Bold Beautiful


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PLAYING IN PEORIA KIDS’ POINT OF VIEW A FEMALE CAT

Sandals get

feminine. (and fun)

ITHACA, NY PERMIT # 191

PAID PRSRT STD US POSTAGE

FOOTWEARINSIGHT.COM • SEPTEMBER/OCTOBER 2014

Bold Beautiful

the healthiest shoes you’ll ever wear®

TIMEOUT | MARK SULLIVAN Putting a $ Amount on In-Store Experience ould you ever invite someone to your house for dinner and just as they were digging into the main course, remove their plate and say “I think you’re done.” Of course not, but that’s exactly what retail sales associates are doing every day in your stores. Eighty percent of all retail sales are stopped by sales associates, according to Doug Fleener of the Dynamic Experiences Group, a retail and customer experience consultant. “Retail sales associates are not speaking to customers in the right way,” Fleener says. “The worst thing they say is ‘Will there be anything else?’ because there never is.” Fleener recently presented the results of a few shopper studies to a group of shoe retailers at the National Shoe Retailers’ Association education day in Las Vegas. Retailers tend to think about the in-store experience as a “touchy feely” concept, Fleener says. Using data from these studies, Fleener attempted to place a dollar value on the customer experience. One study analyzed annual spending of shoppers who rated a store experience a “7 out of 10” versus those who gave stores a 10. “A 7 is good, most stores would be happy with that score,” Fleener says. But shoppers who rated their in-store experience a 10 spent 75 percent more than those who rated it a 7. That’s a significant difference that can drive sales growth and drop dollars to the bottom line. Fleener says stores can do their own analysis and create an action plan by analyzing average dollar sales by employee. Then it becomes a matter of figuring out what the top performers are doing that the others are not. Fleener says the best sales associates tend to cultivate relationships with customers, a practice he calls “clienteling.” “People want relationships and an emotional experience when they shop. For someone to come into your store and receive what amounts to service by a personal shopper is really powerful.” Fleener divides shoppers into three main groups: 1. Mission shoppers who know what they need. 2. Explorers who want something, but may not be sure of exactly what. 3. Surfers, who are interested, but need to be guided and persuaded. Think about how all these customers should be handled and what a good in-store experience would mean to all of them. For the Mission shopper, it most likely means getting in and out of the store quickly and maybe being sold an accessory item that perfectly complements what he or she was there to get. If handled correctly, the Explorer can live up to his namesake and explore and get educated, two experiences that are likely to result in them spending money. The Surfer may be the toughest to convert, but represents the biggest opportunity. If you can take the casual shopper and create an in-store experience that converts them to a buyer, your store is most likely delivering the 10 score that Fleener says boosts revenue significantly. O

W “For someone to come into your store and receive what amounts to service by a personal shopper is really powerful.”

www.aetrex.com

THEFOOTWEAREYE NEW ARRIVAL

Former ASICS Exec to Launch 361 Degrees in U.S.

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im Monahan, who was the VP of footwear at ASICS America for more than 20 years, is heading up the American introduction of 361 Degrees, produced by one of China’s largest athletic shoe companies. The company will begin shipping product to U.S. stores starting November 1, starting with the 361 Sensation, a mild stability running shoe that will retail for $120. 361 Degrees is best known for its relationship with Kevin Love, the NBA player traded during the off-season to the Cleveland Cavaliers from Minnesota. Love will figure prominently in 361 Degrees’ American marketing. In fact, he’ll be on five billboards throughout Cleveland when the NBA season opens in November, but Monahan says 361 Degrees will focus on training and running initially and not introduce basketball shoes in the United States until late 2015. Love will be marketed as an athlete, rather than simply as a basketball player. The initial billboard campaign shows him running. Monahan, who will have the title of president of 361 Degrees USA, believes the brand can crack the American

market because of its fit and foot protection features. The Spring 2015 line will introduce the company’s proprietary technology: Quick Dynamic Defense (QDD) which will be a key feature of footwear in the brand’s performance running, training and trail collections. QDD is a three-layer process in the midsole that will provide stability, rebound and comfort while maintaining a lightweight feel. “The shoes offer an ultra soft feeling that you can run in without bottoming out,” Monahan said. “Eventually it will come down to what companies have the best cake mix and I believe ours is pretty good.” The Spring 2015 collection will also include performance apparel and an extensive lifestyle footwear collection for men and women. Monahan says the line will be sold to both sports specialty and run specialty, with limited distribution for higherend product. Former ASICS America COO Rich Bourne is a strategic advisor for the brand in America. 361 Degrees was founded in 2003 and went public in 2009. The company’s annual sales are about $345 million. O

NBA star Kevin Love is featured strongly in the brand’s marketing. Right: 361 Degrees USA president Jim Monahan and strategic advisor Rich Bourne.

6 • Footwear Insight ~ September/October 2014

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Introducing work boots designed to go beyond the job site. Bold new additions to the Wolverine line. Built to live up to the demands of a new generation of workers. On the clock. Or off. It’s the work boot, evolved. WOLVERINE.COM ©2014 Wolverine Worldwide, Inc.

THEFOOTWEAREYE

WOMEN’S STYLE

A Female CAT

Fashion-infused style runs throughout the CAT women’s line, which includes a mix of pumps, sandals and boots ranging in price from $70 to $220.

