Tag Archives: fashion

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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Shapewear for Men!

Underwear for both males and females has a long and varied history through thousands of years. And while the style of the garments vary, and the materials are much softer and smoother, the shapewear of today owes much to the underwear of the past.

But what is shapewear? Briefly (no pun intended), shapewear is tight-fitting underwear that controls and shapes a figure. This is a significant industry segment that is estimated by Allied Market Research to reach nearly $7 billion by 2030.

The latest trend in the industry today? Well, the hottest trend in the shapewear industry are garments designed specifically for men. Just as for women, the men’s shapewear is all intended to help men look their best under clothes.

Men’s garments include t-shirts, briefs, vests, and tops made from stretchy and form-fitting synthetic blends that help flatten mid-section love handles and firm the glutes. Some men balk at calling it ‘shapewear ‘though – that sounds too much like women’s lingerie. So, ‘compression wear’ is more commonly used for men’s undergarments. Compression wear for athletics is still very closely related to shapewear though, as compression wear is meant to optimize athletic performance and help with recovery (as well as help us look good).

And of course we can blame the pandemic for the rise (another not-intended pun) in shapewear demand as we emerge from small circles and into gyms and fitness centers again.

What’s your favorite look?

Group Activities and Discussion Questions:

  1. Discuss the stages in the product life cycle. What are the marketing objectives in each stage?
  2. Where is shapewear on the PLC? Where is men’s shapewear?
  3. Show websites for men’s shapewear:
  4. Spanx: https://spanx.com/collections/mens
  5. Core Wear: https://getcorewear.com/
  6. HisRoom: https://www.hisroom.com/
  7. Students may also look for additional manufacturers. What are the main marketing messages?
  8. Divide students into teams. Have each team draw a PLC and plot various clothing and accessories on the chart.
  9. What does it take to reposition a product on the PLC?

Source: Waters, J. (Nov 9 2021), Yes, Men Do Wear Spanx. Here’s Why, Wall Street Journal.

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