Faster, more aggressive, crazy - a young US sports brand is attacking the market leader Nike and Adidas. For the already battered Adidas Group Under Armour is the greatest threat.
Who wants to conquer the world, can not sleep. That sounds like the saying of a semi-strong, but Kevin Plank (42), entrepreneur and billionaire, live it. He has just flown back from Asia, he did not want to treat yourself dozing more than 90 minutes. "I can sleep when I'm dead," says Plank. "If you want to be successful, you have to work."
Pointed step he walks through his headquarters, a former detergent factory on the US East Coast port city of Baltimore. The open-plan offices are crammed with desks in the corner waiting original sealed copy for their debut. In between young people scurrying around. Almost daily, the center is a new employee. Everything is focused on growth, and everything seems a bit too tight. The clothing of the founder.
Kevin Plank wearing a black stretch shirt on his muscular torso. Previously, he dreamed of a career as a professional football today depends not only on his desk a giant world map. "We want to be number one among the global sports brands," he says. In such sentences is Plank's eyes narrow to narrow slits, his lips he contorts into a smile. The muscles stay relaxed.
18 years ago, he founded a company called Sports Under Armour ("Under Armour"), which initially sold breathable special lingerie football player. Plank conquered a highly profitable niche sports companies like Nike Show chartor Adidas Show charthad neglected.
From the highly profitable niche in the mass market
Soon, Under Armour penetrated into the mass market, has developed into a full equipment for training, fitness and ball sports. Even football boots, Americans have on offer. Colleagues and McKinsey consultants warned Plank, he should not take itself - but that spurred him all the more to. The expansion is a challenge to the entire industry.
"The brand is at war," it says in an internal presentation, illustrated with a photo of a starting fighter jets. In fact, no other company has the market recently attacked so aggressively like Under Armour. Since its IPO in 2005 increased sales and profits Plank average annual rate of 30 percent. His company is already greater than Reebok, Puma and Show chartit would soon be obsolete. The rival Adidas Show charthas recently replaced as the second strongest brand in the US Under Armour.
The Wall Street loves the company. Only in 2014 has risen more than 50 percent share. Also in the future will grow in Under Armour speed, predicts Sam Poser, an analyst of the broker Sterne Agee, and that "at least for another five years". The German rival Adidas Show chartlost in 2014 approximately 38 percent of market value and was the weakest stock in Dax 30th
Still Under Armour makes up 90 percent of the business in its home market America. Now comes the globalization simultaneously in Latin America, Asia and Europe. Rows of Plank advertises for top people from the competition, opened regional offices as soon in Munich early 2015th
"Wherever we compete," is his battle cry, "we want to hit Nike, Adidas and Reebok." The CEO has issued internally the objective to blow up sales by 2020 from three to ten billion dollars. Kevin Plank moves on the thin line between genius and megalomania. He is a gambler, who spares no risk.
Part 2: sweat and tears - and full of risk
From a young age suggested plank over the traces. He was a middling student who scuffled with other football players and dropped out of high school. However, he made it to the University of Maryland, where he studied economics and incidentally - peacefully - sold roses.
As a player of student football team Plank had to sweat such that stuck him the cotton shirt in a short time on the body. He went to New York and purchased fabrics of synthetic fibers initiated by the sweat. A tailor he was patched up into a tight shirt scraps. That was the beginning.
In the cabin, his teammates veralberten him ("but you look sexy!"). But soon they would have the same shirts. Plank got new stock and paid his circle of friends.
From the beginning, Plank went into full risk. He and his partners stressed their credit cards as far as it could. With $ 60,000 seed money, they founded in 1996 Under Armour. The business initially generated a little cash. Before long standing Under Armour bankruptcy. In his distress Plank took a bold plan.
On a Friday in early summer 1996, shortly Ago 14 clock, he entered his bank and took off all that was left to him 1600 dollars. With the money Plank went to Atlantic City in a casino to play blackjack. 3000 dollars, so calculated the Americans, he would be able to save his company. At first everything went well, too well. The 3000 dollar threshold was long passed since Plank played in a frenzy. He gambled on - and lost at the end of everything.
Supplier for high schools and universities
Devastated, Plank returned. Under Armour was already dead before the brand was even born right? At home waiting for him salvation. In mailbox Plank was a check for $ 6,000. A customer had paid the first big order. The money secured Planks company's existence.
With the help of friends and colleagues Football upgraded Plank from more and more high schools and universities. The competition was did the overdue expansion hidden for long. Plank acted normal, his office was in the basement of the house of his grandmother.
At the same Plank was a master to present itself larger than it actually was. As a major importer from Japan announced Plank hired a group of friends who stationed themselves on computers and bustle feigned. The customer was impressed - and did not enter into a cooperation. Today, Japan is Under Armour's most important foreign market with nearly 300 million dollars in sales.
Part 3: Planks coup Dick's Sporting Goods
However Planks probably greatest coup was a cooperation with the US sporting goods dealer Dick's, the founder had all the freedom, as long as it reliably delivered novelties. Plank convinced by small, smart innovations. Time, he designed jackets with magnetic zipper, machine washable sneakers times. Plank and his partner helped each other grow. Dick's Sporting Goods is one of the biggest sports retailer in the world.
