Under Armour came in sixth on Forbes’ Most Innovative Companies List this year, and for good reason. This start up that began with a 23-year-old football player and a dream in 1996 is now going head to head with giants like Nike and Adidas, without having to disrupt through a niche model like Lululemon.
Admittedly, with people wearing athletic wear as everyday clothing in increasing numbers, athleisure is an enormously successful and ever expanding space. So there is plenty of business for all the big players to do well, but nobody is doing quite as well as Under Armour. UA reported sales growth of more than 20% the last 24 quarters in a row and sales rose an incredible 65% internationally. So what is Under Armour’s secret sauce?
Here are the four most important ideas that we can learn from Under Armour about how to come from behind and win big.
Be purpose driven
For leading brands today, it’s not just about who you are and what you do, it’s about the purpose you serve and the problems that you solve for your brand communities. Under Armour was born as a solution to a problem that guys who play football all experienced—sweat soaked T-shirts that were wet, heavy and uncomfortable, and got in their way when they were trying to play. Taking inspiration from the wicking in women’s lingerie fabric, Kevin Plank, a football player himself, designed a T-shirt that stayed perpetually dry and fresh. By solving a common problem, Matt opened up a whole new subsector in athletic wear, and now controls 75% of this market share. Today, Under Armour is reaching out to women and children, and their purposeful brand signature is resonating for each new market they embrace. This is a very different scenario than at Lululemon, whose value yourself, yoga mom brand signature is not translating for men.
Focus on function
Rather than selling an image or a lifestyle like Lululemmon or Nike, Under Armour is marketed as a solution- -as garments that solve problems. Whether it’s wicking to keep workout clothes fresh and dry, compression garments to prevent inflammation, or a one-armed jacket engineered specifically to keep a pitchers arm in prime shape for play, Under Armour is selling usefulness. This gives them a distinct advantage in a market driven by utility, collaboration, and performance. Additionally manufacturing fashion as technology provides Under Armor with an advantage in terms of protecting their designs globally, because products that do something can be patented, whereas fashion brands cannot.
Put innovation over image
Under Armour has embedded innovation at every point along its supply chain and is constantly looking for new problems to solve, and innovative fabrics and designs that help people overcome obstacles and enhance their performance. At the Olympics this year, Under Amour outfitted USA Gymnastics, USA Boxing, Canada Rugby, Switzerland Beach Volleyball, Netherlands Beach Volleyball, New Zealand Kayak and Canoe, and Hungary Kayak and Canoe. Their current “It’s what you do in the dark that puts in the light” campaign features the US women’s gymnastics team training before the games. Michael Phelps stars in a 90-second ad called “Rule Yourself.” Telling their story through the clothing worn in the games, and aligning themselves with the performance of the athletes rather than sponsoring the games and advertising during them, puts UA at the forefront of performance enhancing innovation, and positions them as the brand that helps you swim faster and jump higher through your own force of will, and a little help from your friends at Under Armour.
Keep it real and simple
(Sourced from: Charles Koppelman via Forbes.com)