Old Tom Capital’s Post

Last week REI made two noteworthy announcements relating to its footwear business. Firstly, they plan to double down on Run as a category. Their run segment has grown double-digit % yoy since the onset of COVID, so this feels like a no-brainer. Secondly, and more surprisingly, REI will be exiting their owned-brand footwear at the end of 2024 - only 4 years after producing their first shoe. My thoughts on both pieces of news: In research MakerSights conducted last year on the Outdoor market, Run - along with Hike - were the two categories that gained the most participation during the pandemic. Neither has seen a slowdown since. Over the last 4 years there’s been a ~25% jump in the number of runners - particularly recreational - and the frequency of running activity. All of this means higher demand for running shoes, demand REI is well positioned to supply with its massive installed base of outdoor-centric consumers. As REI expands its run footprint, I’m interested to see how they continue to build out their assortment. In the press release announcing their intentions, REI cited HOKA, On, Altra Running, Salomon and Brooks Running as the five brands that had the most heat with their community. Norda, Craftsportswear and ASICS Corporation were also highlighted. I like the mix (heritage and new) and most of these brands also have strong pedigree in Trail or Hike, which feels a natural fit for REI. Notably absent from their list of brand mentions: industry Run giants Nike and adidas, as well as New Balance who have been on a tear in recent years, and continue to take wallspace at other retailers. Looking at their current .com assortment, REI’s average price point for their run shoes is ~$140. That’s 30% higher than the avg. for DICK'S Sporting Goods run assortment. While the pricing disparity doesn’t surprise me, I wonder how much of the increasingly economically diverse run market REI is pricing itself out of? Not only are runners today more diverse, but the amount of casual runners adopting the sport is a major driver of its overall growth. If REI wants to be a serious destination for this portion of the market, they’ll need to beef up their assortment of entry price-point styles.   Lastly, on REI’s shutdown of its private label footwear business: to me it’s further proof of wholesale’s return to prominence. When REI first launched their branded footwear in 2020, most were forecasting a dominant future for DTC. Nike, and many others, dramatically pulled back from 3rd party retail, and retailers in turn aggressively built up arsenals of owned product. Fast forward to today, and that trend is in full reverse. The fight for shelf space on retailers' walls is more competitive than ever. REI clearly thinks it can make more top-line and build higher consumer LTV leaning into this reality. Kudos to them for embracing it head on. #REI #run #wholesale #Hoka #On #Brooks #Salomon #Atra #Nike #Adidas #NewBalance #Norda #Craft #Asics #DSG #MakerSights

🚀 The rise of new footwear brands is shaking up the global industry! 👟 Nike recently lost a staggering $27 BILLION in market value, with shares plunging 20% in a single trading session — the biggest fall since 2001. This decline raises concerns about waning demand and intensifying competition from upstarts like On and HOKA, along with longtime rival adidas. 💨 Take On, for example—backed by tennis icon Roger Federer. In May 2024, the company reported a 29% year-over-year jump in first-quarter sales, surpassing the half-a-billion mark for the first time. Their direct-to-consumer sales skyrocketed by 49%, a clear indication that consumers are gravitating towards brands that offer something new. As a sneakerhead, I’ve seen firsthand the over-saturation of Nike’s iconic Jordans and Dunks. The once-coveted sneakers now feel less innovative, with annual releases that just don't hit the same anymore. In contrast, new brands are capturing the market’s attention with fresh ideas and a more authentic approach. 📉 On the Indian side, the footwear market is expected to grow from $26 billion to $90 billion by 2030 (GTRI report), with a massive shift towards non-leather footwear like sports shoes and sneakers. 📈 -> Indians spend only $18.2 per person on footwear, much lower than the per capita spending in China ($128.6), the USA ($303), and Japan ($333.3). But the growing sneaker culture in India is closing this gap fast. 🚀 -> One brand that’s particularly caught my eye is Comet. Their pricing is 40-50% lower than international giants like Nike and Adidas, making them accessible, yet they’ve managed to create a buzz with thoughtful marketing and a strong product focus. One of their drops, in collaboration with artist Santanu Hazarika, sold out within 2 hours! 🌟 -> Recently, Comet raised INR 42.3 CRORE ($5 MILLION) in a Series A funding round led by Elevation Capital, with participation from Nexus Venture Partners. 💸 -> As a proud owner of the Comet Ludo, inspired by an Indian classic, I can attest to the power of nostalgia and self-expression that this brand brings. Millennials, who make up 34% of India’s population, are driving the demand for comfort and fashionable footwear, and brands like Comet are perfectly positioned to meet this demand. 🤼 The future of footwear is more diverse, inclusive, and exciting than ever! 💥 #IndianMarket #BoomingBusiness #GlobalTrends #Innovation #BrandLoyalty #Investment #GrowthPotential

