Should Under Armour Expand Beyond Performance Apparel?

Under Armour faces a strategic decision: whether to expand beyond its roots in performance apparel to become a more diverse athletic brand, or to solidify and extend its dominance in the apparel sector globally. A consideration in this decision is the increasingly important role of ethical manufacturing and sustainability in brand reputation.

The company could benefit from building a reputation for high ethical standards, especially considering the scrutiny faced by large apparel brands regarding their outsourced manufacturing practices. Such companies are often criticized for pushing lower costs and faster production at the expense of workers' rights and safety, leading to sweatshop conditions.

To answer this question, Under Armour might look at successful strategies employed by other brands. For instance, Abercrombie & Fitch coined “casual luxury” as a brand identity, using marketing tools like East Coast yacht club imagery. Under Armour could similarly develop a strong identity, perhaps related to ethical manufacturing, that capitalizes on consumer demand for sustainable and responsibly made products.

As brands like Zara aim for a future of sustainable materials and as consumers increasingly focus on the origins of products, Under Armour's decision could impact its competitive edge and consumer perception in an industry responsive to such changes. However, the ultimate decision should consider the brand’s values, market trends, consumer behavior, and the long-term vision of the company.

Achieving leadership in performance apparel globally could be coupled with efforts to ensure ethical production, thereby strengthening the brand and aligning with consumer expectations around corporate responsibility.