Compared to its rivals sought Plank, however, the confrontation. Phil Knight (76), the founder of the world's market leader Nike Show chart, Plank delighted every year with a Christmas card. "Dear Phil," was it, mutatis mutandis, to read, "You will hear from me."
To date, Under Armour does everything to torment its competitors. As to the Adidas sponsorship deal with Manchester United Football Club Show chartcourted, Plank increased with. At the end of Adidas received the contract because the Germans offered a record sum of nearly a billion euros for the ten-year contract. Plank had managed to drive the price up. Adidas meet "irrational decisions," he blasphemes. "It is irresponsible to pay such a high price for an asset."
Long Nike and Adidas have underestimated the informer from Baltimore. "It would have Under Armour can stop only if you would have bought the brand in time," said Bill McDermott, CEO of SAP Show chart, sitting at Under Armour in the Supervisory Board. "Now they are too big."
Buzz around the brand - and an extremely high market value
The triumph of Plank troupe takes on sinister proportions. On the stock market is worth Under Armour already close to 15 billion dollars. The Americans this year will generate only one-sixth of the Adidas turnover and a quarter of its operating profit.
Under Armour can meet the high expectations at all? Or is the hype about the brand completely over the top?
Planks dream to replace Nike as the market leader, will not meet on the fly. Maintained its pace of growth in both groups, then Under Armour would the current number one at the earliest in 2028 overhauled. Even Possible a small miracle.
Even Nike has a clear size advantage over the attacker. The marketing budget of the industry leader is ten times higher than the advertising expenditure Under Armour. And Plank is doomed to growth. The CEO already went to the limit as he the 2011 Premier League club Tottenham Hotspur took them under contract. The global success of Under Armour must first work out yet.
The brand is very American. Your martial appearance reminds some Europeans to the "Rambo" films of the 80s. In the US Under Armour sends its own TV show, which includes senior managers in camouflage clothing on big game hunting.
Part 4: Planks new battle plan - and a foray abroad
On the coffee table in front of Plank's office is a picture book about the war in Iraq ("This is our war"). Plank is a patriot and proud that its board a former four-star admiral belongs: Eric Olson led elite troops in the war on terror. Something is well received in America. But abroad?
First attempts to expand into Europe have failed. Plank sent 2,006 North Americans across the Atlantic, who knew little about the characteristics of markets such as Germany, England and France. Under Armour entangled in a network of distribution partners. A supplier contract with the Bundesliga club Hannover 96 ended in disaster. Striker Mike Hanke publicly announced that he would rather play in Adidas shoes again.
Now Plank has changed his game plan. He also familiar to ex-Admiral Olson. He has advised him: "If your card does not match the terrain, forget the map and sink into the ground." Now Plank dares a new foray abroad, with an adapted strategy and knowledgeable local people.
First, he sought an experienced point man for the international markets - and came across Karl-Heinz Maurath (53). The German led for many years the Latin American business rival of Adidas with great success: Under Mauraths guide the brand grew with the three stripes for nine years by an average of just over 25 percent.
Large markets, large cities, large customers
Two years worked Plank native of Baden. Höchstpersönlich he flew by private jet to Panama to move to South America Manager for a change. As so often sat Plank his will by the end.
On the morning of October 30, 2014 a sunny autumn day, Plank meets his foreign editor at the Sagamore Farm in Baltimore. The good 200 acre stud farm Plank serves as a refuge for particularly important meetings. "Is there good content?" He asks scarce. And Maurath explains how he wants to develop Under Armour global brand.
"We focus on large markets, large cities and large customers," says the manager. As a first step Maurath opened a representative office in Latin America, also 70 outlets in Brazil. A further 200 stores will be added soon. In addition, it provides a great deal in marketing prospect, "by one of the biggest football clubs in Latin America".
New top managers to adapt the brand to local needs, including Erick Haskell, who has spent years in charge of the markets in China and India for Adidas. European head Chris Bate, formerly Product Manager at Puma sports shoe and later director at Nike in Europe.
Part 5: Initial success reboot
The first successes of the restart are already indicated. After eight years of losses in Europe Under Armour writes in 2014 there is a black zero. China is already making good profits.
Maurath wants to grow profitably. By 2020 Under Armour aims to generate 30 percent of its revenues outside of North America. Thus, the ex-manager Adidas slowed the expectations of his boss. Plank wanted to blow up the foreign share quickly to 50 percent.
The founder practicing now for once in modesty. But he is already thinking about the next big thing after. And this has to do with himself - as at the beginning of Under Armour, as Plank was sweating under his Football tanks.
More than sweatshirts and sneakers
Plank feel uncool if he has to wear a suit and tie. "I'm not thrilled with this business suits," he laments, "they are uncomfortable, not stretchy and need to be dry cleaned." His vision: One day could supply you with its materials Under Armour large textile companies. An Armani suit, which contains 30 per cent Under Armour? Why not?
Already dreaming Plank them to turn into a kind of Under Armour Apple the sports industry. With clothes full of digital technology. Some time ago he had to shoot a futuristic commercial: A young woman stroking her sleeve - and so changes the color and temperature of the clothes.
"Our company does more than just make sweatshirts and sneakers," said Plank. What he actually says so: I can do anything. Except sleep.