How Woodland Wins Over Timberland in India Woodland, a subsidiary of Aero Group, was launched in India in 1992, initially exporting winter boots to Russia. When the Soviet Union dissolved, Woodland pivoted to adventure footwear, seizing the emerging market in India. Timberland, an American brand known for its durable and stylish outdoor footwear, entered India in 1993, a year after Woodland. Market Research and Product Localization Woodland's Approach: Consumer Insight: Woodland conducted extensive market research to understand Indian consumers' preferences and needs. They discovered a growing interest in outdoor activities and adventure sports. Product Adaptation: Woodland tailored its products to suit Indian climatic conditions and terrains. The brand focused on creating durable, rugged footwear suitable for diverse environments across India. Timberland's Approach: Global Consistency: Timberland relied on its established global product lines without significant localization. While the brand's products were known for quality, they were not specifically adapted to Indian conditions. Brand Positioning Woodland's Strategy: Adventure and Affordability: Woodland positioned itself as an affordable, reliable brand for adventure enthusiasts. This resonated well with the Indian middle class, which was looking for quality products at reasonable prices. Eco-Friendliness: Woodland emphasized its use of eco-friendly materials, appealing to environmentally conscious consumers. Timberland's Strategy: Premium and Heritage: Timberland maintained its global positioning as a premium brand with a focus on craftsmanship and heritage. This approach targeted affluent consumers but limited its broader market appeal. Read Complete Case Study at : https://lnkd.in/gBC3-Nvi #casestudy #woodland #marketing #business #ceo

How Woodland Wins Over Timberland in India Woodland, a subsidiary of Aero Group, was launched in India in 1992, initially exporting winter boots to Russia. When the Soviet Union dissolved, Woodland pivoted to adventure footwear, seizing the emerging market in India. Timberland, an American brand known for its durable and stylish outdoor footwear, entered India in 1993, a year after Woodland. Market Research and Product Localization Woodland's Approach: Consumer Insight: Woodland conducted extensive market research to understand Indian consumers' preferences and needs. They discovered a growing interest in outdoor activities and adventure sports. Product Adaptation: Woodland tailored its products to suit Indian climatic conditions and terrains. The brand focused on creating durable, rugged footwear suitable for diverse environments across India. Timberland's Approach: Global Consistency: Timberland relied on its established global product lines without significant localization. While the brand's products were known for quality, they were not specifically adapted to Indian conditions. Brand Positioning Woodland's Strategy: Adventure and Affordability: Woodland positioned itself as an affordable, reliable brand for adventure enthusiasts. This resonated well with the Indian middle class, which was looking for quality products at reasonable prices. Eco-Friendliness: Woodland emphasized its use of eco-friendly materials, appealing to environmentally conscious consumers. Timberland's Strategy: Premium and Heritage: Timberland maintained its global positioning as a premium brand with a focus on craftsmanship and heritage. This approach targeted affluent consumers but limited its broader market appeal. Read Complete Case Study at : https://lnkd.in/gUU-DssD #casestudy #woodland #marketing #business #ceo

