a sponsor in the college sports arena.
- The company has signed numerous elite athletes, such as Kris Kim, Pedro Porro, and Keisei Tominaga, to enhance its elite football roster and strengthen its brand image.
- Under Armour is engaged in partnerships with organizations like USA Football and the Department of Defense Warrior Games to support national teams and the military community, showcasing its commitment to social responsibility.
- The brand highlights sustainability through initiatives focusing on materials, chemistry, and creating a circularity model, contributing to a greener future.
- Under Armour continuously empowers athletes by delivering industry-leading innovations and maintaining a consumer-centric approach.
- The company has appointed Yuron White as Senior Vice President of Sportswear, Run, Basketball, Curry & Collaborations, bringing in experienced leadership to drive its product offerings forward.
- Under Armour collaborates with athletes like De’Aaron Fox and Kelsey Plum to promote new campaigns and products, expanding its reach in the athletic industry.
Key Takeaways:
- Under Armour focuses on delivering higher-quality revenue and improving profitability to drive growth.
- Direct-to-consumer, footwear, women’s lines, and international businesses are key drivers of Under Armour’s success.
- The brand prioritizes sustainability, brand partnerships, and innovation to stay ahead in the sportswear industry.
- Under Armour has a strong global distribution network, partnerships with top athletes and teams, and a commitment to customer satisfaction.
- One weakness of Under Armour is its relatively high pricing compared to some competitors.
Revenue Streams of Under Armour’s Business Model
Under Armour’s business model encompasses multiple revenue streams that contribute to its overall financial success. The company generates revenue primarily through the sale of athletic apparel, footwear, and accessories. These products are sold to consumers through various retail channels, including company-owned stores, e-commerce platforms, wholesale distributors, and third-party retailers.
The revenue from product sales includes both performance-oriented sportswear and athleisure apparel, catering to the diverse needs and preferences of athletes and fitness enthusiasts alike. Under Armour’s commitment to high-quality and innovative products has allowed it to establish a strong presence in the athletic apparel market.
In addition to product sales, Under Armour also earns revenue through brand licensing agreements. The company collaborates with third-party manufacturers and retailers who produce and sell licensed merchandise under the Under Armour brand name. This licensing revenue is generated through royalties, licensing fees, and product royalties from the sale of licensed merchandise across different product categories and geographic regions.
Under Armour’s revenue streams extend beyond traditional retail and licensing models. The company offers subscription-based services, such as its MapMyRun and MapMyFitness apps. These apps provide users with personalized training plans, workout tracking, and fitness analytics, creating an engaging digital fitness ecosystem. Revenue from these subscription services is generated through subscription fees, premium feature upgrades, and in-app purchases.
Furthermore, Under Armour leverages athlete endorsements to drive revenue and enhance brand visibility. The company enters into sponsorship and endorsement deals with professional athletes, sports teams, and athletic organizations. These partnerships include cash payments, product endorsements, and promotional collaborations, helping Under Armour expand its reach and connect with new audiences.
Under Armour’s Focus on Customization Options
Under Armour, known for its premium athletic gear, is dedicated to providing personalized options to its customers. With a strong emphasis on customization, Under Armour offers a wide range of choices, allowing individuals to create gear that suits their unique needs and preferences.
One of the key advantages of Under Armour’s customization options is the ability to achieve a perfect fit. By offering personalized measurements and specifications, customers can ensure that their gear fits them like a second skin, optimizing their performance and comfort during athletic activities.
Under Armour’s commitment to athlete satisfaction is evident through its extensive range of customization options. Customers can select from various materials, colors, styles, and even add personalized logos or designs to their gear. This level of personalization not only enhances functionality but also allows individuals to showcase their personal style and brand identity.
Furthermore, Under Armour’s dedication to customization extends beyond apparel. The brand provides personalized options for accessories such as footwear and sports equipment, enabling athletes to have a complete personalized ensemble that caters to their specific needs and preferences.
With its focus on customization options, Under Armour stands out in the sportswear market by offering tailor-made gear that aligns perfectly with the unique requirements of athletes. This commitment to personalization further strengthens the brand’s connection with its customers, fostering loyalty and satisfaction.