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hen Margaret Doran joined CAT Footwear earlier this year to head up sales for its women’s line, she admits that some retailers questioned the logic of a women’s shoe brand named after a tractor. “Most retailers know us as a men’s industrial boot brand,” says Doran of the line produced under license by Wolverine Worldwide. “But once people began seeing the product the common reaction was ‘this is not what I expected’.” In fact, CAT has had a rather large women’s business outside the United States for a number of years now. CAT has more than 100 mono-branded stores in 141 countries that carry men’s, women’s and children’s footwear and a range of accessories. CAT women’s is particularly strong in Latin America, which Doran attributes to a strong distributor and the fact that

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a decade at Brown Shoe, joined CAT, stores and consumers don’t necesthe women’s line was sold by the same sarily associate the CAT brand with sales force that handled the men’s gigantic yellow tractors. work boots. Doran has assembled a The CAT women’s line features a team of 10 agencies who mix of pumps, sandals and handle only the women’s boots with retail prices product and has made sigranging from $70 to $220 nificant inroads thus far. with an average of about The line has been picked up $120. The consumer, by a range of online sellers according to Doran, is an including Zappos and Shop age 20+ shopper looking HQ as well as Zumiez and for quality, comfort and many independents. The understandable fashion. line will also be featured in For Spring 2015, CAT Hilton Hotels and Resorts women’s introduced its Margaret Doran shops. first major collaboration, The line currently features 150 a line designed by London-based skus and Doran says that number will graphic print designer Camille Walala double in the next year. “It’s an excitcalled Cat Footwear X Walala. The ing time for the brand,” she says. “I collection includes Walala’s version want retailers to start thinking of us of work-influenced boots and will ship as a footwear brand that also makes to retailers starting February 1, 2015. tractors.” O Until Doran, who spent more than

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BREATHABLE. MOISTURE-WICKING. ANTI-MICROBIAL. LONG-TERM CUSHIONING. ORTHOLITE® PROPRIETARY FOAM TECHNOLOGY KEEPS FEET COOLER, DRIER, HEALTHIER, AND HAPPIER. THE WORLD’S LEADING BRANDS TRUST ORTHOLITE TO DELIVER THE HIGHEST LEVEL OF CUSTOMER SATISFACTION.

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THEFOOTWEAREYE

FABRIC TECH

The Winter of Chuck

The Converse All Star Chuck ’70 Polartec, MSRP $110.

Converse has teamed up with fabric giant Polartec to create the All Star Chuck ’70 Polartec. The new All Star is a weather resistant sneaker that marks the first time Polartec technology has ever been applied to a sneaker. Polartec fabric technology is most often used in fleece tops and jackets. With the Converse All Star Chuck ’70 Polartec, the traditional Converse canvas-rubber construction gets a tech upgrade with the infusion of the Polartec Power Shield Pro membrane, inserted between the outer canvas and inner tricot lining of the sneaker. Polartec Power Shield Pro technology combines air permeability with durable hydrostatic resistance, providing a highly water resistant fabric with breathability. This product allows moisture management within the sneaker, balancing the interior environment to help keep feet dry and comfortable, with added protection from water and snow. O

MARKETING

Avia’s Lynch-Pin

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John Lynch, former NFL defensive back

via has signed an endorsement deal with John Lynch, the former NFL defensive back who is now a top analyst for National Football League games on Fox. Throughout his NFL career as a defensive back with Tampa Bay, the Denver Broncos and the New England Patriots, Lynch was known as one of the hardest hitting tacklers in the game and also one of the most durable players. He played for 15 seasons and attributes his longevity to a rigorous training routine, which Avia believes makes him a good match for its brand. “One of my goals was not just to play in the league, but play at a high level for a long time,” Lynch told Footwear Insight. “My training was a big part of helping me reach that goal.” Lynch attended high school in San Diego before attending Stanford University and

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says during his playing days he trained in the hills of San Diego, using many techniques that are now popular in Studio Fitness training. “We did core training before it was in vogue. We used to go up the hills carrying guys on our backs. I also did a lot of stretching and cross training. I prided myself on outworking the competition. People thought we were crazy, but it helped us stay in great shape.” During his playing days, he had endorsement agreements with Nike, Adidas and Reebok, but says Avia is a good fit for his current training routine, which includes running, some weight training and working out with his 15-year-old son. In addition to appearing in ads and making appearances on behalf of Avia, Lynch plans to leverage some relationships he made during his playing days, including

one with Sports Authority. Lynch, who now lives in San Diego, spent almost 10 years in Denver. During that time, Lynch’s charity, the John Lynch Foundation, which gives scholarship money to high school students who excel in the classroom, on the playing field and in the community, worked closely with Sports Authority. Lynch has been working as an analyst with Fox for five years and is now on the network’s number two broadcast team with Kevin Burkhardt. So how does Lynch see the season shaping up? “There are going to be a lot of points scored this year. The league wants offense and with all the great quarterbacks in the league, they’ll get it.” He says New Orleans, New England and Green Bay will be “formidable,” but says the Super Bowl could come down to last year’s combatants, the Broncos and Seahawks. O footwearinsight.com

THEFOOTWEAREYE NEW HEIGHTS

Flatform Sandal from Teva, MSRP $50.

Teva’s New ‘Flatform’ Casual sandals hit bold new heights this spring with Teva’s launch of the Flatform, a line of women’s sandals with the look and feel of a traditional Teva sandal juxtaposed atop an unconventional 2-1/4inch platform featuring a layered tonal bright stripe.

Jambu prides itself on being eco-friendly.

GIVING BACK

Jambu’s Re-Store Plan

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ambu may be expanding its successful “Buy a shoe. Plant a tree.” program to retailers. Earlier this year, Jambu began a Restore and Protect program that allows consumers who buy a pair of shoes from the company’s website to opt-in to a program that will plant trees in areas badly in need. Jambu has partnered with American Forests to aid in the preservation and restoration of forests devastated by wildfires as a result of natural and man-made disasters. Jambu has committed to plant 50,000 trees across five U.S. forests targeted for restoration. “Jambu is a tree that grows in the rainforest and we wanted to do our part in giving back to the place that defines us,” says Yetzalee Cubero, director of marketing for the brand. “Like the forest, Jambu prides itself on being eco-friendly, made for the outdoors and great for the soul and sole.” Jambu uses recycled, recyclable and re-usable packaging. Jambu outsoles are made with partially recycled and reusable compressed rubber. O

THEFOOTWEAREYE Vibram FiveFingers Bikila EVO

STRATEGY

Vibram Plots its Next Move

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earing a pair of Vibram FiveFingers at a New York City café during a recent sit-down interview, Michael Gionfriddo described to us how he once walked into quite a “muddy” situation at work. A promotion catapulted the exec from COO to CEO of Vibram USA in July 2012, just around the time Vibram was experiencing some of its biggest challenges ever. Becoming CEO meant cleaning

