Source: Marin Store | shop online at BIRKENSTOCK
On a recent episode of the Prof. G Podcast, Ed and Professor Scott discussed Birkenstock’s impending IPO. While he was extremely excited about the IPO, Ed wasn’t. Neither guy is informed on the sneaker industry and didn’t have any real insight other than Prof. G’s claim that everyone in his family owns a pair. He did have one other point of discussion. A topic I’ve discussed often here on arch:
Birkenstock’s Amazon Exit
Professor Scott G doesn’t have to be a sneaker industry expert to understand the importance of Birkenstock leaving Amazon. This move by the brand showed how the brand understands its consumer and has complete control of their supply chain and inventory. A confident company isn’t always a profitable company, but a competent, confident and controlled brand is always a great combination and trait of success.
The 5 Reasons Birkenstock’s IPO will be Amazing
- Manufacturing is in house – Birkenstock has always produced its own footwear. During the quarantine when consumers were ordering clothing based on leisure and comfort and post quarantine when supply chains wreaked havoc on other brands, Birkenstock’s ability to create their footwear in-house proved to be the perfect footwear model. The brand opened a new facility this year and will be able to do an even better job with their supply chain and meet consumer demand faster.
- Brand doors – Birkenstock isn’t heavily distributed. While they have dabbled with an increase in product at stores like Foot Locker, the team maintains tight control of pricing and will immediately adjust quantities as opposed to allowing retailers to mark down their shoes. Because the brand is not overextended in wholesale, they have an opportunity to open more doors informed by their DTC online data. An IPO allows for the beautiful brand experience you see in these pictures for their new Marin location to be expanded in the U.S.
- Untapped Demographics – I’m comfortable talking race as it relates to sneakers and footwear, so I’ll say this while others won’t say this out loud. White people buy Birks, not many people of color are rocking the brand. The Birkenstock Footbed is an experience and not even Birkenstock has explained the story well enough to get a more diverse consumer interested in wearing “Jesus sandals”. When Birkenstock moves closer to the consumer with new brand doors a more diverse customer base will begin to wear the shoes.
- Recovery Footwear – Birkenstock is beginning to push the importance of their footbed design for athletic recovery. This is a growing market as more people became runners and hikers during the pandemic. Crocs and OOFOS have capitalized on post athletic footwear and Birkenstock has the ability to do this in a considerable manner. More importantly, the brand is like New Balance was. Remember when New Balance didn’t do endorsements? Birkenstock doesn’t do endorsements right now, but with the power of considerable funding they will undoubtedly ramp up marketing spend and that will equate to greater brand recognition.
- Moving Beyond Sandals – I’m certain someone was going to say that the fifth thing would be collabs. Birkenstock has partnered with luxury brands and sneaker boutiques to create sandals which resale for as much as 600 a pair. The Stussy Collab in Stussy Dusty Pink has an average sold price of $541 dollars with pairs selling for 1000. Collabs are small and provide brand heat as well as a cool factor, but Birk is known for the Arizona. The company has potential in offering their footbed as an insert and they also have the ability to adapt their footwear to cold weather shoes. UGG and other outdoor brands control the fall and winter seasons in footwear. Placing energy into creating a staple Winter shoe will move Birks from a warm weather option to a year-round brand.
Birkenstock could be the AMC… hold on, let me rephrase that. Birkenstock will be the anti-Allbirds and better than the On-Running IPO has been. I’ll bet the footbed on this.