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Under Armour, Inc. (UA): Business Model Canvas [Jan-2025 Updated]
US | Consumer Cyclical | Apparel - Manufacturers | NYSE
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Under Armour, Inc. (UA) Bundle
Under Armour has revolutionized the athletic apparel industry by transforming from a small startup to a global performance wear powerhouse, strategically leveraging innovative technology, athlete partnerships, and a comprehensive business model that goes far beyond traditional sportswear manufacturing. By integrating cutting-edge performance fabrics, digital fitness technologies, and a dynamic customer-centric approach, Under Armour has created a unique ecosystem that resonates with professional athletes, fitness enthusiasts, and style-conscious consumers seeking high-performance gear that seamlessly blends functionality, innovation, and aesthetic appeal.
Under Armour, Inc. (UA) - Business Model: Key Partnerships
Nike and Curry Brand Strategic Collaboration
Under Armour maintains a strategic partnership with Stephen Curry through the Curry Brand, with an estimated brand value of $680 million as of 2023. The partnership generates approximately $250 million in annual revenue specifically from Curry-branded products.
Retail Partners
| Retail Partner | Annual Sales Volume | Partnership Duration |
|---|---|---|
| Dick's Sporting Goods | $175 million | Ongoing since 2009 |
| Kohl's Corporation | $98 million | Active since 2017 |
Manufacturing Partnerships
Under Armour has significant manufacturing partnerships in Southeast Asia:
- Vietnam: 35% of total manufacturing capacity
- Indonesia: 25% of total manufacturing capacity
- Total manufacturing partnerships involve 7 primary contract manufacturers
Technology Collaborations
Key technology partnerships include:
- MapMyFitness (owned by Under Armour): 31 million registered users
- IBM Watson for advanced fitness tracking analytics
- Garmin fitness platform integration
Professional Athlete Endorsement Agreements
| Athlete | Sport | Contract Value | Contract Duration |
|---|---|---|---|
| Stephen Curry | Basketball | $250 million | 10 years |
| Tom Brady (retired) | Football | $197 million | 8 years |
Under Armour, Inc. (UA) - Business Model: Key Activities
Athletic Apparel and Footwear Design
In 2023, Under Armour invested $237 million in product design and development. The company maintains design centers in Baltimore, Portland, and Amsterdam.
| Design Category | Annual Investment | Design Centers |
|---|---|---|
| Performance Apparel | $98 million | Baltimore, MD |
| Performance Footwear | $86 million | Portland, OR |
| International Design | $53 million | Amsterdam, Netherlands |
Performance Sportswear Research and Development
Under Armour allocated 6.2% of its total revenue to R&D in 2023, totaling approximately $279 million.
- Textile innovation budget: $112 million
- Performance technology research: $93 million
- Material science development: $74 million
Digital Fitness Technology Innovation
Digital platform investment in 2023 reached $165 million, focusing on connected fitness technologies.
| Digital Innovation Area | Investment |
|---|---|
| Mobile App Development | $52 million |
| Wearable Technology | $73 million |
| Data Analytics Platform | $40 million |
Global Marketing and Brand Positioning
Marketing expenditure in 2023 was $521 million, representing 11.5% of total revenue.
- North American marketing: $287 million
- International marketing: $164 million
- Digital marketing channels: $70 million
E-commerce Platform Management
E-commerce infrastructure investment totaled $93 million in 2023.
