Big shoes to fill

Riding a wave of recent success, iconic German footwear brand Birkenstock is looking to leverage its democratic appeal to expand its presence in China, Zhang Lei reports.

It's rare for Birkenstock to be seen at the forefront of fashion, especially since the German footwear brand's iconic shoes are viewed by some as the ultimate anti-fashion statement. Yet, in recent years the brand has become a mainstay for many upscale retailers, and its latest collection has struck a chord with fashionistas the world over.

The inspiration for their new collection derives from urban society and the zeitgeist for conscious wellbeing, where quality elements from last season's men's collection, such as the leather soles have been continued into this season's women's collection.

Through its collaborations with American designer Rick Owens, the brand has been broadening its horizons with experimental new designs, as seen in the SS19 collection.

Fresh colors like coral, lilac and mint have inspired several different silhouettes with metallic touches, and the label has continued to elevate the style of their signature Arizona sandals. A mix of modern materials such as nylon, polyurethane, Velcro and click-closures fuse with the hallmark comfort features of the brand.

China Daily recently talked with Jochen Gutzy, Head of Corporate Communication of Birkenstock, on the brand's thinking and its expansion in the Chinese market.

How do you react to claims that Birkenstock is the ultimate in anti-fashion footwear?

What really matters is the fact that our customers feel comfortable. We regard our products as being beyond fashion. Birkenstock foremost defines itself according to the principles of function as a quality. Therefore, our core values match the zeitgeist perfectly. We not only stand for a healthy lifestyle, but also for tradition, quality and well-being.

Why has Birkenstock turned down collaborations with pop brands like Supreme?

When deciding on a new partner, it's important to find collaborations that truly add a new dimension to our products. We are careful to show our products within a specific context, whether it's a mobile retail project like the Birkenstock Box format or working with Rick Owens, we want to be a real partner in the product's development. Slapping a logo on an existing design is not what interests us, neither is creating a buzz. For us, collaborating across creative disciplines to create something meaningful is a strategy, not a ploy.

How does the brand balance itself between what's good and what people want?

Birkenstock's combination of function and quality has always been attractive. Over the past decade, the general feeling of comfort and well-being our shoes offer has been discovered by more and more people. Young urbanites now view us from a different angle and Birkenstock's blend of function and quality captures the zeitgeist perfectly. Our footbed, which is anatomically design around a footprint, is our foundation for comfort and follows orthopedic principles.

Do you position yourself in the China market with the same "uncool is cool" notion?

The brand has over 240 years of history, so the key to its success is authenticity. We are proud of our products, especially their functionality and quality. But we also understand that different countries have different needs. We use the insight we gain from customers to improve our product range and market strategy. In China, we position ourselves as a lifestyle footwear brand, and we transmit our brand heritage and message in the way that appeals to local consumers.

Where does the brand stand when it comes to the young, techno-loving generation?

Birkenstock unintentionally is and always has been well connected with the zeitgeist, be it Hippie, Grunge or even Techno. Birkenstock is a very democratic brand, it's like a blank canvas where you can leave your footprint and express yourself. The young generation is searching for the real thing and we are tapping into that and mixing it up to create something unexpected and fresh for them. As a brand, we love to be part of this culture as it keeps us young and vital.

What do you think of the trend toward gender-neutral styles?

Birkenstock is one of the driving forces behind this movement. Our core styles - Madrid, Arizona, Gizeh, Boston and even Mayari - are basically gender-neutral styles, simply because our customers act like that. Again, it's unintended, it simply happens, but we respect our customers and support them by launching a wide range of product variants, picking up a rich variety of colors and materials.

What are your target groups in China and how big is your team here?

We have identified several consumer groups in China. For mainline products, the core group is made up of people who appreciate quality and functionality, stay informed about the latest fashion trends and love to mix-and-match to create their own style. For collaborative products, we mainly target the next generation of fashionistas who set the trends. The brand has been in China for several years using local distributors, but last year we started building a dedicated team here. We have a few key roles here currently and are recruiting more people to strengthen the team.

How do you view the online/offline challenge in China?

We regard these two channels as complementary rather than competing with each another. With the slowing economy, consumers have become more conservative about spending in recent years. High rents and labor costs are the key challenges to offline stores, while the online store is more about pricing, now that discounts and promotions have become the norm. We have a strict discount policy but we don't want consumers to buy Birkenstock products purely based on price. We strive to offer customers the best retail experience and let them choose the most convenient and pleasurable way to shop. We are optimistic and confident about the China market.

What discoveries and challenges have you encountered in China?

Although we have been in the China market for several years, brand penetration is not as high as other Asia countries like Japan or South Korea. The biggest challenge to us is to raise our brand awareness in China, especially to our target buyers. Luckily, Chinese consumers adapt quickly and pick up new trends, so we are confident that if we continue to communicate our brand values and connect with our customers here as we have in other markets, business will boom.

Is the growing power of the Chinese fashion industry helping with branding?

Yes, consumers in China are now much more connected with the rest of the world. They are sensitive to new brands, and are willing to adapt new trends thanks to their high spending power. Some media reports suggest that China is already the biggest global market for fashion. These are advantages when it comes to Birkenstock building its brand and growing sales.

How do your development plans in China differ from those overseas?

The situation varies, even among Asia countries. In established markets like Japan, the challenge is to rejuvenate the brand through younger customers, while in China it's more a matter of enhancing brand awareness. We tailor our plans according to each market rather than applying one plan to all. In five years' time we hope to establish a solid base for Birkenstock to grow in China, thanks to a good distribution network and high brand awareness.

Contact the writer at zhanglei@chinadaily.com.cn

(China Daily Global 06/27/2019 page15)