Under Armour Launches Merchandise Subscription Service
Under Armour is jumping on the fashion subscription box bandwagon with its latest offering, ArmourBox, the brand’s first-ever subscription service. Here's how the service works: An “official outfitter” from Under Armour will pick four to six pieces of Under Armour gear that fits a customer’s profile, based on needs, style and goals, then send it out, either monthly or every 60 days to 90 days. Unlike some services, though, there’s no monthly fee, and no shipping or return fees, Under Armour says. Customers can take a week to try it all on, then pay for what they want to keep and ship the rest back. A 20 percent discount will apply if a subscriber buys everything in the box. Under Armour promises access to the latest gear for each season, as well as head-to-toe outfits that are customized to training and personal style needs and activities, such as basketball, running or golf.
Total Retail's Take: It's not surprising that Under Armour is testing a subscription box service, given the success these programs seem to be generating. Consider Stitch Fix, the online personalized stylizing service that works on a subscription-box model that's perhaps the original company in this genre. Last week it announced that it has filed for an initial public offering (IPO). While the company didn't state how much it expects to raise, sources familiar with the situation said the retailer anticipates it will be valued at roughly $3 billion to $4 billion. What retailers love about subscription box models is that they create a stream of repeat, loyal customers. Furthermore, the personalized nature of the boxes demand that customers offer personal information about themselves, which is the holy grail for retailers.