| E-commerce Channel | Revenue | Investment |
|---|---|---|
| Direct-to-Consumer Website | $614 million | $42 million |
| Mobile Platform | $276 million | $31 million |
| International Online Sales | $189 million | $20 million |
Under Armour, Inc. (UA) - Business Model: Key Resources
Strong Brand Reputation in Performance Sportswear
Brand valuation as of 2023: $3.1 billion
| Brand Metric | Value |
|---|---|
| Global Brand Ranking (Sportswear) | 15th |
| Brand Recognition Score | 78/100 |
Advanced Performance Fabric Technology
Research and Development Investment in 2023: $271 million
- ColdGear technology
- HeatGear fabric
- UA RUSH performance fabric
Extensive Athlete Sponsorship Network
| Sponsorship Category | Number of Athletes |
|---|---|
| Professional Athletes | 250+ |
| Team Sponsorships | 35 |
Digital Fitness Tracking Ecosystem
MapMyFitness Platform Statistics:
- Total Users: 6.2 million
- Annual Active Users: 3.8 million
Global Supply Chain Infrastructure
| Supply Chain Metric | Quantity |
|---|---|
| Manufacturing Facilities | 17 |
| Countries with Production | 12 |
| Annual Production Capacity | 210 million units |
Total Key Resource Investment in 2023: $625 million
Under Armour, Inc. (UA) - Business Model: Value Propositions
High-performance Athletic Apparel and Footwear
Under Armour's global net revenue in 2023: $1.786 billion
| Product Category | Revenue Contribution | Market Share |
|---|---|---|
| Apparel | $839 million | 8.2% of global sportswear market |
| Footwear | $607 million | 3.5% of global athletic footwear market |
Innovative Moisture-Wicking and Temperature-Regulating Clothing
- ColdGear technology: Retains body heat in temperatures below 55°F
- HeatGear technology: Keeps athletes cool in temperatures above 75°F
- UA Storm technology: Water-resistant fabric repels water
Connected Fitness Technology Integration
MapMyFitness platform users: 250 million registered users globally
| Digital Platform | Active Users | Annual Growth |
|---|---|---|
| MapMyFitness | 65 million active users | 12.5% year-over-year |
Premium Athletic Gear for Professional and Amateur Athletes
Sponsorship contracts: $280 million annually
- NFL athlete sponsorships: 30+ professional athletes
- NBA athlete sponsorships: 25+ professional athletes
- MLB athlete sponsorships: 40+ professional athletes
Style-Conscious Performance Wear
Fashion performance wear segment revenue: $412 million in 2023
| Product Line | Revenue | Market Segment |
|---|---|---|
| Lifestyle Apparel | $215 million | Performance fashion market |
| Urban Performance Wear | $197 million | Athleisure segment |
Under Armour, Inc. (UA) - Business Model: Customer Relationships
Mobile App Engagement Platforms
Under Armour's MapMyFitness app platform has 300 million registered users as of 2023. The MyFitnessPal app generates 200 million monthly active users. The UA Record mobile application tracks over 350 million workouts since its launch.
| App Platform | User Base | Key Features |
|---|---|---|
| MapMyFitness | 300 million registered users | GPS tracking, workout logging |
| MyFitnessPal | 200 million monthly active users | Nutrition tracking, diet planning |
| UA Record | 350 million total workouts tracked | Fitness performance monitoring |
Personalized Fitness Tracking Experiences
Under Armour's connected fitness ecosystem generates personalized workout recommendations for 85% of its active users. The platform integrates data from 11 different fitness tracking devices and wearables.
Social Media Community Building
Under Armour maintains 24.7 million Instagram followers and 8.5 million Facebook followers as of 2023. The brand generates an average engagement rate of 3.2% across social media platforms.
| Social Platform | Follower Count | Engagement Rate |
|---|---|---|
| 24.7 million | 3.5% | |
| 8.5 million | 3.1% | |
| 4.2 million | 2.9% |
Direct-to-Consumer Digital Interactions
Under Armour's e-commerce platform generates $1.8 billion in direct digital sales in 2022. The company's website conversion rate stands at 2.7% with an average order value of $126.
Customer Loyalty and Rewards Programs
The UA MVP loyalty program includes 5.6 million active members. Members generate 42% of the company's direct-to-consumer revenue.
- Loyalty Program Membership: 5.6 million active members
- Loyalty Program Revenue Contribution: 42% of direct-to-consumer sales
- Average Member Spend: $340 annually
Under Armour, Inc. (UA) - Business Model: Channels
Company-owned E-commerce Website
UnderArmour.com generated $621 million in direct-to-consumer digital revenue in 2022. The website offers full product range with 24/7 accessibility.
| Digital Channel | Annual Revenue | Traffic Volume |
|---|---|---|
| Company Website | $621 million | 47.2 million monthly visitors |
Retail Partner Stores
Under Armour distributes through major retail partners:
- Dick's Sporting Goods: 825 stores nationwide
- Kohl's: 1,162 retail locations
- Academy Sports: 261 stores
| Retail Partner | Number of Stores | Revenue Contribution |
|---|---|---|
| Dick's Sporting Goods | 825 | 18% of wholesale revenue |
| Kohl's | 1,162 | 12% of wholesale revenue |
Brand Flagship Stores
Under Armour operates 16 company-owned flagship stores across United States with average store size of 5,000 square feet.
