Under Armour Essay

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Under Armour is an American company founded in 1996 that sells footwear and sports apparel. It mainly focuses its market on the athletic community or individuals who have a sportier lifestyle. Under Armour has emerged in the past few years as a serious contender in the sportswear industry. Due to its success Under Armour is looking into ways to expand even more. At the end of 2016, revenue increased by 22% to $4.8 billion compared to 2015 (Under Armour Company, 2016). However, regardless of the success it has achieved, Under Armour has failed in its attempt to enter into the international market as only approximately 15.4% of its net revenue was generated from international sales in 2016. Considering the fact that China is regarded as the biggest sportswear market in the world with a very high potential for further growth, Under Armour must alter its company selling strategy and focus on developing the Chinese market as a starting point to improve its international market performance and to surpass its fierce competitors such as Nike and Adidas.

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Despite the ambiguous economy in 2016, sportswear experienced a strong current value growth contributed by constant consumer demand (Euromonitor International, 2017). In 2016, sportswear’s current value increased by 12% equaling CNY 186.6 billion. This can be further illustrated in men’s sports footwear, which recorded a growth of 18% in current value (Euromonitor International, 2017). Hence, due to the growing consumer demand in the sportswear market in China, more and more sportswear companies are attempting to expand and establish themselves in order to remain competitive and grasp a higher market share since 2016, Nike remained to be the firm, which has the highest value share within China’s sportswear industry attaining up to 22% (Euromonitor International,

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