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UAE's athletic leisure market set to expand faster
GMG ties up with Britian's JD Sports to tap into booming sector
The athletic leisure market in the UAE and the wider Middle East has grown exponentially over the past few years, especially since the Covid-19 pandemic, which has resulted in a heightened focus on health and wellness among the people.
According to a report by Statista, revenue in the sports & outdoor market is projected to reach $258.10 million in 2023. It is expected to show an annual growth rate (CAGR 2023-2027) of 6.36 per cent, resulting in a projected market volume of $330.30 million by 2027.
“Post-pandemic, consumers are placing a fresh emphasis on their health and well-being. We are seeing that consumers, especially Gen Z are tying exercise to broader social goals of socializing, having fun and entertainment. They favor a 360-degree view of health, focusing on improving mental and physical fitness. All of this means that our consumers, more particularly Gen Z consumers, are focused on well-being rather than the narrow pursuit of physicality,” Mohammad A. Baker, deputy chairman and CEO of GMG told Khaleej Times in an interview.
GMG recently signed a franchise agreement with global sports fashion retailer JD Sports, under which the latter is expected to open around 50 stores in the region. Excerpts from the interview:
How do you see interest in sports fashion in this market and how do you plan to meet the demand in this sector?
Audience segments such as Gen Z and their spending habits are starting to define the shopping experience. Outwardly, they are very much focused on values and sustainability and look beyond products to understand what a brand stands for, even if they cost more.
When it comes to sports fashion, not just Gen Z but the wider consumer base in the UAE is increasingly becoming more fitness conscious. They are also highly influenced by global fashion trends which is reflected in the sports fashion industry as well.
Régis Schultz, CEO of JD Sports (L) and Mohammad A. Baker, Deputy Chairman and CEO of GMG (R) at the signing of the franchise agreement. — Supplied photo
As we embark on this exciting partnership with JD Sports, our vision is to redefine the sports retail sector by introducing high-quality apparel that inspires and empowers our community to live healthy and active lifestyles. We are committed to elevating the standard of customer service and delivering innovative shopping experiences that surpass expectations.
How do you see your tie-up with JD Sports fitting into meeting this demand?
JD Sports is a renowned global sports fashion retailer, and GMG possesses an unrivalled comprehension of Middle Eastern consumers. Through this strategic partnership, we aim to revolutionize the sports retail industry by offering an extensive array of premium products, exceptional customer service, and innovative shopping experiences to our valued customers.
This collaboration will empower JD to effectively implement its groundbreaking ‘JD Brand First’ strategy, marking a significant milestone in our ongoing expansion into underpenetrated markets.
At GMG, we are always on the lookout for different ways to inspire people and enable them to make the world a better place. In doing so, we constantly dare ourselves and others to develop better products and experiences that change lives. The partnership with JD Sports is reflective of that thinking.
What is your outlook for the sector and GMG’s role in it?
Driven by the increasing global demand for athletic and athleisure apparel, the sector continues to thrive. As consumers prioritize fitness and wellness, the industry presents significant growth opportunities.
In the next half of the year, we are expecting the market to gain more traction as consumers are increasingly recognizing the additional value provided by the latest styles or sportswear with advanced properties that will improve performance.
We are also seeing the difference between performance and lifestyle wear blurring, and sports-inspired clothing is being widely adopted by a broader range of customers.
We at GMG, aim to play a vital role in this sector by leveraging our unparalleled understanding of consumers in the Middle East. By combining our expertise with the resources and capabilities of JD Sports, we believe we can contribute to transforming the sports retail industry.
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