birkenstock a focused digital strategytorres, the bon jovi band famous drummer with whom they...

BIRKENSTOCK

A focused

digital strategy

____________CASE STUDY

CONTENTS

BIRKENSTOCK – CASE STUDY

THE COMPANY IN A NUTSHELL

THE BRAND STORY

A FOCUSED DIGITAL STRATEGY

KEY SUCCESS FACTORS

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Birkenstock GroupThe company's historic roots can be traced as far back as 1774. BIRKENSTOCK used the term 'footbed’ since 1930, helping to shape the way it is used today. BIRKENSTOCK became a global player by the late 1970s.

With around 3,800 employees, this sixth-generation family business, made of 38 individual companies, became a consolidated group in 2013. At that time, they decided to harmonize, automate and integrate work flows, restructure the organization and invest in state-of-the-art IT systems. Now Birkenstock can keep pace with its growth: up to 80,000 boxes leave the fully automated central warehouse every day.

Manufactured in Germany, the sandals are sold in 100 countries on all five continents. In addition to the legendary sandals, BIRKENSTOCK has also a growing range of closed-toe, children's, and work shoes as well as specialist products for orthopaedic retailers. More recently it also developed a range of cosmetics.

The Group is headquartered in Germany where production, R&D and service activities take place in nine different locations.

The brand manages 43 freestanding stores worldwide and enjoys an extensive retail presence through regional distributors and retailers. It operates its own sales offices in the USA, Brazil, China, Hong Kong, Japan, Denmark, Spain and the UK.

In 2016, they created BIRKENSTOCK DIGITAL, a dedicatedcompany, to manage the digital transformation and theonline presence of the brand. Within less than 2 years, the digital strategy has been fully reshaped.

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Sustainability at hearth

The brand claims to use animal-friendly, ecologically-sound and sustainable materials for its “made in Germany” products.

A sustainability focused video produced end of 2017, explains the manufacturing process and product origins to consumers.

BIRKENSTOCK has also issued a Code of Conduct in line with the UN Global Compact that applies to its worldwide employees, suppliers and distributors.

By doing so, it is setting quality standards for its extended eco-system and protecting the brand image.

In April 2018, the company further strengthened the labour rights for its employees in Germany by creating a codetermined Supervisory Board that will enable employees to be more involved in business decisions.


https://www.youtube.com/watch?time_continue=68&v=w03BsxwOT3c

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The brand story

From an orthopaedical shoe designed for professionals in the late 19th century, the “Birk” has developed into a way-of-life statement in the 70/80’s and is now the fashion icon of the Millennials all over Europe.

Today BIRKENSTOCK is one of the top five global footwear brands with over 20 millions shoes sold in 2016. In 2017 and 2018 it was named Brand of the Year by Footwear News.

This brand story has been carefully crafted into a distinctive and successful marketing strategy initially supported by celebrities such as Heidi Klum, Leonardo DiCaprio, Uma Thurman, Julia Roberts, Naomi Watts, or Julianne Moore.


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The product becomes the star in 2017

In Summer 2017, BIRKENSTOCK launched its first true global brand advertising with a product focused campaign shot by world-renowned photographer, Dan Tobin Smith.

On the company web site, the brand also insists on product origin and components, as the successful sandals have been subject to counterfeit in many countries and on various online platforms.


https://www.youtube.com/watch?v=nDCshaL-6QI

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Recent and upcoming brand extensions

The brand has been selling natural cosmetics for some years. In 2018, BIRKENSTOCK introduces a collection of “sleep systems”.

“The leap from sandal to bed is only logical: “As a brand with a long history, and as the company that invented the footbed, thanks to its functional and orthopedic expertise

BIRKENSTOCK has always stood for a healthy gait and stance. In that sense, it obviously makes sense for

BIRKENSTOCK to expand from anatomically-shaped footbed to anatomically-shaped beds,” says BIRKENSTOCK

CEO, Oliver Reichert.


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Multiple sale channels to manage

While BIRKENSTOCK’s retail footprint has been growing exponentially since 2013, their sales and marketing approach has also evolved, to better respond to consumer’s expectations, both in shops and online.

BIRKENSTOCK products are available in flagship shops, houses of brands, local retailers and even supermarkets.

The digital business takes place on their 21 own regional e-shops and on major European marketplaces such as Zalando, Seranza, Vente Privée, Spartoo and of course Amazon.

Managing such diversity in sales channels can be challenging for any international brand. BIRKENSTOCK has been working hard in the last two years, to optimise their omni-channel approach..


“We have enjoyed five straight years of

tremendous growth and it is just the foundation.

We will continue to aggressively manage our

distribution while we expand our product range

in the seasons ahead," BIRKENSTOCK Americas

CEO, David Kahan, 2017.

