es grew 34 per cent year-over-year, from $397.7 million to $533 million.   Just this month, Hoka expanded its bricks-and-mortar presence with the opening of its inaugural US flagship, an impressive 9000-square-foot space on Fifth Avenue in New York City.  As Brooke Lord, the vice president and general manager of Hoka US, told Inside Retail, “The NYC flagship store marks a significant achievement, demonstrating our expansion and commitment to supporting all athletes. This store not only showcases the brand’s dedication to the running community but also functions as a hub for innovation, where visitors can explore the latest breakthroughs in footwear technology and design. It’s a space created to inspire and connect, providing an in-depth look at the core of the Hoka vision.” At a time when legacy brands like Nike and Asics are seeing revenue growth slow, and once-hot brands like Allbirds are struggling to make a comeback, how is Hoka not only surviving but thriving in this hypercompetitive market? Inside Retail further connected with Hoka’s vice president and several retail industry experts to learn more about Hoka’s hot spot in the market and to see if it’s maintainable.  What’s the hype behind Hoka? Besides the catchy name, which means “to fly” in Māori, the language of the indigenous people of New Zealand, Hoka stands out from other sneaker brands thanks to two key factors: its distinct product design and a slow but steady route to expansion.  As Neil Saunders, managing director and retail analyst at GlobalData, told Inside Retail, “Hoka’s original success was built off the back of how comfortable the sneaker is to wear. This made them appealing to a number of different consumer segments from runners to people who are on their feet a lot. In the early days, a lot of the growth came from word of mouth as customers would evangelise the shoes.” Hoka is well-known in the industry for design details such as its cushion midsole that acts as a high-performance shock absorber and the brand’s patented active foot frame which is engineered to cradle the wearer’s foot securely by raising or lowering the midsole walls.  “Hoka is now a much bigger business thanks to having stronger distribution and having built up a loyal following,” Saunders said. “The unconventional design of the sneakers has given them a cult-like appeal that has moved beyond those primarily looking for comfort.” The retail expert concluded that Hoka has been careful not to over-expand and become too ubiquitous, which could cause it to lose its “edge” with consumers. This will help the brand out in the long run.  Liza Amlani, the principal and co-founder of Retail Strategy Group, agreed that Hoka’s ability to attract athletes and fashion lovers alike has helped it gain a bigger share of the performance footwear market. She expects the new flagship store to drive even stronger customer loyalty. “Hoka’s strategy is to continue to innovate to expand their product mix so the assortment is always evolving and improving,” she added, referencing the brand’s recent foray into hiking boots.  “With comfort playing an important role in fashion, Hoka has had great success in wholesale with accounts like Nordstrom. They have leveraged their wholesale strategy to inform their own retail product mix and are going to market with winners. “The icing on the cake is the product-obsessed sales associates who believe they are selling the best to their customers.”  For Lord, Hoka’s US vice president, the secret to the brand’s success is its investment in building a community of customers who are attracted to its core tenets, athleticism and comfort. This can be seen in the activities it offers through its New York City store.   “The store also features a variety of experiences aimed at bringing people together and fostering a sense of community – from interactive workshops to exclusive product launches and demos. Additionally, organised run clubs led by local running groups and Hoka brand ambassadors and athletes will offer further opportunities for connection and camaraderie,” Lord told Inside Retail.  “Overarchingly, we want to continue to prioritise these community connections and conversations at the forefront of this new flagship, and all of our new retail locations to come. At Hoka we believe that we are only as strong as our community.” Can Hoka hold on to its momentum? In a discussion panel recently hosted by DTC Experts, Tony Yu, the co-founder of Vessi, a Vancouver-based waterproof sneaker brand that has sold over one million shoes since launching in 2017, noted a few key traits of successful direct-to-consumer brands.  The secret ingredient to building a successful DTC brand, according to Yu, is having a product that passes the “20 feet away” test, with consumers being able to immediately recognise a product from that distance, a feat that Hoka has achieved. However, looks alone aren’t enough. Yu also emphasised the importance of having clear messaging of what the brand is and what its key offerings are.  Using Allbirds as an example, Yu said the brand’s current struggles largely derive from a lack of clear brand messaging, outside of its stance on sustainability, and expanding too quickly. Where Hoka excels, according to retail experts like Saunders and Amlani, is not only in differentiating its wide assortment of items with unique design details but also in its highly strategic retail expansion planning.  While the footwear industry, especially the sneaker market, grows ever more competitive, it seems like Hoka has a strong grip in this field.  Hoka’s continued path to growth Hoka’s newly opened flagship marks its second permanent location in New York City and the company’s eighth in the United States.  In addition to its US locations, Hoka also opened its first Paris location, a 1500-square-foot space at 35 Boulevard des Capucines in the Opéra neighbourhood, before the upcoming Olympic games being held in the country this summer.  Lord told Inside Retail that the brand is sharpening its focus on trail running this year, alongside its traditional road running pursuits, “and our flagship store opening is the perfect stage to highlight this commitment.” The flagship location will also be used to help garner consumer commentary and assess what direction the company should be moving in.  “We are very much looking forward to leveraging this bricks-and-mortar location as a venue for ongoing feedback with our consumers and community-generated learnings. These findings will directly translate into bettering our retail experience and our brand as a whole,” Lord concluded. Further reading: Hoka unveils interactive FlyLab in Sydney to celebrate running culture