Are You Ready?
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MINIMALISM GOES tO thE OffIcE: ShARING THE tECHNOLOGY RECOVERY Are You Ready? AMERICAN ADVANTAGE Making it in the USA RONNIE FIEG’S NEIGHBORHOOD Design on the Verge BRAND REVIVAL Sebago & Birkenstock Return to their Roots PERMIT # 191 # PERMIT ITHACA, NY ITHACA, PAID US POSTAGE US RR STD PRSRT FOOTWEARINSIGHT.COM • MARCH/APRIL 2011 Editor in Chief Mark Sullivan [email protected] 646-319-7878 Editor at Large Cara Griffin Art Director Francis Klaess Associate Art Director March/April 2011 Mary McGann Contributors Michael Jacobsen Mike Kennedy Nancy Ruhling Tim Sitek Emma Johnson Red Wing Publisher shoes Jeff Nott designed [email protected] with input 516-305-4711 from retailer Advertising turned shoe designer Beth Gordon Ronnie Fieg. [email protected] 949-293-1378 See page 26 Jeff Gruenhut [email protected] 404-467-9980 Troy Leonard [email protected] 352-624-1561 Sam Selvaggio [email protected] 212-398-5021 Production Michael Jacobsen 201-396-7005 [email protected] Business Manager Marianna Rukhvarger 516-305-4709 [email protected] Subscriptions store.formula4media.com 06 THE FOOTWEAR EYE 26 RETAIL: RONNIE FIEG ON THE VERGE MBT celebrates 15 years in the U.S. with a major ad This New Yorker cut his teeth working for his uncle at David Made in USA: campaign; Keds talks to college kids; Mozo cooks up a deal Z and is now stepping out and offering advice, design input Munro Chloe with celebrity chefs and Lola Ramone comes to America. and ideas to key players in the shoe business. 10 ANALYSIS: BRAND REVIVAL 28 ARE YOU PAYING TOO MUCH RENT? Sebago takes an Artistic Approach; Birkenstock returns An exclusive excerpt from The National Shoe Retailers’ to its roots. Association’s Business Performance Report takes an in-depth look at occupancy costs. 14 STRATEGIES: MAkinG it HerE PO Box 23-1318 32 DAILY DISCOUNT WEB SITES WORk FOR YOU Great Neck, NY 11023 Keen, Munro and p.w. minor tell why they choose to make it Phone: 516-305-4710 here when they could make it anywhere. Groupon and other group daily discount sites are proving to be one of the most effective and low risk advertising tools. Fax: 516-305-4712 21 WHAT TO WEAR TO THE RECOVERY www.formula4media.com The newest recovery shoes are athletically inspired, colorful 34 HIGH END COMFORT: LINES WE LIkE AND WHY Formula4 Media Publications and lightweight. Lines that deliver on their promises in time for Fall 2011. Sports Insight 24 OFFICE TRANSITION Footwear Insight The transition to “less shoe” is not limited to running. A look Outdoor Insight On the cover: K-Swiss Blade-Light Recover and SOLE Exhale are part of the new category of Team Insight at five shoes designed for the office, or at least for home. “recovery footwear” that is opening up new sales opportunities for retailers. Photo by Frank James Textile Insight Running Insight Soccer Insight Footwear Insight® is a trademark of Formula4 Media, LLC, Great Neck, New York. ©2011 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 footwearinsight.com TIME OUT | MARk SULLIVAN A Quarter for Your Thoughts The first quarter of the year is now officially behind us. Let’s quickly review what took place, what it means, and what could happen for the remainder of the year. Through the end of February, business was pretty good. Big stores like Foot Locker and Dick’s posted very good numbers and independents sold a ton of boots, which resulted in lean inventories heading into spring. March was not so good. It finally stopped snowing in the Northeast, but weather here and the rest of the country (except Florida) was pretty crummy and no one was inspired to go out and buy sandals or running shoes, which are the two major drivers in the footwear business for spring. But weather was not the only factor holding back consumers from spending money. Gas prices jumped to nearly $4 a gallon in many parts of the country. And that increase boosts the price of just about every other product we consume, especially groceries. So at the very moment when the retail business seemed poised for a comeback, the hopes for some genuine momentum are being strangled by the gas hose. I am a major believer in capitalism and the power of the free market, but the oil companies are being greedy and consumers