Inc. - Kevin Plank Is Betting Almost $1 Billion That Under Armour Can Beat Nike 5-15min

Plank has the affect and intensity of a head coach--direct eye contact, military analogies, the air of someone you do not want to disappoint. "Winning is a part of our culture--it's who we are," he says in his lofty office overlooking the harbor. (The only artwork behind his desk: a giant UA logo, its letters stacked to evoke arms raised in victory.) "And culture is formed on habits." Perhaps the most important guardrail, and the company's official mission, is seeking to "make all athletes better." It has long equaled thinking about clothes as high-performance gear, but recently it's taken on a big new meaning. ... Over the past two years, Under Armour has spent close to $1 billion buying and investing in three leading makers of activity- and diet-tracking mobile apps. By doing so, the company has amassed the world's largest digital health-and-fitness community, with 150 million users. Plank envisions all of those users, and their metrics, as a big data engine to drive everything from product development to merchandising to marketing. Many observers, though, balked at the $710 million cost of the acquisitions ... the high-stakes bet on Connected Fitness will be slow to pay off. Under Armour recently increased its projections for the next two years, estimating that it would nearly double net revenue by 2018, to $7.5 billion (up from a previous estimate of $6.8 billion). Only $200 million--a paltry 2.7 percent--will come from Connected Fitness. ... "If I'm right," he says, Connected Fitness "becomes a force multiplier that takes us from shirts-and-shoes company to true technology company. If I'm wrong, it costs us some money--we have $710 million on the table."

Fortune - The PGA Tour Sells Golf to China 9min

Since 2014, the PGA, the world’s most prominent golf association, has run PGA Tour China Series, a professional league that gives promising young players a shot at graduating to higher competition in the U.S. It’s analogous to Double A minor league baseball in America: Players can put in a couple of years in China and—if they perform well enough—earn an automatic berth into another league that’s one rung below the PGA Tour. The China Tour, in turn, offers golf something it desperately needs: better access to the enormous and growing middle class that makes the country a huge growth opportunity for the sport. ... In a country of 1.4 billion, the potential for the sport is certainly as vast as anyone’s imagination. Estimates of the number of Chinese golfers fall around 1 million, a small fraction of the 24 million who play in the U.S. If just 2% of China’s population played, up from less than 0.1% today, China could become a $2-billion-a-year market for golf products. That would be a godsend for an industry whose growth has sputtered in the U.S. and Europe, where manufacturers like Nike and Adidas are getting out of the golf-equipment business, and courses are closing. ... the country has only about 600 courses (the U.S. has 15,000). Virtually none are the type of cheap, municipal links that cater to beginners. Almost every course is a private club located far outside the city center, behind closed gates manned by security guards. A round during the weekend pushes $200 or more, four or five times the norm in the U.S.—in a country where the typical urbanite has only about $5,000 a year in disposable income.

New York Magazine - ‘The Kids Think I’m a Shoe’ 10min

Nothing about Smith or the simple design of the sneaker itself — neither has changed much since 1971 — explains how Adidas was able to sell 7 million pairs by 1985. Or how that number had grown to 22 million pairs by 1988. Or why Footwear News named it the first-ever Shoe of the Year in 2014. Or how it surpassed 50 million shoes sold as of 2016. Or how the sneaker grew far beyond its start as a technical athletic shoe and became a fashion brand, its basic blank slate evolving and taking on new meaning and purpose. ... The sneakers weren’t even designed with Smith in mind. Adidas heir Horst Dassler made them in 1965 for the French tennis player Robert Haillet. ... It was the most technically advanced tennis sneaker of its time, one of the first made of leather in a field of canvas, with a herringbone bottom designed for use on clay courts.