Michael Gionfriddo, CEO of Vibram USA

out a closet cluttered with SKUs and ending a roller coaster ride of cyclical sales figures. In addition, a recent class action lawsuit having to do with alleged false claims about Vibram’s FiveFingers running shoes drained company resources, including time and money. To right the ship, Vibram decided to settle claims that it

had falsely advertised health benefits associated with the FiveFingers shoes – including that shoes prevent injuries and strengthen muscles – and set up a $3.75 million settlement fund. The brand also voluntarily took down its “5 Reasons” platform from its site, which listed Vibram’s ability to improve range of motion, stimulate neural function and improve posture. “5 Reasons” was a large part of the brand’s DNA and competitive advantage over other minimalist offerings. While independent studies – some commissioned by the brand – concerning health benefits exist, Gionfriddo decided to drop the issue and start fresh. “We did it to move on,” the exec says. Since the announcement of a settlement in May 2014, Vibram has witnessed a 17 percent increase in retail accounts, according to the firm. “It brought a lot of publicity, some bad, some good,” says Gionfriddo. In the press, some have equated settling with implied guilt. On the consumer side, “there has been an increase in online activity and purchases. People may have seen it, heard about it and said, ‘I’m looking for these shoes again,’” says Michael Martin, business unit director for Vibram FiveFingers. For consumers who may still be on the fence, Vibram has made a guarantee. Anyone who purchases a pair of FiveFingers from now until the end of the year through

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VibramFiveFingers. com and is not satisfied after six weeks can return the shoe and get a full refund. For Spring 2015, Vibram has slimmed down (SKUs have been cut by 50 percent over the last year) and refashioned its offerings. Gone are the Classic and the KSO models; in are new versions with better materials, along with the addition of several training and fitness shoes. For off-roading (mud runs), the Spyridon MR has a molded 3D Cocoon nylon mesh technology midsole with a “rock block” effect to disperse impact over a wider

are barely visible. “This is what women have been asking for,” Martin commented. Similarly, consumers may squint to see those trademark toes in the Furoshiki lifestyle shoe. The digital-printed shoe is a fun, functional fashion piece that hugs the foot and showcases Vibram’s ability to produce fabrics interwoven with rubber. The

For consumers who may still be on the fence, Vibram has made a guarantee. Anyone who purchases a pair of FiveFingers from now until the end of the year through VibramFiveFingers.com and is not satisfied after six weeks can return the shoe and get a full refund.

area of the shoe. Bikila EVO and Bikila EVO WP are positioned as offerings fit for those making the transition from traditional to minimalist running shoes. The KMD EVO can be used for running, as well as for cross training/ CrossFit activities. Specifically for women, the Alitza is positioned as an “elegant” offering for barre, yoga and training, while the Alitza Loop offers a barefoot experience with optimal traction. Unlike in other VIbram FiveFingers shoes, toes

shoe could also open some new distribution possibilities due to its fashion quotient. “I can envision this in a fashion boutique,” says Martin. The company’s execs feel that the slimmed down portfolio has benefits. “This is the first time retailers are saying we’re rightsized and stable,” Martin explains. Moving forward, the goal is to be lean and mean and continue to seek ways to serve unfulfilled needs. O — Suzanne Blecher footwearinsight.com

HOT TREND

ASICS Takes it to the Max

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hree new shoes in ASICS’ Natural33 collection for Spring 2015 reflect the trend in the market towards “max cushioning” in running footwear. The new 33-M, 33-FA and 33-DFA all feature a 4 mm drop, but have varying midsole heights, up to a max of 24 mm in the heel of the cushiest model, the 33-M, which hits retail in February. (MSRP $140). The shoes offer a cushioned ride but are also lightweight and designed to offer a “natural running” experience. “The shoes are built on an oblique last with a rounded toe box, giving it a natural running shape,” explains Clara Kerley, product specialist of running footwear, at ASICS

ASICS 33-M, MSRP $140.

America, adding that the uppers shed weight via seamless construction and the use of engineered mesh. The shoes feature cushioning that is soft

and low density but is durable and doesn’t crush underfoot, adds Kerley. A variety of brands, from innovative max cushion brand

Hoka One One to Brooks with its Transcend line, have already brought “max cushion” running shoes to market that have gone over well with early adopters of a trend that many are calling “maximalism.” “We see this by 2015 becoming a trend that everyone and their mom will know about,” says Kerley, adding that shoes in ASICS’ Natural33 collection have always been and continue to be positioned as being shoes that add variety to a runner’s footwear choices, allowing runners to mix up their running routines. “A lot of runners want the lightweight, flexible shoe with a minimal drop but they also want cushion so the shoe will last and they can run longer distances,” she says. O

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THEFOOTWEAREYE MEN’S STYLE

Ruosh-ing to the Market Casual style from Ruosh

Regatta Series boat shoe by Ruosh

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uosh has entered the American market with an active casual men’s line that features boat shoes and other casual designs. Ruosh, which means “passion” in Sanskrit, has introduced the Regatta Series line of boat shoes as well as a line of washed canvas and leather shoes. Ruosh sources its shoes in India using high quality leathers and canvas, non-slip bottoms and removable insoles. Current wholesale prices range from $25-$50. Ruosh is based in India where the company has 40 retail stores. The company has also expanded into Europe. Its first American product will ship for Spring 2015. O

MADE IN USA

New Brand Rust & Salt Enters the Marketplace Artisan-crafted shoes from Rust & Salt.

