Under Armour running at adidas, Nike
By Lee Hyo-sik
David Song, chief of Under Armour Korea
U.S. sports brand Under Armour will expand its presence here to capitalize on the country’s rapidly growing sportswear and equipment market, taking on adidas, Nike and other competing brands, according to the company CEO Wednesday.
David Song, country manager of Under Armour Korea, told reporters that the 20-year-old brand will open 220 more stores over the next five years and increase its sales to 800 billion won ($690 million).
“We have been growing at a double-digit rate since we entered Korea in 2012. We expect 2017 sales will also grow at the same pace by attracting larger numbers of trend-savvy young consumers,” Song said during a press conference at the firm’s first flagship store in southern Seoul.
Under Armour had been marketing and selling its sportswear, footwear and other products through its business partner Hyosung Galaxia. But early this month, the sports brand set up its own Korean unit to expand its business at a faster pace.
Currently, Hyosung operates 50 franchised Under Armour stores across the country. But Song said the company will open four more flagship stores this year and dozens of shop-in-shops at department stores and other retailers.
“Starting with our first brand house in southern Seoul, which is Under Armour’s second-largest globally, we will increase the number of shops to 270, including franchised stores, by 2020,” the country manager said. “When that happens, we estimate our sales will reach about 800 billion won. We don’t even know by how much Under Armour can grow in the future. I believe in its strong growth potential and am so excited about taking this wonderful brand to the next level. We are just getting started.”
Song said the Korean unit will adopt a range of the parent firm’s global marketing strategies. One of them is to sponsor talented young athletes.
“In the United States and other countries, Under Armour signs sponsorship agreements with young athletes before they become top players in their respective fields. This has been very successful and we will use the same method to raise our brand awareness among Korean consumers,” he said.
On Thursday, pro golfer Jordan Spieth will come to Korea to promote Under Armour’s latest golf shoes, Spieth One. He will also visit the brand house, sign autographs for his fans and give lessons to young students.
Under Armour Korea will also open its online mall the same day.