By leveraging advanced technology and investing in research and development, Under Armour continues to innovate its customization offerings, staying ahead of competitors and remaining at the forefront of the industry. The brand’s dedication to providing personalized gear ensures that athletes can perform at their best while expressing their individuality and style.
The image below illustrates how Under Armour’s customization options allow athletes to create personalized gear that reflects their unique style and preferences.
Through its extensive customization options, Under Armour empowers athletes to tailor their gear to their exact specifications, offering a truly personalized and satisfying experience.
The Marketing Prowess of Under Armour
When it comes to marketing strategy, Under Armour has established itself as a force to be reckoned with. The brand’s ability to create impactful campaigns, leverage celebrity endorsements, and build strong brand awareness has played a crucial role in its success.
Under Armour understands the power of partnering with influential athletes and teams to connect with its target audience. By collaborating with top-level professionals in various sports, the brand not only enhances its image but also establishes credibility and authenticity in the eyes of consumers.
One key demographic that Under Armour focuses on is 16-to-24-year-old team sport varsity athletes. By tailoring its marketing efforts and messaging to appeal to these young athletes, Under Armour successfully captures their attention and builds brand loyalty from an early stage.
Under Armour has executed several notable marketing campaigns over the years. The ‘I Will What I Want’ campaign, launched in 2014, empowered women in sports and showcased their strength and determination. The ‘Rule Yourself’ campaign, in partnership with the United States Olympic Committee, highlighted the dedication and hard work required to excel in professional sports.
The ‘Unlike Any’ campaign, featuring unique and exceptional athletes like Misty Copeland and Natasha Hastings, celebrated individuality and diversity in sports. In more recent times, the ‘The Only Way Is Through’ campaign, featuring Michael Phelps and Dwayne “The Rock” Johnson, inspired people to overcome challenges and push their limits.
Under Armour also recognizes the importance of digital marketing and social media platforms in engaging with its audience. By leveraging platforms like Facebook, Instagram, Twitter, and YouTube, the brand creates interactive and engaging content that resonates with its target market.
Furthermore, Under Armour utilizes athlete endorsements in its social media campaigns, further enhancing its brand image and creating a strong connection with customers. These endorsements not only promote the brand’s products but also serve as a testament to their quality and performance.
With a multiyear strategy shift in place to emphasize footwear products as a significant growth opportunity, Under Armour’s marketing efforts are expected to become even more targeted and impactful. As the brand continues to evolve and innovate, its marketing prowess will play a pivotal role in maintaining its position as a leader in the sportswear industry.
Under Armour’s Global Distribution Network
Under Armour has established an extensive global distribution network to ensure that its products are readily available to customers worldwide. Through strategic retail partnerships, the company has expanded its presence both in physical stores and online platforms, enabling it to reach a diverse customer base and penetrate new markets.
The distribution network of Under Armour includes collaborations with major sporting goods retailers, renowned department stores, and prominent e-commerce giants. These partnerships not only provide widespread access to Under Armour products but also contribute to the brand’s global market reach and visibility.
By leveraging its distribution network, Under Armour has been successful in effectively meeting the demands of its customers across different regions. The company’s commitment to delivering high-quality sportswear and athletic gear to consumers globally has solidified its position as a key player in the industry.
Expanding Retail Partnerships
Under Armour’s retail partnerships have played a crucial role in establishing its global market presence. The company collaborates with a wide range of retail partners, allowing its products to be showcased in various physical stores around the world.
These partnerships not only enable Under Armour to leverage the existing infrastructure of these retailers but also provide valuable opportunities for brand visibility and customer engagement. By strategically placing its products in well-known retail outlets, Under Armour can reach a larger audience and maximize its sales potential.
Online Platforms for Global Reach
In addition to physical stores, Under Armour has also focused on expanding its presence on various online platforms. E-commerce has become an increasingly important channel for retail, and Under Armour has capitalized on this trend by partnering with prominent e-commerce giants.
