Ten years ago, the socks that people bought were always the same. Although they were thick and thin, the styles were slightly different, but they could not escape the monotonous black and white business style. Nowadays, socks are not only a necessity for daily life, but also bear more important roles in accessories. People express their aesthetic tastes and hearts with different colors, patterns and designs of socks with different costumes.
Swedish sock brand Happy Socks is one of the trending hosiery brands. It was founded in 2008 by co-founders Mikael S?derlindh (and CEO) and Viktor Tell (and creative director). This is an inconspicuous company that only produces colored socks. In 2016, retail sales reached 100 million euros.
Create happy artwork
In the past, people rarely saw people wearing work-colored socks at work, which is more prominent in men. Last year, the New York Times published an article entitled "End of the office dress code", which cites the new version of the New York City Municipal Human Rights Act, which opposes employers forcing male employees to tie their ties to work, calling for a relaxation of men’s Office dress code.
Mikael S?derlindh and Viktor Tell discovered the need for printed socks and the gap in the market before deciding to start Happy Socks. The original intention was to "turn a common item that can be seen everywhere in daily life into color. A happy artwork that combines design and quality."
Mikael S?derlindh, who has worked in the advertising industry for 10 years, has a strong business intuition and rich experience. He understands the importance of creativity more than anyone else. Before becoming a fashion designer, Viktor Tell was a famous graphic designer and illustrator in Stockholm. His love of color and the character of the quirky elves provided him with a continuous inspiration for designing Happy Socks. Happy Socks's socks are designed with countless designs, colors and patterns to match each mood, style and wearing environment of the wearer.
Since 2008, Happy Socks has sold more than 40 million pairs of socks in more than 90 countries and 12,000 retailers worldwide. By the end of 2017, Happy Socks has 50 self-operated stores. In the past three years, Happy Socks' sales and EBITDA have grown by more than 50% annually. Mikael S?derlindh even said that they have been profitable since the third month of establishment.
Happy Socks has attracted a lot of attention from investors. In January, the pan-European growth private equity fund Palamon Capital Partners acquired a majority stake in Happy Socks. The deal valued Happy Socks at 725 million Swedish kronor, plus 40 million Swedish kronor growth capital for Happy Socks, and Happy Socks' corporate valuation reached 765 million Swedish kronor.
Positioning clearly without fear of the opponent
But in today's hosiery market, Happy Socks also has many strong competitors:
The American sock brand Stance is one of them. They used to be the official sponsors of the NBA and MLB, and have worked closely with pop stars such as Rihanna.
Bombas, a sock startup that implements “buy one donate one”, achieved annual sales of $50 million this year;
And start-up socks companies such as Arthur George Socks, founded by younger brother Kim Kardashian of social media, Kim Kardashian, are also eating into the market.
Mikael S?derlindh is not worried about this. He said: "The fierce competition in the market can make Happy Socks stronger. Our brand represents creativity, art, design and fun, and the positioning is very clear." Despite Happy Socks The company is growing, but their style has not changed, and they are always creating a fashion product that is intimate.
Expanded category
Although the positioning of Happy Socks socks was a unisex neutral style since its inception, Happy Socks' marketing and social media campaigns have made female consumers feel too masculine and street-based, and women's products only account for 30% of the overall business. %. This fall, Happy Socks launched the more fashionable women's socks Hysteria for the women's market, using a wider range of fabrics, including rayon, nylon, cashmere and mercerized cotton, most of which are very thin and ankle, so women wear high heels. And narrow shoes, colors and styles are also more suitable for women.
Paula Maso, Head of Design at the Hysteria Collection, said: “Hysteria is very independent, has its own Instagram, has a unique retail display and advertising program. Hysteria will present a more lifestyle, planning and high-end experience.”
In addition, Happy Socks now has socks and sports socks and men's and women's underwear series, launched three different styles of underwear: tight-fitting panties and loose boxer briefs for men; tight triangle underwear highlights women's health The beauty of the curve. Happy Socks believes that every consumer should wear their favorite socks and underwear.
Retail market deployment
In terms of brand retail deployment, Happy Socks has also recently taken a new move. In September of this year, after ending the franchise of American legume production and distributor United Legwear, Happy Socks decided to open its direct business in the US market in January next year and expand its business in North America.
Happy Socks will open a new New York flagship store on Broadway West Street 448, not far from the first store they opened in 2013 (the original store is now a Hysteria line of flash stores). Covering an area of 518 square feet (about 48 square meters), the new store will sell a full range of Happy Socks products, including men's dresses, dresses, women's socks Hysteria and some co-branded collections.
My Johansson, Retail Operations Manager at Happy Socks, said: “This store is an opportunity for consumers to learn about Happy Socks and get close to consumers. We will then have a series of fun activities in the store.”
Happy Socks plans to open two more stores in Los Angeles and New York next year, and the location has not yet been determined. Other in-store and franchise stores are also in the plan of Happy Socks.