Y R O L G D L O F E L O Y T S R N E ICA W R O P AME THE ig Comeback OF The B
Fine Tuning for Toning Shoes The New Wellness how to run a shoe drive: one retailer’s story
A FORMULA4 MEDIA PUBLICATION
MARCH/APRIL 2010
FOOTWEAR INSIGHT | MARCH/APRIL 2010 Editor in Chief Mark Sullivan
[email protected] 646-319-7878
KIGO: See Page 22
Editor at Large Cara Griffin
Contributors Michael Jacobsen Mike Kennedy Nancy Ruhling Tim Sitek Emma Johnson Publisher Jeff Nott
[email protected] 516-305-4710 Advertising Jeff Gruenhut
[email protected] 404-467-9980 Troy Leonard
[email protected] 352-624-1561 Beth Gordon
[email protected] 949-293-1378 Business Manager Samantha Freire
[email protected] 516-305-4709 Production Michael Jacobsen 201-396-7005
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Cover Photo: Allen Edmonds “Starnd” by Frank James
Art Director Francis Klaess
06 The Footwear Eye
Lines We Like (and why) page 36
Out of the Wilderness; Foot Locker is on the RUN; Sof Sole steps up as Rock ’n’ Roll Marathon Sponsor; Into The Limelight; Klas Act; How To Talk ‘Barefoot’ With Your Customers
14 Hosiery Asking For More And Getting It. Brands find new ways to warm toes for Fall.
22 Trends: HEALTHY FEET Well, Well, Well. Footwear vendors are really pushing the health benefits of their new footwear as an aging and active population cries out for comfort and style.
32 FINE TUNING TONING For Fall 2010, the category is undergoing a continued refinement. Athletic and outdoor influences are more prominent. And consumers might actually grab a style and say “Hey, what’s this?”
42 AMERICAN STORIES
PO Box 23-1318 Great Neck, NY 11023 Phone: 516-305-4710 Fax: 516-305-4712 www.formula4media.com Formula4 Media Publications Sports Insight Footwear Insight Outdoor Insight Team Insight Textile Insight Running Insight Soccer Insight Footwear Insight® is a trademark of Formula4 Media, LLC, Great Neck, New York. ©2010 All rights reserved. The opinions expressed by authors and contributors to Footwear Insight are not necessarily those of the editors or publishers. Footwear Insight is not responsible for unsolicited manuscripts, photographs or artwork. Articles appearing in Footwear Insight may not be reproduced in whole or in part without the express permission of the publisher. Footwear Insight is published bi-monthly: Jan/Feb; Mar/Apr; May/Jun; Jul/Aug; Sep/Oct; and Nov/Dec by Formula4 Media LLC. Subscriptions: one year, $24.00 (U.S. Funds) in the United States. All other countries, $54.00 (U.S. Funds) for surface mail. POSTMASTER: Send address changes to Footwear Insight, P.O. Box 23-1318, Great Neck, NY 11023
It seems whenever America’s place in the world order is challenged, its people, their character, their spirit and their style rise to the occasion. We take a look at three brands that are bucking the trend by making shoes in the United States. Plus, The Greatest Shoes on Earth: Page 46.
48 STRATEGIES Reebok’s ‘Easy’ Reversal of Fortunes. Toning has made the brand relevant again and retailers are betting Zig Tech can continue the momentum.
50 END INSIGHT An Austin independent’s guide to giving back — and getting back
TIME OUT | MARK SULLIVAN
The Face of Your Store I visit more than 50 specialty stores a yeaR and it’s always interesting to me to observe the staff. Are they young, old, short, fat, well dressed or slobs? Are they male or female? And how does all that relate to what the store is selling? I remember many years ago walking into an outdoor store in Florida and being waited upon by an attractive, enthusiastic young woman. I bought a pair of Royal Robbins pants that I would probably not have purchased if I was on my own. They were a little outside my typical purchases of denim and khaki. She didn’t exactly flirt with me, but she was friendly and enthusiastic and at the time as a young single guy, I appreciated that attention. Now, many years later I can’t get young women staffers in the store to pay attention to me. I was in The Gap recently shopping for a pair of nice jeans that I could wear with a sports coat and dress shirt. The Gap has discovered that it was losing the “premium denim” to specialty stores so it introduced a better denim line under the “1969” label. Clearly this is a collection aimed at guys like me who actually remember that year. The pants were actually pretty nice and I was about to buy a pair but I couldn’t find my exact size and then I couldn’t find a sales person to help me at all. The young woman in the store was talking on the phone instead of helping me (maybe it was a work call, maybe not), but I got impatient and frustrated and walked out. But this is not a story about bad customer service. It’s a story about a bad match. Maybe she was intimidated to wait on me because I reminded her of her dad or her priest or some one. But if The Gap is going to introduce pants for middle-aged dudes like myself, they should teach their staff to deal with crabby time pressed guys, or have staffers on the floor who are comfortable doing so. A few days later I went to a Lucky store, which has a young vibe, but probably makes most of its money selling to a customer who is 35 plus. The jeans at Lucky are very generously cut, so at Lucky, a 36-inch waist jean fits me great, whereas at other stores I have to go with a 38-inch waist. You feel younger hipper and slimmer just trying on clothes there. A nice young woman in the store started to help me, but my shopping experience was quickly taken over by a woman closer to my age. She was funny and no nonsense, exactly what you’d want in a sales person. She explained the fit of the jeans and how I could get away with the smaller waist size and also convinced me to buy two pair. They were having a special, she said, “plus I don’t think you like shopping, so buy two pair and you won’t have to come back here for a while.” So I guess I should add that she was a mind reader, too. Maybe I am “reading” too much into the experience, but my sense was that she saw the transaction floundering a bit, jumped it and saved it. And in the process taught her young sales associate something about the fit of jeans and how to deal with a different type of customer. You can probably never go wrong with having attractive women selling to guys. And I almost always want a woman to help me when I’m picking out something for my wife. But sometimes as a guy, you want a guy to help you if you’re buying a piece of sports equipment or an athletic or technical shoe. But ultimately you want everyone to be okay with it. What I liked best about the experience in the Lucky Store is that everyone was comfortable with what was going on. She was clearly in her element and made me feel at ease, too. Isn’t that what every good sales person does, whether they are selling automobiles, life insurance or shoes? l
Aetrex Berries 1/3.indd 1
3/8/10 9:11 AM
The Footwear Eye
Foot Locker is On the RUN
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Female Focus: The women’s line was a major push for Sorel and now accounts for half of its bookings.
Out of the Wilderness
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wo years ago when Columbia began to re-position the Sorel brand, VP-footwear Mark Nenow said the positioning brief listed the three most important factors as “women, women and women.” Heading into the Fall season, the brief appears to be paying off. Since its founding in 1962, Sorel was seen as a brand that was focused on “men’s and utility,” according to Nenow. “We were stuck in a straight jacket and couldn’t break free,” he says. “Our sensibility was to think about vulcanized product that could be worn at 40-below zero. For product trips, we’d send our developers to Alaska for a sled dog race.” Sorel may now be sending its developers to runway shows. Although Nenow admits there are plenty of style cues in Sorel’s product archives, the new line features a number of trend-right styles that are more suited for shopping on Main Street than mushing through the wilderness. The women’s product had its coming out party in a few full page ads in Vogue. And the current women’s line features the Sorellington, a rubber rain boot and the Joan of Arctic, a suede boot topped a faux fur collar. But Nenow emphasizes that the brand can’t walk away from functionality in its products. “That’s the part of our heritage that separates us from other brands.” The Joan The company’s features felt frost plug armor toes that the company website allows says keeps wearers warm down to 25 degrees below zero. The company’s Web site also allows users to users to sort sort product by price and by temperature — from product by warmest to coldest. price and by Based on Fall 2010 orders, the women’s category temperature: will actually be more than 50 perceny of the brand’s from warmest business, Nenow says, adding “that it won’t be going to coldest. back the other way anytime soon.” Another key part of the company’s re-positioning has been to upgrade its retail distribution. Nenow diplomatically describes the company’s distribution over the last nine years as “less than ideal,” and promises a commitment to better specialty. “We’re creating some believers,” he said. “There’s a tremendous upside to what we’re doing.” l 6 • Footwear Insight ~ March/April 2010
oot Locker is getting into the running specialty business. This past February, Foot Locker, which operates 3600 stores in 21 countries, opened RUN By Foot Locker on 14th Street in Manhattan. The store is just off Union Square, a major Manhattan shopping district. It is not known how many of these stores Foot Locker plans to open and RUN by Foot Locker is currently being described as a test concept. There is precedent for Foot Locker opening stores targeted at specific sports. Several years ago, Foot Locker, working in close conjunction with Nike, opened about eight House of Hoops stores in six top markets. The RUN by Foot Locker rollout could follow that model, or could seek to go broader. One source said Foot Locker has close to 400 doors it could convert to the RUN concept. In the RUN store, Foot Locker is carrying running SKUs from its current merchandise mix, including brands such as Mizuno, ASICS, New Balance, Saucony, Brooks, Adidas and Nike, among others. Because running specialty has shown such strong growth over the past decade, it has become an intriguing target for large retailers like Foot Locker and Finish The store Line, but succeeding in running specialty is just off is not easy. Two years ago Finish Line and Nike collaborated on a store in Arizona Union called Finish Line LTD. The store targeted Square, young runners and featured a mix of a major Manhattan performance running and lifestyle product. shopping Nike reportedly sank $1 million into the build out of the store which was previously district. a standard Finish Line store. But the concept was a flop. Sources say the LTD store did half the revenue of the Finish Line store that was previously in that location and it has since been converted back to a standard Finish Line store. Parker Karnan, the executive director of the Independent Running Retailers’ Association said: “Running footwear has been one of the hottest athletic silhouettes for the past decade. It would be imprudent to think that this trend has gone unnoticed. Assuming 7-8 percent annual growth over the next four years, the specialty running channel will be $1 billion in retail sales by the end of 2013. The question is what will comprise that business? Will specialty owners proactively build moats around their businesses or will they passively allow larger corporations to enter the –≠market?”
The Footwear Eye
Photo: Frank James
Juice Boxes
Cushe has created packaging for its Fossil flip flops that are a perfect match for the bright fruity colors of the footwear. The packaging, which was a big hit in the United Kingdom last spring, resembles juice cartons and should lend itself to some fun displays when it ships to shoe stores this spring. The Fossill flip flops are $25 retail and also available in a polybag on a hangar.