Nearly half of Under Armour’s total direct-to-consumer business in 2020 was represented by e-commerce results. By harnessing the power of online platforms, Under Armour has been able to tap into a global market that extends beyond geographic boundaries. This has allowed the brand to reach customers in remote locations and cater to their sporting apparel needs.
With the combination of a strong physical retail presence and a robust e-commerce strategy, Under Armour has built a global distribution network that ensures its products are accessible to customers worldwide. This expansive reach has been a key factor in the company’s growth and success in the competitive sportswear market.
Under Armour’s Retail Partners
Under Armour, the renowned athletic apparel brand, has established strategic partnerships with various retail giants to extend its reach and make its products more accessible to consumers. Through collaborations with industry-leading retailers like Dick’s Sporting Goods, Foot Locker, and Rebel Sport, Under Armour ensures that its high-quality merchandise is readily available both in-store and online.
The partnership with Dick’s Sporting Goods, one of the largest sporting goods retailers in the United States, has proven to be particularly influential. The retail giant offers a wide range of Under Armour products across its extensive network of stores, allowing customers to browse and try on items in person, ensuring the perfect fit.
Similarly, Foot Locker, a well-known athletic footwear and apparel retailer, serves as a valuable platform for Under Armour’s offerings. Through this partnership, Under Armour gains visibility among sneaker enthusiasts and sports enthusiasts alike, showcasing its latest collections and collaborations.
Rebel Sport, a leading sports retailer in Australia and New Zealand, represents Under Armour’s presence in the Asia-Pacific region. By partnering with Rebel Sport, Under Armour taps into a market of active individuals and athletes who value high-performance sportswear.
These collaborations with retail powerhouses not only increase the availability of Under Armour products but also strengthen the brand’s reputation within the athletic apparel industry. By leveraging the established customer base and industry expertise of its retail partners, Under Armour can reach a broader audience and cater to the diverse needs of athletes and fitness enthusiasts worldwide.
| Retail Partner | Country/Region |
|---|---|
| Dick’s Sporting Goods | United States |
| Foot Locker | Global |
| Rebel Sport | Australia, New Zealand |
Under Armour’s Commitment to E-Commerce
Under Armour recognizes the growing significance of e-commerce in today’s retail landscape. In order to meet the evolving demands of consumers and stay ahead of competition, the company has invested in developing its own robust e-commerce platform. This strategy has proven to be a critical component of Under Armour’s global distribution network.
Through its direct-to-consumer channel, Under Armour offers customers the convenience of purchasing products directly from the brand. The e-commerce platform provides a seamless online shopping experience, allowing customers to explore and buy a wide range of Under Armour’s high-quality products.
With a commitment to convenience, Under Armour’s e-commerce platform offers personalized recommendations, making it easier for customers to discover new products that align with their preferences and needs. The streamlined checkout process ensures a hassle-free transaction for a seamless purchase journey.
Under Armour’s investment in its e-commerce platform has yielded significant results. Within 90 days of migrating its operations to a new platform, the company witnessed a notable 35% increase in conversions. This shift to a more advanced and user-friendly e-commerce solution has positioned Under Armour for success in the increasingly competitive online marketplace.
Moreover, during Black Friday 2020, a crucial shopping period for retailers, Under Armour’s migration to the VTEX platform resulted in a remarkable 35% higher conversion rate compared to their previous solution. This success demonstrates the effectiveness of Under Armour’s e-commerce strategy and its ability to capitalize on key retail events.
The Dominance of User Reviews in Boosting Sales
The impact of user reviews cannot be underestimated. They play a significant role in influencing purchase decisions. Studies have shown that products with reviews experience an average conversion uplift of 161%. In the fashion category specifically, this conversion uplift rises even further to 207%, highlighting the importance of social proof in driving customer engagement and sales.
A Yotpo poll conducted with 2,000 shoppers from the US and UK found that reviews and referrals were the most effective channels for generating purchase intent, surpassing the influence of ads, social media, and even influencers. This indicates that customers place a high level of trust in the opinions and experiences shared by fellow shoppers.
