With a change in marketing strategy, Under Armor improves

Under Armor broke into the world of sports brands forcefully ten years ago. Its revenues, which did not reach 730 million a year in 2008, increased exponentially to exceed 4,830 million in 2016.

Needless to say, the context was not favorable: it had to compete with the giants of the sector: Adidas and Nike.

However, in 2017 growth began to decline and what looked like a good year has become a nightmare: it has hardly improved its income by 3% compared to 2016.

But nothing n & rsquo; Is eternal and good A change in the marketing strategy can change everything. The latest news indicates that sales in the second quarter of 2018 rose for the first time in a year, exceeding badysts' estimates.

"The rebound in sales in the United States and Canada, a market that accounts for about three quarters of revenue indicates that the recent transition from Under Armor is beginning to bear fruit," Bloomberg reported.

The transition the US agency is talking about are adjustments in production and marketing strategy: Under Armor drastically reduces the amount of products that it offers and decides to invest in development and logistics. The idea is to create the products faster and bring them to the outlets before the competition.

"The gains in footwear and clothing boosted sales in the second quarter, with 28% growth in international trade," Bloomberg expands.

By having so many products, the brand had (and still has) a surplus inventory problem, which resulted in a loss of profitability . They said the company Kevin Plank, profitability should increase as these excesses come out of the books.

Under Armor is much more dependent than his rivals on sales in the United States and Canada. Nike, by comparison, gets about 44% of its revenue from this region, while Adidas has just 21%

In 2017, the brand invested $ 565 million in marketing. It was the year when more money was used for this article, but also the one that had the least increase. New changes and some adjustments seem to have changed things

Kevin Plank is the creator of the brand in the mid-1990s. His goal: to make it the best brand of sportswear in the world. . Under Armor not only sells a black sneaker with a silver logo, it sells the idea that wearing your clothes makes you better.

In 2011, when the brand had revenues of more than $ 1,000 million, Fortune magazine marketed it. ranked 12th among the top 40 entrepreneurs under 40.

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