Sports Clothing, Shoes, Accessories, Equipment And Service Industry

1188 WordsJun 7, 20155 Pages
Under Armor is a new entrant into the Sports Clothing, Shoes, Accessories, Equipment and Service Industry. This industry is highly saturated and a challenging industry. The profitability of individual companies is determined by efficient manufacturing and effective marketing. (Hoovers). Large companies excel in economies of scale, and usually carry a wide range of products. The industry is concentrated: the 50 largest companies account for about 70 percent of industry revenue (Hoover). The majority of the larger competitors often carry equipment used to play all major sports including; basketball, bowling, baseball, hockey, football, golf, pool, tennis, softball, soccer, and more; exercise and gym equipment and outdoors sports such as…show more content…
One key trend driving growth for the industry is innovation including new high-tech fabrics. Demand for advanced and comfortable athletic wear is driving companies to launch new product lines of sports apparel made of cutting edge high-quality materials A few other drivers contributing to the industry growth is global expansion and increasing popularity amongst the female demographic. The performance apparel sector is outdriving its overall retail competition. The analyst forecast from a report based on an in-depth market analysis with inputs from industry experts, covering North America, Europe, the APAC region, and the ROWThe, forecasts the Global Sports Apparel market to grow at a CAGR of 4.32 percent over the period 2014-2019 (PR Newswire, 2015). On the flip side, a threat to industry leaders is opportunities for counterfeit products. Under Armour, “Protect This House” As a new entry into a flooded competitive market Under Armour has made a strong brand and has built a platform to sustain the brand identity. Under Armour has championed the three ingredients it takes to create customer-based brand equity; differential effect, brand knowledge and consumer response to marketing. Under Armour captures all three components in conjunction with positioning their brand in a successful way. Brand position is a holistic concept that embodies the perception consumers hold for an identified brand versus its
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