Recognizing this consumer behavior, Under Armour’s e-commerce platform leverages the power of user reviews. By providing a platform for customers to share their experiences and insights, Under Armour enhances customers’ confidence in their purchasing decisions. This social validation contributes to improved conversion rates and customer satisfaction.
To summarize, Under Armour’s dedication to e-commerce as a direct-to-consumer channel demonstrates its commitment to meeting the evolving needs of customers. By offering a convenient and personalized online shopping experience through its e-commerce platform, Under Armour has leveraged the power of technology to drive sales and increase customer engagement. Through its investment in advanced digital solutions like the VTEX platform, Under Armour has established itself as a formidable player in the competitive e-commerce space.
| Statistic | Data |
|---|---|
| Under Armour’s footwear business growth from 2013 to 2016 | From $300 million to $1 billion |
| Under Armour’s international business growth from 2013 to 2016 | Fivefold increase to over $700 million |
| Revenue generated by Under Armour’s direct-to-consumer arm | Surpassed $1.5 billion |
| Conversion uplift for products with reviews | 161%, rising to 207% in the fashion category |
| Number of customers and active online stores of VTEX | Over 2,000 customers with more than 2,500 active online stores across 32 countries |
Under Armour’s Advanced Manufacturing Capabilities
Under Armour’s success in the sports apparel market can be attributed to its advanced manufacturing capabilities. The company has invested heavily in automation and cutting-edge technologies to optimize resources, reduce lead times, and ensure consistent quality.
By leveraging automation, Under Armour has streamlined its manufacturing processes, allowing for faster production while maintaining high standards of quality. This enhances their ability to meet consumer demands promptly and efficiently.
One notable advancement in manufacturing is Under Armour’s strategic partnership with Electro Optical Systems (EOS). This collaboration aims to advance the use of 3D printing in commercial operations. With the help of 3D printing technology, Under Armour can produce a midsole for an athletic sneaker in just a few minutes, revolutionizing the manufacturing process.
These advanced manufacturing capabilities not only optimize resource utilization but also contribute to cost-effectiveness. By reducing manual labor and increasing efficiency, Under Armour can offer high-quality products at competitive prices, benefiting both the company and its customers.
Under Armour’s commitment to innovation extends beyond product design and performance. They recognize the importance of efficient manufacturing processes to stay ahead in the competitive market. Through their advanced manufacturing capabilities, the company continues to meet customer expectations and maintain a strong position in the sports apparel industry.
Under Armour Manufacturing Statistics
| Year | Sales Growth |
|---|---|
| 2015 | 22% |
| 2016 | 3% |
| 2020 (Net Revenue) | $4.5 billion |
| 2020 (Gross Profit) | $2.1 billion |
| 2020 (Share Price) | $14.9 |
| 2020 (Total Assets) | $5.03 billion |
Under Armour’s Focus on Product Innovation
Product innovation lies at the heart of Under Armour’s success. With a relentless drive to redefine the boundaries of sportswear technology and materials, the brand continuously pushes the envelope to deliver unparalleled performance advantages to athletes.
Under Armour’s commitment to research and development (R&D) is evident in its partnerships and collaborations with renowned institutions such as NC State University. The company expects to invest over $1 million in research with NC State in the coming year, fostering a synergistic relationship that drives groundbreaking advancements in the industry.
One notable collaboration is with the Nonwovens Institute (NWI), a leading research institute specializing in textile innovation. Through this partnership, Under Armour aims to commercialize breakthroughs in textile technology, revolutionizing the sportswear industry.
Under Armour also nurtures talent by hiring graduates from NC State, with 30 alumni currently employed at the company. Kyle Blakely, Senior Vice President of Innovation and an ’07 Textile Management Alumnus from NC State, highlights the importance of this partnership in fostering a culture of innovation.
To further support the university and promote creativity, Under Armour has donated 12,000 yards of fabric for Art2Wear, NC State’s annual student-run production. This collaboration exemplifies the brand’s commitment to nurturing young talent and fostering creativity in the textile industry.
