Holeys is a true Canadian success story
Holeys as world leader
Holeys (formerly Holey Soles) is the Canadian company that could. Holeys is a world leader in the design and manufacture of a new generation of fun and functional lifestyle wear. Holeys’ original iconic neon-bright foam clogs, plus a brand new selection of foam shoes with Holeys’ trademark holes and innovative product lines, are sold in over 30 countries worldwide.
Holeys is #1 in the world in its use of injection foam molding technology. The scientific foam-injection and thermo-rubber slip resistant treads work together with Holeys’ unique memory foam to provide comfort, support and value for Holeys’ user-tribe. The technologies are in line with the environmental stewardship that the Holeys’ team has adopted as one of its community-building values.
Play safe
Holeys is a favourite with children (and their moms and dads). They love Holeys’ inventive new Critters by Holeys clogs, with its collection of adorable head-to-toe outfits coming soon. Critters by Holeys is a line with a delightful cast of fun-loving insect characters who tell stories for children to promote safety, a sense of community and social values.
Holeys values the safety and comfort of all its customers, but most particularly that of the children wearing Holeys’ shoes. Holeys’ team of innovators made design improvements in 2006, even before the concerns about escalator safety came to light. They refashioned Holeys’ shoes with a more narrow fit, round edges and closed toe ends to protect against possible stubs. Holeys’ new colourful treads provide added stability and slip-resistance.
The success story: from humble beginnings
Holeys had a humble start in 2002, in the garage of a psychologist-entrepreneur in Vancouver, Canada. Demand exploded for the original neon foam clog. People fell in love with them. Or they hated them. But their feet thanked them.
Profit magazine named Holeys # 1 and #4, respectively, in their PROFIT HOT 50 for 2006 and 2007. Holeys’ revenues topped $17 Million in 2007. The company moved to an 85,000 square foot warehouse in Richmond. It is strategically located within British Columbia’s playground, near Vancouver and the staging ground for the 2010 Olympic Winter Games. Holeys has evolved into a global player with a new brand identity and projections of 30% revenue growth for 2008.
The gathering legal storm
Early and dramatic success led to fierce competition between Holeys and Crocs®, the world’s two largest manufacturers of the iconic clogs. Holeys first sourced its products from Quebec manufacturer Finproject. So did Western Brands LLC (later to become Crocs Inc) and several other competitors. They all sold the same clog between 2002 and 2004, under a variety of brand names. Holeys called its clog the ‘Holey Soles’ model. Western Brands added a pivoting strap to the clog and “Crocs” was born.
Crocs® fired its first shot across Holeys’ bow in 2005, warning of the legal battles to come. Market observers comment that Crocs® lawsuits appear to be a business strategy meant to divert their competitors’ resources away from building their companies. Some have folded under the crippling costs of litigation. But Holeys has been unflinching in defending its integrity and rights.
The legal disputes between Crocs® and Holeys are complicated intellectual property issues. Boiled down, Crocs® claims to have an exclusive right to sell, manufacture and import the first-designed foam clog that was being sold by Holeys and other competitors up to 2004. The very first case was filed against Holeys in Canada, in January 2005, and remains open.
Four legal decisions in 2007 and 2008 support Holeys’ position that the facts and the law are on its side. Most recently, the United States International Trade Commission (ITC) issued an Initial Determination in favour of Holeys in April 2008. The judge found that Holeys did not infringe either Crocs® design or utility patents, and that Crocs® utility patent was invalid. The judge recognized that Crocs® was not the “original”.
Early in 2007, the Canadian Intellectual Property Office (CIPO) rescinded their decision to give Crocs® the equivalent of a Design Patent. Later that same year, the European Union’s Office for Harmonization (OHIM) also found against Crocs® in December, when it ruled that Crocs® Registered Community Design was not valid.
Appeals and requests for judicial review of these decisions can be expected to keep the legal issues in play for years to come.
New directions, leadership and social
responsibility
Crocs® and Holeys
remain competitors only with respect to the iconic neon-bright foam clogs. Joyce Groote, Holeys’ CEO, 2007 Entrepreneur of the
Year finalist, and growth visionary, has skilfully guided the company’s global
expansion. She has created a corporate culture of mutual respect, fairness and
integrity. Holeys has matured into a
distinctly different company, with its leading-edge technology, its own markets
and very different, innovative product lines that continue to evolve. Holeys
has unlimited potential. Customer feedback guides design improvements, and
response has been overwhelmingly positive.
Holeys stands out as a company using fair business practices, affordable price points and quality technological innovations. Holeys is a place where everyone wants to work. Each member of the Holeys’ team “walks the talk” by holding true to their shared values of social responsibility, community and harmony. Holeys has made significant charitable contributions to children locally and worldwide through Children’s Wish Foundation, Canuck Place, Soles4Souls and African relief, and other disaster relief programs.
Holeys is a true Canadian success story. And nice too, eh. - By Sherry Wiebe
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