How can Happy Socks sell 100 million euros a year?
Ten years ago, the socks that people choose and buy are always cookie-cutter, although have thick have thin, design is different slightly, but total cannot escape drab black and white two color business wind. Now, socks had not only is a necessity of daily life, it is much more to assume an important role, deserve to act the role of people in different color, decorative pattern, design of socks to match different dress, express their unique aesthetic taste and voice.
Happy Socks, a Swedish sock brand, is one of the hosiery brands leading this trend. It was co-founded by Mikael S? Derlindh (and CEO) and Viktor Tell(and creative director) were founded in 2008. The humble company, which makes only colored socks, sold 100 million euros in retail sales in 2016.
Create happy art
In the past, it was rare to see someone wearing fancy socks at work, which was more prominent in men. Last year, the New York times published an article called "the End of the office dress code End office dress code" campaign, it refers the new New York City human rights law, against a tie to work, employers are compulsory for male employees calls for relaxation of men in the office dress code.
Mikael S? Derlindh and Viktor Tell it is found that the demand for printed Socks, and the blank of the market, decided to set up Happy Socks, original intention is "a ubiquitous in daily life of ordinary objects into a set of color art, design and quality of joy".
Mikael S? With his business acumen and experience, derlindh understands the importance of ideas more than anyone else. And Viktor Tell before becoming a fashion designer is sderot song, famous graphic designer and illustrator, his love of color and strange elf character design for him Happy Socks provide a steady stream of inspiration. Happy Socks matches every mood, style and wearing environment of the wearer with countless designs, colors and patterns.
Since 2008, Happy Socks has sold over 40 million pairs of Socks in more than 90 countries and 12,000 retailers worldwide. By the end of 2017, Happy Socks had 50 self-owned stores. Over the past three years, Happy Socks sales and EBITDA have both grown by more than 50% annually. Mikael S? Mr Derlindh even says they have been profitable since the third month.
The good development momentum of Happy Socks has attracted the attention of many investors. In January, Palamon Capital Partners, a pan-european growth private equity fund, bought a majority stake in Happy Socks. The deal values Happy Socks at skr725m, plus skr40m of growth capital injected into Happy Socks, giving Happy Socks a corporate valuation of skr765m.
Position your opponent clearly and without fear
But in today's Socks market, Happy Socks also has many strong competitors:
Stance, an American sock brand, is one of them. They were the official sponsors of the NBA and MLB, and have worked closely with big names such as pop diva Rihanna.
Bombas, a hosiery start-up, has $50m in annual sales this year.
And start-ups such as Arthur George Socks, founded by Rob Kardashian, the brother of Kim Kardashian, a social media sensation, are eating into market share.
Mikael S? Mr Derlindh is not worried, saying: "Happy Socks are stronger when there is strong competition in the market. Our brand represents creativity, art, design and fun, and is well positioned. While Happy Socks' companies are growing, their styles have not changed and they are always creating a fashion product that makes people feel friendly.
Expand the category
Although at the beginning of its establishment from Happy Socks Socks positioning is unisex neutral style, but Happy Socks marketing and social media propaganda let female consumers feel too masculine and street, women products accounts for only 30% of the overall business. This fall, Happy Socks for women market launched more fashionable stockings feeder Hysteria, wider use of fabrics, including spun rayon, nylon, cashmere and silk cotton, most of which length and ankle, very thin, so that women wearing high heels and the narrow shoes, color and style is more suitable for women.
Hysteria series design director Paula Maso said: "Hysteria is very independent, have their own sets, has a unique retail display and advertising project. Hysteria will present a way of life, planning and high-end experience."
In addition, Happy Socks there are children's Socks, sports Socks and stockings products and men's and women's underwear series, introduced three kinds of different style of underwear, tight boxer briefs and loose boxer briefs are for men; The tight briefs highlight the curves of women's health. Happy Socks believes that every consumer should wear their favorite Socks and underwear.
Retail market deployment
Happy Socks has also recently taken a new step in deploying its branded retail stores. In September, after ending the franchise of United Legwear, a us Socks manufacturer and distributor, Happy Socks decided to start its direct business in the us market and expand its business in North America from next January.
Happy Socks to west street 448 to open a new flagship store in New York on Broadway, the distance from their open not far from the first store in 2013 (formerly stores now has become a flash of Hysteria series shop). New store covers an area of 518 square feet (about 48 square meters), the sales Happy Socks of all series of products, including men Dressed suits stockings, stockings Hysteria and some signed a series of cooperation.
My Johansson, retail operations manager at Happy Socks, said: "this store is an opportunity for consumers to know Happy Socks and get close to consumers. We will hold a series of interesting events in the store.
Happy Socks plans to open two more stores in Los Angeles and New York next year, with locations not yet determined. Other in-store and franchised stores are also in Happy Socks's plans.
The skinny leg socks can prevent varicose veins from experts who say it has no long-term effects.