Marc Herzberger and Cheng Kue, co-founders of The Hype Company, made waves in Shark Tank Season 15, Episode 1521, with their unique take on slide sandals. Combining innovation, sustainability, and customization, the Denver-based duo is revolutionizing how people express themselves through footwear. Their pitch not only highlighted a promising product but also underscored a mission to make sustainable fashion more accessible and exciting.
The Hype Company: A Vision for Innovation and Sustainability
Cheng Kue, a seasoned shoe designer with over 20 years of experience working for global brands like Crocs, Adidas, and Fila, founded The Hype Company in 2018. His goal was to address two key industry gaps: wasteful manufacturing and uninspiring designs. In 2022, Marc Herzberger joined as CEO, bringing expertise in supply chain and finance, honed during his tenure at Crocs. Together, they’ve crafted a business model that’s as innovative as their product.
Their standout feature? A patented, two-piece slide sandal design. This process not only reduces waste but also enables unparalleled customization. Customers can mix and match strap designs and sole colors, offering the freedom to adapt their footwear to any occasion or mood. Options include:
- Custom Slides: Personal designs created by customers.
- NCAA Slides: Licensed college sports team designs.
- Creator Slides: Featuring artwork, flags, and unique prints.
With prices starting at $50 for custom slides and $60 for NCAA designs, The Hype Company’s sleek, durable, and comfortable sandals aim to disrupt a crowded market.
The Shark Tank Pitch: A Bold Move
Seeking $125,000 for 5% equity, Marc and Cheng presented a compelling pitch in the Tank. They emphasized the versatility of their patented two-piece slides and their vision for transforming fan gear and customizable footwear.
Key Business Metrics:
| Category | Details |
|---|---|
| Total Sales (4 years) | $500,000 |
| Primary Revenue Source | Single-piece slides |
| 2023 YTD Sales | $60,000 (early traction for Slider Pro) |
| Production Costs | $10.93 landed cost per unit |
| Retail Price | $60 per unit |
| Gross Margin | 82% |
| Sales Channels | – Direct-to-consumer- Wholesale partnerships (Finish Line, Target, Fabletics) |
The business is poised to scale, with plans to expand NCAA licensing agreements and introduce robust marketing strategies for their customizable slides.
Sharks’ Reactions
The Sharks recognized the potential of the product but offered mixed feedback:
Lori Greiner: Appreciated the innovation but opted out due to the competitive footwear market.
Kevin O’Leary: Commended their credibility but hesitated due to the lack of defined customer acquisition costs.
Mark Cuban: Identified their strength in customization but declined, as he didn’t see enough market scalability in slides.
Michael Rubin: Acknowledged the opportunity for a successful medium-sized business but didn’t see it as a massive growth play.
Barbara Corcoran’s Deal
Barbara Corcoran saw promise in their direct-to-consumer and customization model. She offered $125,000 for 25% equity, split into $62,500 cash and a $62,500 credit line. After negotiations, the parties settled on a final deal: $100,000 in cash and $250,000 in credit for 25% equity.
Post-Shark Tank Success
The Hype Company leveraged their Shark Tank appearance to grow their brand and attract new opportunities:
Partnership with SnugZ USA: In May 2024, they announced a collaboration with SnugZ USA, a leading provider of customizable corporate gifts. This partnership expands The Hype Company’s reach into the promotional product space, opening doors to new B2B opportunities.
Increased Licensing: By mid-2024, they had significantly expanded their NCAA licenses, offering a wider variety of team-based designs to tap into passionate fan bases.
Social Media Traction
Barbara Corcoran expressed enthusiasm for the brand on social media, tweeting during the show: “HYPE to welcome you both to the family. #SharkTank @ABCSharkTank #TheHypeCompany.” However, as of July 2024, there’s no confirmation the deal officially closed, raising questions about the long-term partnership with Barbara.
The Road Ahead: Challenges and Opportunities
As The Hype Company looks to the future, its growth potential is clear. Key focus areas include:
Scaling Marketing Efforts: With a high-margin product, investing in customer acquisition strategies will be critical to driving sales.
Leveraging Customization Trends: The rising demand for personalized products gives The Hype Company an edge in carving out a niche market.
Expanding Distribution: Partnerships with retailers and B2B opportunities, like the SnugZ deal, position the brand for significant scalability.
The challenge lies in balancing growth with operational efficiency. By leveraging their patented design and Marc and Cheng’s combined expertise, The Hype Company has the foundation to disrupt the footwear industry while staying true to its sustainability and customization mission.
Conclusion
The Hype Company’s journey on Shark Tank underscores the power of innovation and persistence. Their patented design, sustainable approach, and customer-centric focus set them apart in the competitive footwear market. While questions remain about their partnership with Barbara, their progress post-Tank reflects a business poised for long-term success.
Stay tuned as The Hype Company continues to redefine how consumers engage with footwear, proving that even a simple slide sandal can inspire excitement and creativity.
