Under Armour’s production model
Under Armour, Inc. (UA) sells high-performance products that cater mostly to professional and college athletes. Its products are manufactured by third-party manufacturers, in collaboration with the in-house product development team. This provides two benefits. First, it reduces the cost of production. Second, it enables the firm to concentrate on developing new products that will meet the needs of a changing market.
The trend to outsource manufacturing is common among apparel and footwear manufacturers around the world. UA rivals NIKE, Inc. (NKE), Adidas AG (ADDYY), Lululemon Athletica Inc. (LULU), Columbia Sportswear Company (COLM), and VF Corporation (VFC) follow a similar model.
Under Armour’s “visible technology” product proposition
Products are designed with “visible technology” that uses color, texture, and fabrication to enhance the customer experience and the perception of a product’s use and its benefits. Often, design occurs in consultation with sports and marketing professionals, as well as athletes.
World’s #5 sports brand
As a sports brand, UA has gained immense recognition. It’s ranked #5 in the “Forbes Fab 40: The World’s Most Valuable Sports Brands 2014.” The company’s brand value was estimated at $4.1 billion in the ranking. That’s ~27% of its market cap.
UA trademarks include the UA Logo and UNDER ARMOUR ®, registered in several countries including the United States, Canada, Mexico, the European Union, Japan, and China. Other patent registrations include UA ®, ARMOUR ®, HEATGEAR ®, COLDGEAR ®, ALLSEASONGEAR ®, PROTECT THIS HOUSE ®, I WILL ®, and other trademarks that incorporate the term ARMOUR such as ARMOUR39 ®, ARMOURBITE ®, ARMOURLOFT ®, ARMOURSTORM ®, and ARMOUR FLEECE ®.