Transition in Under Armour

Under Armour has grown up.

It used to be a company that had many possibilities ahead. Within a couple of years of founding, Under Armour just shot from nowhere and sprouted all over the world.

It all begins in the USA.

Under Armour endorses American sports stars. In golf, swimming, baseball, American football and basketball, Under Armour endorsed athletes win championships and player awards. Jordan Spieth, Michael Phelps, Tom Brady, Cam Newton, Stephen Curry, Bryce Harper are all at the top of their athlete powers.

Also, at around this time, Under Armour expanded its range. They used to be known for sweat-wicking gear. They have since followed up with shoes, casual shirts with cotton blends, and even apps.

This is where Under Armour hit growing pains.

Under Armour has to grow beyond United States. Outside North America, Under Armour's sales are still rising, but make up only 15% of international markets. Under Armour has only one signature shoe line, the Stephen Curry collection, that has lacklustre sales. The Golden State Warriors super team with Nike's Kevin Durant is actually weakening the superhero appeal of Stephen Curry and limiting his market potential, even as the Warriors won the most recent NBA title. Under Armour does has a Spieth golf line, but it is known that Spieth at his best will probably not surpass the marketability of golf as Nike's Tiger Woods. Also, Under Armour still does not has a hit soccer superstar, for most soccer stars endorse other brands like Puma, Nike and especially adidas.

Under Armour has to also weather the trends in athletic wear changes. Under Armour tries to adapt to the rise of new classic chic wear that is fashionable lately, but did not fare as well as rivals adidas and Nike. It is possibly because of market perception: Under Armour is so strongly athletic that its fashion offerings may not be perceived to be stylish for daily wear, as do adidas NMD, Boost and Yeezy collections do.

It is because of such transitions Under Armour had that is had to scale back growth. There are now fewer employees, fewer products and slower physical store growth as expected in past years. Even some employees have to move on to other competitors. This could also affect Under Armour's bidding for new contracts for sport leagues or player endorsements: notably Under Armour seem struggling to find new suitable high return star endorsement right now.

I can only hope Under Armour can get through these growing pains, focus on protecting the house in core products that move well, and continue to grow organically in other growing countries (such as Asia and South America) while adapting to their unique needs.
Location: Choa Chu Kang, Choa Chu Kang

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