Tag Archives: clothing

Hoka – The Ugly Shoe Everyone is Buying

Consumers love something different, at least some of the time. But then other times, it is difficult to get them to switch their buying habits. On average, consumers buy the same 150 items fairly consistently. That means it is difficult for new products to get buyers to shift their buying to another product.

Think about it. What are the brands you buy regularly? Now, what might it take to get you to buy an entirely new brand and substitute it for one of your beloved products? It can be tough going to gain acceptance for new products, particularly products that look as different as Hoka shoes.

In 2012, sales of Hoka shoes were approximately $3 million. A little over a decade later, Hoka shoes sales in the past fiscal year were $1.4 billion. That’s a huge jump in sales and loyalty for a very peculiar looking athletic shoe.

Everyone who buys Hoka shoes seem to like them – runners, waiters, workers, teens, even grandparents. Why? Well, the first thing is that the shoe has to be comfortable and perform as required. Hoka shoes also come in vibrant colors and have a hefty foam sole. But still, it’s a big departure from the sleek-looking Nike shoes that dominate the market.

One of Hoka’s main strategies was to grow slowly. Yes, you read that right. Slowly. The company deliberately grew slowly by keeping supply below demand and maintaining selective distribution.

The company founders also deliberately made the shoes bigger than most athletic shoes. The shoes have been described as clown-like, bloated, bulbous, wacky, and just plain ugly. But, the shoes performed. Running stores couldn’t keep them in stock. And the company maximized on direct-to-consumer, skipping the big-box stores. When the company did move to stores such as Foot Locker and Dick’s Sporting Goods, it waited until consumers already knew about Hokas.

They may look clownish, but are you ready to run in them?

 Group Activities and Discussion Questions:

  1. Poll students: What athletic shoes do they have? What do they like? Dislike?
  2. Does anyone have Hoka shoes? Why or why not?
  3. Show Hoka Shoes website: https://www.hoka.com/en/us/
  4. Why did a slow growing strategy and limited distribution work for Hoka?
  5. Discuss competition for Hoka.
  6. What are the direct competitors? Indirect competitors?
  7. Divide students into teams. Have each team compare Hoka shoes with a competitive product.
  8. Students should also develop a positioning map for athletic shoes. Where in the map would Hoka shine versus competitors?
  9. What are the key points of difference?
  10. How should Hoka be marketing its shoes?

Source: Cohen, B. (22 June 2023). The ugly shoes now worth billions of dollars. Wall Street Journal.

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H&M Adds Home and Beauty Products and Stores   

Once a high-flyer in the area of fast fashion, H&M has come under increasing pressure from China’s Shein and other retailers. Swedish company H&M sales growth has stalled in recent years, forcing the company to examine its strategy and product mix. The company’s revenue in 2022 is relatively unchanged from revenue six years ago. Not good news.  

To counter this revenue decline, the global retailer is now expanding beyond its core fashion business and into new areas of home and beauty products. Although H&M has had to close some of its fashion stores, it is now adding new, stand-alone stores focused on beauty and home products.  

There are now 32 H&M Home-branded stores that sell products from sofas to linens to kitchen products. The company has also added homeware sections to 399 of its regular stores as well as on the its website.  

The company has also opened two flagship H&M Beauty-branded stores in Norway, selling products such as nail polish, body wash, makeup, and razors. Some of the products are also sold in regular H&M stores and online.  

And, in yet another move, H&M has also added other brands to its stores and now offers more than 70 other brands. In addition, H&M has grown its own private-label brands, which have sold at double the rate of the overall company.   Why the changes? According to H&M, “we see that customers spend more time with us if we offer a broader range of products.”   Shall we check it out?      

Group Activities and Discussion Questions:

  1. Discuss the four primary marketing strategies: Market penetration, market development, product development, and diversification.
  2. Poll students: Who has shopped at H&M? What have they purchased?
  3. Which strategy is H&M employing for the new stores? For the new product lines?
  4. Divide students into teams. Have each team select one of the four primary strategies for H&M and develop a marketing mix for it.
  5. View H&M website: https://www2.hm.com/en_us/index.html
  6. View H&M home products website: https://www2.hm.com/en_gb/home.html
  7. And H&M beauty products website: https://www2.hm.com/en_us/beauty.html

Source: Moss, T. (15 July 2023). H&M now wants to sell you makeup, sofas, and crocs. Wall Street Journal.

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Culture Wars Impact Retailers

The world can be a tricky place for marketers and brands these days. Cultural differences can cause a big backlash when too many consumers take offense at certain topics that are endorsed by brands. It is a difficult balance that sometimes tips over to the negative.

Recently companies including Walt Disney, Anheuser-Busch, and Target have faced opposition to their support of the gay and trans communities. For example, June is Gay Pride Month and while many consumers and companies (such as Target, Walmart, Kohl’s, and JC Penney) fully support the issue, others may take an opposite view.

Target’s controversy relates to clothing, décor, and other Pride items which it was selling in support of gay and trans-gender rights. While the company has embraced the topic and products for a number of years, this year it went sideways. In some stores customers knocked down displays, threatened store employees, and posted on social media in opposition to the products.  

In response to the controversy, Target moved its Pride products away from the front of the store and pulled several products from sale, all in response to fears about employee safety. The response to Target’s move was disappointment from many consumers and organizations that supported gay rights.

How should we deal with sensitive issues?

 Group Activities and Discussion Questions:

  1. This is a tricky topic for discussion, but one that bears examination by students.
  2. Discuss how companies can handle divisive topics.
  3. How should marketers balance messages to communities.
  4. Poll students: What are topics that are divisive and controversial? What examples have students seen?
  5. Show video about the issue at Target: https://youtu.be/AvfuoXga77Q
  6. Show Target’s website for Pride items: https://www.target.com/c/pride/-/N-5589f
  7. How should marketers address controversial topics?

Source: Nassauer, S. (25 May 2023). Target lands in culture-war crosshairs over pride month. Wall Street Journal; Reid, H. (31 May 2023). Target Pride backlash exposes ‘rainbow capitalism’ problem, designer says. Reuters New service.

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