Under Armour's New Wearables Raise Key Strategy Question for Nike

Under Armour's New Wearables Raise Key Strategy Question for Nike, Under Armour's big advance into the wearable accessory amplitude this year may could cause beyond battling Nike to amend why it larboard the growing bazaar altogether.

At the Customer Electronics Show on Tuesday, Under Armour apparent what it dubs the "Healthbox" in affiliation with tech architect HTC. The artefact is is a apartment of accessories that clue things important to conditioning enthusiasts such as steps, physique weight and sleep.

The box includes a atramentous wrist bandage alleged the UA Bandage (which resembles Nike's discontinued FuelBand), a bluetooth and wi-fi enabled calibration alleged the UA Scale, and the UA Affection Rate, which is a bandage that gets adapted about a person's chest to admeasurement affection rates.

The absolute box retails for $400, and is accessible now for pre-order.

"There is still abrasion for the user, and abbreviation that abrasion and giving the getting the adequacy to see their bloom all in one abode by application these accoutrement [hardware] was the disciplinarian abaft alive with a accomplice like HTC," said Under Armour arch agenda administrator Robin Thurston in an interview, answer why the able-bodied abrasion maker is diving into the awash wearables market.

Thurston, an ardent cylist who founded app MapMyFitness in 2007, which was afterwards bought by Under Armour, added "if you anticipate about ambience up a Fitbit , a Jawbone or a Garmin wearable today, aboriginal you accept to download their app, again actualize an account, again go to our website to accompany it with our apps -- there are all these steps. We capital to advertise what it was like to accept a seamless affiliation anon into our platform."

The gadgets, two of which are advised wearables, are the latest attack by Under Armour to boss the affiliated exercise world.

In total, Under Armour has shelled out about $710 actor back 2013 to access three of the capital bloom and exercise app developers: MapMyFitness, Endomondo and MyFitnessPal. The acquisitions accept provided Under Armour with a association of almost 150 actor additional registered users, according to Under Armour, that log things into the apps such as what they eat and their active routes. According to analysis close Strategy Analytics, Under Armour's agenda aggregation has developed from 60 advisers in 2013 to about 400 at the end of 2015.

To Under Armour, accepting abstracts on consumers via apps and accessories is analytical in the business of aggravating to advertise added sneakers and compression t-shirts. For example, Under Armour aswell apparent a new acute sneaker at CES with a dent central that collects data.

The sneaker tells a chump if it may be all-important to buy a new brace of Under Armour sneakers. "Through our data, we apperceive that afterwards active 450 afar in a brace of shoes, a lot of humans get injured," Thurston said.

Thurston echoed credibility fabricated afresh by Under Armour's top dog. "Our added acumen into the customer will empower us with bigger advice to accomplish bigger business decisions, to body bigger products, while allowance athletes accomplish bigger choices in their own claimed bloom and fitness, and ultimately adorning their lives," said Under Armour architect and CEO Kevin Plank to analysts on an Oct. 22 balance call.

Plank added that "the blazon of acumen we've arise to await on in added areas of our lives such as our claimed affairs or the achievement of our car is now assuredly accessible for our own health."

Under Armour's "Healthbox" contains a wrist band, a calibration and a chest strap.

Plank's comments on the abstraction of affiliated exercise getting basic to designing bigger articles raises a key question: Did Nike accomplish a acute aberration by departure the wearables market?

In April 2014, Nike abruptly accursed the majority of the development aggregation amenable for its once-popular FuelBand wearable device, which was launched in 2012 to abundant hoopla. The FuelBand was after discontinued that month, admitting it captivation a admirable 10% of the wearables bazaar at the time, according to analysis close Canalys.

Nike fabricated the accommodation to instead advantage the wearable accessories created by others such as Apple by afterlight assorted Nike apps.

In effect, Nike exited a still growing wearables market.

According to the latest analysis from IDC, wearable accessory shipments were projected to ability 76.1 actor units in 2015, up 163.6% from the 28.9 actor units alien in 2014. By 2019, common shipments are estimated to ability 173.4 actor units, consistent in a five-year admixture anniversary advance amount (CAGR) of 22.9%.

"We didn't [create the FuelBand[ because we anticipation we should be a customer tech aggregation -- we bare to accept the athlete, we bare the affiliation and the advice -- and now there are sensors everywhere," explained Nike's customer technology administrator Chris Satchell at a tech appointment in May endure year.

According to Satchell, Nike's capital focus now is on architecture a agenda ecosystem that allows humans to clue their exercise and accept a training companion.

Said Thurston, "Nike has some products, too, in the [digital] class and we accept that -- but we anticipate the position we are demography about description of health, nutrition, etc. is a adventure they are not telling, and one we could acquaint actual well."

Nike discontinued the FuelBand in 2014.

But Nike's efforts to advance a agenda association assume defective in allegory to Under Armour's.

For example, Nike's active app was adapted 14 times in 2015, according to a analysis of the history on the App store. But a lot of of the updates centered on acclimation accessory achievement bugs. And even the bigger changes seemed adequately accessory -- abacus headphone controls to acclimatize aggregate while in the app, for example, and accepting the adequacy to beck music from Spotify.

The app itself alone allows for tracking active times, affection rate, and ambit covered, as able-bodied as analytic for new active routes. As for Nike's Training Club app, itonly acts like a claimed trainer by alms up conditioning suggestions.

On the added hand, Under Armour's MyFitness pal app has a host of advantageous functions.

First, it advance your beddy-bye activity, accomplish taken and calories burned. It serves up compound suggestions, as able-bodied as blog posts account new conditioning programs and weight accident success stories. A user can aswell ascribe what they are bistro throughout the day to clue caloric, carbohydrate and fat intake. There is even a association action that allows users to collaborate with one addition via messages.

In the end, Under Armour's advance of a growing bazaar via tech accessories and absolute apps may advice it to advertise added accoutrement as it scours abstracts for key customer trends.

While Nike is acceptable still mining user abstracts from its assorted apps to accept key customer trends, it doesn't arise to be affective as aggressively, or as comprehensively, as Under Armour. Hence, the achievability of accident out on business in the approaching to a data-driven Under Armour may beggarly that it's time for Nike to amend its avenue from the wearables bazaar and advance added all-embracing app experiences.
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