Under Armour chases next gen athletes in battle for sportswear dominance

Under Armour, the global sports apparel brand once predicted to be Nike’s biggest threat, has revealed a strategy to win over young athletes and steal market share from rivals Hoka and On.

Brazilian footballer and Sydney FC player Douglas Costa

Under Armour is targeting young Aussie athletes and grassroots sports leagues in a bid to compete against new rivals such as Hoka and On.

The global sports apparel brand aims to boost its relevance and engagement with 18-24-year-olds through a strategic investment in custom teamwear company ISC Sport.

The move will see Under Armour connect with the ISC’s existing relationship with 2,500 amateur clubs, leagues and schools and gain access to more than 800,000 athletes a year across a variety of sports and codes including football, basketball, rugby, AFL and cricket.

As a major stakeholder in the ISC business, Under Armour, will transition the “made to order” sportswear to its brand starting with basketball and rolling out across all sports and codes.

Under Armour Oceania managing director Fernando Reani said the move would “unlock” the grassroots component of its local business and provide new strengths in supply and service to match the brand’s legacy in product innovation.

“This connection with team sports in Australia will allow us to win the hearts and minds of our target consumer, the 16 to 24 years old team sports athletes and the next generation, the seven to 15 years old kids, who we call the emerging athletes, and be with them in their highlights when it comes to their key sports moments. We want to build brand love from the get go and win the hearts and minds of the teams and athletes,” he said.

Under Armour Oceania managing director Fernando Reani and ISC Sport CEO and managing director Jason Schulman.

“Grassroots is definitely a priority investment, because the only way for us to build brand love and brand longevity for the long term is if we’re close to the athletes from when they start their journey from the early days.

“Australia has a legacy in team sports, it’s a very fragmented market with so many different codes that kids live and play every day. So if we can provide performance solutions to those kids across all the different codes from the get go, just to build an emotional connection that we one support grassroots as a whole in the country, to allow us to connect with them from the early days, and unlocking future opportunities for the brand across all the different categories.”

It comes as the booming sports apparel and footwear category experiences a flurry of change with increased competition from new entrants such as Hoka and On, both of which have experienced strong growth locally. It also coincides with the downfall of the once dominant Nike, which has recently reappointed Elliot Hill as CEO as it works to regain its mojo.

Under Armour, which launched in 1996 and has been in the Australian market since 2014, was once viewed as the most significant threat to Nike’s dominance, however, in recent years the brand has faltered and failed to capitalise on its promise. In a bid to turnaround the brand’s fortune its founder, Kevin Plank, returned as CEO earlier this year.

Mr Reani said locally Under Armour has focused on its positioning as a premium sports house and on “building brand love through team sports” by leveraging core categories such as basketball, significantly the Steph Curry product line, as well as training, running and sportswear. The brand also plans to expand its local professional athlete and club partnerships, such as its sponsorship of Sydney FC and its latest athlete signing Brazilian footballer and Sydney FC player Douglas Costa.

“I believe that our competitive advantage is that we know exactly who we are, and we remain loyal to our brand DNA throughout the decades. We are a brand that is founded and led by performance and innovation and we are established as a sports house, which truly differentiates us from many of the new brands that are coming in.”

“Naturally ISC’s capabilities allow us to potentially amplify this program to other pro clubs. This brings us a strong marketing platform to build the brands, not only in the team sports category, but also benefiting from the halo effect that this can have across the brand, from a brand awareness, purchase consideration and brand love point of view.”

With Under Armour benefiting from good local brand awareness, which Mr Reani said is “relatively high compared to other markets”, the growth strategy is centred on building premium distribution, amplifying brand metrics, including brand awareness, purchase consideration and brand love, and building a strong internal culture.

“Australia is definitely one of our key markets. The ISC investment and landmark partnership we’re making in the Australian markets is a confirmation of the priority that it has in our regional and global strategy.

“The ISC partnership gives us an amazing opportunity to further build awareness, consideration, and most importantly, brand love. We have this amazing platform now to connect with 800,000 kids and athletes throughout the country and be together with them as a brand when they need, not only with their team sports products, but also with our comprehensive, innovative range across all the different categories. We truly believe we were winning their hearts and minds for life. We plans to keep building on this beautiful, premium platform that we’ve already established in the country.”