http://www.forbes.com/business/forbes/2006/0605/073.html
Kevin Plank, founder and owner of the Baltimore firm, Under Armour, came up with the idea for his company while he was a senior at the University of Maryland. A business major and member of the Division I football team, Plank was not so much an athlete as he was a problem solver. Like other team members, he loathed wearing sweat-soaked cotton T shirts during practice and games. On a visit to New York City’s garment district, he discovered a polyester-Lycra blend that did not trap moisture. After several prototypes, he came up with a shirt that the players loved: They clung to the body like a second layer of skin, yet wicked away perspiration, keeping the shirts drier and lighter. Starting out with only $15,000 from a rose business he ran in college, $40,000 from five credit cards, and several thousand raised from selling private shares to family and friends, Plank set to work in Grandma’s basement in the Georgetown area of Washington, D.C..
Now over a decade later, Under Armour owns 70% of the so-called compression-performance market. With $500 million worth of sales each year, Nike is left with a measly 14%. In 2006, Plank upped the stakes when he introduced the company’s first shoe, a football cleat. However, although squarely in Nike’s territory, Under Armour is not nearly as profitable as Nike—earning a mere $20 million in a year, a figure Nike conquers in a week.
I think this story is comparable to the beginnings of a Bill Gates. The makings to this under dog story are a lot of ingenuity and the drive and perseverance in order to create a successful business. Before reading this article, I had been familiar with the story of Plank, but I had no idea that that was the path he had taken to be where he is now. Incredible! Although the interlocking U-and-A logo does not have the universality of the Nike swoosh, I believe it is just another athletic appeal Baltimore has to offer. Plus, it is just a matter of time before we see it around the country. Let’s not forget, the Nike Corporation was founded in 1972, making it twenty-four years its senior to Under Armour. Even with that being said, in 2004, Under Armour introduced football receivers’ gloves and promptly stole 30% of that $50 million market, mostly at Nike’s expense.
Kevin Plank, founder and owner of the Baltimore firm, Under Armour, came up with the idea for his company while he was a senior at the University of Maryland. A business major and member of the Division I football team, Plank was not so much an athlete as he was a problem solver. Like other team members, he loathed wearing sweat-soaked cotton T shirts during practice and games. On a visit to New York City’s garment district, he discovered a polyester-Lycra blend that did not trap moisture. After several prototypes, he came up with a shirt that the players loved: They clung to the body like a second layer of skin, yet wicked away perspiration, keeping the shirts drier and lighter. Starting out with only $15,000 from a rose business he ran in college, $40,000 from five credit cards, and several thousand raised from selling private shares to family and friends, Plank set to work in Grandma’s basement in the Georgetown area of Washington, D.C..
Now over a decade later, Under Armour owns 70% of the so-called compression-performance market. With $500 million worth of sales each year, Nike is left with a measly 14%. In 2006, Plank upped the stakes when he introduced the company’s first shoe, a football cleat. However, although squarely in Nike’s territory, Under Armour is not nearly as profitable as Nike—earning a mere $20 million in a year, a figure Nike conquers in a week.
I think this story is comparable to the beginnings of a Bill Gates. The makings to this under dog story are a lot of ingenuity and the drive and perseverance in order to create a successful business. Before reading this article, I had been familiar with the story of Plank, but I had no idea that that was the path he had taken to be where he is now. Incredible! Although the interlocking U-and-A logo does not have the universality of the Nike swoosh, I believe it is just another athletic appeal Baltimore has to offer. Plus, it is just a matter of time before we see it around the country. Let’s not forget, the Nike Corporation was founded in 1972, making it twenty-four years its senior to Under Armour. Even with that being said, in 2004, Under Armour introduced football receivers’ gloves and promptly stole 30% of that $50 million market, mostly at Nike’s expense.
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