Thursday, October 19, 2017

Nike Aims for New Market

Nike’s new “Pro Hijab” ad released earlier this week was an attempt to reach new female consumers in the Middle East, despite the popular view that it was brought out as a political statement.  Nike’s efforts were to introduce a lightweight, highly wearable hijab that doesn’t come untucked when working out or during competitions has little to do with timing or the political climate.  Many wouldn’t be surprised if Nike hopes to expand its reach to a growing market of Muslim shoppers buying apparel and footwear, which is estimated to reach $484 billion annually by 2019.
In recent years, there has been discussion around the world about the role of women in the Middle East, including in traditional societies such as Saudi Arabia.  Nike looks as if it going to be capitalizing on that conversation with a new Nike Middle East ad that features a Muslim woman running in a hijab and other Middle Eastern women participating in sports.  For any company, making a connection with consumers requires a great deal of cultural experience to understand the habits and norms of a particular region.  A company makes an emotional connection that can be established or strengthened brand loyalty when they strike a note with the thoughts and feelings of a consumer group.
If Nike’s Pro Hijab campaign is successful, executives could also position the company to introduce Muslim women to athleisure wear, an already growing market that is projected to top $350 billion by 2020 for brands that cater to every style and choice from yoga to basketball.  In my opinion, I think Nike is smart to aim for a new market that there is not much competition in.  Nike’s new reach could also help the company find a cushion against growing global competition.  Tapping the Middle East could be important to offset any decline it might experience in the slow growing economy of China, while also introducing its products to a new group of consumers.



4 comments:

  1. I do think this is a good move for Nike as well. I believe the everyday consumer is becoming more and more materialistic and items such as a hijab have never been "branded" at least not to my knowledge. I believe this will prove to be more beneficial for Nike in countries such as Malaysia or UAE where expression is not looked down upon as dramatically as Saudi Arabia while still having a large percentage of the female population being Muslim and wearing a hijab. Due to the recent events in the US, I am curious if Nike will see any decline in their sales domestically due to their international decisions such as producing the Pro Hijab.

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  2. The only mistake Nike can make here is branding incorrectly. What I mean by that is they need to make sure any and all advertisements are accurate and in no way depict the culture in the wrong way. Now obviously Nike can make more than one mistake in this new venture, but that would be a crucial one. Im sure by now they will be able to create a very nice Hijab that is great for athletic use. If all goes well, they will profit greatly.

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  3. This is interesting that Nike is tackling a religiously sensitive issue. I hope they do choose an appropriate way of approach, so it could appeal to the Muslims. There's a reason why the competition is less because it is kind of risky, but if Nike does succeed, it will bring huge profit for them. I am looking forward to how this goes.

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  4. This is great the Nike is trying to expand its consumer base to other religons or groups of people. This could allow for so much growth in the company, if everything goes correctly like they want it to. I hope it works out for them.

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