Differences Between Distribution Channels Of Nike And Under Armour

            Both Nike and Under Armour are successful brands in their own right when it comes to the athletic wear industry. Each has similar products and promotions, but how these two things translate to the customers is quiet different.

            A distribution channel is defined as the following, “the chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer.” These channels can include wholesalers, retailers, distributors and even the Internet. In the case of Nike, the company distributes its products through three main channels. These three channels include selling products to wholesalers both in the U.S. and internationally, by direct-to-customer (DTC) that include line and factory retail outlets as well as e-commerce sales, and sales to global brand divisions. Nike is in fact focusing much more on the direct selling to consumers with its DTC initiative, as this type of distribution provides higher margins in general for Nike. In Nike’s effort, the company is looking to expand this type of distribution channel.

            Shifting our focus to Under Armour, who has a similar tactic as Nike but is slightly different. Under Armour, just like Nike, has been aggressively pursuing expansion on all fronts in the number of wholesale doors and the number of store openings in the U.S. and abroad. Just like Nike, DTC sales are more profitable for Under Armour, but their focus isn’t on DTC sales as of now. As I said before, Under Armour wants to get into more wholesale stores as well as expand their own stores. Also, Under Armour is more focused on the North American market, and not necessarily on the global market, as it isn’t as developed as Nike’s.                          With this said, the differences of Nike and Under Armour are slight, but important. Nike is a bigger company and has more exposure and experience than Under Armour, and this allows for different distribution tactics. While Under Armour is a relatively new company compared to Nike, it does focus more on developing channels domestically, and acquiring more wholesalers for their necessary consumer exposure.

Nike and Under Armour distribution differences