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20VC: From a $1.1M Acquisition to $1.4BN in Revenues; The Meteoric Rise of Hoka Running with Deckers CEO, Dave Powers

Dec 22, 2023

Dave Powers, CEO of Deckers Brands, discusses his journey in the fashion industry. He shares the story of Hoka's rise from a $1.1M acquisition to $1.4BN in revenues. He also talks about UGG's struggles and their journey to recovery. Dave reflects on his career and the challenges of balancing work and parenting.

53:43

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Episode guests

Dave Powers

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Quick takeaways

Brand maintenance and differentiation are crucial for sustained success in the footwear industry.

Hoka's growth was fueled by targeting core athletes and providing a unique product experience.

Deckers Brands prioritized resource allocation and organic growth potential to drive success in Hoka and Ugg.

Deep dives

The DDC model's sustainability challenge

The DDC model is hard to keep sustained because the marketing costs are high, and when marketing is pulled back to make profit, sales decline rapidly. Dependence on wholesale and other revenue sources is crucial to maintain growth.

Challenges of the Direct-to-Consumer Model and the Importance of Sustainable Brand Growth

02:16

Building a Company Culture of Authenticity and Selective Hiring

01:55

Challenges with retailers and wholesalers and international expansion strategy

01:50

Strategic Turnaround and Brand Rejuvenation through Product Innovation

02:07

Introduction

3min

Building a Career Based on Passion

7min

Self-judgment, Acquisition, and Building a Brand Consumers Can't Live Without

2min

Balancing Growth, Supply, and Demand

4min

The Asian Expansion of Hoka

14min

The Importance of Hero Products

15min

Reflections on Upbringing and Balancing Work and Parenting

5min

Staying Active, Creative, and Purposeful

3min

Dave Powers serves as President and CEO of Deckers Brands, a global footwear and apparel company where he focuses on the company’s five high-performing brands: UGG®, Teva®, Sanuk®, HOKA One One® and Koolaburra®. Prior to Deckers, he held executive leadership roles at Converse and Timberland, where he led worldwide retail merchandising, marketing, visual and store design as well as the creation of a sustainable line of footwear and apparel.

In Today's Episode with Dave Powers:

1. The Unlikely CEO of a Global Footwear Company:

How did Dave make his way into the world of consumer and fashion from the ground up?
Why did Dave never think he was the type of person to be a CEO?
What does Dave know now that he wishes he had known when he started his career?

2. From $1.1M Acquisition to $1.4BN Revenues: The Hoka Story:

Why did Deckers acquire Hoka for $1.1M? What did they see in this, at the time, futuristic running shoe that no one else saw?
Was the growth of Hoka linear or were there needle-moving moments that propelled the brand?
What did they do so right that led to their success?
What would Dave have done differently in the Hoka journey if he had his time again?

3. From $14.7BN Acquisition to Oprah's Favourite: The UGG Journey:

How much of a needle mover was it for UGG when Oprah added it to her list of favourite items?
Why did UGG go through a tough period? What did they do wrong?
What does it take to resurrect a brand? How can they bring UGG back to life and make it cool?

4. From Abercrombie to LVMH: An Analysis of the Industry:

How does Dave analyse the rise and fall of Abercrombie and Hollister? Where did it go wrong?
What does Dave believe LVMH are the best in the world at? What does he learn from them?
How important is it for consumer companies to have a hero product?
How can consumer companies scale to mass markets without losing their core audience?

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