Under Armour’s Journey Back to the Top: A Friendly Chat About Brand Recovery
Baltimore, MD
In an intriguing turn of events, Under Armour is charting a new course in its pursuit of brand recovery. After facing some tough times, the sports apparel company is ready to make some bold moves that could really shake things up. With CEO Kevin Plank at the helm once again, there’s a fresh wave of optimism rippling through the company.
Plank recently expressed his belief that consumers aren’t angry with Under Armour. Instead, he feels the brand just needs to offer people a reason to reconnect. “I don’t believe the consumer’s mad at us,” he said during a conversation with analysts. This optimistic viewpoint is essential as the company navigates the challenges of declining sales.
A Calculated Approach to Sales
It’s important to note that while sales are indeed slipping, Under Armour is intentionally scaling back its promotions. This may sound counterintuitive, but the aim here is to position the brand as more premium. It’s a strategy that has worked reasonably well for other retailers in the past. Neil Saunders, a managing director at GlobalData, stated that this strategy of leaning towards higher-quality sales can be appealing to investors.
However, Saunders also raised an important question about how much of the sales decline is truly deliberate. There’s still a considerable amount of work needed to rebuild Under Armour’s brand reputation. One vital aspect of this recovery involves re-establishing solid relationships with wholesale partners. Plank highlighted that the company is eager to enhance communication with key retailers and earn its spot back on the store shelves. “We don’t have as much shelf space as we once had and it’s our job to earn that, season by season,” he emphasized.
Reconnecting with Consumers
Of course, improving relationships with retailers is only part of the equation. Reengaging consumers is critical to Under Armour’s turnaround strategy. Plank has a vision of transforming the brand into “an incredibly loud brand and quiet company,” suggesting a significant marketing push in the near future. Having veteran Eric Liedtke join the company to lead brand strategy indicates that positive changes are already underway. Plank noted that their product pipeline has never looked better.
“Without story, you’re just selling shirts and shoes. And the world doesn’t need another capable apparel and footwear brand. The world needs hope, and that’s what we think Under Armour can be,” Plank passionately expressed. It’s clear that he sees the brand as more than just a product line but as a source of inspiration and positivity for consumers.
Challenges Ahead
Yet, the road to recovery is not without its bumps. After Plank’s surprise return in April, the company made some significant changes, including layoffs and a plan to decrease its stock-keeping units by 25%. These steps were necessary as Plank works tirelessly to reposition Under Armour in the eyes of its customers.
Those observing the brand’s journey will note that the market is crowded with strong competitors. Brands that establish genuine connections with consumers stand out, especially amidst a backdrop of strong sociopolitical messaging from various advertisers. Under Armour has a chance to carve out its unique space in this competitive landscape, but it will require a careful balancing act.
Final Thoughts
As Under Armour presses forward, it’s all about embracing this fresh perspective and giving consumers a reason to get excited about the brand again. The next steps will undoubtedly be closely watched by both loyal fans and industry experts alike. Can Under Armour create a compelling narrative that brings its loyal customers back into the fold? Time will tell, but with a commitment to stronger brand storytelling and focused strategies, the future looks promising.
