The creator presents a case study on the downfall of the Under Armour brand, first highlighting its early successes in performance apparel and athlete endorsements. He then breaks down the key reasons for its decline, including a political misstep by the CEO that alienated endorsers, a failure to expand into footwear and fashion, and a series of costly, unsuccessful acquisitions and sponsorship deals.
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The downfall of Under Armour came in waves: a political misstep by their CEO, big acquisitions that didn’t work out and the failure to figure out Footwear vs. Sportswear #underarmour #marketing #sportsmarketing
Transcript
The rise and fall of Under Armour is a fascinating case study. Let's examine what led to their downfall. But first, let's look at a few of the things they did great. They won with kids. They focused on the middle of the country, not LA and New York, and they won an apparel based sport. They also had some of the best sports marketing signings we have ever best. Steph Curry, Cam Newton, Jordan Spieth, and others. But in 2016, their CEO, Kevin Plank, endorsed president Trump saying he would be an asset to this country because he was business minded. And regardless of where you fall in the political spectrum, if your biggest endorsers like Steph Curry and The Rock publicly come out in a statement and have a disagreement with you in the public eye, things are not gonna go well for your brand. Second is while they nailed performance apparel, they never figured out how to get footwear and sportswear. Footwear is the foundation of Nike and Adidas' business, and sportswear is something that they do really well, meaning the products that you wear off the field that are really more cool and fashion oriented. They put a footwear headquarters in Portland, Oregon in Nike's backyard, and they still have never been able to figure out even by pulling a lot of that talent. They also started the Yes, UA sportswear several years ago and never were able to penetrate the fashion market despite doing collaborations with people like ASAP Rocky. Most recently, they appointed John Varvatos as the head of that sportswear division, and I don't know what kid in today's cool culture is looking at John Varvatos as their fashion icon, but maybe I'm missing something. Lastly, they made a couple of really costly and faulty acquisitions both on the sports marketing front and tech. They acquired about a half $1,000,000,000 worse of Map My Run and Map My Fitness companies and never really figured out the digital tech initiative that they were trying to capitalize upon. They also signed, UCLA, the highest college contract to date at a quarter billion dollars and had to pull out of that in 2020 in the pandemic. They also signed a big deal with the MLB and had to pull out of that contract as well. So when you fracture relationships with your brand ambassador, you fracture relationships with large colleges and leagues, things are gonna go awry. I hope that Under Armour is able to get it back. The sportswear landscape is better when there's lots of competition. But as we're seeing, there are a lot of small fish coming into this pond, chewing up market share from a lot of different direction. What do you think has led to their downfall? Let me know in the comments and send this to somebody who used to love protecting this house.