Thursday, 30 October 2025 / Published in Enterprise

From $1M to $100M: The DTC Scaling Framework That HOKA Used to Destroy Nike

HOKA didn’t just challenge Nike – it rewrote the playbook for scaling a direct-to-consumer (DTC) brand. While Nike’s $70 billion market value drop since 2021 highlights its struggles, HOKA surged to $1.4 billion in revenue by moving faster, making sharper decisions, and staying focused on solving one core problem: delivering maximum cushioning for runners. The secret? A four-step FAST framework that prioritizes speed over bureaucracy, agility over perfection, and customer feedback over endless planning.

Key takeaways from HOKA’s approach:

Speed beats size: HOKA launched five products in the time it took Nike to perfect one.
Stay focused: HOKA dominated its niche (maximalist cushioning) instead of chasing trends.
Fast product cycles: 90-day sprints replaced traditional 18-month development timelines.
Small teams, big decisions: A lean, three-person decision-making process avoided delays.
Customer-driven innovation: Real feedback from sales and reviews shaped every product tweak.

For DTC brands aiming to scale from $1M to $100M, HOKA’s FAST framework – Focus, Accelerate, Ship, Test – offers a clear roadmap. By simplifying decision-making and prioritizing speed, brands can outmaneuver larger competitors and build lasting customer loyalty. If you want to grow faster, the lesson is simple: focus on what matters, act quickly, and let customer feedback guide your next move.

The Speed Advantage: How HOKA Outpaced Nike

HOKA carved out its niche in a market dominated by industry giants by embracing speed as its secret weapon. While companies like Nike leaned on lengthy research processes and multiple layers of approval, HOKA prioritized rapid execution, operating on the belief that speed outweighs perfection in today’s fast-paced consumer landscape. This relentless focus on moving quickly forms the backbone of the FAST framework, which we’ll explore further in upcoming sections.

The difference in their approaches to product development highlights why HOKA’s strategy worked so well. By adopting a faster, more agile process, HOKA consistently outmaneuvered Nike, proving that speed can be a game-changer even against much larger competitors.

6-Month vs. 18-Month Product Development

One of the most striking examples of this speed advantage can be seen in the development of Nike’s Pegasus 40, a flagship running shoe. Nike’s team took 18 months to perfect this single model, relying on extensive focus groups, multiple prototypes, and a series of committee approvals before the shoe finally hit the shelves.

During that same 18-month period, HOKA launched five distinct running shoe models, each tailored to meet specific customer needs. While Nike was meticulously refining the Pegasus 40, HOKA was already gathering real-world feedback from customers, using it to improve their next product cycles.

This difference in development timelines had profound business implications. Nike’s process delayed revenue generation, requiring significant investment upfront for a single product. In contrast, HOKA spread its risk across multiple launches, generating sales and insights along the way. This approach not only minimized the impact of any single product misstep but also increased the chances of delivering a standout success.

By accelerating its product cycles, HOKA didn’t just bring products to market faster – it created a feedback loop that drove continuous improvement. This ability to iterate quickly became a competitive edge, as we’ll explore in greater detail.

Faster Learning Through Rapid Product Launches

HOKA’s strategy of launching multiple products in quick succession provided a unique advantage: real-time market insights. Instead of relying solely on focus groups, HOKA let customer feedback from actual sales and reviews shape its product development. For instance, when the Clifton series debuted, HOKA quickly learned that runners valued maximum cushioning without added weight – insights gleaned directly from customer behavior, not hypothetical discussions.

Every launch delivered measurable results. HOKA could see which features resonated, which price points drove purchases, and which marketing messages converted interest into sales. This rapid cycle of launching and learning gave HOKA a growing advantage over competitors who were still stuck in lengthy research phases.

Over time, this speed advantage created a widening knowledge gap. While Nike was still analyzing focus group data and conducting further studies, HOKA was already applying customer insights to its next wave of products. This gave HOKA a deeper understanding of runner preferences and market trends, allowing them to stay ahead.

Timing also played a crucial role. When the trend for maximalist running shoes gained traction, HOKA had products ready to meet the demand, while Nike was still in development. This ability to act quickly translated directly into increased market share and revenue, leaving slower competitors struggling to catch up.