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ust & Salt is a new line of American made footwear that was introduced earlier this year. The line of men’s boat shoes and chukka boots takes its inspiration from its hometown of Portsmouth, NH. Company execs say the name comes from the massive pile of scrap steel and salt visitors pass as they enter Portsmouth Harbor. The hand-stitched boat shoes, moccasins and chukkas retail for about $260. O

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CUSTOMER SERVICE

The Delivery Wars

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peedy delivery is on the verge of being expected. Amazon is leading the trend with 20 million reported members of its Prime program, which offers free two-day shipping with an annual $99 fee. eBay competes with its own in-house, sameday delivery service and the 2013 acquisition of Shutl, the startup that connects retailers with local couriers to promise “delivery within minutes.” Even Walmart is on board with its “To Go” service that promises to carry home purchases for a flat fee of $5 to $10. How can independent retailers compete?

Enter Deliv, a Silicon Valley based startup that earlier this year received $12 million in funding. For the past year Deliv has operated out of shopping malls. It works like this: shopping centers identify a singular hub at which customers can drop off their merchandise throughout the day. Explains Daphne Carmeli, Deliv’s founder, “At the end of the day the customer can pick up their stuff, or they can have it delivered home if they have strollers or are taking public transportation.” Deliv charges retailers $5 per address – with unlimited packages – for the technology. The malls are responsible for supplying the hubs and footwearinsight.com

the couriers. That $5 fee is typically passed on to the customer. Deliv relies on independent drivers who are crowdsourced using Deliv’s technology — all of them free agents paid $12 to $15 per hour plus a mileage stipend. There is no set-up or usage fee for the retailers, who can integrate the technology with a simple web form, Carmeli says. Deliv also allows retailers to offer their online customers the option of same-day delivery, allowing them to compete with the national retailers. “Amazon has changed the retail landscape and put the customer at the forefront, offering speed and flexibility for delivery,” Carmeli says. “Today the retail landscape is a battleground for market share.” Deliv can offer an advantage to small retailers by allowing them to close a sale on what would normally be a phone inquiry. The technology is also useful in inventory management, allowing multiplelocation retailers to deliver stock from other addresses in the area directly to customers’ homes on the same day. Sport Chalet has set itself apart for several years by offering same-day delivery for a fee of $25 to $35 within a certain radius of its stores. “You can’t ignore the trend of fast delivery,” says Craig Levra, CEO of Sport Chalet, which runs its delivery service in-house. “But you don’t have to be huge and collect big data to steal customers. If you are small and nimble it can be amazing.” Deliv currently partners with about 200 retailers. The company opens where there is a critical mass of shopping, mainly in the form of big retailers like Foot Locker and Macy’s. Independent retailers can plug into the system, too. “It’s a way to out-Amazon Amazon,” Carmeli says. O —By Emma Johnson

TRENDSKIDS CHILDREN’S BRANDS TELL IT LIKE IT IS

Three Kids on the Block

Nine West Kids’ Emma, MSRP $35 to $40.

By Nancy A. Ruhling It’s not easy being a kids’ footwear brand. Parents are more attracted to low prices than high style (last year’s shoes are too small), wearers grow up too quickly, leaving the baby brand in the sand, and retailers are more comfortable taking a hike to the adult side. To get the scoop on the market scope, Footwear Insight talked with three leading brands that have created distinct niches in this uber-competitive field. 1

NINE WEST KIDS GOES FORMAL

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Nine West Kids’ Faith, MSRP $35 to $40.

Nine West Kids’ Pumped Up, MSRP $35 to $40.

Nine West Kids’ Tegan, MSRP $35 to $40.

ine West Kids, the offspring of Nine West, has made a name for itself in the narrowest sector of the children’s market: girls’dress shoes. Nine West Kids, which the company debuted a decade ago, dominates the dress category and many others by creating children’s versions of Nine West’s top selling women’s styles for toddlers to 12-year olds. “We have run toward the dress component as others have run away,” says Larry Paparo, president and CEO of LJP International, the licensee for Nine West Kids. “We’ve figured out how to make dress functional — we’ve done things like utilizing many functional and flexible units, and we’ve shown that the same shoes may be worn for more occasions, dress and play. It’s really working — sales were up 40 percent from last year.” A prime example is the Nine West Kids riding boot that was added in 2013. “This is a category that didn’t exist,” he says. “Retailers took a step back when we introduced it, but they went with it, and the sell through has been phenomenal. In 2014, there was a dramatic increase in our boot sales.” The growing up of the kids’ market has been propelled by the mini-adults who love to wear them, and Nine West is banking on lifelong brand loyalty. “Kids today are very savvy about style and brands,” Paparo says. “They want to wear what they see in their parents’ closets. The challenge is to make them look and feel like adult shoes, but for a more active lifestyle. Ornaments have to be designed to stay on and chemicals used in construction have to be safe in case the children put the shoes in their mouths.” Nine West Kids may know what kids want and

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what moms want them to wear, but it’s not always so easy to get retailers on board. “This is moving very fast,” Paparo says, adding that the adult and children’s shoes are sold in the same distribution channels. “Retailers are taking more time to push the pendulum. They are taking a leap of faith with us, but we’ve proven we can bring incremental growth.” The brand is exploiting its successful “Mommy and Me” theme by pairing with the adult brand’s ad campaign centered on occasions. “This is the first time we have “Kids today are very savvy put the two groups together,” about style and Paparo says. “The ads are brands. They derivative of the women’s and are want to wear what they see occasion-oriented — moms and in their parents’ daughters doing things together. closets.” They communicate to the mothers Larry Paparo, who are the target demo. The president and campaign has gotten a lot of CEO of LJP International publicity and it has opened up a lot of opportunities for us.” Paparo says the collaboration will continue as Nine West Kids gets its own social media accounts, including Facebook and Twitter, up and running. Paparo says there’s room in the category to grow for established and new brands even as more retailers shrink the space they devote to children’s shoes. Nine West Kids shoes, which retail for $29 to $59, have proved so popular that the brand recently expanded into the toddler category. But he admits that creating a successful brand looks a lot easier than it is. “If you can achieve success in the kids’ market, you can do it anywhere because it’s so difficult,” he says. O footwearinsight.com

“If you can achieve success in the kids’ market, you can do it anywhere because it’s so difficult.” Larry Paparo, president and CEO of LJP International

