MyFitnessPal acquired by Under Armour

[MattTuck]

I don't think that Under Armour has much of a presence in cycling, but a purchase of Strava doesn't seem so out of place if you consider this and their past actions.

I've used myfitnesspal... and mapmyfitness (in the distant past) and I think they are both geared toward individual pursuits, compared to the branding I get from Under Armour which seems to be on team sports.

Will be interesting to see how this goes.

http://www.pcmag.com/article2/0,2817,2476369,00.asp

Under Armour is expanding its digital health and fitness community with the purchase of MyFitnessPal and Endomondo.

Terms of the deals were not disclosed; these acquisitions join the company's other apps for athletes, like MapMyFitness and UA Record.

"Under Armour's demonstrated global leadership in health and fitness innovation is greatly enhanced with the addition of Endomondo and MyFitnessPal" UA CEO Kevin Plank said in a statement.

[Rob1519]

I did notice an Under Armour logo on my phones MapMyRide app. Guess that explains it.

[krhea]

Companies the size of Under Armour, Nike and adidas are rarely focused on one target or market segment. Under Armour "targeted" individuals many years ago and has continued that push especially with the recent move into digital fitness. They were well ahead of both adidas and Nike when it came to the "cross-fit" segment, they have been developing running shoes for runners, not teams for the past 10yrs plus and they've made significant inroads into the world of "fitness" with both apparel and footwear. The "team" segment for them and the other companies mentioned is an entirely separate part of their business and the tow rarely if ever "meet" unless it's through a retail tie-in or something similar. Kevin Plank is a smart man with a "team" background, in his case football, however, he realized a long time ago "man cannot eat by team sales alone", consequently Under Armour is knocking on adidas's door and will snuggle up close to Nike in the next 5 to 10yrs perhaps.

[MattTuck]

Companies the size of Under Armour, Nike and adidas are rarely focused on one target or market segment. Under Armour "targeted" individuals many years ago and has continued that push especially with the recent move into digital fitness. They were well ahead of both adidas and Nike when it came to the "cross-fit" segment, they have been developing running shoes for runners, not teams for the past 10yrs plus and they've made significant inroads into the world of "fitness" with both apparel and footwear. The "team" segment for them and the other companies mentioned is an entirely separate part of their business and the tow rarely if ever "meet" unless it's through a retail tie-in or something similar. Kevin Plank is a smart man with a "team" background, in his case football, however, he realized a long time ago "man cannot eat by team sales alone", consequently Under Armour is knocking on adidas's door and will snuggle up close to Nike in the next 5 to 10yrs perhaps.

That is good to know Kevin, I appreciate your insight into it. I know you were in the industry, so I'll defer to you on that. I can only speak to the marketing efforts that I'm exposed to... (and perhaps there is confirmation bias in there, since I know the story of how the company started with a strong focus on football, and their attempts to get in on other team sports especially with cleats)

Regardless, it will be interesting to see if they can create any value by having both the apparel and electronic businesses working together. Or if it will be primarily used to gather information about potential customers, but run pretty much separately.

If the idea is that you enter the Under Armour fitness ecosystem, where they deal with your nutrition, exercise, apparel, etc. that is a pretty interesting vision. Not sure that customers will want to be constrained that way, unless the product experience is really good. And even then, I'm not sure that is the way fitness folks think about stuff.

[Climb01742]

Nike has revenue of about $28 billion a year. Under Armour does about $3 billion. That's a tall mountain to climb. UA has some smart folks but they've had some notable missteps too. Their first foray into shoes was an embarrassing failure. They are growing but whether they'll ever seriously challenge Nike is far from clear. Nike's global reach, product diversity and marketing brilliance will be hard to beat. Lastly, Nike has a soul, at least as a brand, that no one's ever been able to rival. UA won't be the exception, IMO.

[ojingoh]

If the idea is that you enter the Under Armour fitness ecosystem, where they deal with your nutrition, exercise, apparel, etc. that is a pretty interesting vision. Not sure that customers will want to be constrained that way, unless the product experience is really good. And even then, I'm not sure that is the way fitness folks think about stuff.

This. All over CES this year, and every other software startup I run into in Seattle is barking up this tree. It's a very marketable value add -- track yourself using our clothes/brand/thing.

If companion smart watches become a mainstream thing expect non-athletic companies to go into the software business hard.

[LJohnny]

This happened around 6 months ago, aprox. I remember getting an email with the info. I use map my run with the under armor chest strap. It is the most comfy chest strap I've used.
Edit: I meant the acquisition of map-my ride, run etc. 6 months ago.

Sent from my iPhone using Tapatalk

[makoti]

Lastly, Nike has a soul, at least as a brand, that no one's ever been able to rival. UA won't be the exception, IMO.

Nike has cache. Nike has marketing brilliance. Nike has history. Nike has a huge hammer and a thousand lawyers to swing it. However, Nike does not have a soul.

[kgreene10]

Wearable sensors and related data tracking. I bet that's the plan.

