Not every
company is noteworthy or stands out among a crowd of business analysts and
industry moguls. However, sometimes the exceptional will surface with new
innovation and promises to change the standard by which all is presently
compared. Most people can name a few if they think about it but in the case of Under Armour Apparel, they have been a
silent success. Under Armour has put
their mark on the Performance Apparel industry over the last ten years and they
have not only increased the standards for their direct competitors but they are
constantly raising the bar for its customers. Presently, SportsSCAN Info’s Schwartz has
stated that Under Armour is close to the fourth largest retailer of sporting
appeal in the United States
just behind Nike, Adidas and Columbia.
The Here and Now
Headquartered
Baltimore, Maryland Under Armour is a growing force and fierce competitor in the
performance apparel industry. They have offices all over the world including Denver, Toronto, Hong Kong
and London England.
Under Armour develops its performance apparel
for men, women and youth with product lines that impact all levels of activity
from everyday to extreme sport activity covering all climates and conditions.
This diversity has allowed them to impact virtually every market. Presently
they have five lines.
- Coldgear
- Loosegear
- Turfgear
- Allseasonsgear
- Heatgear
In the Beginning there was
Innovation
Under Armour was founded in 1996 by Kevin Plank,
a football player for Maryland.
The basic concept created by Plank started
as a simple t-shirt made using high tech fabrics. The high tech fabric that he
chose had qualities that could wick sweat and other moisture through the fabric
to the surface instead of absorbing it.
He believed that if athletes could be dry and the moisture wicking
ability could help regulate temperature they would perform better. That was his
concept. He started the company using $20,000 of his own money, $40,000 from
credit and a $250,000 Small Business Loan.
Starting Small – Using your Consumers
to Fuel your Success
On November
18, 1995 after Plank had created the first prototype he set up shop in his grandmother’s
basement in Washington, DC.
His first sale was to Georgia
Tech University
where interest continued to grow. Shortly after, he was supplying performance
apparel to more division one football teams and over two dozen National
Football Teams. His method for marketing and retaining clients was simple
because he believed that if you create product for the people who will
appreciate it most, then it will sell. Plank continued to market his products with
this concept and further success came quickly.
By 1996,
after its first year of success Under
Armour developed five product lines that were all derived from the same
Microfiber. The main advantages to this
fabric were its ability to:
- Wick moisture away from the
skin keeping people dry
- Reduce sweat and regulates body
temperature due to breathability
- It was light weight and comfortable
Realizing
that all of these benefits applied to a variety of consumers he created five
product lines targeting a range of activity levels from everyday to the
extreme. It proved to be a smart decision for Plank to broaden his marketing
efforts because he was so successful that he had to move to a larger facility
in South Baltimore and put Under Armour on the map for good.
Opportunities to Last a Lifetime
In 1998 Under Armour became the official
supplier of performance apparel to the National Football League Europe and in
1999 Warner Bros. signed on as a client as well. Under Armour apparel supplied clothing for the movie “Any Given
Sunday" and “The Replacements". It was becoming apparent that Under Armour was no longer just
associated with sports but all forms of activity.
2000 was
the year that Under Armour became a
permanent fixture worldwide. They had 8000 official retail locations all over
the world and they were continuing to grow to impressive new heights including:
- Major league lacrosse
- Major league Soccer
- National Hockey League
- USA Baseball
- US Ski Team
Between
2000 and 2005 Under Armour was
supplying over 100 division 1A football programs and thirty NFL football teams.
Each year they were featured in the superbowl in one form or another. Numerous
articles and case studies were written with the best being Time magazines
feature that titled Under Armour as
the one of the fastest growing private companies. Plank was also named businessperson of the
year by the Baltimore Business Journal in 1993.
Current Events
Presently,
2005 is proving to be another exceptionally innovative year starting with 60
products for a new women’s line called UA
Metal that was inspired by their ‘Duplicity
Sportsbra". And if that is not enough, they have introduced the UA Tech line, a more technical savvy
and advanced version of their original line Loosegear. To reach further into the marketplace they are now
targeting individual sports starting with running. They are introducing UA Streaker a line developed with
technical advancements for runners.
The
performance apparel industry is now a multi billion dollar business. This
industry is consistently entering new markets including everyday wear and even
business suit apparel. It is incorporating the performance materials to make
the everyday more comfortable.
Creating Something Different
The
question on many minds including that of direct competitors is how big will
they grow? In the same understated way Kevin Plank began he still remains
realistic yet optimistic. With 546 Under
Armour employees and top competitors like Nike and Adidas, he has approximately
75% of the market share they are definitely on the right track. The plan for
the future is to target the women’s market with a more broad approach.
It is
expected that Under Armour will gross an estimated $200 to $250 million this
year, so many business analysts are speculating what the next big move will be.
As a privately held company, many believe that Under Armour will be acquired by
one of their larger competitors. On the other hand, a company only needs to
gross $250 million to be eligible to go public and attract the appropriate
investors and they are almost there.
Under Armour
apparel has been a company that has flown under the radar to become the leading
success story in the textile industry for performance apparel. Each milestone and
creative achievement is a testament to the true meaning of designing what the
consumer demands. It is impossible to predict what the future will hold for
this extraordinary company but is safe to say that what they have achieved is a
spot on the red carpet of industry beside the big players.
About the AuthorStephanie Lyster is a successful freelance writer, and outdoor enthusiast. Her articles offer valuable information on choosing the appropriate performance apparel from UnderArmour, Goretex, and CoolMax so you can enjoy the great outdoors more comfortably.
