By Garrett Dvorkin | Baltimore Business Journal
Under Armour Inc. is shifting its focus, with plans to go after younger athletes and outfit them even when they aren’t competing or working out.
The Baltimore sportswear maker is looking to make 16-to-20 year-old athletes its target audience, interim CEO Colin Browne told analysts during a call to discuss the company’s most recent earnings on Nov. 3. He said this group represents best Under Armour’s brand and attitude.
The new target audience was one of several changes in business strategy that Browne discussed on the call. Browne, who has served as interim CEO since the company parted ways with Patrik Frisk in June, also brought up his desire to broaden the company’s product line more toward the athleisure market and outfit athletes outside of competition while also elevating premium aspects of its products. Other strategies that the company is looking to focus on are connecting consumers with products through storytelling and building its digital presence, including with a new loyalty program.
Browne said Under Armour is observing a changing market and needs to adjust its strategy when it comes to consumers. Targeting 16-to-20-year-old athletes will allow the company to focus on a group that values fitness, music and street culture, he said.
To go after this new audience, Browne said the company wants to make sure the company has a product line that is in touch with what that group wants. Browne said Under Armour wants to be versatile and have products that will fill an athlete’s closet no matter if they are competing, working out or just relaxing.
Browne said that in the past Under Armour has focused on making products for when athletes train, compete and recover. The company now wants to add “live” into its product focus. One product in particular that Browne mentioned was the company’s new training shoe, the UA SlipSpeed.
The shoe has two purposes that Browne believes exemplify Under Armour’s goals. The shoe has an adjustable heel that can be used in two different ways. When flipped up, in normal shoe mode, it serves as a training shoe that has an array of features to help athletes train. When the heel is flipped down, it can be a slip-on shoe that athletes can wear anywhere.
To help the company reach this new audience, Browne said the company wants to tell stories, which he said is “the most powerful means to influence and inspire.” He said the company wants to build relationships with consumers, inspire them and make them feel like they are a part of the Under Armour family.
Browne said the recent launch of the SlipSpeed shoe shows how the company is looking to use athletes through name, image and likeness (NIL) as well as cultural relevance and innovative products to build the story. For example, Under Armour used the artist Logic to develop the sound for the story of SlipSpeed.
Another strategic focus for Under Armour is digitalization. The company is looking to use its brand, storytelling, search engine optimization and other tools to help Under Armour perform better in a digital world. The company wants consumers to be able to find products quickly and experience improved visuals while having easier checkout routines when buying products online, Browne said.
Another way Under Armour wants to increase its digital presence is through a new loyalty program it recently began testing. The new UA Rewards loyalty program will allow members to join for free and earn points by buying Under Armour gear and working out. Browne said these points will be redeemed for exclusive athlete experiences and access to the latest gear. Points can also be used for special events, promotions and training tips.
Photo Credit: Courtesy of Under Armour