Aiming At ADI, Nike And Andrea, What Is The Competition With The Industry Giants?

In the market of sports shoes and clothing, Nike and Adidas have long been the two largest companies. But in recent years, Andemar (Under Armour) has emerged in an extremely fast fashion. The rapid development, distinctive professional and technological brand personality has attracted a large number of professional elective and sports enthusiasts.

How to grow and develop from a small business through differentiation strategy, and finally compete with the industry giants? How can Andemar do all this?

When Stephen Currie sparkled in the NBA arena, Andemar Armour at his feet also appeared like his incredible three point ball.

When it comes to the clothing industry, many people will frown unconsciously. This is a big industry, fierce competition and serious homogenization of products.

It is in this difficult environment that Andrea has gone through 20 years of development and has become the hottest shoe and clothing brand in the world today.

For a long time, the sales volume of Andrea has maintained a rapid growth.

According to FactSet, a research and research firm, Andemar has not reached more than 10% in two quarters since the fourth quarter of 2005 in 2005.

In the 2015 fiscal year, Andemar's total revenue reached $3 billion 963 million 300 thousand, up nearly 30% from the previous year.

The popularity of the product has made it the second largest sport shoe and garment enterprise in the US market, ranking second only to Nike after Adidas.

In the first quarter of 2016, Andrew's revenue increased further, with a sharp increase of 30% in the single quarter to $1 billion 50 million.

Benefiting from the excellent performance of the star Stephen Currie, the income of its footwear products increased by 64% over the same period last year. This figure is enough to be staggering in today's sports footwear industry.

Compared with Nike and Adidas's global business contacts, the market that Andrea has relied on is still limited to the United States, and the international market, including China, has not yet really worked.

This means that there is still a lot of opportunities for its future expansion and profitability.

At present, Wall Street has given its industry the highest 40 times price earnings ratio, far more than 24 times that of Nike and 30 times that of Adidas.

This shows that analysts are optimistic about their future success in market expansion and high level of revenue growth.

Origin of fortune: subdivision + ground push

Throughout the history of the development of Andrea, "subdivision" is one of the most important factors.

The founder of the company, Kevin Plank, was once an American football player. He failed to win a brilliant record in his unsuccessful sports career.

But he found that for athletes, traditional cotton clothes sweat easily, but it is extremely difficult to dry, which makes many people headache, but do not know how to solve.

So he tore off the label of his own breathable shorts, bought the same fabric at a fabric store, and found a producer in the New York clothing District, who spent 460 dollars sewing 7 samples to his teammates, and the result was very popular.

This is the beginning of a business.

In the first few years, andmar products were very focused on making chemical tights, which had good breathability and sweat perspiration. This product is very suitable for athletes with muscular and sweaty properties.

For startups, there is simply not enough marketing budget to sign famous stars.

Therefore, the approach taken by Plank is to actively launch the "push".

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From the hot, sweating areas of athletes, one by one to capture all the small and famous professional teams, and gain influence, Andemar stood at a firm foothold in the early stage of entrepreneurship.

Differentiated competition with Nike and ADI

In the market of sports products, all enterprises are faced with seemingly big mountains which can never surmount the past: Nike and Adidas.

Before Andrea, the two companies have not had strong competitors for a long time.

And Andemar's initial measures against these two giants are single product detonation + differential competition.

Andemar was established in 1996, but it did not begin to explode until about 2010.

Before that, they did their best to do one of the most important things: sweating and breathable T-shirt products.

From the moment the enterprise was founded, it was specially responsible for manufacturing equipment for professional athletes rather than "clothing", which gave birth to a highly professional product and brand positioning.

Then focused on the manufacture of breathable tight T-shirt, and also continued this idea very well.

Plank is not eager to sell its products through mass marketing to the general public. Instead, it chooses to cultivate professional sports channels, especially in the field of football and professional fitness.

In these two fields, Andemar has built up a strong brand awareness.

Some netizens commented that as long as they entered the gym, the sports clothes they could see were basically the Andemar brand.

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The swelling muscles and perfect shape and lines of football players and professional fitness people make Andemar's T-shirt products seem to have a "magic power" that enables the wearer to have more professional athletic ability and better figure.

At this time, Nike and Adi are more inclined to make sports products more fashionable. All kinds of printed T-shirts, slacks, basketball shoes and skateboards shoes are consciously and unconsciously associated with fashion, youth fashion and even sexy beauty.

Adidas even specializes in

Clover and Y-3, Nike also pform its brand CONVERSE (Converse) from a professional basketball shoe and clothing brand into a street style rich fashion brand.

Apart from sports, although Nike and Adi will gain more market space and wider target customers, it will inevitably weaken their "motion genes". This just gives Andrew a chance to get in: there will always be thirst for professional sports products and a more focused spirit of sports.

Science and technology enterprises rather than clothing enterprises

The realization of differentiation not only comes from brand professionalism, but also from products full of technological sense, so that someone directly defines Andemar as a technology company rather than a mere sports product enterprise.

In order to get better sweating and breathability for T-shirts and shoes, the fabric must be made of chemical fiber material.

But before the fabric industry, although the chemical fiber products are light, but often in terms of thickness, softness, static electricity and other indicators, it is difficult to form a dominant coexistence.

They are either too thick or soft or soft, but easy to generate static electricity.

But through long-term and dedicated R & D cooperation, Andemar has made great progress in the wearing experience of chemical fiber fabrics. Its products are breathable and light, and no static electricity is generated. It is very suitable for tights to cling to the skin surface.

Its classic and innovative fabrics include "HeatGear thermal equipment" and "ColdGear cold equipment". The fabric is light and no negative. It can quickly evaporate sweat and allow the athletes to exercise in a very hot state and keep the body dry and light.

Although these fabrics are not manufactured by Andrew's original factory, they focus on the needs of users and adopt the business philosophy of pushing the production of raw materials from consumer demand. They are involved in the research and development of raw materials, and really adapt to the specific product needs of specific consumers, thus winning the recognition of consumers and professionalism and technology.

Technology oriented product positioning and truly starting from consumer demand are the clearest portrayal of the future C2B business model.

On the other hand, on the other hand, Andrew began to enter the field of sports science and technology fiercely since 2013.

In November, 2013 bought MapMyFitness, a digital fitness technology company for $150 million. At the beginning of 2015, it spent 560 million dollars to acquire two fitness application developers, MyFitnessPal and Endomondo, thus stepping into food, nutrition and fitness tracking, as well as the European fitness APP application market.

Through these acquisitions, Andrea successfully surpassed Nike, becoming the largest digital fitness application + community enterprise in the world.

Through the mass data uploaded by users during the movement, Andrea carries out the analysis of big data, further clarifying the needs of users in sports, so as to adapt to the research and development and production.

At the same time, these APP applications can better guide users and conduct more professional sports training.

MapMyFitness co-founder Kevin Callahan (Kevin Callahan) said, "we know when you exercise and how you exercise.

They are very interested in enterprises like Andemar.

After integrating many of our data, they will help them sell their sports equipment, and Andemar can also use this information to help users better exercise and become a better athlete.

In the world's largest technology sports community platform, it can also introduce a large number of personalized service products including professional sports food, sports tourism and so on. All these products will be supported by the strong revenue earning ability of writing products, and will be launched step by step in the future.

From a breathable T-shirt to the world's most professional and technological sense.

And to achieve explosive growth, Andrew really did not "take the unusual road". Textbooks, like Chinese enterprises, pointed out a new development path of subdivision, specialization and technology.

Its development process has strong practical guiding significance for enterprises in various industries.