[oldpotatoe]

Companies the size of Under Armour, Nike and adidas are rarely focused on one target or market segment. Under Armour "targeted" individuals many years ago and has continued that push especially with the recent move into digital fitness. They were well ahead of both adidas and Nike when it came to the "cross-fit" segment, they have been developing running shoes for runners, not teams for the past 10yrs plus and they've made significant inroads into the world of "fitness" with both apparel and footwear. The "team" segment for them and the other companies mentioned is an entirely separate part of their business and the tow rarely if ever "meet" unless it's through a retail tie-in or something similar. Kevin Plank is a smart man with a "team" background, in his case football, however, he realized a long time ago "man cannot eat by team sales alone", consequently Under Armour is knocking on adidas's door and will snuggle up close to Nike in the next 5 to 10yrs perhaps.

I would love to see a MBA do his thesis on the fast and huge rise of UnderArmour as related to the fitness stuff industry, now dominated by the likes of Adidas and Nike.

Only started with shoes 9 years ago. 19 years old as a company. A youngster. Now their total revenue is about what Nike spends on advertising but still.

[Climb01742]

Nike has cache. Nike has marketing brilliance. Nike has history. Nike has a huge hammer and a thousand lawyers to swing it. However, Nike does not have a soul.

I absolutely see what you mean. And I don't totally disagree. Maybe soul is a poor choice of words. But I do believe Nike has an essence, an ethos other brands lack. I'm from Oregon. I ran track as a kid. Pre was one of my first heros. I bought my first real running shoes from Phil Knight himself out of the back of his car (they were Tigers, BTW, before he founded Nike.) But something real was born by Phil running for Bill Bowerman at Oregon and it's why every few years, when Nike has lost its way, it creates an ad about running, to remind itself and the world what it stands for. It has that place, that center to go back to. Other brands don't. I've spent big chunks of my career helping other athletic brands try to find that thing/place inside their brands. Nada.

[Richard]

If you want to see the future of UA v Nike, check out the elementary and middle school kids. They crave UA over Nike (at least around here). This for daily wear as well as the sports where the athlete is responsible for their own gear (Little League, PeeWee Football, etc). I'm sure Nike is aware of this and will try to counter and UA may never fully climb to the heights of Nike, but they will pass all others and present a true challenge.

[oldpotatoe]

If you want to see the future of UA v Nike, check out the elementary and middle school kids. They crave UA over Nike (at least around here). This for daily wear as well as the sports where the athlete is responsible for their own gear (Little League, PeeWee Football, etc). I'm sure Nike is aware of this and will try to counter and UA may never fully climb to the heights of Nike, but they will pass all others and present a true challenge.

I know the guy at Nike who is the head cheese for Soccer(football!!) worldwide and they see this and also Umbro and Adidas. UA is making huge inroads. They have the $. The big thing for Nike is trying to be the soccer ball for the worldcup(adidas last), this something of a Holy Grail in soccer, I guess.

I also noticed more than a few guys at the world series with UA shoes, a first.

Like this guy.
I'm sure gloves are next(Rawlings-look out)..

https://www.underarmour.com/en-us/sports/baseball/mens?cid=PS|google|Brand|US|IP|Exact|under%20armou r%20baseball%20gloves|iZir2SlU&gclid=CNyCzqG8zcMCFQdafgod1lEAhA

[RonW87]

I guess its just me. When I see "Underarmour" I think "underwear".

[tumbler]

I guess its just me. When I see "Underarmour" I think "underwear".

When I see "MyFitnessPal" I think weisan.

[abalone]

Nike has cache. Nike has marketing brilliance. Nike has history. Nike has a huge hammer and a thousand lawyers to swing it. However, Nike does not have a soul.




Nike DOES have soul!
Nike is the greatest American sports company ever.
Nike has more tradition than all of Trek and Specialized combined x 100.

Nike has soul.
Proof.
And here it is.
https://www.youtube.com/watch?v=lPDKMmmIuqY

[leooooo]

When I see "MyFitnessPal" I think weisan.

:hello:

[old fat man]

Nike DOES have soul!
Nike is the greatest American sports company ever.
Nike has more tradition than all of Trek and Specialized combined x 100.

Nike has soul.
Proof.
And here it is.
https://www.youtube.com/watch?v=lPDKMmmIuqY

Nope, they have marketing and cache, and they put that money behind many great athletes, but also a number of athletes who are poster children for soul-less. look at 40 seconds and the finish clip of your linked video. Armstrong and Pistorias. Two people who have no soul whatsoever.

Back to the relevant topic of UA and this app. I just started using the app last week. It's neat and should help me cut out some bad snacking habits. As for an association with UA, I will never personally own their stuff. Maybe just the timing (I'm 35 and never been a football or big team sports fan) thing, but I've always found their products to be high on marketing and low on tech/value/function for my purposes. They haven't convinced me to try anything they offer. My 4.5 year old son might very well be drawn in as he grows up though. For me, it's still the original (non-cycling) players - Nike, Adidas, New Balance, etc.

