3. The distribution channel differences between the two brands.

After the analyzing the distribution channels between Nike and Under Armour, both have unique styles of distributions. Nike’s distribution is centered on its products through three major channels. The first channel is by selling products to wholesalers in the United States and international markets. Sales to wholesalers has the largest profit gain in the Nike distribution channel. Selling to wholesalers accounts for more than 80% of the sales in the past two fiscal years. The second channel is by direct-to-consumer sales, which includes online sales and factory retail outlets. This style of distribution has grown 16% to 20% over the past two fiscal years. It has been the fast growing style of distribution for Nike. Nike is has been focusing on its direct selling to the consumer with its DTC initiative. The third style of distribution is the sales to global brand divisions. Compared to Under Armour, Nike has a much larger international revenue. Since 2009, Nike profits have increased every year. Key component to this style of distribution, has been their profits in China and emerging markets. Under Armour is also based on three styles of distribution. The style of distribution is the expansion of in the number of whole doors, which would include the shop in shop partnerships. This would their primary channel for their company in the United States This accounts for more than 65% of their company’s total sales this past year. The second distribution channel for Under Armour is the multiple stores opening within the United States and overseas. Under Armour has been pushing strongly to pursuing expansions, which lead to a rapid growth with the company. Finally, has also experienced growth from their Connected Fitness platform. Under Armour gained positive revenues in both category and channel, company-wide. Overall both companies have continued to grow over the past decade, but Under Armour has excelled in growth. This is mainly due to their aggressive style of marketing, and their willingness to expand rapidly. On the other hand Nike has a strong foundation within the market, and will continue to dominate the retail world.