There has not been a garment in history that enjoyed a more meteoric rise than the once humble sneaker. And slowly over time, Sneakers have become a global obsession through the influences of social history and pop culture. The root of this crazy obsession lies in creating hype and such methods or hype multipliers have existed for centuries. With the sneaker industry being one of the only big winners on both the retail and online front, businesses can learn a thing or two.
- Demand & Supply
The truest way to create hype is to supply less than the demanded quantity and eventually gradually supplying more of that thing so the hype converts to revenue. One of such demand-supply manipulation is incremental rollout, which is to first introduce a small quantity of products to market and from there gradually increase it in terms of scope and volume. Teasing but never fully satisfying the needs of the sneaker community. This wide spate of “close enoughs” by the market will convert the hype that is generated into increased sales, until the sneaker has died down in terms of its “coolness”. However, it is essential to clearly differentiate between incremental rollout and limited production. The latter may roll out in gradually-increasing fashion but its rarity (breakthrough technology) is more of a consequence than marketing strategy.
- Influencer Marketing
Given the current media climate, it is fair to assume that “influencer marketing” is a recent phenomenon. But it is perhaps one of the most prehistoric promotional methods in fashion. Some iconic ones in history include Coca-Cola introducing Santa Claus in their advertisements in the 1930s and the Marlboro Man era in the 1950s. Over the years of technology advancement, the domain of the influencer has only broaden. There are two types of influencer marketing, the “broadcasters” and the “Specialists”.
Broadcasters are the more traditional type of “influencers” made up of musicians, celebrities, and who garner huge followings in current pop culture. Primarily, brands collaborate with broadcasters to set direction for their products rather than with the objective of gaining sales. By creating an association with a specific broadcaster, they want to send a message that their shoes were good-looking and deserving of a cult figure. While broadcasters built their following through their work in the offline space, specialists consist of “influencers” that made a name for themselves through the social media space.
The typical social influencer engagement goes with a brand sending the influencer product with an agreement that the product will be shown off on social media. Generally, influencers are selected based on their Instagram persona and whether it is in line with what brand wants to portray for their product. Also, they are paid based on the size of the engagement/following, which translates to the number of “eye balls” they are able to reach with their posts.
- Consumer Empowerment
We live in a time where experience far more valued than the product itself. We live in a time of hyper-personalization and do-it-yourself culture. Exponentially, brands are placing greater emphasis on their experiential marketing efforts by involving their die-hard fans in product creation. This massively drives up brand loyalty, positive vibes and definitely a ton of hype. Nike and Adidas are frontrunners in this arena and are organising a ridiculous number of events from DIY workshops to fashion weeks around the globe, so much so that they have made customer involvement a norm for any form of product release in the sneaker world. As with most things, an increased exclusivity generates more excitement and hype.
While the hype-tactics from the sneaker industry might not be applicable to all types of businesses, we could learn from the underlying concept behind them, which is to know the consumer. But of course, there is a catch. The modern consumer’s wants, needs and likes are evolving faster than ever.
Writer’s comments: “To truly appreciate how far the sneaker industry has evolved, I highly recommend you read the book Shoe Dog written by Phil Knight. It recounts the history of Nike from its early struggles to its evolution into one of the world’s most recognized and profitable companies.”
Credits: Euromonitor, Sneakernomics, Retail Dive, High Snobiety
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