The takeaway for direct-to-consumer brands is clear: speed can be a decisive advantage. In markets where trends shift quickly and customer preferences evolve, the ability to launch, learn, and iterate rapidly often outweighs the pursuit of perfection. HOKA demonstrated that launching multiple strong products quickly can outperform the slow, meticulous approach of perfecting a single product.

The FAST Framework: HOKA’s 4-Step Growth System

HOKA’s ability to outpace its competition stems from a deliberate approach that prioritizes speed over red tape. The FAST framework encapsulates the four key principles that fueled HOKA’s rapid growth, even as larger competitors struggled under the weight of their own complexity.

By stripping away common growth hurdles, this framework allowed HOKA to stay agile. Instead of creating layers of approval or losing focus as they scaled, HOKA leaned into the very strategies that made them quick and effective from the start. Over time, this approach gave them a lasting edge. Let’s break down the FAST framework and how it powers growth.

Focus: Master One Problem Better Than Anyone Else

HOKA zeroed in on maximalist cushioning, carving out a niche that gave them a clear edge. By sticking to this singular focus, they built a stronghold in the market that was hard to challenge. Their signature thick soles – once considered unconventional – became a defining feature, setting them apart from competitors without compromising their identity.

While companies like Nike juggled multiple categories – basketball, lifestyle, training, and running – HOKA’s laser focus addressed a specific need: providing exceptional comfort, reducing joint strain, and enhancing stability. This made them a favorite among ultra-runners and those dealing with foot-related issues. For DTC brands aiming to scale from $1M to $100M, there’s a valuable takeaway here: don’t rush to diversify. Instead, dominate one area completely before branching out. HOKA proved that excelling in one niche can deliver far better results than spreading efforts too thin.

Accelerate: 90-Day Product Development Cycles

Once their focus was locked in, HOKA sped up their product development with 90-day cycles. These sprints began with discovery – conducting over 20 customer interviews and mapping user journeys – followed by design sprints and customer testing, and ended with refining the product for launch.

The goal wasn’t perfection but functionality. By adopting a “good enough to ship” mindset, HOKA avoided the delays caused by over-polishing. This relentless pace of innovation created a rhythm that competitors, bogged down by slower processes, couldn’t keep up with.

Each 90-day sprint built on the last, creating a momentum that fueled ongoing innovation and kept HOKA ahead of the curve.

Ship: Small Teams, Big Decisions

One of HOKA’s standout strategies was its streamlined decision-making process. A three-person team had the authority to make binding decisions in hours, compared to Nike’s 15-committee approval process, which often dragged out timelines.

This lean structure ensured that decisions remained focused on their core mission – delivering the best cushioning. By avoiding the pitfalls of “feature creep,” HOKA kept their products aligned with what mattered most to their customers.

For DTC brands, the lesson is clear: speed beats consensus. As your business grows, avoid the temptation to involve too many voices in key decisions. Instead, empower a small group of decision-makers to drive progress without unnecessary delays.

Test: Real-World Feedback Over Focus Groups

HOKA’s approach to testing was refreshingly direct – they used real product launches to gather feedback, bypassing traditional focus groups. This gave them insights that hypothetical scenarios simply couldn’t provide.

Take the launch of the Clifton series, for instance. By observing actual purchase behavior and customer reviews, HOKA discovered that runners valued maximum cushioning without extra weight. These insights, drawn from real-world usage, allowed them to make quick, meaningful adjustments.

By focusing on tangible data – like sales, returns, and reviews – rather than hypothetical preferences, HOKA reduced the risk of misunderstanding customer needs. While launching without complete certainty carries some risk, their rapid feedback loop allowed them to adapt far faster than competitors stuck in traditional testing methods.

The Self-Sustaining Cycle

The FAST framework created a cycle of continuous improvement. A focused strategy enabled faster development, quick shipping avoided bottlenecks, and real customer feedback drove smarter decisions. Together, these elements reinforced each other, giving HOKA a lasting edge in the market.

Phase 1: Growing from $1M to $10M Revenue

The leap from $1M to $10M in revenue is a pivotal stage for DTC brands, marking the transition from a promising idea to a scalable business. During this phase, HOKA leaned into its core strength rather than chasing every opportunity that came its way. For emerging challenger brands, the challenge lies in balancing the nimbleness that fueled early success with building the infrastructure for long-term growth. Let’s dive into how focusing on a single standout differentiator can set the stage for sustainable scaling.

