Spanish Footwear Company Hoff Bets on Mexican Consumers

Hoff, a Spanish footwear company, is expanding its horizons beyond its home country and setting its sights on Mexico for further growth. Following a strategic expansion plan driven by new store openings, the company has entered agreements with two franchise partners to kickstart its expansion process in Latin America and the Middle East. 

Since the previous year, Hoff has placed sales corners within Palacio de Hierro stores and it is now collaborating with the Mexican department store to launch 15 franchise stores in the country. The first two are set to be operational before the end of the month, with one located in Mexico City and another in Monterrey. 

Initially focused on sneakers through online channels, Hoff has diversified its offerings over the years, expanding from exclusively footwear to encompassing fashion collections and accessories.

"Having a travel companion like Palacio de Hierro is very relevant; they bring extensive experience and have been with us throughout this process. The big challenge is to enhance brand awareness and foster growth," says Fran Marchena, CEO and founder, Hoff, in an interview with Expansión. 

In Mexico, revenues from the sports footwear segment are projected to reach €1,750 million (US$1,877.14 million) this year, and the market is expected to witness a compound annual growth rate (CAGR) of 5.71% between 2023 and 2028, according to Statista.

In addition to international franchises, Hoff plans to establish seven proprietary stores outside Spain, expanding its new overseas points of sale to 27. The company aims to open 20 international franchises by the end of 2024.

Hoff concluded 2023 with a global network of 28 stores and 17 points of sale through El Corte Inglés department stores. Currently, 30% of its turnover is generated through these channels, with the remaining 70% attributed to international online sales and multi-brand representation.

For the fiscal year ending in December, the footwear company achieved a turnover of €$53 million, marking a 45% increase from 2022. In 2024 Hoff aspires to reach a turnover of €$60 million in 2024. Additionally, the company aims to achieve sales of €US100 million by the end of 2025.