In an interview with Moneycontrol, Tushar Goculdas, Managing Director, Under Armour India, shares how the brand is looking to tackle the impact of COVID-19 and the way ahead in an extremely competitive market.
US sportswear brand Under Armour's India operations just began taking baby steps when the COVID-19 pandemic wreaked havoc. Looking to get a toehold in a market dominated by the likes of Adidas, PUMA, and Nike, the brand is looking to capitalise on the passion for sports and fitness of young Indians who are wary about the products they use.
In an interview with Moneycontrol, Tushar Goculdas, Managing Director, Under Armour India, shares how the brand is looking to tackle the impact of COVID-19 and the way ahead in an extremely competitive market.
Edited excerpts:
Q: How is Under Armour India dealing with the COVID-19 upheavals?
A: First and foremost, we are doing our best to take care of each person associated with our brand and business – our employees as well as our various business partners and their teams, especially the frontline teams in our stores and warehouse. We are also focusing our energies on identifying opportunities for growth and improvement and driving initiatives that will create impact both in the short and long term.
An important growth opportunity pertains to our retail stores footprint. We are already well-placed in Delhi-NCR with five stores in top locations and ready to open our sixth store at Pacific Mall in a couple of months. We are really excited to finally enter Mumbai, with the launch of our flagship store at High Street Phoenix at the end of August, followed by Infinity Mall, Malad, at the end of September.
Beyond Mumbai, we have a strong pipeline of new stores opening this year in Lucknow, Chandigarh, Hyderabad, Pune, and Ahmedabad. We are also exploring top retail locations to expand our presence in Bengaluru, Hyderabad, and in new markets including Kolkata, Kochi, Nagpur, Jaipur, Coimbatore, and Punjab. In addition to the retail expansion, we are working on new and emerging business models such as store to home and omni-channel. We are also exploring new business partnerships to help us leverage these opportunities.
With health and fitness emerging as top priorities for our consumers, we have developed deeper connections with our consumers through our frontline teams, social media channels, and e-commerce partners. Via social media, we continue to support athletes and fitness enthusiasts with our premium performance-enhancing products and engaging at-home fitness content. We are upskilling our frontline teams to further strengthen our service to customers – in person and over the phone.
Q: What kind of impact are you expecting on the revenue front from India operations?
A: The two months of lockdown when all non-essential services were shut, did impact our business, like any other. However, once the government announced guidelines for the reopening of non-essential e-commerce and retail, we saw steadily growing demand. Our e-commerce partners have achieved strong sales since restarting business in end-May and are now surpassing pre-COVID levels. Six of our 10 retail stores have been operating since early June and are performing much better than our expectations. We also have a strong pipeline of 10 new stores that should open by the end of the year. This is a testament to the trust and engagement our customers have in our innovative and technology-driven premium performance wear products. While we may be unable to recover the revenue loss during lockdown months, we are confident of ending the year strong and well prepared for strong growth in 2021.
Q: Will Under Armour India look to tie up with Indian domestic teams and are there any plans for the grassroots level?
A: Under Armour is a premier athletic performance wear brand that inspires athletes from around the world, from everyday performers to champions across various sports. To connect with our core audience, we are engaging with a number of athletes at the grassroots level. Our partnership with the Indian Women's Ice-Hockey team is the perfect example of our commitment to supporting athletes with world-class gear and equipment, to help them perform better and make the nation proud. Our focus will remain on identifying, encouraging, and celebrating such unsung stories and emerging sports and athletes from across the country in the years to come.
Q: When is Under Armour looking for sales to pick up?
A: Our consumers are now even more focused. They are giving more time to fitness activities. This has created a stronger demand for our premium performance-enhancing products. Sales through our retail outlets are also steadily bouncing back as we are witnessing brand fans and loyalists walking in to shop for our world-class products. Around 60 percent of our retail stores have been operating since early June and are now reaching pre-COVID levels of business.
Q: What are the key takeaways from the COVID-19 crisis at Under Armour India?
A: The pandemic has clearly shifted the way both companies and consumers behave and act. From an organisation perspective, it has put a clear focus on people and their welfare. At Under Armour India we have been careful to focus on the well-being of our people and associates, not just financially and from a career perspective, but also emotionally as well as psychologically. The other big lesson is the forced experiment of working from home. The lockdown proved that work from home only impacts efficiency but not effectiveness. Business does get done through virtual meetings and the need for in-person connections and travel will now not be the first resort.
In addition, we see a deep and long-lasting change in mindset and consumer behaviour with an increased focus on health and fitness. This would lead to a greater appreciation and demand for high-quality athletic performance products and is an opportunity for us as a business.
Q: Will there be any addition to celebrities as brand ambassadors?
A: As a brand, we have always supported sports and fitness authenticators and are on a constant lookout for athletes who have an unmatched passion and dedication to constantly better their performance. We are looking to onboard athletes who will add value to the brand and share the same values and ethos. We do not limit our options to popular and mainstream sports but look for passionate athletes, fitness enthusiasts and unsung heroes who we can support in their journey.
Q: The social play has become very important for sportswear brands. What degree of marketing support/budget do you allocate towards it?
A: Social media channels play a critical role in keeping consumers informed about the latest products, brand updates, and receive their feedback. It is a two-way channel and therefore a great medium for building trust and loyalty in the long run. The last few months have witnessed consumers increasingly looking for training content. Brands have used the digital medium to provide fitness routines and nutrition tips. We have seen brand loyalists, who see benefits in our premium performance products, rely heavily on our own social channels to stay informed. When it comes to marketing budgets, our spends have always been skewed towards digital as our consumer is spending more and more time on social and digital platforms.
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