1. UNDER ARMOUR in BRAZIL Specialty Stores in Rio de Janeiro and Sao Paulo Dominick Fuccillo Scott Glasthal Guive Savoji Ivan Velev

2. International Business Opportunities
"Under Armour's international expansion is a key component of our long-term growth strategy for the brand,“ Ryan Wood, President of Under Armour Europe - July 2006
% of sales outside of USA / Canada
Primarily in Europe / Japan
Third-Party Manufactured from Southeast Asia and South America
Source: Under Amour Press release 2006, 2009 Under Armour Annual Report

3. Why Brazil?
Brazilian economy has rebounded from the global recession and projects 5.5% GDP growth in 2010 with currency stability and a strong, inflation targeting central bank.
World Cup in 2014 and the Summer Olympics in Rio de Janeiro in 2016, a high-upside international marketing opportunity for global brand exposure.
Source: The IMF

4. Brazil Entry Proposal
Proposal –Projected Cost $25 million USD in 2011, $73 million USD in 2014, $88 million USD in 2016
Establish two Under Armour retail stores in Sao Paulo and Rio de Janeiro.
Create a South American Headquarters in Rio de Janeiro and central distribution center for all South American product distribution and potential third-party retail sales.
Implement marketing strategy targeting current and up and coming Brazilian athletes, specifically focused on the soccer market and creating brand awareness and status among high end Brazilian consumers.
Targeted ramp-up of investment to coincide with World Cup and Olympic events.
Source: Under Amour Press release 2006, 2009 Under Armour Annual Report

5. Brazilian Apparel/Footwear Market

6. Competitor Pricing Strategy
Source: esporte.netshoes.com,

7. Tariff and Legal
Common External tariff is 35% on clothing and athletic shoe
China anti dumping law will not be applicable to premium shoes
Foreign companies treated the same as Brazilian companies
Paperwork chains
Source: The International Custom Journal: Brazil #6, 20th edition, 2008, Doing Business: Measuring Business Regulations.

8. Political Economic Stability
Socialism fears in 2002 of the first working class president were proven wrong by a balanced government actions that increased minimum wages, kept inflation low, and is working to facilitate more foreign direct investment
2010 elections are expected to elect a leader that will continue this trend
President Obama called Lula “the most popular politician on earth”
Source: The Most Popular Politician on Earth. Margolis, Mac. Newsweek. September 22,

9. Currency Instability Capital account Crisis in 1999
Source: The IMF and recent Capital Account Crises, Evaluation Reports, 2003,

10. Brazil’s Unholy Trilemma – Pre 1999 Brazil’s Unholy Trilemma – 1999
Free capital flow
East Asian Financial Crisis
Fixed exchange rate
Sovereign Monetary Policy

11. Currency Stability
Brazil currently has a slight current account deficit that is dwarfed by the US’s. This would suggest further appreciation of the Brazilian Real.
Source: via Interbank exchange rates

12. Exchange Rate Risk

13. $187 Million just sitting on the balance sheet and its time to make a move Questions? We must protect this house!