Vol 19. New Balance: Dad to rad ??

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How New Balance went from “dad shoe” to trendy streetwear & $6.5 Billion in revenue

New Balance was founded back in 1906. And since its inception, the brand focused on creating top-of-the-line running sneakers.?

Function was always over fashion with New Balance, and the brand developed a devout following because of that. But if you weren’t running in them, they were seen by many as the kind of sneakers that older dads wear to the grocery store.?

So how did they end up on the Fashion Week runway??

This week, Case Studied examines how New Balance went from a corny dad shoe to trendy street style footwear.

The Brief:

To understand how New Balance reinvented itself, we have to take it back to 2018. This was the year the dad shoe trend really took off.?

Similar to the mom jeans trend, brands like Burberry and MSGM were showcasing classic, retro sneaker styles on the Fashion Week runways.

Sneakers like the 990v4 were being worn not just by old white dudes, but by fashion-conscious crowds and models.?

The trend opened some very crucial doors for New Balance to expand the brand and reach new consumers. And they stepped through into those opportunities in a very strategic (and successful) way.

The Execution:

The dad shoe trend did a lot of legwork for New Balance, but the brand did a lot to keep it going from there. It started bringing on key partners to capitalize on the momentum, with a clear focus on longevity.

New Balance partnered with relevant streetwear brands like Aimé Leon Dore (ALD) and influential artists like Joe Freshgoods, both of which attracted a younger, more diverse audience. By diversifying its portfolio of partners, the brand expanded its reach and relevance in a huge way.?

“Each partner and project has its own fanbase and narrative. When we were working with retailers, it seemed like we were selling product to the same New Balance fans every project,” said Brian Lynn, General Manager of lifestyle. “Partners like Kith, Bodega, and Concepts are hugely important for us and always will be. We will always have a relationship with them, but it's about getting that broader mix and that balance.”

The wide array of partnerships led to net-new designs and relaunches of some archival models. But these weren’t your run-of-the-mill collaborations. The designs didn’t just adopt a singular theme or add a signature color.?

New Balance gave its collaborators the freedom to completely customize their designs. They had full permission to showcase themselves and tell their story. Case in point: one collaborator, Salehe Bembury, put a functioning whistle in his sneakers.?

Nike and Adidas have both seen success with a similar partnership strategy but New Balance approached it a bit differently. It didn’t just partner with big, splashy brands and creators—it worked with trendy, lower key brands and creators, too. And since its product lineup has such a wide range, they could do that and still fare against competitors.?

“When we started reaching out to these brands across all different sections of fashion and streetwear, we just saw our audience grow and grow,” said Joe Grondin, business unit manager of global collaborations and energy. “In the past, we were kind of this ‘90s running brand. Now, it's as many looks as some of the bigger brands that we're competing against. I think that's been a big change from the past.”

The buzz around New Balance allowed the brand to continuously grow its partnerships and its reach. But like any successful strategy, this one started with a scrappy team that showed small wins. They had to demonstrate that diverse storytelling and creative freedom for collaborators worked—which it did.?

Just take a look at its collaboration with Joe Freshgoods. His pop-up during NBA All-Star weekend drew a line wrapped around the block despite freezing temperatures in Chicago, where Freshgoods is from. The artist noted that he saw 300-400 tweets from people saying it was their first time wearing New Balances.?

Similarly, its second partnership with ALD drew such a large crowd outside the store that the NYPD shut down the in-store release due to safety concerns.

In addition to their fashion collaborations, New Balance has also entered the competitive world of athlete shoe deals. Notably over the past few years signing the NBA’s Kawhi Leonard and Jamal Murray and MLB players Shohei Ohtani and Francisco Lindor.

Through all this growth, New Balance had to learn how to serve core and new audiences at the same time. The brand seems to have mastered this by doubling down on quality and its core offering, while leveraging partnerships to reach new niches and segments—best of both worlds.

The Results:

New Balance reported a 23% increase in sales in 2023, putting it at $6.5b. The brand has 350 ambassadors globally and 63% of online customers in the past year alone were first-time buyers.?

This growth has been steady for a few years now. According to New Balance, media impressions for its collaborations increased around 200% from early 2021 to early 2022. Similarly, StockX said New Balance is the sixth-fastest growing sneaker brand on the platform, boasting 200% trade growth from 2021 to 2022.?

In 2022, GOAT reported the brand’s sales increased 115% year-over-year. The 550 was its best performing shoe in 2022, accounting for 36% of all New Balance sales during the calendar year.?

The company is set to open 90 new stores in 2024, plus a remodel of 50 existing stores. In other words, this growth doesn’t seem to be slowing down anytime soon.?

The Takeaways:

New Balance definitely got lucky with the dad shoe trend. But it also took advantage of the opportunity by focusing its efforts in strategic ways. Here are a few ways you can do the same:

1. Invest in quality over the long run

We were shocked to learn New Balance was over 100 years old, especially when considering how recent the popularity of running shoes is.

But one thing that has allowed the brand to sustain and be adored by millions is a continual investment in quality. While marketing can produce amazing results, nothing replaces the impact of a well-made product.

As a marketer, you need to be a part of the creation process and ensure that the work your product team does is communicated effectively across your marketing.

2. Influence isn’t about size

New Balance didn’t rely on the biggest influencers to collaborate with. Instead, they emphasized the influence and style of those artists without obsessing over vanity metrics like reach.

All too often we look for the biggest social media accounts and celebrities to endorse our product, but ultimately its authenticity, brand alignment, and trust in that person’s advocacy to move the needle.

3. Allow your brand to evolve

Brands are understandably terrified of change. The risk of deteriorating your brand equity is always present. But as we noted in our case study highlighting the evolution of the Barbie brand, brand evolution is vital to remaining relevant.

Evolving your brand doesn’t mean hiring a new Agency of Record every 5 years to spice things up (though if you decide to, we can help). It’s about listening to your customers, observing market trends and making decisions for how your brand fits into this ever-changing puzzle that is the world.

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