[krhea]

If you want to see the future of UA v Nike, check out the elementary and middle school kids. They crave UA over Nike (at least around here). This for daily wear as well as the sports where the athlete is responsible for their own gear (Little League, PeeWee Football, etc). I'm sure Nike is aware of this and will try to counter and UA may never fully climb to the heights of Nike, but they will pass all others and present a true challenge.

Richard, you hit another nail on the head, the youth market. It's a huge one for UA and currently it is the brand of choice for a large majority of youth, athletes/team kids as well as "just" kids. I see it everyday and I live 2.5miles from the almighty Nike campus. I see it when I pick up my 11yr old daughter from school and watch all the UA logos running down the street etc. The kids might be wearing Nike shoes and most are, but a larger percentage is wearing UA clothing. The margin on clothing destroys the profits on footwear and that's where UA has built their business/profits.
Whoever mentioned that UA's first few forays into footwear failed is correct, as did a number of another companies attempts. The difference is, UA is run like a small strategic, guerilla army and has been able to attack specific market segments without putting all resources toward a single effort and that strategy has worked really well. A failure "here" has not hurt the momentum of another product or product line over "there". I'm very impressed with how they've diversified their product line, hired really good people and have done their homework regarding market segments virtually ignored by both adi and Nike and are making money and creating a presence. The best example, take a walk through a Cabelas some time or scan their online catalog, UA is everywhere and is selling like hotcakes. UA branded stuff was one of Cabelas top sellers during this past holiday season. At the recent Australian Open tennis tourney UA had a big presence on numerous players which was a change from last year. In the realm of athlete sponsorships you now hear about the Nike/UA battle, not Nike/Reebok or adidas and Kevin Durant was the best example of this. UA went toe to toe with Nike to the tune of over $300million. They lost but they came to the table ready to fight.
Whether UA ever threatens Nike or not isn't really the question, however, the answer is, UA is killin' it and has Nike, Reebok and adidas paying attention. Something no other athletic company has been able to do for a long long time. Nike didn't become a behemoth over night and I can tell you this, UA is in everyone's rear view mirror and companies are watching them, yes, even Nike.
Nike is both an incredible story and an amazing company, however, the Nike has "soul" comments make a lot of us in the industry or formerly in the industry shake our heads and chuckle, even current and past Nike employees. What Nike has are some incredible marketing people at the very top, some of the best "systems" in the industry, Tinker Hatfield, a GIANT checkbook and "Uncle" Phil who ain't afraid to write checks from the account. Nike had soul a long long time ago but "soul" has left the building and was replaced by "flash". Flash ain't a bad thing and it makes Nike money but it certainly isn't "soul".

[Richard]

And when those youth grow into adults, they'll wear UA, not Nike. As a parent whose kid is about everything UA (except one thing -- Nike Elite Socks), I really appreciate UA guarantees -- if the clothes fail (for any reason including tearing them when sliding into base), ship them back and UA replaces it, no questions asked, no charge except your dime to return to them. They ship back gratis.

[JAGI410]

Nike was cool when I was a kid. My kids don't want to wear what I think is cool.

[abalone]

Yeah, yeah. I know that the Youtube link to the Nike cmmercial is old. And yes, it does have some villainous scumbags on there (Amrstrong, Pistorius), but the commercial is old and Nike has done the responsible thing and cut ties with these scumbags when it came about of their misdoings.

Nike does have soul. If not Nike, who? Nobody that's who. When Nike came on the scene, it was a revolution. Nike was bold. You think Trek is revolutionary? Please. What about Specialized? Give me a break? Name one American sports company that has soul? Who? It's Nike.

[velomonkey]

Nike does have soul. If not Nike, who? Nobody that's who. When Nike came on the scene, it was a revolution. Nike was bold. You think Trek is revolutionary? Please. What about Specialized? Give me a break? Name one American sports company that has soul? Who? It's Nike.

I'd agree with this. Specialized and Trek are a joke in comparison.

With that said, the kids are all about UA (though kids in general are less brand sensitive then we were). Nike holds little to no cache for them.

[oldpotatoe]

Yeah, yeah. I know that the Youtube link to the Nike cmmercial is old. And yes, it does have some villainous scumbags on there (Amrstrong, Pistorius), but the commercial is old and Nike has done the responsible thing and cut ties with these scumbags when it came about of their misdoings.

Nike does have soul. If not Nike, who? Nobody that's who. When Nike came on the scene, it was a revolution. Nike was bold. You think Trek is revolutionary? Please. What about Specialized? Give me a break? Name one American sports company that has soul? Who? It's Nike.

Louisville Slugger
Rawlings
Wilson
Head

Probably others

[krhea]

Louisville Slugger
Rawlings
Wilson
Head

Probably others

There's some excellent examples on that list.

[Louis]

By definition no massive (or even semi-large) corporation can have anything approaching "soul." (however you happen to define the term)