Sof Sole Steps Up as Rock ’n’ Roll Marathon Sponsor
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of Sole will become the Official Insole Sponsor of the Rock ‘n’ Roll Marathon Series. The two-year partnership began at the inaugural Rock ‘n’ Roll Mardi Gras Marathon & Half Marathon in New Orleans in late February. “Our sponsorship of the Rock ‘n’ Roll Marathon series leverages one of the most unique health and fitness marketing platforms in the industry,” says Todd Vore, president of Implus. “Catering to runners from novice to elite, the national series will provide us with numerous channels to highlight our innovative products and unique brand attributes.” As the official insole sponsor of the Rock ‘n’ Roll Marathon Series, Sof Sole will have a significant presence at each of the 14 national Rock ‘n’ Roll Marathon & Half Marathon events in cities such as Los Angeles, Philadelphia, Dallas, Seattle and Las Vegas. Sof Sole will showcase its footwear accessories at each event’s signature Health & Fitness Expo and at retail locations in the respective race areas. Each Rock ‘n’ Roll event draws 15,000 to 30,000 participants, and more than 100,000 consumers tour the two-day expo. Sof Sole is owned by Implus Footwear, LLC., which also owns Yaktrax, apara, Airplus, Sneaker Balls, Sof Comfort, Granger’s, Little Hotties and Highgear. l
Photos © 2010 Competitor Group Inc
Into the Limelight
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unter Boot is one of the first tenants in a new mall in Manhattan that is opening in an historic building that once housed a church that later became a trendy nightclub. The British boot and accessories brand has set up a 270-square-foot shop at Limelight Marketplace. The Limelight Marketplace is housed in a 163-year-old, threestory building that was originally a church that spent time recently as a hot Manhattan night club. The concept is to offer a “festival of shops,” with elaborate facades and varied designs that envoke the feeling of a stroll down a European street. “It is with great pride that we welcome Hunter Boot to Limelight Marketplace,” says Jack Menashe, president of Limelight Marketplace. “With a wide range of shoppers looking for reliable and quality brands, Hunter’s clientele embodies the target consumer we aim to reach and the lifestyle brand itself embodies the atmosphere we aim to create at Limelight.” l
8 • Footwear Insight ~ March/April 2010
The Footwear Eye
Klas Act by MARK SULLIVAN
O
ver the course of his career, Charlie Liberge has been a senior executive at Stride-Rite, helped re-launch Earth shoes and spent some time at ATSCO where he introduced the Lelli Kelly kids’ line. His new company, Klas Shoes, incorporates elements from all those experiences. Liberge describes the Roc-a-Bouts line as a modern version of the Buster Brown concept — affordable dress shoes for kids. The Klas Fit line offers affordable, stylish footwear for Diabetes sufferers. And the company’s newest brands, Stroll-eez and Rotasole, target the comfort and athletic categories respectively. It’s a diverse assortment for sure, but Liberge says all the brands must pass through the company filter of “True Worth.” Liberge defines true worth as incorporating workmanship and materials of high quality; designs that appeal to the consumers’ style and image: fit in combination with comfort, and brands that build consumer
n Charlie Liberge President/Partner
n Frank Cammarata, SVP/Partner
loyalty. The final truth, according to Liberge, is that to be successful, Klas’ brands must deliver all of the above at a “very compelling price to the consumer.” “We target niches that are not adequately served by other brands,” he tells Footwear Insight. After Brown Shoe bought Buster Brown, there was a void in the affordable kid’s dress shoe business. Since its introduction in Spring 2009, the Roc-A-Bouts line, with shoes priced between $19 and $40, has cracked 300 accounts ranging from key independents to chains. Company Philosophy This company philosophy is also evident in its approach to the diabetic market. The Klas-fit line is inspired, in part, by Liberge’s dad, John, who died at age 56 from a heart attack brought on by complications from diabetes. From a practical standpoint, Liberge is attracted by the fact that there are few players in a market that serves more than 28 million diagnosed diabetics in the U.S. (As a basis of comparison, there are 26 million golfers in the United States and 25 10 • Footwear Insight ~ March/April 2010
million runners). Liberge points out that the government re-imbursed diabetes sufferers for more than six million shoe purchases last year. And he hopes to carve out a major slice of that market with the Klas Fit line which offers lightweight, fashionable soft stretch uppers that retail for less than $140. Liberge is working on a number of other initiatives in this category, including a feasibility program with Babson College to bring manufacturing for this line to the United States by the end of 2011. “There are ways this can be done successfully and profitably,” he notes, adding that he’s already had conversations with city, state and federal officials about the project. Other young companies would look at the athletic category and say there are no opportunities, but Liberge is very excited about the Rotasole brand, which was developed by Jack Goldberg, an Australian sports medicine doctor who originally created the concept for to help his sons, both Australian Rules football players, alleviate their knee pain. The Rotasole footwear has a specially designed rotating-disk mechanism in the forefoot of the outsole, under the ball of one’s foot, that engages when an athlete twists or turns. “As your body turns left and right that motion causes pressure and sports just takes it to the extreme,” Liberge n Warren Kaplan, EVP/Partner says. “Dr. Goldberg’s research shows that pivot motion causes 85 percent of knee, ankle and hip injuries.” He says the technology has applications in basketball, tennis and turf shoes. He’s already signed a deal to become the footwear sponsor of the referee’s association of the 300 member Eastern College Athletic Conference and was also the footwear sponsor of Athlete 360, a regional show on Fox Sports that’s hosted by Dr. Mark Adickes, a collegiate star lineman at Baylor, who went on to play for the Chiefs and then went to Harvard and earned a medical degree. “He loves the shoes,” Liberge says, “and wears them in and out of the operating room.” Klas has the worldwide license for Rotasole and has already negotiated distribution deals in several countries. Although he says Klas believes in targeting niches, Liberge has assembled an executive team and financial muscle to build a global company that can compete in major categories if it so chooses. The senior management team is comprised of former TJX exec Frank Cammarata and industry veteran Warren Kaplan. Other members of the founding team include John Boland, director of operations, Frances Scanlon, customer service manager, Elana Verplank, product manager and Joel Kaplan, VP-development. l
Charlie Liberge and his team are building a multi-brand shoe company that targets untapped niches in the market.
The Footwear Eye
How To Talk ‘Barefoot’ With Your Customers by CARA GRIFFIN
T
he buzz about barefoot running and the use of minimalist running footwear has been building for well over a year in running circles. But the barefoot phenomenon really went mainstream this past January when a study by Harvard professor Daniel Lieberman was released and gained widespread media coverage. The study, in part, found that running barefoot might be less injurious than the way some people run in shoes. Versions of “the barefoot running story” were subsequently covered, and spread virally online, by national public radio (NPR) and the Boston Globe, among others. A Boston TV news station even ran a story that showed runners running with no shoes on alongside a snowy and icy Charles River path, with the headline, ‘‘Running Shoes No Longer Needed!” Colin Peddie, owner of Marathon Sports, a running specialty retailer with five stores in the Boston area, saw that news broadcast and says his reaction was, “Oh my gosh. Maybe I better hook up with some more podiatrists and physical therapists because they are going to get some business if this takes off.” 2010 is shaping up to be a year when all of the running shoe brands, big and small, define their own philosophy towards minimalist footwear and the barefoot running phenomenon. But what’s the best approach for retailers to take? (When we talk about barefoot running, we aren’t necessarily talking about actually running barefoot. Run stores that carry Vibram FiveFingers, the foot glove, or running shoes with minimal construction, such as Newton or Nike Free, are all playing in the barefoot/minimalist game.) So we asked a few of these running specialty retailers, “When customers come in the door asking about barefoot running, what kinds of conversations do you have with them?”
and it’s taking hold. A lot of it has to do with the new communication medium that we are faced with everyday — Facebook and Twitter. News travels at different amplitude, if you will. We have a ‘less is more’ section on our shoe wall. I know, as a former kinesiologist, what the benefits of barefoot running are, but as a former professional runner I also know what harm it can do to the human body if it is not done properly. That is where we come in. If people are selling minimalist shoes off of the shelf at a big-box store, I’d be concerned that someone is going to go out there and misuse it. Only a really seasoned runner at a high level would be truly educated about barefoot running. It is like any tool in the tool box: if it is to be used properly there needs to be proper instruction. It is something that if it is not used properly can cause significant pathologies. The American psyche is that we want to realize benefits right away. It’s the ‘I want it now scenario.’ You have to deal with that and slow the person down and then discuss their current fitness level and understand, in an ideal world, their body mechanics, their foot structure and any injuries that they might have had in the past. Just like any training program, they would have a training program that would allow them to adapt to stresses that that ‘minimal’ shoe places on the foot and the kinetic chain and everything else. You have to take a very methodical approach to realizing the benefits and it takes some time to realize those benefits. So the question is, are people going to be patient enough? And at the point of sale, will the salesperson be educated enough to explain it? Or are they just going to be more interested in selling the shoe to make a profit?”
LESS IS MORE
2010 is shaping up to be a year when all of the running shoe brands, big and small, define their own philosophy towards minimalist footwear and the barefoot running phenomenon.
