Aggressive expansion planned by Under Armour Asia
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US sportswear brand Under Armour is expanding its operations in Asia, as well as Europe and Latin America.
An Under Armour Asia headquarters is set to open in Hong Kong this year, as the brand strengthens its commitment premium-grade sportswear rather than follow the currently fashionable athleisure market.
“As part of the transformation into this new operating model, one of the things that we wanted to do was to really empower our regions,” the firm’s president and COO Patrik Frisk said in an interview published by the South China Morning Post. “So we decided to move into an Apac, Latin America, EMEA and North America structure.
“We weren’t able to scale our international business without giving the regions more horsepower to drive the business.”
“China is the big machine in the region,” added newly appointed Under Armour Asia-Pacific MD Jason Archer. “If you combine a lot of the external focus on the region, as well as the Chinese government investing in sport, in health and wellness. That is just exciting for us – the macro landscape.”
The firm’s international takings have been burgeoning overseas in comparison to their home market, with a 43.34 per cent increase seen internationally over just 2.63 per cent in North America. US sales remain double those globally, although last year Asian sales grew 61 per cent against a 5 per cent drop back home.
Under Armour has a global network of 1100 stores, and plans to build a further 1500 locations within five years, with 73 per cent of these launching in Asia, mostly in China.
Questions & Answers
Q.Why is Under Armour prioritising expansion into Asia over other regions?
Why is Under Armour prioritising expansion into Asia over other regions?
The firm sees China as a significant market, with the government investing in sport, health, and wellness. International sales are also growing much faster there compared to their North American home market.
Q.What is the new global operating structure Under Armour is adopting?
What is the new global operating structure Under Armour is adopting?
Under Armour is moving to a regional structure comprising Apac, Latin America, EMEA, and North America. This aims to empower regions, providing them with more authority to drive business growth internationally.
Q.How many new stores does Under Armour plan to open, and where will most of them be located?
How many new stores does Under Armour plan to open, and where will most of them be located?
Under Armour plans to open an additional 1500 locations globally within five years. A significant 73 per cent of these new stores are scheduled to launch in Asia, primarily within China.
Q.What kind of sportswear is Under Armour focusing on for its Asian expansion?
What kind of sportswear is Under Armour focusing on for its Asian expansion?
The brand is strengthening its commitment to premium-grade sportswear. It is deliberately choosing this path rather than following the currently fashionable athleisure market trend.
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