Collaborative projects between Under Armour and NC State are focused on uncovering innovative solutions for athletes while addressing the environmental impact of the textile industry. By leveraging cutting-edge research and sustainable practices, the partnership aims to develop future leaders for the textile and apparel industry.
Through a relentless pursuit of product innovation, Under Armour has cemented its position as a leader in sportswear technology. By staying at the forefront of research, development, and collaboration, the brand continues to revolutionize the industry and empower athletes worldwide with superior performance-enhancing products.
| Research Initiatives | Benefits |
|---|---|
| Partnership with NC State | Enhanced research capabilities and access to cutting-edge technology |
| Collaboration with NWI | Commercialization of breakthroughs in textile technology |
| Hiring NC State graduates | Access to top talent and expertise for ongoing innovation |
| Donation to Art2Wear | Nurturing creativity and supporting young talent |
| Sustainable practices | Reducing the environmental impact of the textile industry |
Under Armour’s Broad Product Portfolio
Under Armour, founded in 1996 by Kevin Plank, has established itself as a prominent player in the sports apparel industry. With an extensive range of products, the brand caters to athletes and sports enthusiasts across a wide variety of sports, activities, and lifestyles.
The Under Armour product range includes apparel, footwear, and accessories, ensuring that customers can find everything they need to perform at their best in one place. Whether it’s running, training, basketball, golf, or any other sport, Under Armour offers high-quality products designed to enhance performance and provide optimum comfort.
Under Armour’s apparel line encompasses a diverse selection of tops, bottoms, outerwear, and accessories. From moisture-wicking t-shirts and compression gear to comfortable hoodies and jackets, the brand’s apparel assortment caters to athletes of all levels. Under Armour’s commitment to innovation and advanced fabric technologies ensures that their apparel is not only stylish but also functional, with features such as breathability, stretchability, and durability.
When it comes to footwear, Under Armour has made significant strides since entering the market in 2006. Shoes and cleats have become one of the brand’s fastest-growing product categories, offering athletes the perfect blend of style and performance. Whether it’s running shoes, training shoes, or sports-specific footwear, Under Armour’s attention to detail and commitment to delivering cutting-edge technology is evident in every pair.
In addition to apparel and footwear, Under Armour also offers a range of accessories to complement athletes’ needs. From bags and backpacks for carrying gear to headwear and socks for added comfort, the brand ensures that athletes are equipped with the essentials to excel in their chosen sports or activities.
Under Armour Product Portfolio Overview:
| Product Category | Revenue (FY2019) |
|---|---|
| Apparel | $3.47 billion |
| Footwear | $1.086 billion |
| Accessories | Around $400 million |
Under Armour’s commitment to offering a wide selection of products for various sports and activities has contributed to its success. The brand’s dedication to innovation, performance, and style has garnered a loyal following among athletes and sports enthusiasts globally.
Under Armour’s Strong Brand Loyalty
Under Armour has built a reputation for fostering strong brand loyalty among its customers. Through its commitment to quality, performance, and customer satisfaction, the brand has established itself as a trusted choice for athletes and sports enthusiasts worldwide.
One of the key factors contributing to Under Armour’s brand loyalty is its consistent delivery of innovative products that meet high standards. Whether it’s apparel, footwear, or accessories, Under Armour offers athletes the tools they need to perform at their best. This focus on product excellence has earned the trust and loyalty of its customers, who appreciate the brand’s dedication to quality.
Furthermore, Under Armour’s exceptional customer service and its commitment to addressing customer needs have further deepened its brand loyalty. By prioritizing customer satisfaction, the company goes above and beyond to ensure that its customers have a positive experience with their purchases. This level of care and attention leaves a lasting impression, leading to repeat purchases and positive recommendations.
In addition, Under Armour’s strategic partnerships and celebrity endorsements contribute to its strong brand loyalty. Collaborations with top athletes and sports organizations, such as the University of Maryland and USA Football, create a sense of trust and credibility for the brand. Customers are drawn to Under Armour not just because of its products, but also because of the association with their favorite athletes and teams.
