'Under Armour' Collaborated with Kim Yeon-kyung: The Secret to Becoming a Pioneer in Functional Apparel [Hidden Business Story]

Former Football Player Kevin Plank Founded 'Under Armour' in 1996
Under Armour Uses Underdog Strategy...Stephen Curry Chosen as Advertising Model

The 'HERE NOW' collection created in collaboration with athlete Kim Yeon-kyung by Under Armour. Photo by Under Armour

[Asia Economy Reporter Heo Midam] Recently, a sports brand that collaborated with volleyball player Kim Yeon-koung has been gaining attention. The brand in question is 'Under Armour,' which emphasizes functionality. Established in 1996 as a latecomer in the sports apparel industry, Under Armour gradually expanded its customer base and grew into a formidable competitor to Nike and Adidas. What was the secret behind Under Armour's rapid growth?

◆ Kevin Plank, a Troublemaker, Founded Under Armour... Created Functional Apparel

Under Armour is a sportswear brand founded in 1996 in the United States by Kevin Plank. Although he is now known as a successful CEO, he was notorious as a troublemaker during his school days.

Born as the youngest of five siblings to a real estate businessman father and a mother who served as the mayor of Kensington, Plank grew up in a wealthy family and attended the prestigious Georgetown High School.

However, he failed his classes in his sophomore year, got involved in a fight while intoxicated, and was expelled. After being kicked out of school, he famously called his parents and said, "I'm glad the burden of tuition has lessened." Later, Plank himself reflected on that time, describing himself as a "fool."

In 1996, Chairman Kevin Plank officially started the 'Under Armour' business at his grandmother's house. Photo by Kevin Plank, Instagram capture.

After expulsion, he transferred to a neighboring school, leveraging his past experience as a football player. He served as the captain of the football team at his new school and trained daily, but he was uncomfortable with the cotton T-shirts worn under the uniform, which would get soaked with sweat and require frequent changes. He then came up with the idea of sportswear that does not retain sweat.

To achieve this, Plank focused on the material. Instead of cotton, he produced functional apparel using synthetic fibers that absorb sweat and dry quickly, and first provided these to his teammates. The teammates gave feedback to Plank, who refined the quality and design based on their input.

Later, at the age of 24, he began his business in earnest in the basement of his grandmother's house in Washington DC. It was there that he named the brand 'Under Armour.' The name means 'armor under the uniform,' symbolizing clothing that would be useful to athletes during competition.

◆ Through Under Armour's 'Underdog' Strategy... Became the 2nd Largest Sports Brand in 2014

Plank prioritized the functionality of sports apparel above all else. While most existing brands at the time focused on outerwear, Under Armour developed functional clothing worn during exercise, capturing a niche market. Notably, Under Armour did not produce shoes, which were the core of sportswear at the time, but concentrated solely on functional apparel.

Under Armour founder Kevin Plank. Photo by Kevin Plank Instagram capture.

Another factor behind Under Armour's success was its underdog strategy, which involves supporting teams or athletes with a low probability of winning. Under Armour chose to sign athletes with potential rather than those already at the top and used them as advertising models. They also sponsored underdog stars who were overlooked in the sports industry, a strategy that resonated fresh with younger consumers.

Examples of Under Armour's representative underdog athletes include basketball player Stephen Curry, golfer Jordan Spieth, baseball player Clayton Kershaw, and tennis player Andy Murray. After signing with Under Armour, these athletes became superstars, and Under Armour's sales soared. In particular, Under Armour made headlines by surpassing Adidas in 2014 to become the second-largest sports brand in the United States, following Nike.

◆ Under Armour, Which Had Slowed Down, Sees Sales Increase This Year

Under Armour's popularity has been heating up even more this year. Due to the COVID-19 pandemic, consumers' interest in exercise increased, leading to unexpectedly high sales of sneakers and sports equipment.

Last month, the U.S. economic media outlet CNBC reported that Under Armour's net profit for the second quarter was $59.2 million. This marked a turnaround from a net loss of $182.9 million during the same period last year. Sales increased by 91% year-over-year to $1.35 billion.

In particular, Under Armour's apparel sales rose by 105%, footwear sales increased by 85%, and accessory sales grew by 99%. As lockdown measures eased, more people returned to gyms, which appears to have boosted sales of apparel and footwear.

CNBC analyzed, "Under Armour has competed with major companies like Nike, Adidas, and Lululemon but suffered from high dependence on discount stores, which hurt profitability and diluted its brand image compared to other major brands. However, after COVID-19, consumers increasingly purchased sportswear and shoes online, driving up performance."