Converse's All-Star Image

The century-old sneaker maker has been undergoing an overhaul since it was bought by Nike. The new global VP for footwear talks about the classic retro shoe

Say Converse sneakers to Baby Boomers or Generation X, Y, and Z-ers and the reaction will likely be a nod of approval. The brand, founded by Marquis M. Converse exactly a century ago, has endured—with many ups and downs—as a favorite of athletes, as well as creative types, by playing up its upstart image.

Converse's first model was a rubber-soled shoe, followed in 1917 by the innovative lightweight All-Star basketball shoe with a rubber outsole, durable toe cap, and ankle patch that helped stabilize the foot. Endorsed in the '30s by basketball star Charles H. Taylor (known as Chuck) in an early form of sponsorship, the All-Star was a sleeper hit that eventually became the official NBA shoe—as well an emblem of cool adopted by artists and musicians that extended into the grunge and punk-rock eras.

But the company ran into trouble in the '80s when companies such as Nike, Adidas, and Reebok transformed the athletic shoe industry by designing sneakers for, and developing brands around, superstars like Michael Jordan. Instead of a mere celebrity endorsement, these reigning star athletes became marketing machines for the shoes. Converse found itself at the back end of a dying marketing model and couldn't keep pace with the more technologically savvy footwear rivals. In 2001 the nearly bankrupt North Andover (Mass.) company was sold to private investors and then acquired in 2003 by Nike, which began a brand makeover.

The overhaul echoed Nike's own branding strategies, including a design-your-own shoe feature on its Web site and a premium line with special washes created by fashion designer John Varvatos. There's a high-performance shoe sponsored by Miami Heat star Dwayne Wade, and a new limited-edition Kurt Cobain model inscribed with the late rocker's drawings and writings (he was a Converse fan). So far the changes are paying off: Revenue rose 23% in 2007 and 40% in the second quarter of 2008, according to Nike.

Using cultural figures, both present and past, to enhance the Converse brand is a strategy that will continue under John Hoke, the unit's new global footwear vice-president, who will oversee product management, design, development, and innovation. Hoke, who shifts from his job as vice-president, global footwear design, at parent company Nike, regards the Converse sneaker as a classic retro product that was the "biological birth-parent of every modern sneaker." As Hoke moves into his new job, BusinessWeek.com contributing writer Ernest Beck spoke with him about where he wants to take the brand.

After channeling Kurt Cobain, what's next for Converse?

Our product strategy is to celebrate the 'then', leverage for the market now, and frame the future with a full range of products. The idea is to curate iconic figures from the past who adopted the brand, as well as those who wear them now from the worlds of music, politics, fashion, and sports.

For example, the Kennedy family wore them playing football, and so did Jackson Pollock and Keith Haring. Barack Obama was recently seen wearing Converse Product (Red). I can't say who might be chosen, but what we want to do is to create products, ideas, and consumer messages around certain figures, playing on what these people have accomplished and why they might have chosen Converse. We'll also work with young athletes like Dwayne Wade, who pushes our performance line; that's the future of Converse.

How does that differ from the brand strategy before Converse was acquired by Nike?

The brand was being watered down and cheapened. They came out with Chuck Taylor models that didn't capture the essence of the sneaker. They didn't have value or performance. Under Nike the brand has been moving in the direction I would like, but I want to accelerate that and broaden the scale.

We have a lot to work with because what's amazing about Converse is the brand elasticity. We're not a down-market brand, but we do have a more sensitive price point. Amazingly, Converse is a brand that is sold at Target and at Barney's.