BIRKENSTOCK is gearing up to license its brand. The comfort shoe manufacturer plans to use licensing agreements to reach new strategic business segments, markets, and target groups. The line extension will focus on four themes that dovetail with the BIRKENSTOCK brand core: healthy sleep and living, the healthy workplace, healthy feet and running, and a healthy outlook on life. The licensing agreements are planned as long-term partnerships. Quality and function are top priorities for partner selection and product development. The decision to go into licensing was preceded by a comprehensive evaluation process that demonstrated the brand's strong affinity to new products. BIRKENSTOCK's consultant in this process is TM1 trademark one AG, which is solely responsible for establishing BIRKENSTOCK's global licensing business.

"Entering the licensing business is part of the offensive growth and investment strategy that we launched this past year," explains Oliver Reichert, CEO of the BIRKENSTOCK Group. "This step comes at a time when our core business is booming and our brand is experiencing strong acceptance worldwide. This also means an increase in our customers' expectations of us as a global brand." Markus Bensberg, CEO of the BIRKENSTOCK Group, elaborates. "Our customers have become accustomed to healthy solutions for walking and standing. Now they expect our brand to provide solutions that go beyond footwear, as well as products for both daytime and evening. That's what our evaluation revealed."

BIRKENSTOCK is one of the most well-known and successful footwear brands worldwide. With a history that dates back 240 years, it also has one of the richest traditions in the industry. The family owned and operated company is a global player that's in great shape – with products sold in over 80 countries around the world. In the United States, the brand was declared "Brand of the Year" for shoes in 2013.

A lesser known fact: BIRKENSTOCK not only invented the "footbed", but also coined the term. One of the few German trademarks to have acquired generic status, BIRKENSTOCK's cork footbed sandals did more than create a new market segment when they first appeared nearly half a century ago. BIRKENSTOCK enjoys very good credibility when it comes to brand values such as quality, function, and comfort. The company also has extremely loyal customers. This is confirmed by one of the latest brand effect studies from Nielsen. The line extension will aim to meet customer demands for new, innovative products and, in the process, tap into new economic potential for the brand. This step should also strengthen the company's core business by reaching new target groups.

BIRKENSTOCK as a symbol for conscious lifestyles

"The impulse for our decision to go into new business segments came from our trade partners and our customers," says Markus Bensberg, explaining the background for the line extension. "Many of our customers see our brand as much more than a synonym for healthy and comfortable shoes. It is also a symbol of a conscious lifestyle." Oliver Reichert adds: "Our customers value healthy nutrition, green ideas and approaches, active leisure, family life, kids, pets, and solid education. Basically, we are taking the next logical step by extending our product line to include these areas."

BIRKENSTOCK plans to access new business segments through long-term strategic licensing partnerships with companies that have a similar philosophy, building primarily on high quality and excellent function in the individual segments. Based on the internal evaluation, there is considerable market potential for licensed products.

"There will be enormous opportunities for companies that get in early and start building up the brand in their own segments," states Michael Caudera, CEO of TM1 trademark one AG. "BIRKENSTOCK is a true stroke of luck in the global licensing business. It's very rare to find a global brand that has such a strong identity but still hasn't been analyzed in terms of moving outside its core business. This situation holds a huge economic potential for both partners as we set up licensing agreements."