1. Under Armour has a reputation for successful product innovation in the men’s athletic-wear market, for instance replacing the industry standard material of Elastane in favor of new thread texturing techniques. Consumers consider their products modern and highly engineered, making them desired by those seeking the bleeding edge of performance.
2. Under Amour’s wildly successful “I Will What I Want” campaign allowed the company to expand into the female active-wear market and acquire a new audience that some rivals had failed to attract. It produced 4 billion media impressions and $35 million in earned media, and increased interest in the brand (as evidenced by a 42% increase in traffic to their website).
3. Under Armour has strong community involvement with programs like UA Give Back and their various branches like UA Power in Pink, UA Freedom, and UA Win Global. These efforts have garnered positive responses from consumers and strengthens UA’s brand image.
4. Under Armour has acquired apps like MapMyFitness, MyFitnessPal, and Endomondo. This has expanded their revenue potential, allowing them to diversify their offerings and interact with their audience on a broader level.
1. The UCLA is currently suing Under Armour, accusing UA of breach of contract, as well as intentional misrepresentation and false claims. The UCLA seeks $200 million in damages, which poses a heavy financial risk to UA. The lawsuit also weakens UA’s brand image and may make future collaborators reluctant to partner with UA.
2. In 2009, the United States Consumer Products Safety Commission announced a recall of all Under Armour brand athletic cups. The cups might break when hit, posing a risk of serious injury. Then in 2011, the same commission announced a recall of all Under Armour Defender chin straps. The straps pose a laceration hazard when a player contacts the metal snap. These recalls weaken UA’s brand image.
3. Due to the Covid-19 pandemic, Under Armour’s revenue fell by 41% to $707.6 million in the June 2020 quarter and they were forced to lay off 600 employees to cut costs. Such heavy losses may weaken trust in the brand by investors.
4. Under Armour’s reliance on celebrity endorsements in their advertising results in them having substantially higher marketing costs than brands that can successfully advertise using “everyday people” in their ads. It also makes them more vulnerable to public backlash when a celebrity’s public image changes negatively.
1. By 2013, more than 45 million Americans belonged to a gym or fitness club and more than 24 million exercised at home. In 2014, 54 million Americans paid for gym memberships, and the average member visited his/her club more than 100 times. Increasing interest in fitness creates opportunity for fitness brands by expanding their potential audience.
2. The worldwide women’s activewear market was valued at approximately 119.08 billion U.S. dollars in 2017. This market was forecast to reach a value of 216.9 billion U.S. dollars by 2025. Market growth can be attributed to rising health consciousness among women, and an increase in fitness enthusiasm.
3. American’s are culturally growing interest in “athleisure” wear (athletic clothing worn by non-athletes, like running shoes worn by non-runners and yoga pants worn by people not participating in yoga). This creates an opportunity to increase sales by marketing athletic wear products to this growing audience.
4. Wearable fitness trackers and mobile fitness apps are steadily growing in popularity; 21% of Americans for example now use a fitness tracker or smart watch capable of tracking fitness. Adoption of these fitness technologies increases the opportunity for fitness brands to attract and interact with their audience.
1. In a recent sample of about 3,000 U.S. adults conducted by Cambridge Open Engage, people who were actively exercising before the pandemic reported an average 32% reduction in physical activity since the Covid outbreak.
2. The Covid pandemic transformed consumers’ relationship with clothes. The fashion industry dropped by a third, while sweat-pant sales increased by 80%. This shows that consumers are currently valuing comfort and economy over fashion and style.
3. Mobile apps have been recent targets of phishing schemes that allow hackers to steal customer data like email addresses and credit card information. These breaches of security are harmful to consumers; They erode trust in the hacked brands and damage relationships between the brands and consumers.
4. Many established clothing brands, from Target to American Eagle, are now entering the athletic-wear market by introducing their own product lines. This is causing an already crowded market to become over-saturated, leading to greater competition and a decrease in profits.