Hydros!!

Image result for hydro flask

Hydros are everywhere. I mean everywhere. Just check my desk. There she is… the bright blue hydro
I can never go anywhere without.
The water bottle industry operates under monopolistic competition. The competition where each brand
sells water bottles that are unique to that brand. Whether it be the color, the material, or the size, each
water bottle brand is unique. It is for this reason why marketing and product differentiation in the
monopolistic market is key.


So how exactly did Hydro Flask become so big, so fast?
The answer begins back in 2014, two years after Hydro Flask had first been released. It was at this
time where Hydro Flask began pairing up with major outdoor brands such as Patagonia, REI, Hurley,
and Olukai. Scott Allen, general manager of Hydro Flask, traces it back to a supposedly huge moment,
where the outdoor brand Columbia handed out Hydro Flask products to all its executives on a retreat
“forming the most important relationship in Hydro Flask’s history.”

Thus, the underlying strategy of how Hydro Flask became so big, so fast is, in fact, similar to that of
Disney’s. In expanding within their prospective industries, both Hydro Flask and Disney have
increasingly become more successful. In expanding to that extent, it may seem they have become
oligopolies. So do you think companies can become successful without expanding within their
prospective industries? How?

https://www.popularmechanics.com/adventure/outdoor-gear/a25657823/hydro-flask/
https://www.snewsnet.com/tag/hydro-flask

Comments

  1. AnonymousApril 11, 2019 at 11:20 AM

    Cool article! I didn't know about the time or specifics of the inception and growth of Hyrdoflask, so this was really interesting to read. In my opinion, you can't compare the water bottle industry to the movie industry — they are completely different in almost every way.

    1. Hydroflasks are solving an issue of disposable bottles. The opportunity cost of purchasing a reusable bottle is the price compared to a cheaper bottle. Plastic bottles still dominate the water bottle industry and will continue to for a while.

    2. The reusable water bottle industry is perfectly competitive. Anyone can create a bottle like Hydroflask — in fact, I've seen many ripoffs such as the ThermoFlask.

    3. The water bottle industry is not as large as the movie industry and probably never will be large enough to make a significant impact on the economy.

    ReplyDelete
  2. AnonymousApril 11, 2019 at 12:56 PM

    Awesome post! I think Hydro Flasks are part of a company that inspires a lot of brand loyalty. People genuinely love the product and there's a sense of pride in having one. An Instagram page made some jokes about how Hydro Flasks are just part of living in the Bay Area, and I would have to agree. Like we learned in the marketing documentary a while back, Hydros represent a lifestyle that people want and have a greater emotional pull. Purchases of Hydros are increasing exponentially as seen by the 13.4% jump in reported sales from the Housewares faction of Helen of Troy Ltd. I also liked how you explained that the water bottle industry is monopolistic competition; each brand of water bottle definitely has a distinct style that sets it apart. Shortly before Hydros became big, I remember Swell water bottles seemingly overnight flooded grocery stores. However, one issue with reusable water bottles is that they're reusable. Do you think that the sale of Hydros will continue to rise, or as with the videogame market, eventually the market will become too saturated and people will no longer buy?

    Source: https://sgbonline.com/hydro-flask-closes-out-another-robust-year/

    ReplyDelete
  3. AnonymousApril 14, 2019 at 12:18 AM

    Love this post! I never really thought about the economics behind the Hydro Flask or the water bottle industry. What really made the hydros take off was their initial marketing strategy. Everyone wanted an insulated water bottle that would keep drinks a certain temperature. And so sales reps would drop bottles of ice water all over the country and ask their offices to call them when the ice melted. Their goal was to market by getting people to experience the product, because that experience was worth more than the words could tell them. Once word of this technology got out and they started pairing with other outdoor brands like Patagonia, they really became unstoppable.

    https://www.popularmechanics.com/adventure/outdoor-gear/a25657823/hydro-flask/

    ReplyDelete
  4. AnonymousApril 14, 2019 at 7:03 PM

    Interesting post. I feel that Hydro Flash wanted to market and brand their company into an everyday lifestyle, something in which many people wants to be apart of. Hydro Flask had exploded in the market when it resolved the issue of drinks being to warm when left in the sun and sold insulated thermal bottles in 2009. By 2011, the company had seen 1 millions units sold in 2011. Today, Hydro Flask continues and seeks to expand their brand into different directions as they take over the water bottle industry.

    https://www.inc.com/alix-stuart/2015-inc5000-how-this-company-overcame-a-toxic-disaster.html

    ReplyDelete
  5. AnonymousApril 26, 2019 at 11:32 AM

    Woah! It is actually super crazy how water bottles have been the latest craze. I remember when swell bottles were super popular in 2017 and now there are tons of well known companies competing against each other! Look at hydroflasks, YETI bottles— there are so many! I looked up the statistics for the water bottle market and it has been repaired that the industry is expected to exceed more than US$ 2480 million by 2023. In a way, this craze is actually quite beneficial to the environment. If people continue to reel people in about water bottles, maybe the world will use less plastic and more reusable items! This will totally help the environment in reducing plastic waste, while generating money into the economy.

    http://industrynewscenter.com/22382/global-water-bottles-market-2019-thermos-llc-pmi-locklock-contigo-tupperware/

    ReplyDelete

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