This wasn’t his first attempt at business. Before he came up with the idea that made him a billionaire, his entrepreneurial journey had been a series of failures. Even his first attempt at making shoes was a flop. I mean…who wears wooden shoes with spring-loaded heels?

Well, his ideas are crazy but that was exactly why he could blindside every market analyst to become one of the most sought-after shoe manufacturers. It’s just like they say, fortune favors the bold. despite his not-so-impressive portfolio, fortune did indeed smile on this Italian entrepreneur by the name of Alessandro Rosano.

HeyDude - The Crocs of Loafers

According to his sister, Rosano had his “flash of genius moment” when he returned from a trip to China. His idea was simple - make a shoe that was as comfortable as a slipper. The result was a lightweight slip-on loafer with elastic laces that has been described by Forbes as;

So-ugly-they’re-cute

Because it lacked any of the stylish aesthetics that are common with modern shoes. To put it simply, the shoe was bland and the name” HeyDude” as the shoe was called would barely compete with brand names like Nike or Adidas. But why did the shoes have such an unremarkable identity? Was this an oversight or a marketing ploy?

The lack of any aesthetics was neither an oversight nor a marketing ploy. It seems Rosano’s focus was on the comfortability of the shoes and to achieve this goal, it was necessary to strip away every other feature that would interfere or even distract from it. In essence, HeyDude shoes were not about how you looked but how it felt.

Other than feeling comfortable, Rosano also wanted something casual and inexpensive. Putting all this together, he designed the Wally for men which has been described as 

The perfectly constructed footwear, which is innovative, ultra-light, and casual, but with style

The shoes had elastic laces and cost 60 bucks. This was how Rosano managed to carve out a niche for himself in a market where his competitors were multimillion-dollar companies like Nike. HeyDude became associated with comfort and it was an instant hit. By 2020 the company’s revenue skyrocketed after the coronavirus hit and most shoppers were looking for shoes that were comfortable and casual.

Breaking into the market 

HeyDude was founded in 2008, two years after that, Rosano Partnered with an American named Guidi, an aerospace engineer and business owner. With Guidi’s help, Rosano pushed his business across the Pacific to the US markets. It was here the company saw a breakthrough in sales, even though most people hadn’t heard of the brand.

The design and simplicity of the shoe struck a chord with the Americans and in no time, Rosano’s shoes were being sold off faster than they could be restocked. According to one of the earlier retailers, customers often bought up to five pairs at a time. 

It was limited quantity and a lot of fun styles and colors, and the price was right. The customer wanted them so bad it almost didn’t matter what the color was. It was crazy, that’s probably the best way to put it

Soon after the Wally men's shoe became successful in America, Rosano added a new lineup for women. He called the new eco-friendly designs Wendy (again, the naming is hilarious). Despite its success, HeyDude managed to stay under the rather, known only to its niche customers and its revenue continued to grow steadily. 

In 2018, the company had a revenue of $20 million, which is modest compared to the $191 million it made in 2020. It was at the height of its sales that Rosano decided to sell off the company. Since the company had been operating under the radar (Privately), Rosano was going to sell his company to a Private Equity firm. 

However, Crocs, a well-known shoe company had had its eyes set on the HeyDude for quite some time. And when it was aware that the company was in the market to be sold, it made its move. Crocs bought the company for 2.5 billion dollars in cash and stocks. 

The genius of Alessandro Rosano’s Strategy

Rosano had pulled off the impossible, building a successful shoe company with what the Crocs CEO describes as a shoestring budget. Marketing was mainly by word-of-mouth and his overall approach can be summarized in one word, “unorthodox”.

If you were to lay out the playbook that they followed and present it to a set of business executives, they would say there’s no way that this would succeed

(Crocs CEO Andrew Rees)

Perhaps doing it his way was what made him successful in an industry with stiff competition. If there is one thing to learn from this, it will be the power of having a niche. Don’t be afraid to dial down on what exactly you want to achieve in your business and let go of everything else that could interfere with this single GOAL.

HeyDude may not be as aesthetically pleasing as the latest Air Force Ones. But they were never meant for that. It was meant to be the shoes you wear when you want something casual and comfortable and don’t have to worry about feeling overdressed. 

Another thing Rosano got right was timing. Knowing when to exit the market is as important as knowing when to launch your business. By timing his exit properly, Rosano locked in on the goodwill value of his business. I will be writing on the importance of timing in business and how to make sure you get it right.

For now, you may be interested in knowing; How Women Founders Can Navigate Gender Stereotypes During Fundraising

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