(1) Colin Peddie, Marathon Sports (Boston, MA) “There are basically three different products out there for this. The most visible one is Vibram FiveFingers and Newton, which we carry, and of course there is Nike Free. I’ve been in the industry for a long time and there have always been minimalist shoes. The best example would be the Nike Waffle Racer. If you want to look at an ideal ‘less is more’ shoe, that would be it. So, this is really recycled information and it just now has more scientific research behind it 12 • Footwear Insight ~ March/April 2010
(2) Brian NeSmith, Front Running Sports (Lake Mary, FL) “Typically the question we get asked is, ‘Have we heard of barefoot running and what do we think?’ This is our take on it. We are not against barefoot running, as many think all running stores are. But we think it will work better for some than others and it is not for everyone. It is going to work better for those that already have an efficient gate. For those that do not we have found they are more prone to getting injured while trying barefoot running if they do not have proper instruction. We recommend that if they want to try it they start on a soft surface and get some instruction and take it slow.” (3) Jim Johnson, John’s Run/Walk Shop (Lexington, KY) “The number one question we’re getting is ‘What about this
barefoot running I’ve been hearing about? Is it better to run that way?’ Most of us answer that it’s hard to say if it will work for you and it’s probably going to vary from person to person. If you want to try it, take it slow and easy and see how it goes. Most of the people we’ve had asking questions about it are more interested in the novelty of it rather than actually wanting to try it. It’s been more ‘Do people really do that?’ rather than ‘I really want to try that!’” (4) Charles Yoakum, Marin Running Company (San Anselmo, CA) “There are a lot of folks curious about barefoot running — some skeptical, some enthused by the onesided argument that ‘Born to Run’ has presented — all curious, however! My approach: I dislike one- sizefits-all solutions to problems, and just saying ‘go barefoot’ is a one-size-fits-all approach. There are so many variables to think about: what terrain are you on, what is your age, your injury history, how many miles do you want to run? We have, as 21st Century North Americans, concreted over most of our ground, changing the dirt trails to an unyielding surface which, if we believe that the great proprioception will allow us to land more optimally, certainly put a premium on our form being literally perfect to protect us from the bone jarring impact. There is also no accounting for relative foot strength as well. Should the navicular bone on the foot drop down, there will be nothing to stop the rotation of the leg from going off center. How about relative bone density weakness in certain areas? Lack of ACL or MCL strength with regards to helping to align the foot? It essentially supposes that everything else about the leg and hip is attached straight and true for the foot landing to be optimal. In short, as a runner of 31 years who has been using minimalist shoes since 1983, I believe that while there are some great benefits to minimalist or barefoot running, I see too many people who are jumping into it without slowly and
surely strengthening all the small supporting muscles and tendons that will help them run more efficiently. I always tell clients, ‘If we had your sevenVibram FiveFingers Performa year-old self here, they would be far better adapted to running barefoot than the 47-year-old version of you! The seven-year-old was likely constantly running around barefoot!” l
HOSIERY
Asking For More
and Getting It By Suzanne Blecher
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avvy consumers are asking more out of their hosiery brands these days, but in turn, they are also buying. Leisure Trends Group Outdoor RetailTRAK reported double digit increases in sock sales for October 2009 (vs. October 2008). Hiking boots, trail running shoes saw increases as well, creating some opportunities for cross-promotion. “I’ve seen stickers on shoe boxes lately saying, ‘You bought shoes, need socks?’” says Sally Kay, president and CEO
Brands Find New Ways to Warm Toes for Fall
of The Hosiery Association. “Sometimes socks can be an impulse purchase with your workout outfit, even when they are in your face at the checkout.” Since consumers are finally replacing holey hosiery, brands are courting with some creative trends for Fall/ Winter 2010: Making Wool Fashionable The wool bandwagon is filled to capacity for fall as companies ride the success of SmartWool and the general popularity of the fiber. Leisure Trends Group reported wool apparel and accessory
Merrell Chameleon Arc
Injinji Compression
Goodhew Rebecca
SmartWool PhD Ski Med
Drymax Dress Sock
Teko Women’s Heidelberg
Point 6 Fleur OTC
Teko Women’s Vienna
Balega Enduro
Injinji Yoga Toeless
Point 6 women ski lt sun
Goodhew Anika Charcoal
14 • Footwear Insight ~ March/April 2010
HOSIERY Wool Apparel Retail Sales
people with trouble blistering, it gives more of an antifriction trait.” For 2010, Icebreaker is sprucing up its packaging, making it lighter by using less paper and plastic, also adding its infamous Baacode. Stretching Sustainability “One of the greenest things you can be is durable,” says Drymax founder Gus Blythe, whose socks are converted and produced in the US to make for a greener supply chain with less travel. “People say that wool is sustainable. What about all the ships that have to bring it over from New Zealand? They also say it is a natural antimicrobial. It is not. You have to use lots of chemicals.” Merrell puts sustainability into the supply chain by using steam bulking to avoid using vats of water to wash socks during production. Instead, they are steamed in a big chamber. The company also opposes the right foot/left foot technology approach,
$120,000,000
$160,000,000
$200,0000,000
Dollars Sold 2006-2009
dollar sales were up 30% from October 2008 to October 2009. To differentiate between brands, some are introducing hot hues and designs. In January 2010, Goodhew announced a partnership with Neve Designs, specialty manufacturer of premium art-knit merino wool sweaters and accessories, and the launch of three new styles with geometric patterns and bright colors including red, fuchsia, and lime green. Fox River Mills is making kids socks fun with snowflakes and stripes. Point6, launched by SmartWool founders Peter and Patty Duke in 2008, is launching the women’s Fleur D’vine Light OTC for fall with bold prints. The company’s merino wool socks keep to your body’s favorite temperature, 98.6 degrees. Balega is perfecting a luxurious merino wool/mohair blend with the working title of Enduro trail. “The mohair is great for running,” says Carol Amrani, marketing and sales coordinator for Balega. “It’s a slick fiber. For
Fox River Mills Kids Snowball
WigWam Pro
Goodhew Rebecca
Bridgedale Bamboo Argyle
Icebreaker Skier Lite
Merrell Swift
Merrell Stout
WigWam Gidget
Feetures! Diabetic White Crew
Drymax Maximum Protection Run
Goodhew Claudia
Sof Sole Coolmax
Icebreaker Skier Lite
Icebreaker Skier Lite
Swiftwick
$0,000,000
$40,000,000
$80,000,000
Fox River Mills Girls Trail Jr.
06
07 08 09
● Socks ● Baselayer ● Sportwear Source: Leisure Trends Group
16 • Footwear Insight ~ March/April 2010
HOSIERY MINI
ODOR
where socks are designed specifically for each foot. “The socks are produced one by one so if you have a flaw, there is more waste,” says Sophie Cramer, sock product line manager for Merrell. “Ours are fitted universally around the foot, so you can pair them in production. If you have a flaw in one, you don’t have to throw them both away.” Thorlo takes the unconventional view that producing in the U.S. is eco-friendly because manufacturing processes meet or exceed EPA environmental production standards. And like Merrell, their socks have a life span of more than three years, meaning consumers create less waste having to replace worn out socks.
LITE CUSHION
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LITE WEIGHT
Working World “We’ve put a lot of focus on work socks,” says Fox River Mills’ Xany Gibson. “It can cover anyone from nurses, to office workers, to construction.” To prepare, the company did a lot of research on the shoe category, looking at brands that cross over from outdoor to work. “We looked at Skechers. It is an everyday shoe also worn by chefs or nurses.” Teko is introducing a new Eco-Lifestyle Collection for Fall. “The socks have the same performance features, but are more styled with argyle, patterns and texture. They are for the active outdoor enthusiast who has a job Monday through Friday,” says Chip Coe, chief executive of Teko. “We’re seeing a trend creeping in to better brands of the
MINI
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HIKE EE
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Packaging That Pops ICEBREAKER is rolling out new packaging for Spring 2010. The company has added a barcode to socks for the first time, which allows for tracing the product to its source. Icebreaker has also removed all plastic from its hosiery packaging and is using lighter weight Forest Stewardship Council-certified paper.
CREW
CREW
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LITE WEIGHT
CITY EVERYD AY COM FORT
inclusion of discreet tech features into casual and lifestyle socks.” The socks feature elasticized arch braces and wide bands that won’t push into the skin. New knitting machines provide for a seamless toe closure that helps prevent bunching, rubbing and abrasion. Return to US Manufacturing When the recession crept in, some sock manufacturers went fleeing for China and other lower-cost production hubs. SmartWool was making lifestyle socks in Korea, but recently moved production to the same U.S. manufacturer that makes its performance socks. Why the change? Its U.S. manufacturer has diversified, enabling it to create patterns to SmartWool’s specified quality levels. Under Armour does 20 percent of manufacturing in the U.S., with the remainder in Mexico. “We got rid of all our machines and did everything overseas when the economy hit,” says Scott Little, product designer for GoldToeMoretz. “We got 90 knitting machines back now and moved up to doing 20 percent of production here. It’s more now than we’ve ever had.” The brand is doing sampling and short run production locally. “We have more control, can fill last minute orders, ship out quicker and service the customer better,” he says. Pricing Pressures Single and two-pair sales of Under Armour socks decreased 5-10 percent in 2009. But for four pair packs and higher, sales were up 10 percent. “We’re doing the math,” says Little. “We’ll see single pairs go up with the economy change.” To be safe, the brand is launching a six-pair pack for fall for $19.99, hitting a sweet spot just under $20. Called the Resistor, the sock has slip resistance technology. “Under Armour was having some problems with synthetic socks slipping with synthetic shoes,” says Little. “We’re working on that.” The Resistor is crafted of acrylic and polyester, and grabs the inside of the shoe. Also launching is the midweight crew with temperature regulation fiber Thermocool. It’s a polyester/wool blend that uses moisture from feet to regulate warmth and cool. Priced at $15.99, they are targeted to come in at $1 less than competitor SmartWool. “The market in general has stepped up its technology and with that, there is more premium pricing,” says Jan Kimbrell, VP-sales and marketing for Injinji. “We’ve seen no backslide in purchasing patterns.” Injinji is launching a compression sock for fall/winter with a $38 price tag. The new compression sock contains Coolmax freshFX, acting as an antimicrobial and heat regulator that doesn’t compromise the quality of the compression, allowing the athlete to perform at a higher level for a longer period of time. “In this economy, people get more miles out of their shoes, but still get new socks to get the benefits that they need,” says Kimbrell. “People don’t give up their sport. It’s a necessary stress reliever and gives you some control over one part of your life.” O
18 • Footwear Insight ~ March/April 2010
BRAND INSIGHT - NEW BALANCE
New Balance: Proudly Made in America be closer to the market and results in shorter lead times for domestically made shoes.
Dave Crosier, executive vice president, value chain at New Balance, at the company’s Skowhegan, ME factory.
E
ver since its first pair of shoes came off the assembly line in 1938, New Balance has been proudly manufacturing product in the good ol’ USA, even though it was told time and again that it could not make shoes here and stay in business. But New Balance proved the pessimists wrong. Today it holds the distinction of being the only company that still manufactures athletic shoes in the U.S., a fact that New Balance and its associates hold dear to their hearts. “Our associates take pride in knowing they are part of a unique domestic manufacturing plan used only by New Balance,” says Dave Crosier, executive vice president, value chain at New Balance. “As a company, we are proud to invest in American workers who provide some of the greatest working spirit, commitment to advancement and ingenuity known in the industrial world.” New Balance was founded in 1906 as an arch support company in Boston. When Jim Davis bought the company in 1972, there were six associates making 30 pairs of shoes a day. Oh, time. Oh, change….Today, New Balance proudly relies on 1,300 manufacturing associates at five factories in Maine and Massachusetts to produce a quarter of its North American
footwear worn by consumers, or seven million pairs of athletic shoes, in the U.S. each year. New Balance has proven that high quality athletic footwear can be produced competitively in America. Crosier recently discussed the importance of domestic manufacturing to the company and its associates. Footwear Insight: Why is New Balance proud of its Made in America heritage? Dave Crosier: We are proud to manufacture in the U.S. because our associates are experts in “lean” manufacturing and are among the best-of-the-best in the industry. New Balance is proud to showcase the powerful unity of our American workforce and their local community.
