How Brooks became the #1 Adult Running Shoe
The surprisingly large running shoe brand ($1B?) and using podcasts to influence how you act.
Hello there,
Spring is in full bloom with beautiful rhododendron and dogwood flowers. If only the blossoms didn’t also turn me into a sneeze machine with eyes like leaky faucets.
But hey, I’ll take the pretty scenery on neighborhood walks, seen through misted eyes from the combo of allergies and limited sleep with our newborn.
This week we’ve got surprising lessons from the Brooks Running shoe CEO, a Swede climbing in Tokyo and a way to hack your social convergence
The Remarkable Turnaround of Brooks Running Shoes
Did you know that the underdog shoe brand Brooks became the #1 brand in adult running shoes in 2021? Back in 2001, they were nearly bankrupt, but here’s what they did right.
Many of us think of Nike as the most famous running brand, but my friends all seem to hold different opinions about other shoe brands, from ASICS to HOKA to Brooks.
Listening to an interview with Brooks CEO Jim Weber, I was amazed to learn about their journey from a downtrodden brand to a dominating force in running. He summarizes it well with this line: “The college athletes that race in the big brands train in Brooks every day.”
But Brooks comes from a rocky past, and when Jim Weber stepped into the CEO role in 2001, sales were low and the owners worried about bankruptcy. How did he right the ship and grow Brooks from a 60-person company to 1,200 by 2021?
Weber emphasizes the need to specialize, something uncommon among sports brand. Brooks started in 1914 making ballet slippers and bathing shoes. (I think I maybe need those?!) In the 90's they began making running shoes and marketed them as shoes for runners who love running with the tagline “Run Happy.”
In his first year, he had the team double down on the Adrenaline running shoe to regain customer trust. From 2001 to 2002, while ASICS started to not deliver on quality, Brooks air-shipped shoes (which costs 10x more than ocean freight!) and it worked!
A few years later, Brooks was bought by Russell Athletic, and soon after acquired by Berkshire Hathaway, with Weber reporting directly to Warren Buffett himself.
What Buffett understood is the importance of a brand that puts the customer first, so Brooks did exactly that.
They supported their athletes however they could. At the US Olympic Trials in 2012, Nike had exclusive rights to advertise, bragging about a 27-year deal (which feels pretty unfair).
But Brooks came up with a way to show their athletes some love by putting a “Run Happy!” banner and flying it around the stadium behind an airplane. Despite not breaking any rules, the Brooks crew got kicked out, but they cheerfully watched the rest of the event at a nearby bar.
I think what really helps them stand out is skipping the race to be the cheapest. They emphasize high-quality, full-priced products, which gives them room to invest in new technology, including a biodegradable midsole for running shoes.
"The problem with commodities is that you are always competing on price and the person who is willing to sell for the least has the advantage, except it's not a sustainable advantage."
— Warren Buffett
Or, more simply put—chasing the lowest price is like sprinting in a marathon; you might lead the pack, but it’s unlikely you’ll finish the race.
Worthy & Remarkable
An overpowered remote control lawnmower can go up 75% slope and “mow like a beast” - raises $775k (so far)
Something funny - I’m working on graphic design and this SNL skit with Ryan Gosling - Papyrus 2 - has me wondering if I might be overthinking the fonts?
Michaela Kiersch climbs a beautiful 9a in Margalef, Spain, featuring some background info from Chris Sharma - inspiring (even if impossible for mortals)!
Pro Climber Magnus Midtbo travels to Tokyo to climb with PewDiePie (one of the world’s most popular YouTubers) and their banter while climbing cracked me up
One Thing from Me
Social convergence is when people who hang out together start to act alike over time. If you want to be more athletic, bookish, or entrepreneurial (that’s me!), you would do best to find others with those traits. This can be challenging (yeah, especially with two small children!), and that’s where I have a secret technique.
Ok, it’s not super secret. But I’ve been truly impressed with the power of podcasts to keep the entrepreneurial muscle in shape, mainly through episodes of My First Million, where they share business ideas and break down what works in small companies.
They describe their audience as the type of person who goes to a restaurant and immediately begins analyzing the financial pros and cons of the business.
That’s not usually my perspective, but it’s a fresh and intriguing one to me. And I can even listen to a mentally stimulating conversation while changing a diaper—hurray!
Socially yours,
Jono
PS - one great list of better names to which I would add “quicksie kicksies” (running shoes!)