Zero In on Your Breakthrough Differentiator

The FAST framework emphasizes the importance of Focus, and this principle is key when identifying the one big idea that will drive your growth. For HOKA, that idea was maximum cushioning. At a time when the running world was obsessed with sleek, lightweight shoes, HOKA disrupted the market by introducing oversized midsoles. This bold move catered to runners looking for greater comfort and support – especially those dealing with joint issues or training for long-distance events.

For DTC brands, success often hinges on solving a specific customer pain point that larger competitors tend to overlook.

HOKA resisted the temptation to branch out into areas like basketball or lifestyle sneakers, despite external pressure from retailers. Instead, the brand doubled down on refining its running shoe line, solidifying its position in a niche where it already had a distinct edge. This laser-focused approach allowed HOKA to perfect its offering and deliver unmatched value to its core audience.

Shift to Weekly Execution, Not Quarterly Cycles

Once you’ve identified your unique advantage, speed becomes a critical factor in scaling effectively. While many traditional brands rely on quarterly planning cycles, HOKA adopted a more dynamic approach, operating on a weekly shipping cadence. This allowed the company to stay nimble, responding to customer feedback and market shifts almost in real time.

During its early growth phase, HOKA implemented weekly sprints where the team tackled specific customer pain points, developed quick solutions, and rolled out improvements. These iterations spanned everything from tweaking product designs to refining digital experiences or adjusting marketing strategies.

For instance, when early feedback revealed that one shoe design wasn’t meeting the diverse needs of runners, HOKA quickly made adjustments – far faster than competitors who typically waited for seasonal updates. This rapid, iterative approach not only improved products but also strengthened customer loyalty by showing that the brand was actively listening and responding.

Resist the Urge to Overexpand

As brands scale from $1M to $10M, the temptation to diversify can be overwhelming. Investors, employees, and even customers often push for expansion into new categories or markets. However, this can dilute focus and compromise the very strengths that fueled initial growth.

HOKA encountered this pressure as its running shoes gained popularity. Instead of branching into other athletic categories like basketball or casual sneakers, the brand chose to deepen its expertise in running. By expanding its range of running shoes to cater to various needs, HOKA reinforced its credibility and built stronger customer loyalty.

This disciplined approach – sticking to one well-defined problem and solving it exceptionally – allowed HOKA to carve out a premium position in the market. For DTC brands navigating this phase, the lesson is clear: dominate your niche before considering broader expansion. By staying focused, you not only build trust with your audience but also lay the groundwork for future growth opportunities.

HOKA’s strategy during this phase wasn’t just about maintaining focus – it was about building a foundation for explosive growth down the road. For brands looking to scale, the takeaway is simple: stay narrow, stay fast, and stay committed to what sets you apart.

Phase 2: Growing from $10M to $100M Revenue

Scaling from $10 million to $100 million in revenue is a daunting leap for any DTC brand. It’s a stage where the risk of losing the agility that once fueled early success looms large. HOKA, however, managed to navigate this transition by staying true to the principles that had driven its initial growth. By doubling down on operational flexibility and fast decision-making, the company laid a solid foundation for scaling without sacrificing efficiency.

When to Expand: Master Your Niche First

HOKA didn’t rush into diversification after hitting its first major revenue milestone. Instead, it focused on solidifying its leadership within its niche – maximal cushioning for runners. By ensuring its core product was not only dominant but also deeply aligned with customer needs, the brand built a strong foundation before even considering expansion.

This approach wasn’t about avoiding growth but about timing it strategically. Expansion only came when HOKA had established an unshakable foothold in its primary category, guided by consistent customer feedback. This strategy ensured that every move was backed by a solid understanding of its audience, allowing the company to maintain streamlined operations even while scaling.

The No Committee Rule: Staying Lean at Scale

As companies grow, the temptation to introduce layers of bureaucracy can be hard to resist. HOKA, however, stuck to its lean decision-making framework, even as the stakes grew higher. Instead of forming large committees for product decisions, the company relied on a small, three-person team to make critical calls. This approach allowed them to act quickly, often making high-stakes decisions in hours rather than weeks. By avoiding the pitfalls of drawn-out approval processes, HOKA preserved the agility that had been key to its early success.