Where are your U.S. factories located? Boston, which produces an average of 3,200 pairs of shoes each day and utilizes an innovative reaction-injection molding process to make the midsole/ outsole of the shoe. Lawrence, MA, which produces an average of 5,000 pairs per day and collaborates with the in-house state-of-theart sports research lab and design and development center. Norway, ME, which produces 9,800 pairs per day and was the first facility to develop a hot-melt adhesive process. Norridgewock, ME, which produces an average of 7,700 pairs of shoes per day and is home to production of the men’s and women’s 993, a New Balance heritage shoe. Skowhegan, ME, which produces an average of 3,900 pairs per day and is also home to production of the men’s 993. That’s a lot of shoes! Tell us how you do it! New Balance employs the concept of continuous improvement to increase the effectiveness of each stage of manufacturing.
What is “lean” manufacturing? Lean is a waste reduction system which results in a lean factory so we can better service our customers and consumers with high-quality product, less inventory, shorter lead times, higher sales and improved profitability.
Can you give us some examples of continuous improvement? Our value stream combines a group of processes in one centralized location, creating flow to allow the least amount of waste possible. It reduces work in process by 95 percent from batch production methods, creating additional work areas, and reduces the occupied space in one New Balance facility by one floor. It organizes production in an overall U-shape to keep production flowing.
How many manufacturing facilities do you have in the U.S., and why? We have five manufacturing facilities in the U.S., which allows New Balance to
How do you cut the materials? Shoes’ uppers are composed of as many as 30 different parts, which need to be cut from material. A puzzle-like pattern
Better Than Ever is used to save material and gain efficiency. Associates can cut the needed parts for a full case every nine minutes. Each of these parts needs to be cut from an array of materials. So how does it all come together? We utilize computerized Orisol stitching machines that are capable of vision stitching and stitching multiple parts at one time in a series of passes.
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ew Balance has proven that high quality athletic footwear can be made in America, and is proud to present four examples of that quality and craftsmanship that have become synonymous with the company. First is the 993, New Balance’s heritage running shoe, that runners have relied on for years. By using Abzorb DTS and an Acteva midsole, it provides a stable platform and smooth transition, while delivering comfort and performance every step of the way. Next, the 1123 is a high-mileage trainer for the athlete who requires maximum motion control and cushioning while sacrificing nothing; it features a multi-density foot bed and full-length Abzorb and Rollbar. Fitness walkers love the 811, a performance shoe for walkers who need the additional stability of its Rollbar support system, walking strike path outsole and premium insert. The industryleading motion control 927 walking shoe offers superior comfort technology with the Rollbar, “Phantom” Liner, Abzorb SBS and lightening dry lining. And the best part is, they’re all made here in the U.S.A.
How do you promote your Made in America footwear? We highlight our commitment to American workers through dedicated in-store materials as well as footwear hangtags and box stickers that indicate footwear models as either Made or Assembled in America. What’s the difference between Made in America and Assembled in America? New Balance shoes are produced by our U.S. workforce using U.S. and imported materials. When possible, we obtain materials from domestic suppliers. At times, due to availability, economic or quality reasons, there is a need to import components from foreign sources. Where the domestic value is at least 70 percent, we have labeled the shoe “Made in USA.” Where it falls below 70 percent, we have qualified the label referencing domestic and imported materials. This determination is based in part on the Federal Trade Commission’s survey of consumers. Why has New Balance succeeded despite the nay-sayers? Our associates have passion, creativity and pride in their craftsmanship, and their dedication to continuous improvement and customer service excellence is why we are able to withstand economic challenges and remain strong.
993: A serious running shoe with a stable platform and superior comfort
1123: High-mileage trainer with maximum motion control
811: For fitness walkers who need stability and motion control
927: Motioncontrol walking shoe for stability and comfort
HEALTHY FEET
By Tim Sitek
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nlike more controversial topics such as global warming, there is certainly no argument among footwear retailers and vendors that America’s aging population presents some challenges and opportunities. As a magazine dedicated to the business of footwear, let’s focus on the opportunities in serving the footwear needs of America. We’ll leave global warming to the scientific journals. The footwear business certainly knows there is a tremendous market – and appetite – for shoes that feel better, take away some pain thanks to insoles and orthotics, and socks that, well, do more than keep feet warm but also protect against friction, among other benefits. There’s been a veritable explosion in lines from established brands and an influx of new suppliers looking to serve this market. Of course, retailers face tough choices in figuring out what to stock, especially as brands find ways to provide footwear for all occasions — from sandals to boots, athletic to toning, from comfort casual to Euro casual. (See page 28 for some advice for retailers in serving this market.) Suffice it to say, this ain’t your father’s orthopedic shoe business. Booming Boomers There are upwards of 78 million Baby Boomers, with a nearly equal split between men and women. Not only that, many want to remain active and most will face some type of foot pain or related issue.
22 • Footwear Insight ~ March/April 2010
“This issue of healthy footwear seems to be a real mentality shift for many consumers,” says Rachelle Kuramoto, co-founder and director of marketing for Kigo Footwear, Carbondale, CO. “Issues common to active adults, like Osteoarthritis (OA) of the knee, are driving increasing numbers of people to look for lifestyle-related ways to live comfortably and healthfully. Largely, this natural, non-surgical approach to pain management and health seems to be due at least in part to the increasing numbers of studies that discuss the benefits of barefoot living and minimalist footwear,” she says. Kigo, a new brand unveiled last summer, combines style with a minimalist approach to satisfy the growing interest in barefoot footwear. Doctors highly recommend activity to aging patients. That’s important for anyone, but women in particular face the challenge of Osteoarthritis, says Gretchen Weimer, brand manager for Aravon, Boston, MA. “It’s not a question of if but when with women. We try to solve and alleviate the problem,” she says. Besides Aravon, which targets women with a casual line of comfortable, stylish shoes, its sister company, New Balance, provides an athletic line to help men and women remain active throughout their years. Add to it, even those who don’t fall in the Boomer generation, anyone over age 35, say, and the market skyrockets. “They have the resources and disposition to buy products,” says Matt Schwartz, VP at Aetrex, a long-time supplier of footwear designed to make people feel better. “Comfort has been a benefit for some time,” he adds. “I honestly see it as a movement that affects more than just the aging population,” adds Dave Aznavorian, VP-marketing for Earth Inc., Burlington, VT. “Sure, it helps that our older population is generally a more questioning
There are upwards of 78 million Baby Boomers, with a nearly equal split between men and women. Not only that, many want to remain active and most will face some type of foot pain or related issue.
KIGO: Kigo shoes are made from eco-friendly materials and feature a fold-close design to stow easily in a pocket or bag.
RIA: The New Balance Mary Jane with truebalance technology is available in black leather in B and D widths. MSRP: $165.
generation, and also embraces staying youthful and active. But to have health and wellness footwear growing at its current rate means that the concept must be appealing to a broader audience.” The explosion of brands and line extensions demonstrates the power of the movement, suppliers note. “Everything is being interpreted in a feature/benefit,” says Robert Mangione, VP-sales and marketing for Novato, CA-based Birki LP, which makes sandals and clogs based on the well-known Birkenstock tradition. “It’s not always a revolution. It’s being applied in different ways, such as to burn calories or improve posture.” Mangione believes the explosion in brands and line extensions all fall under the category of wellness, with two major sub segments — comfort and toning. “You need the distinction between comfort and toning,” he adds. Many of the athletic companies are jumping on the toning bandwagon, while the comfort brands continue to interpret design and style differently. Plus, there’s customization to increase the benefits of wellness by allowing the wearer to meet special needs with custom orthotics, Mangione adds. Within that framework, there are special needs, particularly among people with diabetes. In fact, Congress passed a the Medicare Therapeutic Shoe Bill in 1995 to provide free shoes to the nation’s more than 16 million diabetics, along with necessary inserts. Of course, there are a number of stipulations and limitations, including a prescription from a podiatrist or qualified physician. Many of those prescriptions are then taken to qualified retailers who have pedorthists, even podiatrists or other qualified personnel on staff. It’s all business when it comes to helping diabetic patients for Doctor
Specified, which looks at the most critical component first — socks. “The Medicare Diabetic Shoe Bill covers orthotics and extra depth shoes but does not cover socks,” says Rob Zellmer, general manager of Doctor Specified, Hickory, NC. An improper selection of this critical component of the overall foot protection for these patients can compromise everything intended by the Medicare Bill to protect feet. Unfortunately, many patients suffering from diabetes are left on their own in their decision to purchase a proper pair of socks, and don’t realize that a poor selection can lead to extreme complications. That is why it is important to inform these patients to be sure to purchase socks that eliminate friction points (especially in the toe seam area), have good moisture management properties (definitely no cotton), have protective cushioning and don’t impede blood circulation. Some footwear brands cut their teeth in the diabetic market, such as PG Lite, which has made comfort and diabetic shoes for years, says Nate Lebman, president of the Pomona, CA-based company. It has taken that knowledge a step farther by introducing its Alegria collection. Spanish for happy, the line addresses comfort with flair. “We wanted to address the complaint from our customers that even our more fashionable styling was not fun to wear,” Lebman notes. The line now includes 37 fashion-forward colors and various materials but with comfort built into its rocker platform. But not everyone believes that the footwear industry is truly finding solutions to serve the health needs of the aging population. “I don’t know that we are seeing any trends in footwear to address the needs of an aging population per se,” says Mandy Cabot, CEO, Dansko Inc., West
March/April 2010 ~ Footwear Insight • 23
HEALTHY FEET
Brands like Dansko have shown that wellness and style are not mutually exclusive. From Left: Dansko professional; Men’s Wynne in distressed leather and the Pam in glazed chocolate. Below left to right: Alegria, known for its happy fun styles, started as a maker of shoes for diabetics. And Earth offers elegant updates on the sandal and the gladiator.
