Under Armour just quietly developed a perfect Lululemon rival
Published 11:08 am Thursday, January 25, 2024
- Facade of outlet store for athletic clothing brand Under Armour at the San Francisco Premium Outlets in Livermore, Calif., June 9, 2019.
Over the past several years, the athletic apparel and leisure space has ballooned to historically high levels.
Never before has the average consumer been so spoiled for choice when it comes to picking a brand for their desired activity.
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Some value price over all else, and for them, retailers like Old Navy, Gap or Walmart might offer the perfect selection. Others prize specificity, so brands like Peter Millar or Columbia’s Performance Fishing Gear (PFG) line win out. Some value brand recognition, so a Lululemon (LULU) – Get Free Report or Nike (NKE) – Get Free Report or Fabletics might take the cake.
With the up-cropping of so many fitness studios around town — such as Crossfit, Pilates, barre, boxing, cycling, and even rowing — many companies have realized that a different sport could call for a different performance line. Lululemon is typically more tailored to running and yoga, whereas Nike and Under Armour are more popular in the competitive team sports arena.
Which is why we are now confronted with dozens upon dozens of athleisure apparel brands to shop from. Some niche brands, like GymShark, Vuori, and Sweaty Betty have seemingly gone from obscurity to meteoric popularity, thanks in part at least to social media.
Others remain long-standing incumbents constantly vying for market share. But it’s an increasingly difficult space, and unless you are always innovating to attract new customers and retain the existing ones, companies stand to be beaten out in the race.
Under Armour develops new product
Under Armour is one of the best examples of this. The Baltimore-based company used to compete more with Nike and Adidas (ADDDF) – Get Free Report, partnering with athletes and developing sportswear like cleats and basketball shoes. And while Under Armour still maintains a presence in this space (there are mixed reviews about NBA star Steph Curry’s line of basketball shoes), it’s settled more comfortably into the performance tech corner of the market, and has slowly been working its way back towards growth.
Its most popular products are items like cold weather gear and performance leggings intended for extreme weather conditions.
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This puts it more directly in competition with Lululemon, which has its own line of performance gear for inclement weather and sweat.
But Under Armour recently partnered with chemical and technology company Celanese to develop a new material designed to reduce our heavy reliance on elastane — or what many of us call Lycra or spandex.
The new materials is called Neolast, which is made from recycled elastoester polymers. The fabric is made for performance while also boosting the company’s commitment to working with more sustainable materials. They also eliminate some of those icky forever chemicals many Lululemon customers have voiced concern about.
“Neolast fibers feature the powerful stretch, durability, comfort, and improved wicking…The fibers are produced using a proprietary solvent-free melt-extrusion process, eliminating potentially hazardous chemicals typically used to create stretch fabrics made with elastane,” a press release reads.
Celanese expects Neolast to transform athletic wear for the better.
“Through performance-driven sustainability and innovation, we look forward to helping athletes play at the top of their game as we work with Celanese to realize this new fiber’s potential to forge a path toward circularity,” Kyle Blakely, senior vice president of innovation at Under Armour said.