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Co-branding &Partnerships

They have often positioned their brand through creative partnerships.

In 2013 with music artists such as Tico Torres, the Bon Jovi Band famous drummer with whom they designed the RockStarBaby line.

In May 2018, they launch a limited edition model in co-branding with the Royal Manufacture of Porcelain (KPM), another 250 year old German company.

They also introduce a line with Rick Owens, an iconic fashion designer.

https://www.birkenstockgroup.com/de/en/detailpress/newsroom/birkenstock-is-collaborating-with-kpm-koenigliche-porzellan-manufaktur-berlin-and-kadewe/


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The Birkenstock Box

End of 2017, BIRKENSTOCK introduced a mobilepop-up store in a sea freight container : theBirkenstock Box is designed as a travelling retailexperiment that involves architects, artists, localretail partners and consumers in a number of cities.

This interesting concept has already transformedthe Birkenstock Box installation into an event inBerlin, Milan, New York and Los Angeles.

It is an effective and creative way of attractingcustomers and brand fans with a selected range oflimited edition products, while at the same timebuilding a close relationship with top retail partnersand fashion designers.

The tour is naturally documented on all socialmedia and the special collections or limited editionproducts can be bought on the brand’s web site.


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A travelling retail experiment

“What does retail have to offer in the digital

age? We're trying to find out through an

ambitious experiment. Renowned architects

Pierre Jorge Gonzalez and Judith Haase

have transformed a freight container into a

walk-in space that is scheduled to go on

tour to selected retail stores in the world's

most beautiful cities in the coming months.

Wherever it goes it will be presented like a

blank space for local artistic and other

creative talents to recreate it; the store

owners will curate the product selection.

The Box will be a temporary urban space

that encourages creative communication

between artists, retailers and customers.”

says Birkenstock CEO


A focused digital strategyIn the last two years BIRKENSTOCK has actively taken control of its global online presence through a digital

strategy successfully implemented by BIRKENSTOCK DIGITAL. This dedicated organisation founded mid-2016

and is now overseeing all the digital business of the brand.

Some noticeable elements are:

§ Birkenstock.com : single point of entry (+/country - automated redirection via IP address) for all product

ranges (footwear –shoes and sandals-, cosmetics and accessories)

§ Fully localised e-shop web sites for 21 countries, multiple languages and content adaptations

§ Brand integrity is key (no more Amazon/counterfeits)

§ Omni-channel approach and key retail partnerships

§ Presence on selected online marketplaces in Europe

§ Consistency in imagery and content (visual and editorial) across markets and media

§ Carefully selected and managed social media accounts: Facebook, Instagram, Pinterest and systematic

redirections to brand web site/e-shop to drive digital business.

§ Use of video social media for customer education (tutorials)

§ Brand content (Magazine) and curated user content strategy

§ User friendly online purchasing process: simple buying funnel, payment, shipping, delivery and return

options clearly explained


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21 branded web sites &e-shops

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Store locator (omnichannel approach)


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Product highlights in brand e-shop


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On major European marketplaces


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In conflict with Amazon

After having withdrawn fromAmazon US early 2017,BIRKENSTOCK has also officiallydiscontinued its deliveries withAmazon in Europe as of 1st January2018.

The company asserts a claimagainst the world’s largest onlineretailer that there have been aseries of violations of the law.

The brand communicated thisdecision officially in various pressreleases with the CEO accusingAmazon to be an accomplice ofcounterfeit vendors.


“On a number of occasions, BIRKENSTOCK lodged a complaint that counterfeitproducts of poor quality which infringed BIRKENSTOCK’s trademark rights and misledthe consumers regarding the origins of the goods”. Source Press Release Dec 2017

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E-marketing

BIRKENSTOCK applies a full range of marketing techniques to promote its online business:

§ Search engine optimisation (SEO)

§ Google Adwords and sponsored links

§ Opt-in Newsletter (10 € voucher for registration)

§ Social media community management

§ Birkenstories / Online Magazine with guest authors

§ Online tutorials (You Tube)

§ User generated content

§ Brand films (sustainability)

§ Events


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Optimal use of social media

Social media made the global community of “Birkenlovers” more visible, with true brand advocates, and sometimes influencers, all over the world. Managing this user generated content and the global social sharing process is impossible.

In 2018, the brand has selected Facebook, Pinterest and Instagram as their most active social media “official brand” accounts.

LinkedIn is used for employer branding purposes. Twitter and Google+ are not very actively used.

A lot of consumer filmed content is also visible on You Tube and Vimeo, where the brand focuses its publications on product tutorials.


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Facebook brand accounts

In 2018 - Facebook page of BIRKENSTOCK France shows 578.000 followers.

Very active with regularposts and live online chat.