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TSUKIHOSHI: STAYING ON TRACK FOR 140 YEARS

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sukihoshi, the leading manufacturer and distributor of children’s footwear in Japan, is one of the older kids on the kids’ market block. It has been tying and untying children’s shoes for 140 years and distributing to the United States market since 2006, proving the lasting power of brands that do things right. “We are known for footwear developed specifically for children’s feet,” says brand manager Matthew Butlett. “With the trend toward fast or disposable fashion, we see the opportunity in the value for the mom. Tsukihoshi styles are machine washable and durable so they last longer and stand up to kids’ play.” The brand is known for its superior fit, specifically its hook and loop closure that makes it easy to put the shoes on and take off. Its styles also feature removable green tea extract insoles that wick moisture and eliminate odor. The brand, whose shoes retail for $50 to $69, plays and promotes the health card, working with orthopedic specialists and pediatricians to perfect its designs. “We develop footwear specifically made for a child’s growing foot, which allows for the toes to

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splay naturally with each step,” Butlett says. “No other brand offers the number of styles with fun color combinations within this category. Our brand is orthotic-friendly and has the support of many independent retailers.” Tsukihoshi grows with the toddler to preteen market, offering everything from the “Tsukihoshi first walker, Baby 81 Cali, to Mary styles are Jane Child 45 Laguna for girls and machine the 80 Velocity that comes in child washable and durable so they sizes through youth 7. last longer and Styles are colorful and stand up to comfortable. The Spring 2015 kids’ play.” collection, for example, features Matthew Butlett, blues and greens, oranges, pinks brand manager and lavenders as well as uniformcompatible colorways for boys and girls. Facebook and Twitter posts, along with reviewer blogs and influencer programs, keep the brand connected to consumers. Sweepstakes, in which reviewers offer a free pair of Tsukihoshis, further engage wearers. Butlett says there’s definitely room for new players in the category, adding that “competition is strong in the kids’ market, both in low-price options as well as high-price options.” O

Tsukihoshi’s 80, available in navy/gray, orange/black, sky/fuchsia, purple/pink, steel/red and coral/orange. MSRP $60 to $69.

Tsukihoshi’s Child 45 Laguna, a sporty mixed-media Mary Jane. MSRP $57.

SEE KAI RUN: MAKING HEALTHY, HAPPY FEET

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ee Kai Run, the company founded in 2004 by a Seattle mom who was looking for the perfect shoe for her son Kai, sees the kids’ market as an opportunity to deliver fashionable, fun and functional footwear. The idea of providing shoes that make feet happy and healthy for the zero to eight-year old set is what sets the brand apart as does its parent-centric perspective, says Nuria Hansen, director of product development of the company that is based in Woodinville, WA. “We offer premium footwear for growing feet at accessible retail price points of $30 to $60, and our shoes are approved by the American Podiatric Medical Association,” Hansen says. “Kids are perpetual motion machines, so craftsmanship is a major focus point. We build our shoes with attention to detail and only use the best materials throughout.” The durability of the shoes, paired with the emphasis on exercise, is a pivotal marketing tool that resonates with moms and dads. “This is the first generation of kids that is predicted to have a shorter lifespan than their parents,” Hansen says. “It’s five years shorter to be exact. Encouraging even the youngest kids to run, jump and kick all day long can help reverse this trend. All shoes, not just gym shoes, need to encourage children to be active.” To that end, See Kai Run’s collection ranges from dressy party shoes like Jude, Dillon and Ginger to

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casual wear like Katie and Akira and high-activity hikers like Runner Discovery and Discovery. The styles appeal to youngsters and parents alike. The Spring/Summer 2015 collection, inspired by New York City’s edgy street style, is a prime example of the brand’s uber hip aesthetic. “We were inspired by Brooklyn’s flower-filled gardens, museum art and street graffiti,” says Hansen. “Trending this year are butterflies, flowers and other summer nature-inspired motifs.” “Kids are perpetualEach season, See Kai Run engages its motion retail partners and consumers with machines, so special discount promotions. “We craftsmanship is a major offer incentives to retailers — buy a focus point.” baker’s dozen for the holiday and get Nuria Hansen, one pair free when you order 12,” director of Hansen says. “For the consumers, product development we continue to offer discount promotions such as free or reduced shipping and seasonal sale specials. In 2015, we will ramp up our PR and social outreach, too. Partnering with social and charitable causes is a priority.” Hansen says that good quality footwear for kids is hard to find, adding that there is room for the market to grow, especially in the high end. “Delivering a premium constructed shoe, using the best materials at a reasonable price point, puts us in the market sweet spot,” Hansen says. “A ‘Goldilocks zone,’ so to speak. And consumers are responding to this.” O

See Kai Run’s Akira, a T-bar sandal that’s a first walker. MSRP $48.

See Kai Run’s Discovery, a washable two-strap pull-on sandal. MSRP $45.

See Kai Run’s Ginger, made of silver metallic leather. MSRP $55.

September/October 2014 ~ Footwear Insight • 19

BOLD BRIGHT

EMBELLISHED Vibrant colors, eye-catching cut outs, and reptile and metallic finishes make Spring 2015 sandals feminine yet fun. THE GLADIATORS HAVE RETREATED. After an invasion of masculine straps and grommets,

