CEO Kevin Plank sets sights on Asian growth
MANILA, Philippines - How many companies have the bravado to earmark a whopping $1 billion in a campaign entered around a single athlete-endorser – yet still possess the temerity to see itself as an underdog among the competition?
Such seemingly dichotomous tenets are just everyday things at Under Armour, the Baltimore, Maryland-headquartered performance apparel, footwear, equipment, and fitness giant. Founded in 1996, the firm now counts itself among the giants of sports brands – raking in $3 billion in revenues last year as it global employee base has grown to more than 10,000.
When asked by The STAR in an exclusive interview if he still sees the Under Armour an underdog despite the figures that point to its robust performance, company founder, chairman, and CEO Kevin Plank exclaimed: “Oh my goodness, yeah! Have you seen the competitors in our space? These guys are huge! (But) we’ve always played with the big boys, and that’s how we want it.”
He proudly added the company posted an incredible growth rate of 96 percent in 2014, and just last quarter alone grew a further 79 percent.
Plank has told investors that he expects the company's revenues to reach $7.5 billion by 2018.
The underdog card resonates even in the brand’s choice of endorsers. For the record, Steph Curry was signed two years ago – before his Golden State Warriors annexed the Larry O’Brien trophy, and he the league MVP award. “The news is that he (Curry) still sees himself as an underdog,” Plank said. “Misty Copeland was a basically unheard-of ballerina, and Jordan Speith had no tour status,” he added.
This year, Misty Copeland became the first African-American woman to be promoted to principal dancer in the American Ballet Theatre – a leading classical ballet company. Copeland, 33, made it to Time Magazine’s list of “100 Influential People in the World.”
Meanwhile, Jordan Spieth had a phenomenal run this year – notching both the US Open and US Masters championships. Plank recounted an interview of Spieth after he had won at Augusta. Plank said the golfer was asked what made him go for Under Armour, and the reply was: “I wanted a company that fit the type of game that I have, the mentality I have every day.” Plank continued, “he said ‘I see game as aggressive, young, and fearless.’ Those three words have resonated with us at Under Armour. We’ve since made it a mantra in our company. That is that mindset, that mentality, it feeds to the idea that we are truly just getting started.”
Recently in town for a three-country Asian swing (China, Japan, and the Philippines) with the brand’s prized endorser, reigning National Basketball Association Most Valuable Player Stephen Curry, Plank stressed the region’s prominence and importance for the company.
“It’s huge, without question,” he said. “I call it a strategic market for us to be in… (this visit) underscores our commitment to the market.”
Plank insisted the firm’s Asia Pacific operations “will be one of the linchpins for Under Armour truly defining itself as a global brand.”
This “underdog” company is clearly hungry for more – setting its sights not just on doing business outside the United States, but actually realizing greater success in that theater of operations.
“More than half our revenues should come from outside of our home country,” Plank declared, noting that “10 to 11 percent” of Under Armour revenues today come from the region. “We like the trajectory of where our global business is going particularly in Asia, (especially in) Southeast Asia,” he said.
Plank shared the key to worldwide success is “understanding a global mindset.” He said that it should not be just about selling shoes and “extracting dollars” from a market. “There must be an exchange, a quid pro quo,” Plank said. “Under Armour is a brand that sell a lot of things – shoes, shirts, etc. But when you participate with our brand hopefully what you get back is beyond just the product, but hope.”
Articulate as he is charismatic, the 40-something Plank should very well be among the pantheon of Under Armour’s brand ambassadors. The company proffers on its literature thus: “In the sweltering Mid-Atlantic summer heat of 1995, Kevin Plank helped lead his teammates through gruelling twice-a-day workouts as special teams captain for the University of Maryland football program. Tired of changing his sweat-stained cotton T-shirts over and over again throughout the day, he was inspired to create a better kind of T-shirt — one that could wick and keep athletes cool, dry, and light.”
Such a humble, simple beginning to the tale of Under Armour is arguably something that continues to drive its chief executive. To say that he is truly invested in the brand and products is an understatement. He is passionate and convinced at steering the brand forward as he is to sticking to value propositions.
“We did put enough thought, attention, time and detail into every nuance (of our products),” Plank said. “That’s what brands do. Brands have incredibly strong points of view…. that point of view articulates itself through amazing products.”
Plank said Under Armour could have taken advantage of the fact that it is “hot right now,” and charge up to 20 percent higher. “That comes back to us – to never take advantage of the consumer,” he said, and points to the same price of the CurryOne and CurryTwo shoes as an example.
Again, it’s about more than just shirts and shoes and everything else, said Plank.
“There must be much bigger and better that we can provide than just going in and just providing products,” he enthused. “It must advantage the consumer, it must advantage the market. it must advantage the country,“ he added.
And the underdogs, of course.