Saturday, February 7, 2009

Did Under Armour Come In Too Late and Too High?


Speaking of running shoes... Under Armour (UA) entered the market with a set of five new models on the eve of the Super Bowl. I was earlier excited about this, but the question is whether UA waited too long and came in with prices that are too high. The just released shoes start at $84.99 for a basic trail shoe, then rise to $89.99 for the base running shoe, zooming quickly up to $119.99 for the flagship UA Revenant (pictured here).

Most runners are looking at paying somewhere between $90 and $120 plus tax at their local running shoe, at least the ones that will carry UA gear. This is simply a lot in this economy. Even worse, the large sporting gear outlets that carry these UA running shoes are not offering discounts; it appears that UA is not authorizing them.

The comined bad timing and the lack of needed discounts may make UA's entry into the lucrative running market problematic. It's as if a Detroit automaker were releasing a new line of SUVs. All in all, it will be interesting to see if UA is still competing in this niche market a year from now.

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