Featured Executive's Viewpoints

FROM BLAND TO BRAND
The Comeback Story of Hush Puppies

By Gifford Chu, President, Shoemaker’s Shop, Inc.
Philippine Licensee of the Hush Puppies Company

The shoes on your feet are big business in the Philippines—with 85 million citizens, that’s at least the same number of pairs. What’s more, Filipino women buy an average of four pairs a year, while men come close at 3.6 pairs a year! Because the footwear market is so huge, there are now over a hundred legitimate brands in malls, as well as thousands of low cost imports in flea markets. Department stores have also merchandised thousands of pairs and sell them at a fraction of the daily wage. In a market that has become increasingly competitive and price-driven, how has an old brand like Hush Puppies continued to achieve growth and market significance?

“My dad wore Hush Puppies in high school”

Hush Puppies is probably the oldest non-athletic, casual footwear brand in the market today. It was born in the United States in 1958 during postwar America when casual shoes were not yet invented. It is so well entrenched in Americana that its famous blue suede shoes, made popular by that Presley song, are on permanent display at the Chicago Field Museum. It is also arguably the most popular casual footwear brand in the world. Sold in over 100 countries, Hush Puppies sells 16 million pairs a year—that’s a pair sold every two seconds!

But being an old brand has its downsides. After existing in the market for so long, we get a range of comments from “I used to buy Hush Puppies at the U.S. base in Subic,” to twentysomethings who say “My dad wore Hush Puppies in high school.” One local shopping mall didn’t even want to sign on the brand because they felt it was a brand only your uncle would wear.

Although Hush Puppies is recognizable and fondly remembered, it has not always been the leading brand of choice for casual footwear. With the dominance of low cost imports, as well as the influx of fresh new international brands targeting the young market, our company found ourselves sandwiched between two ends of the footwear spectrum.

Brand New

Considerable efforts were focused on revitalizing our brand image, and since then, Hush Puppies has made a strong comeback that has been noticed in the industry. The most prominent of changes was the advertising campaign. While the basset hound is the most recognizable feature of the brand, it was relegated in the sidelines in favor of a lifestyle campaign that focused on communicating a refreshed, younger image. Each season, the images featuring a global cast of models consistently communicated a relaxed, casual elegance that reflected the brand’s authentic, modern but unconventional styling. Simultaneously, store interiors were drastically upgraded with a new concept developed by U.K.-based design firm Wright Oxley. Oversized graphics dominate our stores, and are illuminated by blinding halides that make each window shine even from a distance.

More importantly, we updated our merchandise, offering more trend-right products. We didn’t jump on every fashion craze, however, but still focused on casual footwear, promising comfort as a key feature vs. competition, while offering them in very appealing and up-to-date silhouettes.

Consumer knowledge is power

Behind these innovations is a deep understanding of consumers that could only be achieved from interactions with them as well as considerable investments in market research. We know that retail display and visual merchandising are vital because 50% of purchases occur on impulse. We persuade each customer to try on a pair before leaving the store (the probability of purchase increases as the customer tries on more pairs). We offer very comfortable school shoes to students, because we know they will come back to us when they land their first job, get promoted and perhaps when they have kids. We also know that we will not cater to the lady in stilettos going on a date (fast fashion isn’t our core business). But before she flies to Hong Kong to shop till she drops, or sight-see miles on foot, we are certain she will visit our store to find the most sensible and comfortable shoes--and still look fashionable.

Technical innovations

Our products offer a range of technologies that provide various aspects of footwear comfort: light-weightedness (Zero G), sole flexibility (Wave Reflex), heel support (Float FX). From our simplest feature (the HPO2 Flex® foot bed that cushions your every step) to the most technical innovation (the 100% Relax® shoe that combines lightweight outsole and multi-level insole cushioning), our product designs are focused on delivering ultimate footwear comfort that is difficult to match by even the most expensive brands in the market. Our products are also durable; not only do we expect our shoes to last more than two seasons, we also expect them to be perhaps the most frequently worn—and most comfortable—casual pair in our customers’ closets.

To ensure that customers hear about these features when they visit the store, we ensure that our sales people are properly trained to communicate these technologies. Our sales training program is even accredited by the Technical Education and Skills Development Authority or TESDA. Furthermore, because selling shoes is a socially demanding job, our company screens and hires only happy, cheerful people.

With these innovations, Hush Puppies has reestablished its leadership in the casual footwear market in the Philippines, becoming the most widely distributed international casual footwear brand. Almost all of the new malls that opened in the last three years have a Hush Puppies store in them. This year, we have grown our retail network to 28 stores, providing jobs to over 200 employees. We also see more and more people wearing our products, and now often hear twentysomethings say, “I like your shoes.”

Shoemaker’s Shop, Inc. was recognized for global brand building excellence in the recent Hush Puppies International Conference at Rockford, Michigan.

Click here to view other columns:

VIEW FROM THE TOP is a monthly column written by Presidents, General Managers, CEOs, and Managing Directors of PANA Member Companies sharing their most indispensable insights on leadership, corporate development, strategic management, and the industry in general. It is published exclusively by The Philippine Star.