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Good morning! It's Thursday, December 28th. Today’s post looks at Hoka, a company known for its iconically oversized athleisure shoes that generates ~$1B in annual revenue!

THE FEATURE

Hoka– From Ugly Duckling to Multibillion-Dollar Athleisure Powerhouse

In the world of athletic footwear, performance is undoubtedly important to consumers, but so is style—people don't just wear Nike Jordans to play basketball. 

Sportswear company Hoka understands this better than competitors, and it's the reason why its stylish and oversized shoes have generated a record $420M in quarterly sales! 

The Founding Story

Hoka founder Jean-Luc Diard was a ski racer and business student who began working at Salomon, a giant in the ski, run, and hike industry, in the 1980s.

At the French national ski championship in 1982, Diard was racing in a competitor brand's ski boots and was confronted by Salomon founder George Salomon about his lack of company loyalty.

After Diard explained what makes for an optimal ski boot, George promoted him from an intern to a central figure in the company's R&D department. 16 years later, Diard became the CEO of Salomon.

In 2007, Diard found the creative epiphany behind Hoka at an Outdoor Retailer show while looking at the never-ending catalogs of minimalist hiking gear. Diard's idea was to create something entirely different— a shoe that was simultaneously lightweight and notably oversized.

Diard launched Hoka with its first line of thick-soled running shoes in the US markets in 2009. Today, Hoka is a multi-billion dollar company selling everything from orthopedic shoes to everyday apparel.

Hoka by the Numbers

Decker Brands acquired Hoka in 2013 for an undisclosed amount, but Diard still plays a central role as Hoka's President and VP of Product development. With funding from Decker Brands, a $17.3B company, and Diard's leadership, Hoka's seen exponential growth. 

Hoka now makes up 36% of its parent company's revenue, which is a massive increase from 21% two years ago, and in 2022, Hoka broke a billion-dollars in annual sales!

How They Win: Using Celebrity to Create the Consumer Trend

Hoka shoes were the first of their kind, created to enable users to run downhill faster with their thick and oversized soles. The result: an ugly duckling of a running shoe that was scoffed at by consumers.

However, due to perfectly executed marketing efforts, consumers now see Hoka shoes as iconic rather than the ugly ducklings of the athletic footwear industry.

A crucial component of Hoka's success lies in strategic partnerships with influential figures across various industries to boost the value and reputation of Hoka.

The first of those strategic partnerships was with world marathon champion Mark Plaatjes in 2009. The following year, he repeated the strategy with ultra-marathon runner Karl Meltzer.

During the company's transition from purely athletic footwear into athleisure, celebrities like Gwyneth Paltrow, Brittney Spears, and Winnie Harlow were seen sporting the Hoka brand on social media.

The Takeaway: Be a Culture Shaper

Hoka's ability to turn heads and challenge traditional norms within the footwear industry has been instrumental in its meteoric rise. While other brands shy away from bold designs, Hoka has leveraged its oversized, distinctive look, creating a trend that has permeated the market.

As the brand continues to drive sales and innovate, it stands as a testament to the power of embracing uniqueness and pushing the boundaries of conventional design in the competitive athletic footwear landscape.

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