Systems That Drive Speed, Not Bottlenecks

One of the biggest hurdles in scaling is implementing systems that keep pace with growth rather than slowing it down. HOKA tackled this head-on by rethinking its processes to prioritize speed. Long-term forecasting and rigid planning gave way to a more flexible supply chain that could adapt to real-time market data.

Customer feedback, too, moved from sporadic surveys and focus groups to real-time tracking of purchasing behavior across thousands of transactions. Even hiring decisions were made with speed in mind, prioritizing candidates who could thrive in a fast-moving environment. Every system was evaluated based on one criterion: its ability to accelerate execution. If a process slowed things down, it was either reworked or eliminated entirely.

How to Apply FAST to Your Brand Today

Drawing inspiration from HOKA’s focused and swift approach, you can use the FAST framework to reshape your brand’s trajectory. The beauty of this method lies in starting small – making incremental changes that build momentum over time. HOKA began with a simple yet powerful idea: maximum cushioning. From there, they built a brand that redefined running shoes. Here’s how you can do the same.

Cut Your Development Timeline in Half

Take a hard look at your development process. HOKA’s success stemmed from shortening product cycles and prioritizing rapid iteration over endless debates or focus groups.

If your current product launch takes a year, aim to cut that timeline in half. For a six-month process, target three months. This doesn’t mean compromising on quality – it’s about cutting out delays that don’t bring value to your customers.

Adopt 90-day sprints, similar to HOKA’s approach. Dedicate the first 30 days to nailing down core functionality. Use the next 30 days to test directly with customers – skip internal-only feedback loops. Spend the final 30 days refining based on real-world usage.

Consider how HOKA founders Nicolas Mermoud and Jean-Luc Diard approached their design. As mountain runners, they identified a specific problem and iterated quickly on prototypes, leading to their iconic thick-soled shoe. Their success wasn’t about perfect planning – it was about fast iteration.

To move even faster, streamline your decision-making process.

Reduce Decision Makers to 3 or Fewer

Too many cooks in the kitchen can stall progress. HOKA avoided this pitfall with a three-person decision-making team, which allowed them to act quickly and decisively. By contrast, larger teams often bog down innovation, as seen with Nike’s slower processes.

Identify three key individuals in your organization who deeply understand your customers, your product, and your market. These three should have the final say on product development, marketing strategies, and major pivots. While others can provide input, this core team owns the decisions.

Analyze your current approval process. If more than three people are involved at any stage, you’ve likely found a bottleneck. Each additional decision-maker adds delays and diffuses accountability.

Clearly define roles within this trio. For instance:

One person focuses on customer insights and market positioning.
Another handles product development and technical feasibility.
The third oversees the business model and financial impact.

When disagreements arise, each person has the final say in their area of expertise, but all three must align before moving forward. This clarity fosters faster, more effective execution.

Find Your Untapped Competitive Edge

HOKA’s rise wasn’t just about making shoes – it was about solving a very specific problem better than anyone else. Their edge? Maximum cushioning without added weight. Their original prototype offered 29 millimeters of cushioning compared to the standard 10, all while maintaining a lightweight design.

Initially, their thick-soled shoes were mocked – labeled "ugly" or "clown shoes" on platforms like Reddit. Yet, this distinctiveness became their strength. The design solved a real issue for trail runners who needed better downhill performance, turning skeptics into loyal fans.

Start by identifying your customer’s most pressing, unresolved problem. Don’t focus on your product’s features – focus on the solution. HOKA didn’t set out to make thick shoes; they set out to help runners tackle steep mountain descents faster. The thick sole was the answer to that challenge.

Look for overlooked opportunities affecting large groups of people. For instance, plantar fasciitis impacts 1 in 10 people in the U.S., creating a market of 33 million potential customers. HOKA’s cushioned design addressed this pain point, an area traditional brands largely ignored.

Test your edge with early adopters. HOKA gained credibility by partnering with athletes and trail-running experts who validated their product and spread the word. Seek out the toughest critics in your industry – if your solution works for them, it will resonate with the broader market.

