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The Korea Herald
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THE INVESTOR
March 19, 2024

Retail & Consumer

Under Armour struggles in crowded Korean market

  • PUBLISHED :May 24, 2017 - 13:51
  • UPDATED :May 24, 2017 - 16:27
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[THE INVESTOR] Despite its entry in Korea five years ago, when it targeted annual revenue of 800 billion won (US$710.29 million) while unveiling its flagship store in Seoul, US-based sports and apparel brand Under Armour is struggling to make profits.




Since then, it has opened more than 80 directly managed outlets in Korea but sales are way below that of rivals Nike, Adidas and Descente. The country’s sportswear market is worth US$5.9 billion according to Samsung Fashion Institute, and the combined revenue of sportswear brands other than the top three is about 600 billion won. 

Although it is too early to tell if the brand, which ranks No. 2 in US after Nike and boasts US$3.96 billion global sales as of 2015, can realize its target, industry watchers agree that its promotions need to be scaled up. 

“Many customers are yet to recognize it, and only know that it is the favorite brand of Samsung heir Lee Jae-yong,” said a brand marketing official, adding that it needs to come up with original ideas. 

“Under Armour has been focusing on opening stores hoping that they are adequate marketing (tools) as footfalls increase,” said a company official, explaining that it will shift its branding focus from June. 

The company plans to open up to 130 stores by the end of this year and has set a 100 billion won annual sales target for 2017. 

After it began to directly manage the brand, its clothing range has improved significantly by adding the golf and outdoor catalogue. It has also increased advertisements and is expected to grow in the long term, said Yoon Yeong-hu, chief buyer at Lotte Department Store. 

Under Armour is a solid brand and has no difficulty in securing a distribution network, added an industry source.

By Hwang You-mee (glamazon@heraldcorp.com

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