How Fashion’s Embrace Helped HOKA to $1b in Sales
A look into HOKA’s growth fueled by cultural trends and tastemakers
What is ‘cool’? Bad Bunny, A24 films? It’s a subjective concept, but cool drives markets. In 2020, Gap shares skyrocketed by nearly 20% after the announcement of the Yeezy partnership, adding more than $700m to their market cap in a single day. According to Yahoo Finance, the global streetwear market size is $187.6b, a market purely determined by what’s cool. There was a time when HOKA wasn’t necessarily the epitome of coolness. The weird, bubbly designs were reserved for grandparents and medical workers. Time’s have changed, in 2023, the brand achieved a monumental benchmark of $1.4b in net sales, an impressive 533% growth from 2019.
According to Outside Magazine, HOKA was born in the French Alps. The brand originated from the minds of French adventure athletes and product developers Nico Mermoud, Jean-Luc Diard, and Christophe Aubonnet. Leveraging their experience from Salomon, they aimed to create trail running shoes for challenging terrains like the Alps. They aimed to innovate by integrating oversized technology, similar to what's used in powder skis and mountain bikes. This resulted in a shoe with a distinct, thickly cushioned, wide-body design, optimized for performance and comfort during downhill runs. Decker Brands (NYSE: DECK), a footwear conglomerate whose portfolio includes UGG, acquired HOKA in 2012. The niche shoe was championed by marathoners and professional trail runners due to its lightweight and performance.
This year StockX revealed that HOKA is their number 2 fastest growing brand, up 713% from last year. StockX is an industry-leader in the fashion secondary market, the ultimate destination for the Supreme and Off-White aficionados. HOKA's ranking signifies not just a rise in sales, but also a shift in consumer preferences, highlighting the brand's increasing credibility and demand among fashion-forward consumers and collectors.
HOKA credits authenticity as the driver for fashion’s embrace. HOKA’s Interim President of Performance Lifestyle , Stefano Caroti told Footwear News, “Ensuring we stay authentic and bring innovative solutions to improve performance is critically important, and this will also continue to resonate on the lifestyle side.” In the realm of "cool," a distinct pattern emerges: brands and products that eschew mainstream appeal in favor of a more retro, niche, and authentically uncool aesthetic often find themselves embraced by certain cultural subsets. This phenomenon is evident in the resurgence of brands like Carhartt and Dickies, and even in the revival of vinyl records. Remarkably, vinyl sales have soared to their highest in 30 years, driven predominantly by Gen Z consumers, half of whom don't even own a record player.
HOKA has amplified their fashion-conscious growth strategy through a perpetual series of strategic brand partnerships. While maintaining its signature style, HOKA has leveraged collaborations as a conduit for creative experimentation and heightened visibility in the fashion market. To date, HOKA's portfolio of collaborations is both impressive and diverse, featuring prominent releases with fashion staples such as Moncler, Bodega, Opening Ceremony, and more.
This type of collaboration is a common strategy you’ll see amongst mass-market brands like H&M, heritage brands such as Carhartt, or performance brands like North Face or Salomon. These brands will create a capsule product or collection with a luxury brand. This alliance between retail and luxury is a way for the average consumer to buy designer items at a cheaper price and for high-end brands to infiltrate the mass market. According to data platform GWI, 37% of global consumers aspire to a lifestyle they aren’t able to afford.
The 2019 collaboration between New Balance and Aimé Leon Dore transformed the brand's image from being synonymous with 'dad shoes' to a coveted high-end streetwear icon. This partnership resulted in instant sell-outs, significantly elevating New Balance's presence in the fashion world and broadening its distribution to upscale fashion boutiques such as SSENSE and Mr. Porter.
One can’t overlook the intrinsic power of cool when dissecting HOKA's rise from niche performance wear to a $1.4 billion sneaker phenomenon. HOKA's success story is a savvy blend of cultural resonance and market strategy. From honing in on a performance niche to forging high-profile fashion collaborations, HOKA has masterfully navigated the intricate dynamics of consumer culture. As the brand now aims for a $2 billion sales target, its trajectory not only highlights the importance of cultural literacy but also sets a precedent for how authenticity and strategic innovation can propel a brand to new heights in the ever-evolving world of fashion and streetwear.
Written by Kobi Ansong
images courtesy of Hypebeast.