Category creation - The story of bold and creative socks - Stance
Hi there,
Thanks to everyone who subscribed last week. In our earliest edition, we wrote about the category management step wise step approach according to the stage where you are in your category building process. If you haven’t already read it here.
This week, we will see that in action. A journey of commodity to brand.
we will take a case study to see how Stance has developed a whole new business out of single category - Socks (Unbelievable, right!!)
In this week edition, we will cover :
Category strategy - One hero product
Positioning of Stance in the consumer’s mind
Product differentiation
I rarely pay attention to my socks. 2-3 pairs last for years.
For me, it’s a neglected piece of clothing. Even in country like USA, blessed with snow and winter, socks is a neglected category. Nobody sees it , why bother?
SO what drove its founders (Jeff Kearl, John Wilson, Aaron Hennings, Ryan Kingman, and Taylor Shupe) to think that socks can be a business opportunity.
How did stance build the entire business from a single category which rarely draw attention of consumers as well as business world?
This is the turnaround story of most boring product (Commodity) becoming $86 million hot desirable brand in the market.
Category Strategy - One hero Product
Jeff Kearl, the founder of Stance, would go to Target, Walmart and look at all the categories. He would think about value proposition of brands.
He said it an interview,
I started with sunblock: Coppertone, Hawaiian Tropic. Where is this stuff made? What’s the gross margin? Who has what market share? It’s amazing what you can Google. I did it with school supplies and jewelry and lots of categories.
“I eventually got to the sock category,” he continued. “It was black and white, navy, blue, gray, really basic and in plastic bags. Even when I went to Nordstrom, which theoretically it would be more premium, it was still multipacks, poorly merchandised, tired design.”
In the previous edition, we discussed “How can I differentiate in the market”, market size and tools to identify value proposition of our product offerings.
Jeff Kearl was sizing up the market and finding one neglected product category that can become a brand.
Everything is a commodity till it becomes a brand. Stance has kept his focus on one hero product (once a commodity) and turned into a multimillion $ brand.
Once they build the brand in socks category, they moved on to adjacent product category - underwear, T-shirts etc.
Kearl says about the idea to build a hot sock brand.
“It wasn’t like there was some great idea, ‘Oh geez, this is broken and we should fix it,'”
Strategy : Take one product category (the one where not much of a competition, not necessarily it has to be a problem waiting to be solved), become category leader by creating a solid brand, expand to other categories
Positioning of Stance in the Market
Stance position socks as “Bold and creative”. They placed socks into premium category through celebrity endorsement. A lifestyle brand.
Stance has collaborated with Rihanna and launched Rihanna sock line. Fashion for her (She said this in an interview) is to play so why not play with socks then. It was a right combination - Rihanna and Stance. A combination that could capture people’s mind enough to stop for a while take a look at their funny ugly looking socks.
This was a genius stroke to position socks in the market as bold as creative. Picture says all.
Like shoes, socks became the part of Sports. Stance was the NBA’s official on-court sock for 2 seasons. Check out : https://www.stance.com/nba/ (Shop by the basketball team you belong, MLB, NFA).
Now, Socks are sporty.
Product differentiation
Making it as an accessory complimenting your cloths and style rather than a utility - You can keep your outfit simple and short match it with colorful socks just like you accessorize with scarf, big earrings, or trendy stilettoes.
Stance innovation lab named SHRED (Sock, Hosiery, Research, Engineering, and Development) focus on the product quality, mobility, and how they feel. In the lab they have developed their own process of manufacturing called INprint that allows printing image directly on fabric. They also keep leg anatomy in the mind (Left foot, right foot) while designing the product.
STANCE socks are expertly designed with state of the art moisture-wicking fibers and a mosaic of mesh that extend from the top of the foot to the arch.
Source : Product description
Design - From geometric patterns to abstract art, they have done a tremendous job with making socks as a piece of art to be treasured and admired.
Stance made socks relevant and not an afterthought with their great artistic designs.
A fan of F.R.I.E.N.D.S, this one is my favorite.
Which one do you think is a neglected category and can become a multimillion dollar opportunity next?
This one is for Category creators.
Happy Republic day :)