In 2017, Birkenstock was also selling on Facebook, but it seems

today that the brand has withdrawn

from social-commerce to drive its digital business only through its

own e-shops and selected marketplaces.

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Leveraging the power of the community

In 2018, BIRKENSTOCK found a good way to capitalize on theBirkmania with #MyBirkenstock.

Consumer generated content is published on the home page ofthe brand’s web site. A “shop the look” button supports onlinesales. The whole process of collecting, curating and moderatingthis content is enabled through online tools provided by amarketing partner.

BIRKENSTOCK also shows that the brand is not only aboutcelebrities: the next brand film will feature real consumerstories. The company published a call for testimonials andpersonal stories early this year.


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Online tools for

business partners

Suppliers can find information and downloads about BIRKENSTOCK’s procurement philosophy, Code of Conduct and requirements. They can register online.

Distributors alike find information on the sho-in-shop concept, the European distribution landscape and get access to a photo library for their own brand communication needs.


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Key success factors - Strategy

§ Authenticity: Family business historical background (Konrad Birkenstock – 1897- orthopaedic sole inventor). A

heritage transformed by the current management into a global consolidated Group.

§ Business focus: a company strategy that builds on “Made in Germany” production, supported by core values and

sustainability focus. An aligned business diversification strategy (shoes, cosmetics, beds) that translates into clear

brand extensions.

§ A brand story that is constantly nurtured through communication on product features, qualities, origins and customer

benefits. A brand name that has developed into a “language”: birk, birkenlovers, birkenstories, my birk…

§ Omni-channel: A large footprint across a variety of own sales channels (bricks and mortar and online) and

distribution partners that seems well managed. Brand flagship shops in major cities. Selection of marketplaces.

§ Retail partnerships: business development support for potential distribution partners. (shop-in-shop global store

concept)+ Birkenstock Box mobile pop up store

§ Tone of voice and visual style: A fashion brand that combines trendiness and product innovation with historical and

technical background of the company. Co-branded special editions, artists and designers partnerships, guest authors

in magazine.

§ Marketing strategy: consistency and relevance across all sales channels (shops, corners, events and e-shops)

§ Content marketing: brand story telling, magazine, events, newsletter, consumer generated content

§ Media relations and thought leadership communications well managed at Group level and in various markets.

§ Organisation: A centralised, professional and dedicated organisation to design and implement the digital strategy


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Key success factors - Implementation

§ Web sites and social media presence fully localised : multiples languages and content in line with customer needs and sales

channels. Excellent SEO in all languages. Responsive web site design. Clear navigation and user experience.

§ Full consistency of visual design across countries : all sites have the same home page and respect visual constants that position

the brand and enhance its image

§ A distinctive photography style for “lifestyle imagery” showing the client personas, and for product shooting.

§ Clear and extensive information on product, excellent and consistent product imagery, various views of product, a lot of

explanations on available sizes, colours. Cross and up-selling (products you may also like) well presented.

§ Effective store locator (adapted to country specific footprint).

§ Excellent IT infrastructure and e-shop design to support smooth web surfing for consumer and order management.

§ A well documented and clear FAQ section on a broad scope of customer questions for all product ranges

§ A well controlled use of social media: no social accounts on e-shops, no more social commerce, but systematic redirection to

own web shop home page or specific product page. Social sharing enabled for 3 preferred platforms: Facebook, Twitter and

Pinterest + share by email.

§ Consumer education approach through online video tutorials on You Tube

§ Focused user experience: Clean web site/ e-shop. No intrusive pop-ups appearing during the journey on the e-shop, no

advertising nor extensive “promotions” or special price offers. No rating system or comments on products.

§ Transparency and information on buying process builds trust: Clear and simple online buying process, payment, shipping,

delivery and product return terms and options. (order amount limit for free shipping). Shipping, delivery and payment partners

clearly mentioned for each country site.


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LESLIE EAKER

Business Development ManagerMail: [email protected]

T +33 1 45 01 43 13 M +33 6 80 43 78 10

Ambassade de Nouvelle-Zélande 103 rue de Grenelle, 75007 ParisFOR FURTHER

INFORMATION ON

THE E-COMMERCE

PROJECT BY NZTE

MARIANNE KOPF

Eywa ConsultingMail: [email protected]

T +33 3 69 30 09 78 M +33 6 21 97 26 82

Eywa 6 rue du Général de Gaulle 67600 KINTZHEIM- France

Copyright NZTE/EYWA 2018© Credits: design & production by Eywa Consulting for New Zealand Trade and Enterprise Paris May 2018 All rights reserved - Photos & infographics Adobe Stock & Eywa 30

birkenstock a focused digital strategytorres, the bon jovi band famous drummer with whom they...

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