If you're not Nike, then what?

Nike is huge.

On a recent visit to their headquarters in Beavertown, OR, that point was hammered home to me. The newly opened Seb Coe building would be considered a fabulous stand-alone headquarters for any sports footwear and apparel brand. But for Nike it is one building amongst dozens on a sprawling campus that includes a zen garden, lakes and the famous running track through the woods. It is a magical place to visit.

And it emphasises the point - as if it needs emphasising - that there is an imbalance in the sports footwear and apparel market.

There are a few mega-brands and then everyone else.

According to Matt Powell, an analyst with SportsOnSource, Nike has almost 53% of the $6.5 billion running shoe market in the United States and more than 65% of the $750 million running apparel market there.

Among Nike's nine biggest competitors, only ASICS market share in running footwear exceeds single digits: around 11% according to SportsOneSource.

The Rise of the Challenger Brands

However it is worth remembering that not so long ago, in the early 1960s, Nike was a fledgling business that in one year turned over $8,000.

So a lot can happen in 60 years.

That is why it is so exciting to see new brands emerging into the running space. And older brands rediscovering their mojo and becoming relevant again.

The problem is that in marketing terms, Nike is like a black hole in the universe. Its sheer size means that it can do things that no other brand is capable of. Put simply, Nike's marketing budget alone dwarfs the entire annual revenue of many well-known brands.

Think different

So if you are not in the top few brands - Nike, adidas, Brooks, ASICS and so on - what is a small brand to do?

One thing is to play to your strengths. Runners are often curious about what is available that is new and exciting. They are also, increasingly, looking for brands that they can align with at an emotional level.

The big brands' are well known by many people. But the stories people tell about these giants aren't all positive. As a result many running consumers don't seem to engage with the big brands at an emotional level. I'd also argue that whilst it is impressive to see the ranks of elite athletes wearing Nike, adidas and so on at track and road races, not many buyers of running shoes can relate to athletes running marathons in a shade over 2 hours or tearing round the track at sub-4 minute mile pace.

Small brands also have the chance to engage much more directly with their customers. It's certainly hard work to communicate with your customers consistently. But the impact can be huge.

So when I read that adidas is sponsoring the Olympic Games or Nike is signing a multi-million dollar deal with a sports super-star, it fills me with hope. Hope that more and more brands will start to think about ways in which they can use their relevance, authenticity and agility to do what the big brands can't do. After all, even the biggest brands started small.