Timing can also play a role. HOKA’s focus on comfort aligned with a post-pandemic shift toward functional, comfortable footwear. However, they didn’t wait for trends to catch up – they were already innovating long before comfort became a buzzword.

Conclusion: Speed and Focus Win Against Size

HOKA’s evolution from a small startup to a $1.4 billion brand proves that quick, decisive action beats resource-heavy, overly complex strategies. Their success highlights a crucial takeaway for direct-to-consumer (DTC) brands: as businesses grow, they often become bogged down by complexity, which slows progress. HOKA avoided this trap by staying sharply focused on its core promise – maximum cushioning – and launching products swiftly, often within six months, based on real market feedback rather than prolonged internal debates.

Your brand doesn’t need massive resources to succeed. By applying the FAST framework – Focus, Accelerate, Ship, Test – you can drive growth effectively. Whether you’re aiming to scale from $1 million to $10 million or pushing toward $100 million in revenue, concentrating on speed and focus can give you a clear edge over competitors.

The brands dominating today aren’t necessarily the biggest – they’re the ones moving the fastest. These companies make decisions in a matter of days, not months, and deliver solutions that meet actual customer needs. They prioritize action over perfection, allowing real-world feedback to fuel their progress.

This approach encapsulates HOKA’s winning strategy. By adopting lean, efficient decision-making processes, they outpaced larger competitors. It’s a playbook that any brand can adopt to streamline operations and accelerate growth.

This framework is just one part of the broader innovation conversation. For a deeper dive into how Nike’s hesitation cost them $70 billion – and to uncover the strategies challenger brands are using to seize market share – download our detailed case study: "The $70 Billion Innovation Gap: What Nike’s Stumble Teaches Modern CMOs About Building Defensible Growth."

Learn why ideas without execution are just costly distractions, and explore actionable frameworks like FAST to bridge the gap between strategy and results. Download the full case study here and start building your speed advantage today.

FAQs

How did HOKA use their FAST framework to outperform competitors like Nike in the running shoe market?

HOKA’s FAST framework – Focus, Accelerate, Ship, Test – helped them outpace larger rivals like Nike by driving quicker innovation and adaptability to market demands.

Focus: HOKA zeroed in on a single core problem: delivering maximum cushioning for runners. In contrast, Nike spread its efforts across a wider range of consumer needs, diluting focus.
Accelerate: They slashed product development timelines to just 90 days, a fraction of Nike’s 18-month process.
Ship: By limiting decision-making to three key stakeholders, HOKA avoided the delays typical of large committees, enabling swift product launches.
Test: Instead of relying on traditional focus groups, HOKA leaned on direct customer feedback, ensuring their products evolved based on real-world usage.

This streamlined strategy allowed HOKA to grow quickly, grab market share, and challenge industry heavyweights by emphasizing speed and targeted execution over complex processes.

What makes HOKA’s 90-day product development cycle so effective compared to traditional timelines?

HOKA’s ability to develop products within a 90-day cycle has been a game-changer, giving the brand a clear edge over competitors like Nike. By ditching the traditional 18-month development timeline, HOKA emphasizes speed and flexibility through:

Rapid Prototyping: Moving from concept to prototype in just three months, enabling quicker product launches.
Direct Customer Testing: Gathering feedback straight from real users, bypassing the delays often associated with traditional focus groups.

This streamlined approach has allowed HOKA to introduce multiple models and fine-tune them swiftly to meet market demand, ensuring they stay ahead in a highly competitive industry.

How can a direct-to-consumer brand successfully use HOKA’s strategy of focusing on a single niche before expanding?

To implement HOKA’s approach effectively, a direct-to-consumer brand should begin by pinpointing a specific problem faced by a well-defined audience and designing a product that addresses it exceptionally well. Take HOKA as an example: they zeroed in on trail runners who needed enhanced cushioning and stability. This focus enabled them to excel in this niche and cultivate a dedicated customer base.

By maintaining a sharp focus, brands can build trust, fine-tune their products using genuine customer insights, and lay the groundwork for sustainable growth. Avoid the temptation to expand too quickly – growth should come only after fully mastering your niche and securing a strong foothold in the market.

JOIN in 3 Steps