Oregon based Nike and Bavarian Adidas have dictated the sportswear scene for decades in the Middle East with both making a lot of noise in what one may call a largely “untapped” Middle Eastern market.
Last quarter, Nike had recorded one of its best international sales figures at $3.69 billion making up for almost 53.1% of the brand’s revenue. While majority of it could be attributed to specific regions like Western Europe and East Asia, the rising influence of developing markets like the Middle East is hard to deny with Saudi Arabia leading in the façade.
According to a recent evaluation of emerging markets by Credit Suisse in its 2015 Emerging Markets Consumer Survey, Nike has extended its market share in the country where 51 percent of the population is under the age of 25 (Wilson Center’s Study of Winter 2011).
The ‘swoosh’ was able to pick steam in the past few years against its largest rivals, Adidas. In the below table comparing the share in the past few years, Saudi Arabia is the only market which noted noteworthy gains in share over Adidas. But what’s most astonishing is the inflated nature of those gains – while Adidas’ share remained steady in Saudi Arabia last year, Nike saw a 11% increase there among consumers in the retail sportswear market.
Nike’s rise in sports shoe share in Saudi Arabia, courtesy of Credit Suisse.