women’s comfort sandals are trending toward sleeker and more sophisticated silhouettes. Flirty t-straps, banded slip-on wedges, dressy sling-backs with intricate laser-cut detailing and embellished toe-baring thongs are some of Spring/Summer 2015’s most buzzed-about styles. Laser-cut leather uppers are a key trend and have garnered enthusiastic retailer feedback. Drydock Footwear, maker of the Cobb Hill collection, reports that Mara, a laser-cut birdcage wedge, and Sasha, a Ghilly-lace heeled sandal, are both strong styles. At Aetrex, a top seller is the casual laser-cut thong Audrey, an update to the Sandalistas Comfort Cork collection, while at Earth, laser-cut styles such as the Bay and the Calla are selling well. The other major buzzword is embellishment. Floral accents and bling (namely sequins and rhinestones) are giving the season visual pop. Vionic reports that its Floriana jewelembellished thong on a sleek footbed is a bestseller, while two flower-accented thongs from Aetrex, Emily Rose and Selena are trending. There is also a fair amount of contrast stitching and color blocking that creates an updated ’70s look incorporating vintage-style leathers, such as in Arcopedico’s adjustable cork wedge Christina. The biggest color story is the vibrant tropical palette. Blue and orange dominate, with touches of pink, purple and green. These fun hues are also often used in combinations of two or three as multicolor straps or color-block uppers in styles from brands such as Taos, Naot, Cobb Hill, Dansko, Earth and Waldlaufer. In contrast, soft metallics and sophisticated reptile textures are also showcased in many collections. Rockport’s line offers lizard, python and snake detailing, often in shiny metallic finishes, while Klogs reported that snakeskin was trending heavily with buyers, and Naot and Vionic noted metallics were top sellers. On the technology front, the line between comfort and fashion continues to get ever finer as sandal brands incorporate cushioning and support in aesthetically innovative ways, with

Story Donna Heiderstadt Photos Frank James

several even managing to keep prices under $110 at retail. At Aetrex, the new style-focused Everyday Comfort line within Sandalistas marries core technology and niche pricing with key seasonal trends such as rich hues, delicate detailing and embellishments. And at Rockport, the lightweight Total Motion collection featuring Adiprene by Adidas in the forefoot and heel is a returning theme in the Spring 2015 line, notably in wedge and blocked-heel sandal styles. O

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1. Taos Prudence, MSRP $135. 2. Naot Sophia, MSRP $142. 3. Dansko Georgie, MSRP $150. 4. Dansko Lindsay, MSRP $125. 5. Arcopedico Christina, MSRP $150.

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1. Klogs Stacy, MSRP $100. 2. Taos Lucy, MSRP $150. 3. Mephisto Beatrix, MSRP $295. 4. Alegria Ven, MSRPP $98.95. 5. Aetrex Rebecca, MSRP $129.95.

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1. Mephisto Ivory, MSRP $275. 2. Taos Storyteller, MSRP $110. 3. Naot Enchanted, MSRP $165. 4. Vionic Floriana, MSRP $79.95. 5. Alegria Val, MSRP $98.95.

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1. Earth Bay, MSRP $109.95. 2. Waldlaufer Heliett, MSRP $155. 3. Cobb Hill Rev Sun, MSRP $90. 4. Waldlaufer Heliett, MSRP $155. 5. Naot Miracle, MSRP $165.

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1. Klogs Journey, MSRP $100. 2. Mephisto Manon, MSRP $225. 3. Rockport Perf T-Strap Sandal, MSRP $110. 4. Cobb Hill Sasha, MSRP $110. 5. Earth Calla, MSRP $114.99.

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running cardio indoor cycling cross-training swim yoga dance cycling strength training SUP trail

Returning to Chicago next summer!

June 29 - July 1, 2015 Navy Pier & W Chicago Lakeshore Mark your calendars now. Join us in Chicago for the business-to-business event designed to focus retailers and brands on the most powerful consumer in the market place. Conference Presentations

Networking

Trade Show

Sunrise Fun Run

Demos

Contact Information Beth Gordon, Show Director 949-293-1378 [email protected]

Jeff Gruenhut 404-849-4156 [email protected]

Christina Henderson 212-305-4710 [email protected]

Troy Leonard 352-624-1561 [email protected]

Jeff Nott 516-305-4711 [email protected]

Sam Selvaggio 212-398-5021 [email protected]

Mark Sullivan 646-319-7878 [email protected]

Andy Tompkins 949-278-6712 [email protected]

Updates on 2015 speakers and trade show happenings: therunningandfitnesseventforwomen.com

Matt Mauer 516-305-4710 [email protected]

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1. Alegria Van, MSRP $98.95. 2. Cobb Hill Vivian, MSRP $100. 3. Waldlaufer Gene, MSRP $155. 4. Aetrex Emily Rose, MSRP $99.95. 5. Naot Sandy, MSRP $145.

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Join TWO TEN FOOTWEAR FOUNDATION FOR THE

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ANNIVERSARY GALA

MARRIOTT MARQUIS TIMES SQUARE TUESDAY, DECEMBER 2, 2014 New fun format, new day of the week, same address (and no rubber chicken) Annual Gala Chair Ken Hicks, Foot Locker, Inc. For registration and sponsorship opportunities visit www.twoten.org For more information contact Tanya Allain at [email protected]

RETAIL RUN SPECIALTY

Running Central Goes Big

The new Running Central store features Ned, an illuminated six-foot runner at the center of the store’s shoe wall.

“The running specialty industry didn’t present the model we envisioned creating, so we built it ourselves. It’s an energetic and inviting atmosphere, but one woven with class and sophistication.” ADAM WHITE

By Daniel P. Smith

B

ack in the 1920s and 1930s, Peoria, IL, a central Illinois city located about halfway between Chicago and St. Louis, was a prominent stop for vaudeville acts. Given Peoria’s location in Middle America and its melting pot demographics, a show that succeeded in Peoria, producers and performers calculated, would work in spots across the country. “Will it play in Peoria?” became such a common refrain that it moved from the vaudeville stages to corporate boardrooms and political campaigns. Marketers and strategists often looked to Peoria as an ideal test market for products and plans. Nearly a century later, Adam and Marie White are investigating Peoria’s 21st century merits as a proving ground for big ideas with Running Central’s newest location in the city’s redeveloping

