Chasing HYPE? A Lesson from a Sock.

Hype-by-algorithm can blow up in your face. Know this…

TicToc can zero-to-hero your product overnight.

Stanley 40 oz cups demand grew 7X in 2023. The same algorithms pumped the Adidas Samba to 5X.

Now they’re trending down.

I lived this firsthand: with a sock.

In 2007, basketball players rarely connected socks and performance. Socks were items bought in bulk.

But Nike saw a niche performance need. Basic socks limited their footwear experience. Could a sock be tuned to enhance performance?

Enter the Nike Elite Basketball Sock.

It’s 2007. The USA Men’s Basketball Team rolls onto the court. Yet, their new socks turn heads. With its unique logo running up the back.

Player demand skyrockets.

Yet, production is limited and very technical. The machines were few and very expensive. Which makes them hard to get, the HYPE begins.

And the business reaction?

A stunned initial response leads to a feeling of invulnerability: “We’re printing money.” Time to scale up and hire a large team. We need to feed the demand for more colors, patterns, and special editions.

Now it’s the ultimate fashion statement.

First for Sneakerheads to hook to their kicks. Then for everyday athletes and sports fans. And lastly, grade schoolers own drawers full of them.

Oops! We flooded the market.

This oversaturation kills the exclusivity and uniqueness of the socks. Once coveted, now they’re everywhere. The hype moves on.

Now they’re just another pair of socks. And, all this was BEFORE the power of algorithms! Which exaggerates demand and compresses duration.

Are you staking your value proposition on hype? Think twice!

When it happens take advantage. BUT at the same time, diversify your growth.

The hype won’t last!