Is On Running becoming a new luxury brand? 📍Three months ago, the Financial Times unveiled On’s plan to reinforce its positioning for the running community and to boost Its lifestyle offer. 💡Lifestyle side, we are seeing the launch of very interesting projects with a specific big picture. As shared by Harry Salmons on SOTA INSIDER, their collaborations are complementary because they don’t reach similar consumer segments. 👑 On May 23, the brand will release its new capsule co-designed with Loewe. Moreover, as reported by Highsnobiety, the brand collaborated with Post Archive Faction for the CURRENT FORM 1.0, their capsule collection focused on advanced performance clothing and footwear. Furthermore, the brand has introduced FKA Twigs as a new creative partner and collaborator for upcoming training collections. 👀 As Global Advisory analyzed last week, On’s apparel is pivotal. It has been fundamental in the past to attract attention and set the stage for their footwear and it’s very important now, in a specific scenario where the brand is shifting to increase its new lifestyle offer. ⚡️⚡️⚡️Takeaway: As shared by Glenn McMahon, consumers will continue to pivot away from mass brands to “niche” brands that focus on performance and function. That’s why, with those projects (and others in pipeline), the brand is targeting innovators/cultural pioneers in order to reach lifestyle audiences beyond its core target, the modern runner. In that scenario, On’s performance clothing and footwear are equally fundamental for boosting its awareness as a lifestyle brand. #Strategy #Running #Culture

When you've already built a brilliant brand, what does it take to diversify and evolve it? This is a focus for REEF, the California founded and surf-inspired footwear brand, as they look to continuously delight in a well established niche 🏄♀️ Head of Marketing Meryl McCurry says their goal is to expand Reef into new categories and use cases while ensuring that its core brand — rooted in comfort — stays strong. So how can they evaluate whether this shift is landing, while maintaining brand integrity? By using Tracksuit data, ofc. 👏 Dive into the case study to find out how Reef and Tracksuit are working together to make waves in brand evolution 🌊

"Confidence, Creativity, and Golf Shoes: Oakley's Masterclass in Brand Differentiation" Ever wonder why some brands effortlessly dominate their industries while others fade into obscurity? At Nemo Design, we think about this daily, and Oakley's new Edge Icon golf shoe is a perfect case study in game-changing strategy. I am excited to see Oakley taking a play from Jim Jannard's innovative leadership style and constant pursuit of excellence and originality. Nemo didn’t work on this so it’s not a plug for the shop. Let's break down how the Oakley Edge Icon golf footwear embodies the five laws of extraordinary brands: 1. Give Value, Get Value: The Edge Icon isn't just a shoe; it's a conversation starter, a performance enhancer, and a fashion statement rolled into one. By delivering unique value to golfers who crave distinction, Oakley's poised for a profitable victory. 2. Confidence Trumps Cleverness: This isn't a shoe that whispers—it roars. Oakley's confidence in challenging golf fashion norms speaks volumes, inspiring customers to step out of their comfort zones too. 3. Differentiate, Don't Compete: Instead of battling in the crowded space of traditional golf footwear, Oakley created its own playing field. The Edge Icon doesn't compete; it stands alone. 4. Actions Speak Louder Than Words: Oakley didn't just talk about innovation; they brought it to life. The Edge Icon's design and functionality are a physical manifestation of the brand's commitment to pushing boundaries. It feels like something Oakley would create. 5. Embrace the Fun Factor: Let's face it—these shoes are fun! They inject comfort and personality into a sport often perceived as staid. Oakley reminds us that effective strategies can (and should) be pleasurable. As brand strategists, we're fans of brands pushing innovation. Oakley core value is to "ignite the imagination through the fusion of art and science". The Edge Icon isn't just a product launch; it's a masterclass in brand differentiation and strategic thinking. The true test, will the market reward the effort? So, here's my challenge: How can you apply these principles to your brand or career? Are you giving unique value? Are your actions aligned with your strategy? Are you differentiating or just competing? And most importantly, are you having fun with it? Share your thoughts below. Let's start a conversation about how we can all bring a bit of that Oakley boldness into our strategic playbooks. #StrategicBranding #InnovationInAction #DaretoDifferentiate #BrandConfidence #oakleygolf