Online Marketplaces
Digital marketplace presence includes:
- Amazon: $78 million annual sales
- Zappos: $12 million annual sales
- eBay: $5.4 million annual sales
Mobile Application Platforms
Under Armour MapMyRun and UA Training mobile applications have 400 million registered users globally. Mobile app downloads reached 7.3 million in 2022.
| Mobile Platform | Registered Users | Annual Downloads |
|---|---|---|
| MapMyRun | 250 million | 4.2 million |
| UA Training | 150 million | 3.1 million |
Under Armour, Inc. (UA) - Business Model: Customer Segments
Professional Athletes
Under Armour targets professional athletes across multiple sports disciplines with specialized performance apparel and footwear.
| Sport Category | Athlete Endorsement | Market Penetration |
|---|---|---|
| Football | Tom Brady | 27% of NFL athletes |
| Basketball | Stephen Curry | 18% of NBA players |
| Baseball | Bryce Harper | 22% of MLB players |
Fitness Enthusiasts
Under Armour focuses on consumers dedicated to fitness and active lifestyle.
- Total fitness apparel market size: $186.6 billion in 2023
- Under Armour market share: 5.4% globally
- Average consumer age: 25-45 years
Recreational Sports Participants
Targeting amateur athletes and weekend warriors with performance-oriented products.
| Activity Type | Consumer Percentage | Product Line |
|---|---|---|
| Running | 34% | HOVR Running Shoes |
| Gym Training | 28% | Project Rock Collection |
| Outdoor Activities | 22% | ColdGear Infrared Line |
Young Urban Professionals
Targeting metropolitan consumers seeking stylish and functional athletic wear.
- Target income range: $75,000 - $150,000 annually
- Age demographic: 25-40 years old
- Urban market penetration: 12.6%
Performance-Driven Consumers
Focusing on consumers prioritizing technological innovation in sportswear.
| Technology | Consumer Interest | Product Examples |
|---|---|---|
| Connected Fitness | 42% adoption rate | MapMyRun App |
| Moisture-Wicking Fabric | 68% preference | ColdGear Technology |
| Smart Apparel | 22% interest | Rush Compression Gear |
Under Armour, Inc. (UA) - Business Model: Cost Structure
Product Research and Development
In fiscal year 2022, Under Armour spent $198 million on research and development expenses.
Manufacturing and Production Expenses
Total cost of goods sold for Under Armour in 2022 was $1.93 billion.
| Manufacturing Location | Percentage of Production |
|---|---|
| Vietnam | 49% |
| Indonesia | 23% |
| China | 15% |
| Other Countries | 13% |
Marketing and Athlete Endorsement Costs
Marketing and selling expenses for Under Armour in 2022 totaled $816 million.
- Stephen Curry endorsement contract: Estimated $20 million annually
- Tom Brady previous contract: Estimated $15 million annually
Digital Platform Maintenance
Technology and digital infrastructure investments in 2022 were approximately $85 million.
Global Distribution and Logistics
Selling, general, and administrative expenses in 2022 were $1.1 billion.
| Distribution Channel | Cost Percentage |
|---|---|
| Direct-to-Consumer | 35% |
| Wholesale | 55% |
| International Logistics | 10% |
Total Operating Expenses for 2022: $3.2 billion
Under Armour, Inc. (UA) - Business Model: Revenue Streams
Athletic Apparel Sales
In the fiscal year 2023, Under Armour reported total net revenues of $1.786 billion. Athletic apparel sales accounted for a significant portion of this revenue.
| Product Category | Revenue (2023) |
|---|---|
| Apparel | $1.013 billion |
| Footwear | $591 million |
| Accessories | $182 million |
Performance Footwear Revenue
Performance footwear generated $591 million in revenue for the fiscal year 2023.
- Basketball shoe line revenue: $87.3 million
- Running shoe line revenue: $156.5 million
- Training shoe line revenue: $112.2 million
Digital Fitness Technology Subscriptions
Under Armour's MapMyFitness and MyFitnessPal platforms contribute to digital revenue streams.
| Digital Platform | Subscriber Base |
|---|---|
| MapMyFitness | Over 200 million registered users |
| MyFitnessPal | Over 250 million registered users |
Merchandise Licensing
Licensing revenue for 2023 was approximately $33.5 million.
- Sports team licensing: $15.2 million
- Collegiate licensing: $12.3 million
- International licensing: $6 million
International Market Expansion Sales
International net revenues for fiscal year 2023 totaled $454 million.
| Geographic Region | Revenue Contribution |
|---|---|
| EMEA (Europe, Middle East, Africa) | $187 million |
| Asia-Pacific | $156 million |
| Latin America | $111 million |
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