Grove, PA. “The ‘wellness’ trend has garnered a lot of publicity recently, but does not appear to target or even address the needs of older customers. A recent study conducted by the American Podiatric Medical Association showed 40 percent of Americans suffer from heel pain and this is only one of many common foot ailments that tend to increase with age. As the number of foot ailment sufferers increases, the number of people seeking out highquality supportive footwear will also increase and perhaps then we will see the footwear industry respond,” she notes. Looks Matter The whole mantra of “wellness” pushes the idea of the shoe as “exercise equipment,” Cabot says, which is particularly true of the toning movement that many attribute to MBT. “We will have to see if this lasts,” Cabot notes. “Those products with serious science behind them may find themselves hurt by an onslaught of ‘me too’ brands with less research and sensationalized results claims.” That holds a key to the future success of the category and any brand, Mangione agrees. “As long as you’re authentic, you’ll have staying power. Those brands that are leaders will fare better. People look for a sense of security and they go back to brands that have meaning, quality and deliver on expectations.” The real key is to avoid the good, better, best syndrome, especially in tough economic times, Mangione notes. “You muddy the waters and cheapen the brand. You lose the edge,” he explains. And, Mangione believes, the fashion side has more to worry about. For Schwartz, whose family’s name is almost synonymous with footwear, the real key is answering the needs of the market. “The trend of wellness is not
24 • Footwear Insight ~ March/April 2010
a rocker bottom shoe or a toning shoe. It’s broader than comfort. It’s the expectation of enhanced services and benefits from the retailer and from the footwear purchased.” Footwear suppliers may interpret this differently across lines and categories, but all suppliers agree that there must be a real value proposition The old retail standard of value has cushioned the footwear category during the economic downturn. “Good quality footwear will always be considered a value purchase,” Cabot notes. “In times of economic hardships this only becomes more important as people often opt for quality and long-term returns over impulse trend-driven purchases that can lose value in a couple of months.” In some ways, Aznavorian believes the slumping economy has helped the category. “Firstly, I think that people are thinking more close-to-home, to extending their careers, to trying to stay in better shape for their families and households. Secondly, and simultaneously, I think that the expectations for value have increased. Consumers want more out of their new purchases and the idea of ‘health and wellness’ footwear -- which, when you think about it, is really just broadening the concept and definition of comfort -- speaks directly to that. Value should also be thought of in the context of making choices. Rather than choose between a gym membership and a new pair of shoes let’s say, with footwear geared toward health and wellness you’re able to maximize value in a new way. It’s not just about a different lifestyle choice; it’s also a smarter one.” “The industry has been looking for something that is feature benefit driven,” Mangione says. “It’s part of the value proposition to the consumer. What will the shoe do to make me feel better or look better?”
HEALTHY FEET
perceptual shift since it no longer constrains the opportunity for the retailer, or the expectations from the customer with respect to this footwear’s styling and wearability. It’s also elevated the consumer’s expectation of value -something that I think will only increase.” He also believes that consumers are beginning to push for environmentally conscious shoes as well. “There’s an obvious compatibility in doing things that are good for the body and also things that are good for the earth,” Aznavorian says. Comfort with fashion fuels the Alegria line, Lebman says. Women have always wanted that and now have many options, Retailers have benefitted from the market for footwear and accessories that provide health benincluding Alegria’s line in animal prints, efits. Suppliers provide some insights on the characteristics of those retailers that have been metallics, flower prints and even tortoise successful in serving this large and growing market: shell. “We don’t make any claims but we constantly receive letters from our Rob Zellmer, Doctor Specified: Most retailers and practitioners who dispense our wearers. Our best spokespeople are ladies product understand that socks are an important component in their overall fit system. that spend their day working on their feet – They are careful to introduce the sock at the beginning of their fit process and then nurses, waitresses, hairdressers, teachers build the other components around the correct volume sock for that customer. In this – who are our biggest fans.” way, the customer gets to experience the exceptional feel of our sock during the process Kuramato adds, “The attitude change and it then makes for an easy add-on sale. Too many of our customers are only focused surrounding accessories and footwear on selling the big ticket items and don’t realize how easy it is to boost the overall profit on is a dualistic issue.” People want value the sale by introducing socks at the early part of the selling process. and quality, especially in a soft economy.
That leaves a pretty wide open field. “Fair to say that the biggest change has come in the perception of what ‘health and wellness’ footwear really is,” Aznavorian notes. “It used to be that ‘good for you’ shoes weren’t the most attractive. They were positioned more reactively, rather than more proactive and enabling. I think it’s an important
Dave Aznavorian, Earth Inc.: Successful retailers really believe in the concept. They see the opportunity and they’re invested in it. Feeling is believing, and wearing the footwear upfront is critical. Training sales associates to understand the ‘big picture” – about how the footwear affects the foot and the body, and developing some solid, on-the-floor talking points – is also helpful. Establishing a meaningful in-store presence or, better yet, a shop-in-shop area is vital. It shows customers you’re really in the game. It’s important to show a range of brands, technologies and profiles that cover multiple wearing occasions. Rachelle Kuramoto, Kigo Footwear: We can only speak from the point of view of a footwear company that has introduced a health and athletic-focused brand, but we are certainly not the only nascent brand or line in this growing market. The retailers who have been successful with selling Kigo Footwear have been those that are willing to learn about the new brand, wear the shoes and evangelize them. It also seems that the stores that have less variety of inventory are finding more success with selling emerging brands. And those retailers whose lines are generally focused on health, comfort and technicality seem to be more successful because the consumers shopping them have a general understanding or desire to wear this kind of shoe. Mandy Cabot, Dansko: We generally see three common traits among successful retailers. They understand their customers’ wants and their wearing needs. They ask questions and they provide solutions that are in keeping with both. No matter how much someone may want those 4 ½” pointy-toed heels, if they are going to be on their feet for 16 hours a day they are not going to be happy with that purchase for very long. They really understand their product’s unique selling features. So they can make the best match to the needs to the customer. When No.1 and No. 2 come together you see really satisfied customers who will return time and again. Successful retailers stock their stores with brands that deliver on their brand promise. This makes one and two possible because no matter how attentive you are to your customers and your products if the brand lets you down both you and the brand will have likely lost a customer for life. Nate Lebman, Alegria by PGLite: The retailers that have been successful in this arena are those that have the imagination to recognize a new fresh idea. Even when times are tough, they are not afraid to change direction and move into new and exciting directions instead of sticking with what is no longer working. Robert Mangione, Birki: Retailers must understand their core consumers and then find the brands that fit those consumers. You can never get away from your core customers. Is it casual, dress, comfort, athletic? No matter, good retailers then find the brands that are most relevant. You also must make sure the floor staff understands and is comfortable selling those products. Matt Schwartz, Aetrex: We strongly believe that retailers need to incorporate new technology and provide an experience to differentiate themselves from their competition. Find suppliers that are good partners not just with products but in providing the tools – training and technology – to support the retail experience.
28 • Footwear Insight ~ March/April 2010
The Liv 99 from Rieker’s Remonte Dorndorf collection. This style is water resistant. SRP: $155.
Coupled with this, “the success of brands like FitFlops and Vibram Five Fingers have prompted other footwear makers to take notice that there is a focus on the health value, not just the cost or appearance value of their footwear. Items that offer all of those value propositions seem to be positioned for success now and going forward.” Consequently, footwear makers are finding new categories, even creating hybrids to serve the market, Schwartz says. Athletic features are incorporated in dress shoes. Uggs took the boot and added a slipper with fashion. Some shoes may provide a specific benefit, such as toning. “But a Wellness shoe can provide the opportunity for a customized fit across a number of uses,” he adds.
HEALTHY FEET
These shoes from Aetrex show the range of wellness product in the market: The women’s athletic XSpress, the clog, apple Berry and the men’s plain toe oxford.
With that in mind, Aetrex has launched Berries, a fashion-forward comfort line for women, Edge running shoes for men and women with a lockdown heel counter, Xspress fitness/running shoes for women, and Cobble Hill, a full line of casual comfort shoes for men. Aravon and New Balance do just that in the toning category, covering multiple sides of the market. “Aravon focuses on the active female boomer and it’s a comfort brand,” Weimer notes. “We share technologies with New Balance on the athletic side.” The True Balance collection gives the athletic look, while Aravon caters to active female Boomers who want the comfort and features of an athletic shoe without the look. “Rest assured. If it’s real, and most people believe it is, it will continue to evolve,” Mangione says of the footwear and accessories related to the Wellness movement. “It has a real place in the market. It has strong staying power.” Two companies doing it right Among the many footwear companies making “wellness” a part of their product mantra, Doctor Specified and Kigo have utilized specific production methods to drive their successful approaches to the burgeoning category. First, Docter Specified’s socks (photo, right) are knit on a much finer gauge knitting machine than most products in this category to extremely high quality standards. Much like the relation of thread count in sheets, the finer terry loops that are knit much closer together produce its soft hand while still providing the protection that larger, courser knitting
Selling wellness need not be ho-hum for retailers or their customers. Aetrex believes that technology goes a long way in not only educating customers but also in making a visit to the store more meaningful. It’s an experience, not just a purchase. The company has been known for its IStep technology, which scans a customer’s foot for three essential elements — size, arch type and pressure points. It’s now taking a step forward, technologically speaking, with its iStep
30 • Footwear Insight ~ March/April 2010
produces. This also creates a lower volume sock, which allows for a better fit with both the orthotic and shoe. It uses extremely effective moisture managing yarns, which keep the foot dry and comfortable. One style in the line incorporates a unique mohair yarn blend that provides effective protection against sheer friction blisters. On the shoe side, Kigo footwear (pictured on page 23) is stylish, eco-friendly minimalist footwear for barefoot athletics and everyday wear. It offers two lines designed responsibly to meet a variety climates, settings and activities. Constructed with a flexible outsole, removable contoured insoles, and stretchable and breathable uppers, the shoes offer a lightweight and protected barefoot feel. • shel kigos are designed for active men and women. Designed with a full vamp, the shoes provide complete foot coverage for a fully protected barefoot stride. Because it offers a slim look, wearable colors and traditional shoe shape, the shel kigo is as stylishly appropriate for athletic and active endeavors as everyday wear. • star kigos are Mary Jane style shoes designed for women who want style and barefoot comfort. Whether for commuting, Pilates or general everyday wear, these shoes are light, healthy and tasteful. Each shoe is made with lightweight eco-friendly materials, including flexible, high-density rubber outsoles, removable EVA insoles and breathable, stain and water resistant uppers made of post-consumer recycled materials. Each kigo weighs approximately five ounces with the insole, and four ounces with the insole removed. Worn without the insole, kigo shoes provide superior ground feel. l
Wave, a wireless handheld device that allows retailers to place sleek flat screen monitors and foot scanners anywhere in the store. Introduced eight years ago, iStep provides feedback on a customer’s foot. The new handheld device creates a two or three-dimensional blueprint of the foot in less than 30 seconds. The foot scans are then displayed in real time on the instore monitors. Besides its mobility, the added value is that the information can
be sent directly to a customer’s smart phone, such as an IPhone or Blackberry. The retailer also can send the information to the customer’s e-mail. The new technology elevates the retail experience, says Matt Schwartz. “Consumers, particularly a younger, savvier audience, are sure to embrace the wireless technology.” Plus, savvy retailers can add their own touch by incorporating their retail brand, even attaching a coupon to the message.
