Under Armour’s Journey: A Path to Reconnecting with Consumers
In the bustling city of Baltimore, Under Armour is trying to shake off its recent sales slump and re-establish its identity as a leading sportswear brand. The company had faced some tough times, with ongoing sales drops causing concern. However, CEO Kevin Plank is optimistic and believes the key to success lies in creating a compelling reason for consumers to engage with the brand once more.
A Shift in Strategy
So, what’s the game plan? Under Armour is intentionally reducing promotions to position itself as a more premium brand. This strategy, according to experts like Neil Saunders, Managing Director of GlobalData, may lead to a stronger brand identity and ultimately higher prices.
“This playbook of sacrificing low-quality sales in exchange for a stronger brand position is very much in play,” he noted. Many retailers have successfully navigated similar challenges, so Under Armour could be on the right track.
Despite this monumental shift, there’s no denying that the numbers tell a steep story. Sales have continued to decline. The question remains: how much of this is intentional? Acknowledging this challenge, Saunders pointed out there’s still an “extensive amount of work” Under Armour needs to do to rebuild its brand equity.
Rebuilding Partnerships
This effort also involves rekindling relationships with wholesale partners, which have become critical for the brand’s presence in retail. Plank emphasized the importance of communication with these retailers, promising to earn more shelf space at stores like Kohl’s. “We don’t have as much shelf space as we once had and it’s our job to earn that, season by season,” Plank said, highlighting the work that lies ahead.
But, it’s not just about getting back on shelves. Saunders warns that how Under Armour presents itself is equally crucial. The brand needs to showcase its innovations and strengths in a way that stands out across retail chains.
Engaging Consumers
And while they’re busy working on their retail relationships, reaching out to the actual consumers is just as vital. Plank revealed that Under Armour’s aim moving forward is to be “an incredibly loud brand and quiet company.” This intention aligns with their plans to ramp up marketing efforts in the upcoming year. With the addition of Eric Liedtke, a former Adidas veteran, in August, Plank believes they are making important changes that will redefine the brand’s market position. “The product pipeline is as healthy as I’ve seen it,” he said enthusiastically.
However, it’s not only about creating great products; it’s about telling a story. Plank stated, “Without story, you’re just selling shirts and shoes. The world doesn’t need another capable apparel and footwear brand. The world needs hope and that’s what we think Under Armour can be.” It’s clear that the brand wants to evoke emotions and establish a deeper connection with its customers to inspire loyalty.
Looking Ahead
Since Plank’s return as CEO in April, he has made significant changes, including announcing layoffs and reducing the number of stock-keeping units (SKUs) by 25%. Such moves have been tough but necessary in the quest to reposition Under Armour with its customer base. The road might seem rocky, but hope is on the horizon.
While the path to recovery is undoubtedly challenging, Under Armour is determined to strengthen its brand and reconnect with the consumers who once embraced it. As they embark on this journey, it will be exciting to see how the iconic sportswear brand evolves and re-establishes itself in the market.
In a world that constantly demands innovation and engagement, Under Armour is well aware that they must give people a reason to cheer for them once again. With a strong vision to connect stories to their products, their efforts may just win the hearts—and wallets—of sports enthusiasts everywhere.
