Under Armour might have been the sportswear underdog due to its narrow focus on training compression tops and shorts, but the tides have certainly changed. With their recent launch of UNSTOPPABLE gear (born on the pitch and made for the streets) the brand is hoping to gain market share ahead of some big streetwear players in the market. Unstoppable allows the brand to show up in a fierce new category, firmly positioning their product offering to a Gen Z target market.
“We embrace the underdog mentality” says Under Armour. “Understandably, there is a pre-conceived notion that with our niche offering, Under Armour isn’t able to compete in the wider market, but we’re here to enter the stage – in a big way. We’re fearless, we’re young and we’re aggressive.”
Under Armour experienced substantial growth over the past decade, with its global net revenues amounting to approximately 5.7 billion U.S. dollars in the financial year end of March 31, 2024. 61.5 percent of their net revenues in its home region of North America and nearly 20 percent from their EMEA region.
Closer to home, the South African street and footwear market has seen significant growth through cultural impact in recent years. Sneakers are not just footwear but a marker of personality, social status, and cultural expression. The influence of American hip-hop culture and local musical genres, like Kwaito, have heavily shaped sneaker trends in the country. The market is characterized by a blend of traditional offline sales and a growing online presence. Collecting and trading exclusive and limited-edition sneakers has become a popular hobby, with some local releases selling out within minutes of their online launch.
In line with this, the new offering by Under Armour will start to put intentional focus on gear that supports off-pitch time alongside their already popular training suite. With this addition to their arsenal, Under Armour firmly believes in its renewed support of a full 360˚ athlete lifecycle. With a keen eye on the younger generation, Under Armour believes that this refocus and introduction of sneaker variations will support a Gen Z consumer base growth plan. Bringing a revived sense of energy and passion to a slowing market.
“Looking at our target customer, if you open their wardrobe, there’s a high chance you will see our performance products there. But we’ve previously failed to make that leap from performance to sportswear. Given how big the market is, and how the competition plays in that space, we think we can compete. I think our customer expects to see us.” says Under Armour.
As a signal of the new fashion forward vision, Under Armour announced a collaboration with Balenciaga during the brands Resort 25 show in Shanghai earlier this year. The collection featured Under Armour fabrics and technologies to underline the brand’s innovation and capabilities.
This is a common strategy amongst leading sports brands, partnering with designers and celebrities to conquer the market by broadening their product lines. This change in direction has generated approximately 3.79 billion U.S. dollars in net sales for Under Armour’s apparel segment, making it the company’s largest product segment.
Their new line, UNSTOPPABLE which features casual tracksuits, varsity jackets and sneakers was born from a singular track pant Under Armour initially released for performance before noticing customers styling it with fashion pieces outside of training or sport.
Innovation combats economic challenges
Like its competitors , Under Armour has met significant financial upswings and challenges post-lockdown, managing to navigate a volatile arena. Recently, Under Armour has been challenged given “soft consumer demand and elevated promotional levels, cautious wholesale ordering [from retailers], and long product lead times”, wrote an analyst in an April report in the global activewear market. The opportunity for Under Armour now is to prove they can fuel product innovation, including a bold entry into the off pitch lifestyle segment and return the company to growth as well as high profitability.
The majority of Under Armour’s sales come from apparel, with the remainder coming from footwear and sporting accessories. Known for its tech inspired products that tend to be driven by performance , this strategic shift to athletic style has seen the brand incorporate more edge, creativity, and uniqueness into their designs.
Key to driving the new vision is Yassine Saidi – Chief Product Officer, a sportswear and sneaker industry veteran. Saidi spent eight years as a product designer in leading market competitors (2006 – 2014) and went on to become the global head of fashion collaboration at Puma from 2014 – 2020, where he spearheaded the Fenty x Puma collab, among others. Most recently, Saidi founded Agenc-y, a design consultancy that designed the sellout Balmain B-Bold sneakers, Lacoste’s sportswear offering and tour merch for The Weeknd. He joined Under Armour in January this year.
“I chose Under Armour for the potential of the brand, not for the current product,” Saidi says. “I feel like this brand has everything you need to be successful. The most important thing is the investment they’ve made in technology and innovation, 30 years’ worth. I can use that to design cool new stuff.”
Footwear – which currently accounts for 20 percent of the business – will be a focus. “I’ve worked across so many brands and if you have a footwear style everyone can buy into and talk about, you’ve unlocked the key to market success.” Saidi says. The first launch under Saidi will be seen in the product offering for AW25.
Main Image: Under Armour
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