TONING
Fine Tuning the Toning Category A few years ago when toning shoes first hit the market, their performance features were exaggerated. With absurdly thick soles and bland uppers, the shoes lacked shelf appeal. They sold in spite of their appearance. But for Fall 2010, the category is undergoing a continued refinement. Athletic and outdoor influences are more prominent. And consumers might actually wander over to the shelf, grab a style and say “Hey, what’s this?”
AVIA
AVIA
AVIA: AVIA’s iBurn has a full grain leather, synthetic and mesh upper and removable molded Ortholite sockliner. Compression molded EVA double rocker Avi-Motion technology. SRP: $120. Avia’s iQuest for men and women has a performance microfiber, synthetic and mesh upper; Removable molded Ortholite sockliner. Compression molded EVA double rocker Avi-Motion technology and solid rubber outsole with forefoot flex grooves. SRP: $120.
Z7
COGENT
Z7 Footwear was inspired by studies that revealed the health and wellness benefits derived from walking on cobblestones. The company claims its shoes engage all 26 bones in the feet and seven major muscle groups in the lower body by using a simple technology called the Z7 cradle that is subtly incorporated into the design of the shoe, like this Atonement wellness sneaker. The cradle replicates the effect of stepping on a cobblestone by creating a rounded surface with enough strength and rigidity to hold up to the weight of your body. COGENT has created a wellness shoe based on a patented double-rocker sole technology that it says improves gait and posture, provides balance and stability while increasing flexibility and strengthening core muscles. 32 • Footwear Insight ~ March/April 2010
TONING
RYN
RYN offers a number of higher end athletic designs. Cam White of Total Footwear Relief in Austin calls the shoes a hybrid that offers the cushioning of an MBT and the control of Finnamic rocker shoes. Ryn also emphasizes the refined finishing and detailing of its shoes, which are made in Pusan, South Korea. This trail model uses waterproof breathable Sympatex. MBT: The Black Tisa boot can be described in a word that is rarely used for the toning category: sleek. With gore side panels and a pull loop on the back, it almost looks like a regular shoe. The Tenga High is also full grain leather. SRP: $350.
SANO
SANO BY MEPHISTO: The Evasion emphasizes quality upper materials like the black nubuck/perl calfskin, and a technical feature imbedded in the soles. The IPS (Integrated Power Stimulator) shock absorber is a powerful built-in stimulator that returns the energy generated through walking, compressing it and releasing it to propel the foot forward during its natural walking movement. The (MVS) Multi-Vibration System positioned in the forefoot part of the shoe, naturally provokes a micro level of instability with the aim of stimulating muscles that have remained long unused or seldom used during a normal walk. Consequently, the natural movement of the foot, starting with the heel through the forefoot and ending with the toes, is ensured. The result: a sound, soft and natural walking experience.
MBT
34 • Footwear Insight ~ March/April 2010
REEBOK has taken the premise of its Easy Tone footwear – balance pods built into the shoes to create a natural instability that encourage toning in the hammies, butt and calves – and applied it to running, walking and a basketball training shoe for men.
REEBOK
INCLUDING: NOVEMBER 17, 2010
SAVE THE DATE! November 15-18, 2010 Austin Texas www.therunningevent.com
LINES WE LIKE (AND WHY) So many shoes, but so little shelf space. Here are some lines we see as worthy of retailers’ attention and open-to-buy.
Palladium’s Officers Collection Palladium’s new Officers Collection takeS the brand’s military heritage and manAges to both refine it and ratchet up what makes it appealing in the first place. The collection includes top grade leathers and design touches that you can feel and see, like full-length leather lings, four millimeter laces and a full PU leather covered sock liner. The boots come in a special army green box with black print. With SRPs ranging from $125 to $185, the collection targets higher end retailers.
Timberland The company’s men’s line for Fall 2010 is its best true collection in years and features items like this Moc Toe Chukka with SmartWool lining and footbed cover that offers moisture wicking comfort and that soft comfy feel. The outsole uses the brand’s Gripstick rubber compound. SRP is $120.
Tecnica The Moon Boot W.E. Collection for Fall features six new styles as well as six models in the original design. Unlike the original Moon Boot, which does not have a left or right, the Moon Boot W.E. Collection is designed with a designated left and right: The W. (West or left foot) E. (East or right foot) Collection features a combination insole/ midsole construction that offers more cushioning and insulation, and has a slight heel rise, resulting in a more precise, anatomical fit. Faux fur is used on the footbed for next-to-foot comfort and a lush feeling. The W.E. models are available in EU sizes 35-42.
Ex Officio Footwear In its fourth season, Ex Officio footwear is hitting its stride. The Fall collection takes styling cues from where the brand’s apparel line is heading. The apparel line emphasizes fleece and outerwear and the shoes follow with more winter-like styling and technical touches like the brand’s proprietary I-Dry waterproof breathable treatment. Items like the men’s Chill Out and the women’s Cheyenne are also priced to sell at about $75 retail. l
36 • Footwear Insight ~ March/April 2010
Onitsuka Tiger This entire collection is dramatically updated and includes several great boot styles that were a hit in the gifting tents at The Sundance Festival this winter. The Snoweden is billed as a fashionable and durable snow training shoe with water-resistant lining and “cuffable” upper. SRP: $100
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We’re Building a Better Footwear Marketplace
Good Timing. Great Networking. Easy Access From Both Coasts.
The Exhibition Hall at The Navy Pier
June 28-30, 2010 Chicago Headquarters Hotel: W Chicago Lakeshore Hotel
Introducing The Art of Retail Awards recognizing outstanding retail achievements in store design, advertising
FEATURED PRESENTERS Robert Spector, Author of “Customer Service the Nordstrom Way.” Spector will conduct a session on “Modern Customer Service: From Nordstrom to the Mom and Pop Stores.” Spector will also sign copies of “The Mom & Pop Store: How the Unsung Heroes of the American Economy are Surviving and Thriving.” Tuesday, June 29 at 8:00 a.m.
June 28-30, 2010 Navy Pier, Chicago
TFE at a Glance Monday, June 28 1:00 p.m. VIP Retail Tour of Chicago 5:00 p.m. Welcome Reception (co-hosted by Hanig’s) Tuesday, June 29 8:00-10:00 a.m. Special Business Sessions on Customer Service Featuring: Rober Spector, author of “The Nordstrom Way.” Dan Mann, The Language of Customer Service 10 a.m. 5 p.m. Office Hours at the Navy Pier 7:00 p.m. The Art of Retail Awards at the River East Arts Center Wednesday, June 30 8:00 a.m.-10:00 a.m. Special Business Session: Retail By the Numbers 10:00 a.m.-4 p.m. Office Hours at the Navy Pier
Dan Mann on the Language of Customer Service. Mann is a former senior executive at Bachrach, one of the country’s largest men’s specialty stores, and the founder of The Mann Group, a leading retail training and education company that focuses on results. Mann began his career as a teacher and his methods focus on education and the in-store experience. Tuesday, June 29 at 9:00 a.m. Parker Karnan of Karnan Associates will discuss eight key benchmarks for specialty stores and how tracking your store’s performance in these areas can boost profitability. Plus a one-day session on Retail by the Numbers. Wednesday, June 30 at 8:00 a.m.
For Sponsors & ExhIbitors… The Footwear Event offers fixed costs and the chance to earn a great Return on Your Investment! All sponsor/exhibitor packages include your exhibit space, booth build out, drayage, meals, and hotel rooms. No hidden costs and no extra
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bills showing up months after the event is over. The Footwear Event offers a relaxed, cost effective environment where you can meet with your best accounts in just two days.
After The Footwear Event is over, pack up your shoes, head to the airport and sleep at home that night. The Footwear Event offers three different sponsor packages in a range of price points.
Exhibitors contact: Beth Gordon, Show Director: 949-293-1378 or
[email protected] Retailers contact: Mark Sullivan: 646-319-7878 or
[email protected] Visit us at: www.thefootwearevent.com
We’re Building a Better Marketplace Check out a video report from last year’s event by visiting www.thefootwearevent.com
Educational Sessions Jim Dion’s Retail Bus Tour of Chicago
On the afternoon of Monday, June 28th, retail expert and Chicago’s own, Jim Dion will conduct a VIP bus tour of leading Chicago retailers including Fleet Feet Sports and Hanig’s. See what Chicago’s top stores are doing and learn how you can incorporate their ideas into your business.
VIP BUS
TFE-2
DISPLAYS Special Made in America Display
Learn how shoe making is alive and well in America through a special Made in America display. See how shoes are made and better understand the process.
Great Networking Opening night cocktail reception at Hanig’s Footwear.
A block of tickets will be available to those who register early for a major league baseball game at one of America’s oldest stadiums. Cocktails and Dinner Tuesday night at The Art of Retail Awards to be held at the elegant River East Arts Center
CELEBRATE RETAIL’S BEST PRACTICES Join us as we celebrate the best shoe retailers in America at the Art of Retail Awards, Tuesday evening June 29 at River East Arts Center. Retailers will be recognized for: • Best Advertising Campaign • Best In-Store Event • Best Promotion with a Vendor • Best Store Design To nominate a store, visit www.thefootwearevent.com/artofretail.html or look for a nomination form in a current issue of Footwear Insight magazine. All finalists will receive a scholarship invitation to The Footwear Event, which will cover hotel room for two nights, all meals and business sessions, plus a pass to the expo.
TOUR EX P
RESS
Exhibitors contact: Beth Gordon, Show Director: 949-293-1378
[email protected] Retailers contact: Mark Sullivan: 646-319-7878
[email protected] Visit us at: www.thefootwearevent.com PO Box 231242, Great Neck NY 11023
Retailers are our invited guests
We care about you and your time
Meals & hotel rooms are complimentrary while attending The Footwear Event.
The Footwear Event is centrally located and without other show date conflicts to focus your valuable resources and staff.