Unveiling innovation around the Olympics to fuel rapid growth in the highly competitive athletic footwear category. The athletic footwear category is heating up as new brands emerge with new and innovation products. On Founded in 2010 in Switzerland, On has become one of the fastest growing athletic shoe brands in the world largely thanks to its innovative product design. Their award-winning “CloudTec” technology is a fundamental feature of many of their shoes. It enables soft landings and powerful take-offs, and its cushioned sole made up of individual round rubber pods gives it a visually distinctive look. HOKA Founded in 2009, HOKA is another challenger brand whose unique and innovative products have underpinned its rapid growth. HOKA's ‘maximalist’ athletic shoes look and feel totally different to the traditional competition - they're a lightweight shoe with a highly distinctive thick sole that provides an unprecedented level of cushioning, and great ankle and arch support. On & HOKA's unique product design's have fueled their global popularity and this has been reflected in remarkable financial growth: •      In 2023, HOKA registered annual sales of $1.4b and have been forecasting to hit $2b in sales "pretty soon" – they seem on track to do this after they announced a 30% YOY net sales growth from $420.5m to $545.2m in Q1 •      On previously announced their ambitions to double revenue between 2023 – 2026which would put their net sales at nearly $4b in 2026 The significant growth of their respective share price's has reflected their fundamentals. Over the last 5 years: •      The share price of HOKA’s parent company Deckers Brands has risen from $159 to $894 (+462%) •      On’s share price has risen from $22 to $70 (+218%) The positive momentum appears set to continue, as the Olympics provides a prominent platform to double-down on their product-led growth strategies.  In the lead up to the Olympics, On unveiled their new revolutionary spray-on technology called “LightSpray” that utilises robotics to produce the lightest elite-level shoe they’ve ever made, via the 3-min clip (below). As part of the announcement campaign roll-out, they’ve also launched an experiential pop up in Paris called “On Labs Paris” which they’re labelling as a “home of innovation” during the Olympics. The exhibition allows On to showcase their epic robotic LightSpray production process and engage with the running community via exclusive events and screenings throughout July and August. What's to come for athletic footwear... Nike has had a stranglehold on the category for a long time and its brand was built off running. They're still the giant of the industry, and although they've being doing it tough recently they've also been making strategic announcements and are introducing new products of their own. Competition within the category is likely to remain fierce, which is great for consumers and great for sport. #sportsmarketing

"McCann Worldgroup India has partnered with leading Indian shoe brand, Buckaroo, to launch a pilot project providing affordable and fully customized footwear for those most in need. With India's annual birth rate resulting in an estimated 27,000 infants born with clubfoot each year (based on a 1 per 1000 live births incidence) clubfoot presents a significant challenge since surgical intervention is often elusive for those affected. Compounding this issue is the lack of footwear options tailored to their needs, as customizing solutions for each individual proves expensive due to the unique shape of every foot. McCann Worldgroup India and Buckaroo identified an opportunity to work with India’s famed local cobblers, known as ‘mochis', found on almost every street corner, an extremely skilful network just waiting to be harnessed and empowered. The cobblers have a long tradition of creating custom-made footwear using locally available materials. Presenting Fit My Feet, a unique solution for unique feet. A footwear toolkit that combines raw materials and existing cobbler’s tools to create custom and inexpensive slippers. Fit My Feet leverages the cobbler’s expertise and provided kits and training to enable them to create specialized footwear for people with clubfoot. The extensive street presence of these cobblers makes them the ideal source of reaching those that need these custom slippers. Also, by providing wall art branding to each cobbler, the campaign helps them advertise their services without the need for any additional resources.  The pilot’s rollout started in February with cobbler networks in Mumbai and has since spread to its surrounding areas with 150 kits already distributed. Importantly, since the problem isn’t restricted to India, neither will the solution be. Buckaroo is creating a microsite to cloud-source the design to the world. So that mobility, stability, and dignity can be available to all. Kinjal Savla, CEO of Buckaroo said: “We as a people, and not just a brand, have a responsibility to do what we can to give back. Especially to people who don’t have the means to get the help and attention they need. What we do as a brand must come from a place of genuineness since it is authentic community outreach that can help us impact lives for the better in the short and long term. Buckaroo aims to revolutionise footwear in India for every single person. The challenge Buckaroo and McCann Worldgroup India faced was to come up with a low-cost customisation process that is accessible to everyone afflicted with Clubfoot." Full article and video: https://lnkd.in/g55RYasA

Municipal Shoes Reviews: The Ultimate Footwear for Urban Adventures Looking for the perfect pair of shoes to address your city adventures? Look no in addition than our complete Municipal Shoes evaluation. Whether you navigate city streets on foot, motorbike, or skateboard, locating cushty and elegant shoes that may face up to the needs of city lifestyles is important. In this assessment, we’ll dive deep into the capabilities, performance, and sturdiness of Municipal Shoes, imparting you with an knowledgeable buying decision. #MunicipalShoes #MunicipalShoesReviews #MunicipalShoesReview #Municipalshoe