So 15 to 20 years ago there was no Hoka, no Innovate, no Avia, No Bull was not a "thing", ON wasn't in existence. If someone pitched me the idea of starting an athletic shoe brand to compete against Nike, Adidas, etc.. I would laugh them out of the office.
What changed in the market that suddenly allowed these brands to not just start, but to thrive?
Is it simply because you can sell on line and don't need space in a running shoe store? It can't be that simple.
People want more expensive shoes. They are willing to pay silly money to show how serious they are.
1. Running became more popular at a hobbyist level.
2. Shoe companies keep innovating - maybe you liked the pegasus 28. Well too bad, the pegasus 29 is way different. By the pegasus 37, they are nothing like the shoes you loved for 7 iterations. Maybe your shoes were just discontinued without explanation. When this happens, you'll buy anything on the market. By constantly innovating, these companies open the door for competitors and prevent any brand loyalty from developing. When I first started running many had a favorite brand or two, but I doubt anyone does today.
DTC, allows start-ups to bypass traditional gatekeepers of distributors and corporate chain buyers. Plus low cost advertising via SM, whether outright ads or shoe reviewers/influencers. Atreyu parleyed this avenue into an account with REI.
Probably owned by the same investors so it's not like the money is really going anywhere new.
NotPC wrote:
So 15 to 20 years ago there was no Hoka, no Innovate, no Avia,
I remember Inov-8 making a splash in mountain running in 2003 (and I had a pair of their first model). I won a pair of Avias at a road race in the '90s. I seem to recall Avia as a prominent brand in the '80s with ads in running magazines.
A lot if it is due to the fact that information is widely more available today. (Mostly because of the internet)
Social media and advertising through paid “influencers”.
Brave New World. wrote:
DTC, allows start-ups to bypass traditional gatekeepers of distributors and corporate chain buyers. Plus low cost advertising via SM, whether outright ads or shoe reviewers/influencers. Atreyu parleyed this avenue into an account with REI.
Chinese companies have the IP and the manufacturing capability. It drastically lowers the barriers of entry in just about every market.
The minimalism fad c. 2009-13ish opened up a marketing window for new shoes and new "technology" or the lack thereof, and therefore brands.
Something I know less about is the manufacturing process, which has surely has gotten substantially more efficient. I had Nike's first Flyknit lunars. Not long after, everyone could make basically the same thing. I would guess the manufacturing facilities might be available to launch new shoes. But it's also important to note that Hoka's real dominance in the hobby market has come after they got bought out by a larger company.
What I actually do find surprising is that generic shoes that are actually good haven't really come along in the same way other things have in other industries. Instead, for example, you have a Chinese company like 361 come along and seem an awful lot like Asics in initial designs, but now those things cost $130-200 like every other premium brand. It seems like the market would be wide open for someone to ripoff some new but not cutting edge foam and throw a decent upper on it and sell them for $60 instead of $120.
Capitalism and free market economics. Nike, Adidas, Saucony, NB, etc can't just rest on their laurels. I had never heard of Hoka five years ago and that's my go to brand now because they are cost-competitive, quality shoes with good cushioning and light weight.
There are losers too. Fila gave up the running market. Mizuno & Reebok seem like they're on life support (in the US at least). Sketchers market share is down.
Just as in every other industry, there will be a shake out or a merger of companies.