What retailers have to say about The Footwear Event… “It was a more personal environment in which to work with key vendors, and to have some great exchanges with other strong independent retailers…” Jim Wellehan, Lamey-Wellehan Shoes
“The smaller number of vendors there allowed us to have in depth conversations and explore areas in each product line that we might not normally have the time to do...” Janice Abernethy, President, Abbadabba’s Inc. Atlanta, GA
“Lots of personal time with vendors and reps” Randy Brown, Brown’s Enterprises
“The one thing we found most helpful was the diversity of retailers and the opportunity to network and gain new insights into the footwear business…” Brian Jones, Playmakers
“The event was so well organized and allowed me time to meet with some vendors that I would not normally have had time to see,” William Calhoun, The Shoe Market
Great Central Location Experience One of America’s Great Cities the week before the 4th Of July Chicago is centrally located and easy and affordable to get to. Plus The Footwear Event has arranged for special airline discounts on United Airlines. Enjoy Chicago during The Footwear Event and afterwards! The Footwear Event has made special arrangements with the W Lakeshore for attendees to stay for a few days afterwards using the special rate of $149 a night. Stay at a wonderful hotel with a great location right on the shore of Lake Michigan.
American Stories Allen Edmonds: Classic Comeback
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hortly after he was named CEO of Allen Edmonds in 2008, Paul Grangaard anonymously visited a men’s style blog called “Ask Andy.” What American men were asking for was that Allen Edmonds return to doing what it had traditionally done best: classic dress shoes for the modern man. “We had misread our customer a little bit,” says Grangaard, a former investment banker who was an Allen Edmonds customer before he joined the company. “Nordstrom is our biggest retail customer and when they told us our line needed to be updated, we misunderstood. We thought we had to be more Euro.” Indeed, the company tried, but not with good results. Because the company makes 360 degree welt shoes in its Wisconsin factory, the new designs were sleek in the front, not so much in the back. “It was like a BMW toe with an Oldsmobile trunk,” Grangaard recalls. As part of the effort to update, the company also dropped longtime classic styles such as The Fifth Avenue, a lace-up cap toe, The Strand, cap-toe balmoral with perfing details, and The McAllister, a wingtip. In
fact, four of the seven shoes that are currently best sellers were dropped from the line. As they are fond of saying in Grangaard’s native Minnesota, it doesn’t have to snow for folks to get the drift. “We had alienated our customers and not attracted new ones,” Grangaard admits. Quickly, those efforts ceased and the company returned to what it does best, with a few new twists. “The classic styles were added back in, in their traditional colors and also in new colors, and that’s attracted new customers,” he says. The company’s timing was ideal. Just as Allen Edmonds execs were engineering a return to classic styles, American men were changing the way they dressed. The Silicon Valley crowd that had been wearing distressed denim, ironic T-shirts and low-profile athletic shoes switched to nicer jeans, dress shirts and dress shoes. Grangaard and his team noticed, too. “I wore that style in black calfskin as a banker in Germany in the mid-1980s. We still sell it well in black, but its top-selling color is the more versatile walnut.” In fact, the informative Allen Edmonds Web site has a nifty feature that allows visitors to see how different shoes look with different pants. “You’ll see how great it can work with jeans,” Grangaard says.
The Executive: Paul Grangaard is a former banker who was a loyal customer before becoming CEO of Allen Edmonds.
42 • Footwear Insight ~ March/April 2010
It seems whenever America’s place in the world order is challenged, its people, their character, their spirit and their style rise to the occasion. In this special report, Footwear Insight takes a look at three brands that are bucking the trend by making shoes in the United States. In addition to re-focusing on its classic styles, the company introduced two lines last year — The Executive and Crosstown collections. The Executive collection is 270 degree welted construction with a rubber sole. The line was inspired in part when Grangaard ran into a banker and loyal Allen Edmonds customer at a charity event. “It was raining and he was wearing shoes from a competitor. When I asked why he wasn’t wearing our shoes, he said ‘you don’t make these’ and showed me the rubber soles. Well now we do.” With prices under $200, The Crosstown collection targets a younger customer with rugged and casual styling, rubber outsoles and removable footbeds so consumers can use orthotics if need be. American style is an important component of those collections, too, Grangaard says. This past November, the company, under the direction of its new CMO Colin Hall, a former Leo Burnett executive, introduced the tagline “The Great American Shoe Company.” And Grangaard says the company will keep manufacturing its classics in Wisconsin and handsewns in a factory in Maine. The company employs 350 employees in its headquarters, 250 of whom work in the factory. “The company’s sales are estimated at about $75 million annually, 50 percent of which comes from sales in its own stores and 50% of which comes from department and independent shoe stores. The
company is also a key part of the effort by Men’s Warehouse to increase its same store sales by adding better lines. “There’s an authenticity to making a great shoe in its home of design,” says Grangaard. We believe that and don’t plan to change.”
New Balance: Hometown Hero
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eri Gilmore is one of 1300 New Balance employees who work in one the company’s five American manufacturing plants. That number represents more than half of all New Balance employees in the United States, and more than one-third of its global staff. Working in factories in Massachusetts and Maine, Gilmore and her colleagues help produce 25 percent of the footwear produced by New Balance annually, a total of seven million pair made domestically. Gilmore is a stitcher in the Skowhegan, ME, plant, who helps assemble New Balance’s 993, 1123 and 1105 models by operating a kick press, which she describes as “a sewing machine that you work with your feet.” Before joining New Balance five years ago, Gilmore worked for an alarm
Skilled Labor: Keri Gilmore is one of 13,000 New Balance employees who work in manufacturing and distribution in the United States.
March/April 2010 ~ Footwear Insight • 43
AMERICANA
Allen Edmonds produces its classic shoes at its factory headquarters in Wisconsin. “There’s an authenticity to making a great shoe in its home of design,” says Paul Grangaard.
manufacturing company in Maine. Her mother worked at New Balance before Gilmore and was instrumental in getting her to join the company. “I like interacting with all the different people and personalities at the plant,” Gilmore says. Part of her job includes training in other parts of the manufacturing process, which adds new meaning to the words “cross training.” In her spare time, Gilmore, the mother of a three-year-old daughter named Marina, attends college and is pursuing a degree in business management. New Balance offers a 100 percent tuition reimbursement program. Gilmore says she loves working at New Balance and would like to eventually be a floor coordinator, which she describes as a running problem solver on the factory floor. She admits when she’s not at work, she finds herself looking at the shoes people wear and mentally critiques how the footwear is made. “When you work in a factory where something is made, you know that you’re adding value and quality to a product. It gives me a real sense of pride.”
Lucchese: Western Ways
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ore than 120 years ago, Sam Lucchese went into business making boots for the U.S. Calvary. Late last year, the company that bears his name introduced Diva, a women’s line of Western boots, with individual styles bearing Italian women’s names. The Calvary boots were made in Texas and so are the Agostina, Marcella and Mia. “The term Diva is overused for sure,” says Mario Vega, marketing director for Lucchese, “but we believe that it focuses on
inner beauty. And anything can be beautiful if you make it yours.” The boots focus on inner and outer beauty. Lucchese employs more than 260 workers in Texas, and its El Paso manufacturing facility is a mix of modern technology and old-fashioned know-how. Boots are sewn on 50-year-old sewing machines but turned on ultra modern machinery, a vast improvement over the wooden hand cranks that were once used for this process. The entire manufacturing process for a boot takes more than 100 steps and lasts more than two weeks. On a given day in the factory, Lucchese execs say that 14,000 pair of boots representing 500 styles may be in process. The company’s Charlie One Horse boots are made in Brazil and the Resistol Ranch product is made in Mexico. But Vega says quality levels demand that Lucchese and Diva product is made in the Lone Star State. “We don’t engineer to a price point,” he says. “Our prices are a component of our craftsmanship, our materials and our quality. If raw materials go up, our prices go up, too.” Lucchese boots start at $350 and go up to $7000 for custom boots. Retail prices for the Diva line start at $299 and go up to $599. There are 15 styles in the Diva line, and 120 pair is made of each style. The boots are numbered, hand signed and stamped as they come out of the factory. Four styles are already sold out. Earlier this spring, Lucchese introduced a promotion on its Web site where consumers could design their own boots by submitting drawings and an essay talking about their inspiration for the product. Several winners will be announced in April and their designs will be made into boots. In Texas. l
Manufacturing of Lucchese’s Western boots includes more than 100 separate steps and takes more than two weeks start to finish.
44 • Footwear Insight ~ March/April 2010
AMERICANA
The Greatest Shoes on Earth 1. Seafaring Style Boat shoes conjure images of sunny days and sailboats. The wind blowing through your hair, the spray in your face. The deck may be slippery, but you stand firm in your Sperry Topsiders. Anyone ready for another Sea Breeze?
Times may be tough in the U.S., but American style has never been stronger. The Chinese may have all the money and the Canadians the best hockey players, but we have the coolest shoes.
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2. The Maine Woodsman Maine’s natural resources define the state and shape the personality and attitude of its people. Salt and fresh waters mix. Small islands are covered with spruce trees. It’s both rugged and beautiful as are these shoes from Quoddy. 100 percent made in Maine, handsewn on the last, right down to the Hevea crepe rubber sole. Horween Chromexcel leather, deerskin bellows tongue, lined with full grain sheepskin. SRP $450.
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3. Penny Wise The Norwegians actually invented penny loafers as house slippers, but it was American college students who added the penny and that insouciant dash of style. This Sebago style is a staple in its line. 4. Wing Tip Shoe Your dad wore them and now your son probably does, too, if he works in Silicon Valley. This shoe says you are steady, trustworthy, serious and damn good at what you do. From Allen Edmonds, made in Wisconsin. 5,6. The Wild Ones We invented motorcycles and motorcycle gangs. And if you don’t think so, we’ll kick your ass wearing these Harley-Davidson boots. Motorcycle boots have inspired magical rides, including many by folks who never rode a bike in their lives. 7. Frontier Chic John Wayne. Clint Eastwood. Roy Rogers and Dale, too. You can be a cowboy or cowgirl without ever climbing a top a horse. Yippee ki yay, my friend, and git a long little doggies. Diva boots for women made by Lucchese in Texas. l
46 • Footwear Insight ~ March/April 2010
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Reebok’s ‘Easy’ Reversal of Fortunes By Lois Sakany
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eebok has struggled horribly since its acquisition by Adidas, but with the launch of the Easy Tone, 2010 is looking like 1981 all over again for Reebok and the women’s fitness category. It’s early March and Reebok’s Easy Tone style is essentially sold to the wall. Major athletic shoe retailers including Dick’s Sporting Goods, The Finish Line and Foot Locker are anxiously awaiting March reinforcements, knowing that when they do hit shelves they will rack up double-digit sell-through rates, as it did all through Holiday 2009. “It’s largely sold out at retail,” confirms John Lynch, Reebok’s head of U.S. brand marketing. “But retailers are starting to get restocked and some have landed Run Tone and in a few doors we have the Men’s Stride, which is men’s counterpart to the Easy Tone and we expect that will do well.” The good news doesn’t end there, Zig Tech, a men’s running shoe featuring visible technology, launched March 11. And whether it’s the halo effect of the Easy Tone that put retailers in a more forgiving mood, or a desperate willingness to try anything capable of loosening Nike’s stranglehold on shelf space, sporting goods and sport specialty retailers are showing it a lot of support. “It’s been really positive. All the major players that work with Reebok are on the product, and we’re looking at air shipping some product to meet launch-date demands,” says Lynch, who, as a 10-year veteran of Reebok, admits he’s enjoying the current change in fortune for the brand. Aaron Triche, Zappos assistant athletic shoe buyer’s likes the Zig,
“[The design] is aggressive and different and once I saw it on peoples’ feet at the Super Bowl [where Reebok rolled out a major promotion], I liked it more. The shoe looks cool.” The Easy Tone hit stores in Spring 2009 with Lady Foot Locker as its launch partner. Response to the shoe was choppy initially, in part because retailers had lost all faith in Reebok, which, five years into its ownership under Adidas, was essentially running on fumes generated from sales of entry-priced Classics. But then the DDB-created ad campaign hit the airways and sales exploded. The various ads all feature a young and attractive model in short shorts, who repeatedly drives home the same theme, “Better legs and a better butt with every step.” When asked to delve into the psychology of the ad and its divergence from the strictly performance approach of rival brands, Lynch says, “I hate to sound so simplistic, but it comes back to the line we wrote for the ad brief, “Easy Tones make your legs and butt look great.” And in our industry it is a bit of a new way to market to women. We have the athletic heritage and authenticity, and yes, we’re willing to merge into that space of being attractive and aspirational.” Reebok is taking a similar approach in ad support for Zig Tech, in that it will be “fun, bold and provocative.” Lynch describes the ad buy “as big a campaign in the 10 years I’ve been with Reebok.” A multi-media campaign, the Zig Tech is a sponsor of NCAA’s March Madness tournament and is buying time on MLB and Versus network, too.
