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    UA Plans To Set Up A Regional Headquarters In Hongkong This Year To Take Root In The Asia Pacific Region.

    2019/3/26 15:19:00 5512

    Underarmour

    Under Armour intends to take root in the Asia Pacific region.

    In March 26th, according to FootwearNews, the US sports brand plan set up a regional headquarters in Hongkong in 2019.

    Under Armour mainly focuses on the Chinese market. It is unclear whether the regional headquarters is covered by China or the whole Asia Pacific region.

    At the same time, Under Armour plans to open 1500 new stores in the next five years, of which 73% will be opened in Asia, and the Chinese market will be the main target.

    Jason Archer, managing director of the Asia Pacific region, said: "China is the engine of growth in the Asia Pacific region.

    The outside world is very concerned about the Chinese market and the Chinese government's investment in sports is very good.

    The macro outlook is very exciting for us.

    In recent years, when the US growth rate is stagnant, the overseas market is helping Under Armour stop.

    2018 fiscal year results show that Under Armour's annual sales volume is $5 billion 190 million.

    Compared with $4 billion 980 million in fiscal year 2017, this figure has increased by about 4.2%.

    The annual loss narrowed to $46 million 300 thousand, or a loss of 10 cents per share.

    In the fourth quarter, sales in North America dropped by 6% to $965 million, and the core market accounted for 69% of total sales.

    In contrast, the international market remained strong during the same period, and sales increased by 24% to US $395 million.

    Among them, Asia Pacific, Europe, Middle East and Africa have been greatly increased, while sales in Latin America are rather weak.

    The Chinese market has become an important driving force for Under Armour in the Asia Pacific region.

    Over the past three years, sales in North America have increased by 2.63%, while in overseas areas, the growth rate has reached 43.34%.

    As the international market continues to grow, Under Armour predicts that by the end of 2018, international business will account for about 40% of the total sales by 2023.

    Now, with the establishment of regional headquarters in Hongkong, the US brand will be closer to and familiar with the potential Asian market.

    In addition, the report said that Under Armour reiterated its product strategy: focus on the core business of sports functional products.

    Patrik Frisk, President and chief operating officer of the company, said that Under Armour will introduce more high-end sports products based on professional performance rather than fashion oriented lifestyle.

    To this end, the company will accelerate the signing of the global local athletes, the current brand has Chinese women's Volleyball star Zhu ting and NBA star Stephen Currie and others.

    "For athletes to solve professional problems, we will not compromise on this point.

    However, competitors may be creating more good-looking products because this is a trend.

    But time will prove that we are right, "Patrik Frisk said.

    In fact, by the end of 2018, Kevin Plank, founder and chief executive of the company, had already declared that after two years of fumbling in sports and leisure frenzy, Under Armour decided to return to its original position and refocus its attention on its functional sports apparel.

    Under the influence of fanatical sports and fashion trends in recent years, he said that Under Armour had lost its focus.

    Although American brands strive to follow the trend of the market, sales of sports and lifestyle products are not satisfactory.

    "If consumers wear our clothes and sit on the sofa, no problem, but the original intention of these products is to help them run 10 miles. Under Armour wants consumers to know who we are," Kevin Plank stressed. "We are a functional sports brand. This is what we have to insist on."

    Source: interface Author: Luo Yingying

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