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Warehouse District. The husbandand-wife team has turned a 1903-built former hardware and lumber supply store into their retail playground, a 20,000-square foot space – about half of which is devoted to the showroom floor – that places Running Central among the nation’s largest independently owned running specialty stores. Beyond its sheer size, the Whites mix plenty of other novel ideas into their Running Central concoction. With hardwood floors, reclaimed artwork, exposed timber beams and modern touches such as Ned, the illuminated six-foot runner that sits at the center of the store’s shoe wall, the $2.2 million Running Central project was inspired by retail, restaurants and other hospitality ventures boasting dynamic ways of interacting with customers and presenting product. “The running specialty industry didn’t present the model we envisioned creating, so we built it ourselves,” Adam says. “It’s an

energetic and inviting atmosphere, but one woven with class and sophistication.” While Running Central holds 150 unique models of adult shoes, a number in line with other running specialty stores, it distinguishes its vast product lineup in two areas — women’s apparel and kids’ footwear. Running Central contains more than 4000 units of women’s apparel ranging from traditional running gear and sports bras to yoga and lifestyle wear. The RC Kids Zone, meanwhile, features more than 100 boys’ and girls’ shoes, taking youth from the cradle through junior high, from church to the crosscountry course. The space also includes a women’s specific lounge with lavish dressing rooms and upholstered furniture; a Tech Lab with high-level gait analysis and max VO2 testing; a conference room; and enough backroom space that backstock isn’t footwearinsight.com

contained in boxes, but rather brought into plain view to foster more efficient management of inventory and reordering. “We’re trying to create the ultimate retail experience that reaches outside of run specialty,” Adam says. “If we are going to be effective and thriving five years from now, then we need an experience that exceeds what our customers can find anywhere else.” To that point, the Whites fashion Running Central as a mecca for wellness, not just running. A front-of-the-store flex space can be used for sun-up to sundown programming, including healththemed clinics and workshops as well as pilates, tai chi and Mommy & Me yoga classes. The store also features separate men’s and women’s locker rooms, each containing guest showers. “We truly believe we can be a model for the industry moving forward,” Adam says. But will it play in Peoria, a city of 116,000 with a median household income of $46,000? To those who know the Whites, it’s difficult to bet against them. “To a certain extent, this [new store] doesn’t make sense, but, then again, neither does the fact that Running Central is pushing $3 million in sales,” says Karnan Associates head and Independent Running Retailer Association executive director Parker Karnan, who has been consulting the Whites for the last five years. The Whites have a history of defying the odds.

Adam’s new wife and business partner in the fold, Running Central’s sales reached $1.25 million. But while the Whites could make the register ring, the store was running on fumes — $250,000 past due to vendors. “We didn’t know how to analyze inventory, manage turns and understand the metrics of a business,” admits Adam, a Peoria native and former scholastic running star who bought his first pair of running shoes from Running Central when he was in the fifth grade. At The Running Event in December 2009, the Whites met Karnan and hired him as a consultant. Karnan’s first visit to the store was an eye opener. “It was perhaps the worst running store I had ever walked into,” Karnan says. “It was a deteriorating building in a terrible part of town. Sirens were going by constantly.” In a 14-hour meeting with Karnan, the Whites bared their business soul — the good, the bad and a lot of ugly. This was,

the couple believed, their final gasp at hope. “One thing we had was the determination to survive,” Adam says. “We truly believed that if we could learn better business systems that we could rise from the ashes and build one of the most spectacular independent retail stores in the United States.” Throughout the first half of 2010, the Whites minimized their debt, leaning on the advice of Karnan as well as a widening circle of fellow running retailers, such as Kris Hartner from the Naperville Running Company in suburban Chicago and Matt Helbig of St. Louis-based Big River Running. The Whites learned how to buy product in a prudent and wise fashion, manage payables and make sound, thoughtful business decisions. By early 2011, Running Central was a spirited turnaround story. The Whites left Peoria’s Main Street behind and moved into a 4800-square-foot space in Peoria Heights, a more residential community on Peoria’s edge. Sales continued to jump and the store’s

“To a certain extent, this new store doesn’t make sense, but, then again, neither does the fact that Running Central is pushing $3 million in sales.” PARKER KARNAN, IRRA

Running Central contains more than 4000 units of women’s apparel, along with a women’s lounge area.

Necessary Lessons In December 2007, Adam White purchased Running Central, then celebrating its 30th year, alongside his brother, Ian. A 750-square foot showroom, Running Central was old-school running specialty, a penand-paper operation with annual revenue of $750,000, one full-time employee and four part-timers. Dynamic and personable, Adam pushed sales to $1 million in 2008, his first full year at the helm. The following year, with Marie, footwearinsight.com

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RETAIL RUN SPECIALTY

Marie and Adam White, the husband and wife team behind Running Central. “He’s air and I’m gravity,” quips Marie.

The sock wall at Running Central.

books crossed from the red to the black. The Whites hired more staff, expanded into an adjacent space and diversified their operation with races, including the Peoria Marathon, as well as a timing and scoring outfit that is now ShaZam Racing. This year, ShaZam, which is housed in Running Central’s new downtown location, will time about 80 local races. A Bold Vision As annual revenue crossed $2.5 million and the business further stabilized itself, Adam began considering a return to Peoria’s redeveloping downtown, where Running Central could be the first and most prominent retail anchor in the historic, yet long-ignored Warehouse District. “This is my hometown and if I

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could help make its core whole again, I was in,” Adam says. The Whites explored the 111-year-old building they now inhabit. Vacant for more than two years, much of the building’s historic character was guarded by paint, dust and debris. “But we saw the potential,” says Marie, who most often counters her husband’s everambitious plans with a sensible, conservative mindset. “He’s air and I’m gravity,” she quips. The Whites purchased the building and began a six-month renovation project. As much as they were overhauling the space, they were also taking a monumental – and expensive – leap of faith, betting that Peoria could sustain such an ambitious project. “Running Central is Peoria, so Adam and his team are uniquely positioned to pull this off,” Naperville Running’s Hartner says. “Adam’s someone with boundless energy and enthusiasm who doesn’t do things in a standard way. He’s always thinking bigger.” Though daunting – “There were some sleepless nights,” Marie confesses – Adam believed in the vision and his team, a collection of more than two dozen staffers led by store general manager, Maggie Butterfield. “When you have the people we have, you’re allowed to take this leap,” Adam says. “And I told our team that if we did this properly, we’d have a brand in central Illinois every bit as recognized as Starbucks or the Golden Arches.” The gamble was further mitigated by the Whites’ dialedin presence in Peoria. They know the mayor, are active chamber members, are fixtures at community events and are connected to local groups, schools and teams. “There’s a risk here,” Karnan acknowledges, “but [the Whites] have approached this from a strategic business standpoint and know that the growth doesn’t need to come overnight.”