Toning has made the brand relevant again and retailers are betting Zig Tech can continue the momentum
Zig Tech: A men’s running shoe featuring visible technology launched March 11. Support from sporting goods chains has been excellent, Reebok says.
48 • Footwear Insight ~ March/April 2010
pretty well for Reebok,” and adds, The brand is also receiving buzz for “I can’t comment on Nike because several Zig Tech viral ads, including one I don’t know what it’s doing. We’re that features MMA fighter Chuck Liddel focused on a leadership position in working out with his girlfriend naked, toning. We want to offer the best techexcept for a pair of Zig Tech shoes. It’s nology and the best-looking shoes.” a smart and aggressive approach that For retailers now, it’s not a matter has been lacking at Reebok since, well, it of whether or not Easy Tone will be a came under new ownership. (When asked gravy train, but just how long the ride about the ad, Lynch was silent, but asked will last. “I do see a timestamp, but I that the link for the Web site featuring it truly believe for the better part of 2011, be forwarded to his assistant.) [Easy Tone] will remain a force to be But for right now anyway, it’s all about reckoned with,” says Triche, who when the certified success of the Easy Tone shoe. asked to list the three most important Combined with already intense demand for athletic shoe trends of 2010, answered, Skecher’s rocker-bottom Shape-Ups, which Aaron Triche, Zappos “No. 1, 2 and 3 are toning.” launched about six months before Reebok, But even after demand dies down, total sales have been explosive enough to Triche thinks its influence will be felt in the revitalization of the walking create an entirely new category known as toning (or wellness as some precategory. “Most walkers wear running shoes. In the gym it’s the same thing. fer) and has revitalized women’s athletic, not to mention inspired count[Easy Tone] is going to be a great launching pad for the return of the walkless copycat versions. Current estimates are predicting 1 billion dollars ing category.” in toning-related footwear sales during 2010. Not bad for a category that And in the meantime, the style may also be an even greater launching didn’t exist 18 months ago. pad for Reebok’s return. “We’re seeing an Easy Tone halo effect on Reebok. “In 2010, I see major, monster increases for the wellness/toning category, com for sales of other styles. It’s not unlike the way an iPod makes Apple says Triche, who adds, “But that’s in part because it didn’t exist before. It’s look good. It gives you that good brand image across the brand. The people taken Reebok through the roof, but off a small base.” are giving other products a closer look,” says Lynch. l Retailers don’t foresee the category slowing down any time soon.
In 2010, I see major, monster increases for the wellness/ toning category, but that’s in part because it didn’t exist before.
Consumers Respond to Easy Tone “Our customers have responded extremely well to the toning category, including Reebok’s Easy Tone,” says Sam Sato, EVP and Chief Merchandising Officer at Finish Line. We recognized this trend early and invested in a level of inventory that supports the excitement we are seeing in this category. We fully expect it to continue into the spring season and beyond. We believe consumers will continue to have a high level of interest in products that can help them improve their fitness level and toning footwear responds to this desire. We are pleased with the level of support that The Finish Line has received from Reebok on EasyTone and RunTone and we look forward to continuing the strong relationship we have with the company as this category continues to grow.” The Reebok turnaround is especially sweet because it’s been heralded in by a women’s fitness shoe, which carries with it a powerful level of déjà vu, pre-destined karma. In 1981, Reebok launched the Freestyle, the world’s first aerobic shoe. According to “Swoosh, the Unauthorized Story of Nike and the Men Who Played There,” “[Reebok CEO Paul Fireman] felt that Nike was overemphasizing the tech aspect of shoes and ignoring the women’s casual business.” Market reports say that Nike briefly considered a 2010 back-to-school wellness shoe offering, but pulled back on the idea, concluding the authenticity of the technology was lacking. Flashback to 1982, according to “Swoosh,” Nike chose to dismiss the Freestyle for the same reasons. “Nike developers were blinded by the Freestyle’s functional deficiencies, and underestimated its comfort and consumer appeal.” When asked about the uncanny parallels, Lynch laughs, “As I recall that Freestyle shoe worked out
The Easy Tone: Making Reebok relevant again among consumers and retailers. And Zig Tech has the potential to make the brand something it hasn’t been in more than a decade: a serious player in the athletic footwear business.
March/April 2010 ~ Footwear Insight • 49
END INSIGHT
How-To: Charity By Emma Johnson What’s good for the community is good for business. This is one of the lessons learned by Campbell White, owner of Total Relief Footwear in Austin, TX. In the two weeks following the January 12 earthquake in Haiti, he and co-owner and wife Celia collected, packed and shipped more than 21,000 pairs of shoes to the tormented country through the charity Soles4Souls. While the effort was borne solely out of good will, two months later it appears to have strengthened the six-year-old store’s standing in the minds of its community. “On the second day of the disaster the TV footage came in and it was horrifying,” says White. “It struck me that a lot of people who were trying to pull survivors out of the rubble would die. They were walking around dazed and without shoes on and would eventually get infections because they were stepping on broken glass and twisted metal.” White pounded out a press release that announced the store’s drive for gently worn shoes to be shipped to Port-au-Prince via Soles4Souls. He
An Austin independent’s guide to giving back — and getting back
All these hurdles were overcome by quick thinking by White and Celia. Here are a few lessons on charity organization that can apply to efforts in your community: Ask the public for help When the packing and hauling of shoes was too much for his staff, White sent an email to his customer list calling for volunteers. Dozens showed up to lend a hand. And when that wasn’t enough, he dialed the local fire department, which sent a couple of new recruits and an engine to assist. Ask for what you need Each pair of shoes came with a price tag — the cost of shipping from Central Texas to Soles4Souls’s distribution hub in Alabama. Instead of sweating the expense, White explicitly asked donors to chip in. Someone calling to announce a minivan toting 10 garbage bags of sneakers and sandals would be asked for a suggested donation of $25, for example. Amazingly, the dollar donations nearly exactly met the shipping costs. “That is the beauty of this thing,” White says. “When you do something like this it can scare you to death, but if you organize right it is amazing how people respond.”
Total Relief Footwear responded to the Haiti earthquake with a shoe drive that got very viral in Austin. The store collected, packed and shipped 21,000 pairs of shoes to Soles4Souls. They shipped over 13 1/2 tons of freight in three separate tractor trailer loads.
then called the local Fox affiliate TV station, adlibbing from his release to the news desk. His message included, “If you’re watching what I’m watching, many of those people will be dead.” The station sent a news crew. Before they arrived, White had called the NBC, ABC and CBS affiliates to sell the same story — and happened to mention Fox was soon to be on the scene. He got a clean sweep of live coverage from his store from all four stations, plus a few follow-ups — seven stories total over the weeks. “What happened was a tsunami,” White says of community response. “Our phones were ringing off the hook with everyone wanting to get involved in the shoe drive.” Boy Scouts, churches, local charities and schools called. Mounds of footwear would be piled up at the store’s stripmall location every morning. At one point, White hired a 24-foot U-Haul truck and parked it outside this store to collect the shoes. “Logistically, it becomes ‘be careful what you wish for.’ I learned a lot from this experience.” Soles4Souls requires that the collecting organization assume financial and labor responsibility of packing and shipping donations. For Total Relief Footwear, this meant contending with 13-and-a-half tons that would eventually be sent in three tractor trailers — at a cost of $5000. 50 • Footwear Insight ~ March/April 2010
Don’t underestimate media power Another logistical challenge was finding crates and boxes to haul the shoes. When demand outstripped what people in the community grabbed from their employers’ garbage, White called vendors Aetrex, Z-Clio and Drew and asked, “Would you rather have live news footage showing Pampers boxes, or crates with logos from your company?” Each sent cases of logoed boxes.
Don’t be intimidated by the media Surprisingly, White did not have media relationships before this event. He figured out how to write a press release – he suggests finding examples on the Internet – and overcame any inhibition by cold-calling TV stations. “You do need a good story to tell,” White says. “It had to be more than ‘local business responds to Haiti.’” His pitch was that his efforts were savings lives. He also stayed in touch with the reporters he met and encouraged follow-ups. Keep the charity front-and-center, but don’t neglect business For a few weeks, used shoes overran the 2500-square-foot orthopedics store, and all the donor traffic resulted in only a slight uptick in year-overyear January sales. “There was so much noise and commotion and we were nose-to-tail with shoes,” White says. “It was not a nice, comfortable environment to visit.” So each person who volunteered a donation or labor received a heart-felt thanks and a $15 gift certificate for the store. Come February, however, sales are again up slightly in a tough economy, but this time Total Relief Footwear is flush with new faces who remember the business and the headlines of its do-gooding. “The goodwill this has generated is priceless. And the PR is alright,” White says. “Charity is part of being a good citizen in your city. It is important to add that kind of balance to your business model.” l