Moreover, Under Armour’s commitment to social responsibility and community engagement has resonated with its customers, further strengthening brand loyalty. Initiatives like the refurbishment of courts and safe places to play demonstrate the brand’s dedication to making a positive impact in the communities it serves.
Through years of consistent performance and a customer-centric approach, Under Armour has successfully built a loyal customer base. Its focus on quality, innovation, and customer satisfaction has forged strong bonds with athletes and sports enthusiasts, leading to repeat purchases, positive word-of-mouth, and enduring brand loyalty.
Conclusion
In conclusion, Under Armour’s business model is built on a foundation of strengths that have propelled the company to great success. With a focus on product innovation and advanced manufacturing capabilities, Under Armour has been able to deliver high-quality athletic apparel and equipment that exceeds the expectations of its customers. This commitment to excellence has fostered strong brand loyalty, as evidenced by its partnerships with renowned athletes such as Stephen Curry, Tom Brady, and Michael Phelps.
Under Armour’s global presence in over 170 countries and its strong online presence through digital marketing efforts have further solidified its position in the sportswear industry. By investing heavily in research and development, Under Armour continues to drive innovation and push the boundaries of what is possible in sports apparel and equipment.
Looking ahead, Under Armour must navigate the challenges of a slow-growing sports apparel industry and fierce competition from larger players such as Nike and Inditex. To mitigate these risks, Under Armour needs to expand its market and product lines to remain relevant and avoid being dominated by its competitors. By staying true to its strategy of combining innovation and quality while providing customized products for extreme athletes, Under Armour is well-positioned to capitalize on the significant potential of the market and continue its trajectory of success.
FAQ
What is Under Armour’s business model?
Under Armour’s business model revolves around product innovation, performance apparel, and a direct-to-consumer strategy. The company focuses on customization, marketing, global distribution, and an e-commerce platform to drive growth.
What are the revenue streams of Under Armour’s business model?
Under Armour generates revenue from sales of apparel, footwear, and accessories. Additionally, athlete endorsements play a significant role in increasing brand visibility and driving sales.
How does Under Armour differentiate itself in the sportswear market?
Under Armour differentiates itself by offering extensive customization options for its products. Customers can personalize their gear, ensuring a perfect fit and optimal performance.
How does Under Armour market its products?
Under Armour excels in marketing and advertising, employing compelling campaigns and leveraging celebrity endorsements. The company strategically partners with top athletes and teams to connect with its target audience.
What is Under Armour’s global distribution strategy?
Under Armour has built a robust global distribution network by partnering with reputable retail partners in physical stores and online platforms. This ensures widespread availability of its products worldwide.
Which are Under Armour’s notable retail partners?
Some of Under Armour’s notable retail partners include Dick’s Sporting Goods, Foot Locker, and Rebel Sport, among others. These partnerships enhance product visibility and accessibility.
Does Under Armour have an e-commerce platform?
Yes, Under Armour has its own e-commerce platform, which serves as a direct-to-consumer channel. It offers a wide range of products, personalized recommendations, and a streamlined checkout process for a seamless online shopping experience.
What are Under Armour’s manufacturing capabilities?
Under Armour leverages advanced manufacturing techniques and automation to streamline operations, optimize resource utilization, and reduce lead times. These processes ensure consistent quality and cost-effectiveness.
How does Under Armour focus on product innovation?
Under Armour invests in research and development to push the boundaries of technology and materials in sportswear. By collaborating with athletes and identifying market gaps, the company develops innovative solutions that enhance performance and functionality.
What products does Under Armour offer?
Under Armour offers a comprehensive range of products, including apparel, footwear, and accessories. It caters to athletes and sports enthusiasts across various sports, activities, and lifestyles.
How does Under Armour cultivate brand loyalty?
Under Armour delivers products that meet high standards of quality and performance, gaining the trust and loyalty of athletes and sports enthusiasts. The brand’s exceptional service and focus on addressing customer needs foster a sense of loyalty.
What are the key strengths of Under Armour’s business model?
Under Armour’s business model is characterized by its focus on product innovation, advanced manufacturing capabilities, brand loyalty, and a strong global distribution network. These strengths drive the company’s success in the sportswear industry.