A First-Class Experience When the Whites opened the doors for a VIP grand opening event on July 14, energy dominated and optimism reigned as more than 250 guests filled the grand space, which – just perhaps – might be a prototype for running specialty’s future in the digital age. “The new Running Central is a state-of-the-art store that I believe will set the tone for what running specialty can do, especially as the industry realizes it can’t just sell running shoes anymore,” Karnan says. “Adam and Marie have a habit of going against conventional wisdom and making it work. Their story is a statement that you can be and do more.” New Balance run specialty sales manager Kevin Adams, who has known Adam White since his earliest days at Running Central, says the Whites have built an ambitious operation poised to redefine the run specialty experience for consumers. “While many specialty owners are reluctant to invest in a larger selling space due to the climate of the market, Adam and Marie are investing in a premium consumer experience in Peoria,” he says. “I am confident Running Central will grow their consumer base significantly because of the firstclass shopping experience they have invested in.” For Adam, a self-described realist who understands even his most loyal customers can purchase their running gear online for less money, that’s the point of the new store — to move beyond running shoes and basic gear and into first-rate, functional programming and a solutionsoriented wellness center focused on people, product and process. “We say Running Central is built off life’s lessons and believe our work transcends durable product,” Adam says. “The goal is to keep drawing people into our tribe and to reshape what running specialty is in the United States.” And if it plays in Peoria, run specialty might never be the same. O footwearinsight.com

IS LOOKING FOR THE INDEPENDENT RETAILERS THAT OFFER THE BEST SERVICE IN THE COUNTRY Introducing

THE GOLD MEDAL SERVICE AWARDS Sponsored by

The Gold Medal Service Awards program was created by Formula4Media to seek out and recognize the independent shoe stores that offer the best service in America. The Gold Medal Awards will define what constitutes great customer service through a strict set of criteria developed by some of the best stores in the country. Winning stores will be acknowledged at an awards ceremony in 2015 and featured in a special issue of Footwear Insight. Stores will also receive window stickers to promote the recognition to their customers and a special toolkit so they can promote it to their entire community through social media.

Interested? Here’s how your store can be considered.

What is The Gold Medal Service Program? This is a new program created by Footwear Insight to recognize and reward the independent shoe stores that offer the best customer service. How will stores be rated? Franklin Resource Group, one of the top retail merchandising companies in the U.S. will “mystery shop” these stores, buy a pair of shoes and rate them on everything from how they were greeted, the fitting process all the way through to checkout. The 15 criteria were developed in conjunction with top shoe stores based on their own training policies and programs. Who is eligible for the Gold Medal Awards? All independently owned shoe stores and regional chains that have a significant shoe

business. National chains are not eligible. How can my store get nominated? Any industry member can nominate a store. Nominations should be sent to Matt Mauer at [email protected] What happens after a store is nominated? Nominations are evaluated and stores are then mystery shopped by Franklin Resource Group using a 15-step evaluation process developed by Franklin Resource Group and independent shoe store owners. Mystery shopping will take place this summer and fall. How can I prepare my store to be mystery shopped and rated? Footwear Insight encourages stores to review

the criteria and share with their sales associates. Copies of the criteria in a special pocket sized format can be obtained by e-mailing Mark Sullivan at [email protected] What happens if my store is selected as one of the 50 Gold Medal Service Winners? You will be notified by e-mail before the end of the year and before the results are published in Footwear Insight. All stores that are selected will be recognized in the magazine and at an awards ceremony in early 2015. They will also receive a customized press release they can distribute to media in their local market and window decals that will allow them to promote the recognition all year long and in their advertising.

Any stores with questions about The Gold Medal Awards should contact Mark Sullivan at [email protected]

LINES WE

Performance Pieces

Outdoor Brands are Making Kids’ Shoes that are Built to Last.

Kids’ shoes are giving their older counterparts a run for their money. Spring 2015 offerings from outdoor brands include a variety of shoes built to the same specs, and beyond, as similar adult versions. Creative color pops, innovative and easy-touse closure systems and kid-friendly comfort details all help differentiate the smaller versions from the big kids on the block. BLUNDSTONE 1410 Brown/Pink The brand’s iconic elastic sided boot is also available in children’s sizes from size 8 and up. Incorporating premium hard-wearing leather, sole design and comfort, these are the “authentic” mini Blundstones. MSRP $100.

VIVOBAREFOOT Kids Ultra A lightweight, ultra-thin, flexible and amphibious shoe with a Velcro strap that makes it quick and easy to secure on and whip off when needed. Dualinjection construction gives durability, comfort, and flexibility where it’s needed. MSRP $40.

CUSHE Slipper for Kids Breathable, comfortable and cool. The Cushe Slipper for Kids, like its senior counterpart, offers a “no tie, no fuss, no worries” slip-on style. Relaxed with a collapsible sole, these shoes are ready for blast-off on any adventure. MSRP $45.

KEEN Rio This new style is an ultra lightweight, technical sandal that provides sure-footing with a non-marking rubber outsole and a flexible upper with cutouts for breathability. Bright and colorful prints and patterns add a dimension of fun and flair. MSRP $40.

CHACO OutCross Kids With a fun but sturdy offering for kids, the OutCross Evo collection, also available for men and women, combines breathable mesh and jacquard webbing for open construction and ventilation. The OutCross Kids line comes in eight vibrant colors. MSRP $55. 34 • Footwear Insight ~ September/October 2014

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ILA OPTIMA

N RGIZ D :: SPRING 2015

A LICENSED DIVISION OF LJP INTERNATIONAL For additional information or to schedule a meeting, please contact us at [email protected] or 732.771.8700