Under Armour To Seize China And Even Asian Market
Stephen Currie ended his trip to China in 2016.
Under Armour
Last year, after announcing the launch of the Chinese market, their number one spokesman came to China for the second time. Let's talk about how UA has done in the past year.
As everyone expected, every appearance of Currie can cause a stir. He is very professional. Every activity is very active. He works hard to interact with the fans, carefully instructs the small players, meets the fans' signature requirements as much as possible, and shows himself personally and personally, and also creates some surprises for the fans, such as playing with his wife Ayesha at Guangzhou Sports University and playing with the students.
After two days' waiting, fans from Foshan to Guangzhou finally got the signature of Curie at the door of the hotel. He spent two thousand yuan before the Spring Festival to buy an all star version of the library.
Jersey
I don't know how much this jersey will increase in the future.
The two friends he went along with did the same.
It is undeniable that Curie began to enjoy the proper treatment of MVP in China. The number and attention of his fans are constantly rising, even affecting the way of shooting for Chinese teenagers. In the activities of the Guangzhou Asian Games comprehensive gymnasium, several small players on the playing field have imitated the dribbling and shooting of Currie.
This is about grabbing China and even Asia.
market
For Under Armour, it is certainly worth rejoicing.
This brand, which has been established for 20 years and has entered China for more than 5 years, has just been popular in the domestic fitness circle. Not many people know it. It needs such a "Captain" as a "team leader" to move forward in the Chinese market.
UA has made some achievements in the North American market, and sales surpassed Adidas in 2014, becoming the second largest sports brand after Nike.
But at that time, it did not pay much attention to the Chinese market.
By the end of 2014, the market share of UA in China was only 0.5%, which was very different from the first Nike (14.5%) and second ADI (13.8%).
In 2015, UA's annual net revenue reached 3 billion 963 million US dollars, an increase of 28% compared to 2014, and created 23 consecutive quarters of net revenue growth of over 20%.
It began to reveal its ambitions undisguised, such as buying $85 million and $475 million to acquire two fitness communities using Endomondo and MyFitnessPal.
At the same time, UA has also stepped up its brand promotion. Its spokesperson Cam Newton (NFL), Blaise Harper (MLB), Stephen Currie (NBA) and Kelly Price (NHL) are outstanding leaders in the four major North American consortium.
In addition, there is the best player in PGA, Jordan Spieth, who is regarded as Woods's successor, to help the US women's soccer World Cup champion Lauren Holody (NBA Pelican player Giulia Holody's wife) and Kelly OHara.
It also began its second quarter earnings report in July 2015, and UA expressed strong interest in the Chinese market. At that time, UA revealed that 85% of the shops opened in the third quarter will be in Asia, and the main opening area is China.
Obviously, they need to invest more in the second major market of global sports brand.
So we can see that in September 2015, CEO Kevin Planck led the first spokesman, Curie, to China to help the opening ceremony of the flagship store in Shanghai (the second largest flagship store in the world), and put the first generation of the 2 generation of war boots in China. The company boss and its stars were all in China together, which also showed Planck and UA's expectations for the Chinese market.
At that time, Planck publicly said that to make UA the largest sports brand in China, what progress has it made in the past year?
In a sense, Currie's China trip is a little "imperfect". This is certainly not because of the little episode when he was at the North platform of China's last station. His last hit was blocked by a 17 year old Philippines player, but he lost his identity because he was no longer the NBA champion when he came to China this year.
On the trip to Guangzhou, despite the fact that the host and basketball commentator, Kevin, spoke highly of Currie and encouraged the fans to shout "MVP! MVP!", however, both the whole process of activity and the subsequent press conference, everyone deliberately avoided the topic of this summer's finals.
Yes, Curie has created so many records in the past season, but if he can win the championship, it will be perfect.
This is one of the challenges that UA faces this year, that is, the performance of the spokesperson has declined.
In addition to Curie, Cam Newton's Carolina Black Panther lost the Denver wild horse in the super bowl; spears suffered the champion famine and lost the world's first prize in many favorable situations. Tottenham spurs once became a strong contender for the Premier League Championship, and finally ended in third.
Of course, not all UA spokesmen are like this. Rio Olympic Games, Michael Phelps and Andy Mu Ray's outstanding performance helped UA to have a beautiful marketing war.
Moreover, the fluctuation of the spokesperson's performance may not have much impact on the sales of products, but an undeniable problem is that when UA needs to "land in the market" in the Chinese market, Curie is a very important card.
Cooley's shoes and equipment sales account for 10% of UA's revenue in China, and UA can't be separated from Curie. In the long run, UA needs him to perform as well as possible in the field and constantly export UA's reputation and create a good brand image.
On the other hand, UA's second quarter earnings report also reflected some problems, though the revenue in the quarter reached $1 billion, up 28% from the same period last year, which was unchanged from analysts' expectations.
But Bloomberg data show that since 2008, UA's first revenue growth has failed to exceed analysts' expectations.
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By the bankruptcy liquidation of sporting goods retailer Sports Authority, the gross profit, operating profit and net profit of UA declined in varying degrees in the same quarter.
Among them, operating profit fell 39% compared to the same period last year, only 19 million US dollars.
Net profit fell by 58% compared to the same period last year, only 6 million US dollars.
And its stock increased by 30% to $1 billion 100 million over the same period.
In addition, total debt rose by 42% to $1 billion.
Of course, not just UA, Nike and Lulu lemon are also facing the problem of overstock. The past quarter was also considered one of the most difficult quarter of the sporting goods industry in the United States.
UA official website shows that in the past year, the number of UA stores in China has increased from 52 in September last year when Planck visited, to the current 74.
To a certain extent, the expansion rate of UA is not too fast.
This has something to do with Planck's strategy. He believes that UA should not be impatient with the Chinese market, so that consumers can realize that they need UA only in comparison with other brands.
At the same time, it did not put a lot of advertisements in China, but more by word of mouth.
UA's first batch of consumers in China is a fitness crowd. They have a certain spending power and are willing to try a more professional fitness brand, helping UA build a better image than Nike and Adidas in terms of fitness. And through the Internet, it can also propagate at a smaller cost.
Owning good word of mouth is very important to UA. This means that young consumers educated by Nike and Adidas are more picky and more personal. They have great opportunities to try new and more cool products. For example, the special edition of the 2.5 generation of war boots brought by Curie is designed by Chinese mythology characters Sun Wukong and Erlang Shen.
Another key point is that nowadays Chinese consumers are keen on online shopping, which is very helpful to UA. After all, it is not familiar with the Chinese market, and there is not much experience in channel layout and so on. It can not quickly get products into more channels, and Nike and Adidas have accumulated many years in the channel.
UA expects revenue in China to be US $180 million this year and is expected to reach US $1 billion in 2018.
But in addition to Nike and Adidas, UA's rivals on the Chinese battlefield include Anta, Lining and PEAK.
Since opening the first store in China in April 2011, UA has entered China for only 5 years, and it has a long way to go to achieve rapid growth in China and even in the Asian market.
CEO Planck obviously realized this. He told CNBC that UA is a long-term strategy in the Asian market. "You can't think it's short term, or one to two years. You need to think in terms of 10 years, and what will happen in 10, 20 or 30 years."
The theme of this trip to China is called "flag Asia", which also implies the determination of UA to succeed in China and even in Asia.
UA cannot abandon China. It must value China and take the market.
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