In its sales strategy, BIRKENSTOCK now focuses even more on the wishes and needs of its customers. This is why the global footwear and lifestyle brand is continuing its mission to boost the quality of its distribution network that began in 2016 and is developing it further with the aim of becoming even more consumer-focused. In doing so, BIRKENSTOCK also takes into account the changed shopping behavior of consumers, who nowadays expect improved curation efforts from brands in retail stores, as well as an authentic brand, product and service experience.
With this goal in mind, BIRKENSTOCK carefully analyzed its current distribution structures. BIRKENSTOCK mostly focused on the quality of the of brand presentation at the POS, the brand environment, the quality of service and advice, and also the willingness to support new strategic product initiatives. As a result, the supply agreements with around half of the wholesale partners will be discontinued. This primarily affects inactive retailers who have not placed any orders in the past two years or have only ordered very small quantities, as well as retailers who no longer meet our minimum standards for brand presentation.
With around 2,000 retail partners, BIRKENSTOCK will continue to be widely represented in Germany. As regards sneakers, outdoor footwear and kids’ models, BIRKENSTOCK is currently approaching new distribution partners. For BIRKENSTOCK, the wholesale channel is and will remain a key pillar of its sales strategy, and one that is on an equal footing with the direct-to-consumer channel.
Already in June 2016, BIRKENSTOCK launched an initiative to boost the quality of its distribution and adapted the marketing of its products worldwide to the respective market conditions in order to ensure a uniform brand representation worldwide. Key aspects of the initiative were the restructuring of purchasing conditions and the introduction of recommended retail prices in all markets. These measures were accompanied by substantial investments in the global brand presence and the fight against brand piracy.