IBEF: January 22, 2020
Under Armour, the US- headquartered US$ 5 billion plus premium sportswear brand, intends to open 15 stores in India at an investment of Rs 2-3 crore (US$ 0.29-0.43 million) per store, this year.
Under Armour is the world's third largest sportswear brand after Nike and Adidas. In March 2017, company made its debut in India on Amazon.in with an exclusive partnership and then in October 2018 incorporated its Indian subsidiary known as Under Armour India Trading Pvt Ltd. Later, the company opened its first 1,900 sq. ft. store in Delhi at the DLF Promenade Mall, in March 2019.
The brand that started with a simple idea of making a sweat-wicking T-shirt over two decades ago currently has all sports performance wear starting from apparel, footwear to accessories for men, women and youth in its portfolio. It is worn and endorsed by some of the world's top athletes including Stephen Curry, Andy Murray, Michael Phelps, Lindsey Vonn and Jordan Spieth. Under Armour is also available on Myntra and Flipkart.
"We opened our largest 4,000 sq. ft. store on Christmas day at the Mall of India in Noida and exited 2019 with 10 stores in premier malls across Bengaluru, Chennai, Pune, Gurgaon, Noida, Surat and Guwahati. The plan is to open 15 new stores at an average size of 2,000 sq. ft. and exit 2020 with 25 stores. All of our stores are franchise-owned and operated, and each store is set up at an investment of Rs 2-3 crore (US$ 0.29-0.43 million), depending on the size of the store," said Mr Tushar Goculdas, Managing Director, Under Armour India.
"Interestingly, our first store in DLF Promenade, which raked in Rs 1.75 crore (US$ 0.25 million) sales in its first month, is currently grossing the highest sales per sq. ft. in the world," said Mr Goculdas. The company plans to introduce new stores in Bengaluru, Delhi, Mumbai, Hyderabad, Chandigarh and Lucknow. The idea is to open stores in the ground floor of premium malls under company's retail strategy as it gives the brand greater and faster visibility as people walk in. At the end of 2019, Under Armour owned and operated 370 stores, globally.
"Our two largest sports verticals are running gear and training/workout gear; we also have golf and basketball sportswear. We will soon bring in more niche sportswear like hiking and outdoor/adventure sports, which is very big for us in the US," said Mr Goculdas. The brand's target audience is the focus performer from the mid-teens to the late 30s, who plays his/her sport on a regular basis, or who works out on a regular basis and is constantly training and striving to improve his/her performance. "In the last 5-7 years, people in their 40s are taking to sport in a very big way in India; we are targeting this segment too," he added.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.