Hoka was founded a little over a decade ago, and the brand is already worth more than $1 billion. We explore the shoe’s design and what makes the brand stand out from its competitors.
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00:00 (upbeat music)
00:01 Hoka is one of the fastest growing shoe brands.
00:04 You can't step out these days without spotting someone
00:06 in these funky, chunky shoes,
00:08 from Joe Biden to Britney Spears
00:10 to even your local barista.
00:12 So how did this dad sneaker turn
00:13 into a billion dollar enterprise
00:15 that's taking shelf space away from Nike and Adidas?
00:19 I'm Joy Marie McKenzie,
00:20 and here's the story behind the rise of Hoka.
00:23 The company began in the French Alps,
00:25 and like many sports shoe brands,
00:27 you can trace Hoka's origins back to athletes.
00:30 Two entrepreneurs with a passion for mountain running,
00:33 Jean-Luc Diaz and Nicole Mermou,
00:35 were inspired to create a sneaker
00:36 that worked in all kinds of terrain,
00:39 like dirt, lava, rocks, and even trails.
00:42 So they founded Hoka in 2009.
00:45 That same year, the brand asked
00:46 a former marathon world champion, Mark Plachis,
00:49 to try its prototype for a test run.
00:52 He absolutely fell in love
00:54 with the extreme cushioning of the shoe,
00:56 and eventually purchased 770 pairs
00:59 for his athletic wear shop.
01:01 Hoka quickly gained respect from elite runners,
01:03 and the shoe spread like wildfire among athletes.
01:07 In 2012, the footwear company, Decker's, purchased Hoka.
01:11 It already owned brands like UGG and Teva,
01:13 and it planned to turn Hoka into a billion dollar line.
01:16 It did just that.
01:18 Hoka passed a billion dollars in 2022,
01:22 a little more than a decade after its founding.
01:24 Hoka now makes up about 40% of Decker's yearly earnings.
01:28 So let's take a look behind the neon,
01:30 and see what made these shoes sell so fast.
01:33 First off, they're incredibly comfortable.
01:36 The bottom part of the shoe has what's called a midsole,
01:39 the brand's signature.
01:40 It's like this marshmallow-like component
01:42 meant to make you feel like you're flying down
01:44 rocky trails and cliffs.
01:46 Some experts compare the shoe
01:47 to a really well-pumped mountain bike tire,
01:50 rather than your standard one.
01:52 In fact, the name Hoka means to soar,
01:54 or fly in the indigenous New Zealand Maori language.
01:57 There's also this foot frame that cradles the shoe,
02:00 and the curved part here is the Meta Rocker,
02:02 which propels the sneaker forward.
02:04 Lastly, the bright neon colors, bold logo,
02:08 and oversized look make these shoes
02:10 stand out from their competitors.
02:12 So who's wearing them?
02:14 Now, just about everyone.
02:16 They're popular among healthcare workers
02:18 who are on their feet all day long.
02:20 - The reason I like the Hoka is because
02:22 it has a nice wide toe box to fit my bunion,
02:26 and it also has, it passes the shoe test,
02:29 which is, it can't be folded in half,
02:31 it can't be twisted,
02:34 and the heel counter is very nice and supportive.
02:39 - But fashionistas love them too.
02:41 Here they are on the runway at Nicolo Formacetti's show.
02:44 And let's not forget Hollywood.
02:46 Cameron Diaz, Blake Lively, and Reese Witherspoon
02:49 have also sported these kicks.
02:51 But it's not just feel and look.
02:53 It's also Hoka's business strategy that's helped it grow.
02:56 Priced around $125 to well over $250,
03:01 these kicks are in high demand.
03:04 But the company has been careful not to overpopulate stores.
03:07 It's playing hard to get with customers.
03:09 While the brand is headquartered in the US,
03:11 the shoes are made in China and Vietnam,
03:14 allowing them to keep costs down.
03:16 The company ships to over 60 countries,
03:18 from Chile to Norway,
03:19 and is continuing to expand its customer base.
03:22 In fact, in 2023,
03:24 it launched its first ever collection for kids.
03:27 The company is also gaining traction
03:28 by collaborating with brands like Free People
03:31 and designers like Nicole McLachlan.
03:33 And as the brand keeps growing,
03:35 the stock of Hoka's parent company, Decker's,
03:38 just keeps moving up.
03:39 Last year, it skyrocketed to 78%.
03:42 But Decker's is still small,
03:43 compared to legacy brands like Nike and Adidas.
03:46 In 2023, Nike's revenue was over $50 billion,
03:50 and Adidas was over $22 billion,
03:53 while Decker's was nearing $4 billion.
03:55 But it is consistently increasing.
03:58 So even though Hoka may be the tortoise
04:00 in the shoe race right now,
04:01 it's growing fast, and it's in it for the long run.
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