and the government are being foolish. I would be okay with gas prices hitting $4.50 a gallon if .50 of every gallon went toward paying down the federal deficit. But if that extra .50 is going toward making the guys at BP a little richer, I have a problem with that. Since the 1980s, it’s clear our government needs some sort of alternative energy policy, but our elected representatives in Washington seem to live in an alternative universe. If we as consumers continue to drive the gas pump like sheep begging to be fleeced, it’s our own damn fault if we have no money left to buy shoes, which by the way are also getting more expensive. Not much surprises me anymore. But one of the few surprises of the first quarter was when Nike missed its earnings projections, saying it didn’t anticipate cost increases. Clearly we’re not sending a sufficient number of magazines to the nice folks at 1 Bowerman Drive in Beaverton because we’ve been ranting and raving for the past 18 months that price increases were coming hard and fast. Actually, the explanation behind the Nike numbers (their earnings would have been solid for any other company in the business, by the way) may provide a solid glimpse of what’s coming for the rest of the year. Shoemakers are going to struggle to maintain costs and retailers are going to have to justify higher prices to their consumers. And retailers don’t have the luxury of going face to face with every consumer and saying “Well, you know footwear prices for the past 20 years have been fantastic when compared to the Consumer Price Index, but people who live in China can now tweet to one another about better jobs, so wages are going up and shoes all of a sudden are going to cost 20 percent more.” Retailers are going to have to make that case by offering better service and selection and getting consumers so excited about buying that the price increases don’t get in the way. And brands will have to figure out how to make better and different product that gets consumers excited and still allows everyone up and down the supply chain to make a buck or two. I love the new minimalist running shoes for that reason. Less shoe, in many cases, means less material used, fewer fossil fuels consumed in the process, and really great exciting product for less money than a traditional structured shoe. So there are pockets of hope, but as usual it is up to us to make it all work. Before you turn the page and start reading the rest of the magazine, let’s review: Drive less so you don’t have to buy as much gas. Ride your bike whenever possible, eat less food, you’ll feel better in the long run and spend all your extra money on shoes. For those readers who can’t get enough of my wit, wisdom and insightful analysis, you can catch me almost weekly on my new blog. http://www.insideinsightblog.com/category/sullivans-insight/ THE FOOTWEAR EYE MBT Appeals to ‘Core’ Audience BT is marking its 15th anniversary with its first ever national ad campaign, with two-page spreads in O, The Oprah Magazine and More magazine, running through December 2011. The campaign, titled “MBT. Love the way they make you feel,” features confident women in aspirational settings Mand was directed by Dutch advertising agency Kunde. MBT also opened its first U.S. concept shop in The Core by Footwear Etc., which recently opened in Palo Alto, CA. The Core is the tenth store for Footwear, Etc. and features select brands in the wellness, healthy lifestyle category. MBT. Love the way Day to Night they make you feel. In early April, MBT will officially celebrate the grand opening of the concept shop with in-store consumer events and promotions, as well as kick off MBT’s partnership with Education for All Children (EFAC), a New Hampshire-based non-profit organization that provides secondary For more than 15 years, our philosophy has been to help you enhance your body’s natural balance. Own school scholarships for underprivileged children in Kenya. Twenty every hour of your day with The Original – MBT. Find out more at mbt.com percent of the children who benefit from EFAC are members of the Masai tribe — the inspiration for the MBT brand. Beginning with the grand opening weekend, a portion of proceeds from the sale of all MBTs at The Core will go directly to Education for All Children.