SALUTING THE PLUS AWARD WINNERS

TRADE SHOWS ROUND-UP

SHOULD YOU GROUPON?

SOURCING IN ETHIOPIA

TREND SPOTTING: MEN IN BLUE

Comfort Pioneers a Classic American

Look for Fall

New Frontier

THE SOURCE FOR RETAILERS • MARCH 2011 • $10.00

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HANNKHANK YOU THANK YOU THANK YOU THANK Y

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Dansko is a

We are deeply

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FOOTWEAR PLUS ™ (ISSN#1054-898X) Vol. 22 issue #3 The fashion magazine of the footwear industry is published monthly (except for bimonthly April/May and October/November editions) by 9Threads, 36 Cooper Square, 4th fl., New York, NY, 10003-7118. The publishers of this magazine do not accept responsibility for statements made by their advertisers in business competition. Periodicals postage is paid in New York, NY, and additional mailing offices. Subscription price for one year: $48.00 in the U.S. Rates oustide the U.S. are available upon request. Single copy price: $10.00. POSTMASTER: Send address changes to FOOTWEAR PLUS, P.O. Box 8548, Lowell, MA 01853-8548. Publisher not responsible for unsolicited articles or photos. Any photographs, artwork, manuscripts, editorial samples or merchandise sent for editorial consideration are sent at the sole risk of the sender. Symphony Publishing NY, LLC, will assume no responsibility for loss or damage. No portion of this issue may be reproduced without the written permission of the publisher. ©2011 by Symphony Publishing NY, LLC. Printed in the United States.

The Plus Awards votes are in. See the faces behind the brands and styles retailers loved in 2010.

20 Winners’ Circle

On the cover: Hush Puppies ankle boot. Calvin Klein turtleneck; vintage RRL Ralph Lauren jacket; vintage pants. Photography by Aneta Bartos. Model: Tatiana Turin @ IMG.

Follow these top tips from fellow retailers before signing up for a social promotion deal. By Audrey Goodson

36 Get Your Groupon?

How Ethiopia is positioning itself as an affordable footwear sourcing destination. By Greg Dutter

34 Out of Africa

Caroline DiacoPublisher

Greg DutterEditorial Director

Nancy CampbellCreative Director

EDITORIALAngela VelasquezAudrey GoodsonMeagan Walker Associate EditorsMelissa D’AgneseEditorial Intern

CREATIVETrevett McCandliss Executive Art Director Phong Q. NguyenBrad IstnickLenny VellaArt Directors

CONTRIBUTORSMichel OnofrioStyle Director Kathy Passero Editor at LargeJamie Wetherbe West Coast Editor

ADVERTISINGJennifer CraigAdvertising DirectorRita Polidori O’BrienVP Business DevelopmentDavid SutulaVP TechnologyLeslie SutulaVP Account ServicesLaurie GuptillProduction Manager

ADMINISTRATIONAlexandra MarinacciOperations ManagerMelanie PrescottCirculation Manager Julie GibsonWebmasterTheodore HoffmanSpecial Projects Director

CONTACT INFOSales/Editorial Offices36 Cooper Square, 4th fl.New York, NY 10003 Tel: (646) 278-1550Fax: (646) 278-1553editorialrequests@9Threads.comCirculation Office21 Highland Circle Needham, MA 02494Tel: (800) 964-5150Fax: (781) 453-9389circulation@9Threads.com

CORPORATE 9Threads26202 Detroit Road, #300 Westlake, OH 44145Tel: (440) 871-1300Xen Zapis, ChairmanLee Zapis, PresidentRich Bongorno, CFO

6 Editor’s Note

8 This Just In

40 Trend Spotting

54 What’s Selling

56 Shoe Salon

57 Kids

58 Comfort

60 Last Word

22 Profiles in ExcellenceTimeless style, functional fashion and in-depth knowledge of their core consumers helped propel the Plus Award winners to success.

44 Lost LettersComfort designers discover the charm of old-world styling for fall. By Angela Velasquez

52 Country Strong

Vintage Americana strikes a powerful chord. By Angela Velasquez

Thanks to an improving economy, show organizers reported increases in attendance and retailers in more of a buying mood. By Greg Dutter

10 Show Time!

Ara

12 Q&A: NaotSteve Lax, CEO of Yaleet, distributor of Naot, offers a no-holds-barred take on the state of the industry and the secrets to Naot’s steady growth. By Greg Dutter

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IN A RECENT column I wrote how I believed that the world is in desperate need of a ground-breaking movement that would hopefully shake it out of the recessionary doldrums. From a design perspective, I likened this reluctance to embrace newness to post-WWII England before the Mod era ushered in a kaleidoscope of colors, wild fash-ions and personal freedoms—the result of a pent-up demand fi nally unleashed following decades of

austerity and bleakness. At the time, I was hopeful but didn’t actually believe something was on

the immediate horizon. Sure, the economy had shown glimmers of improve-ment—legitimate green shoots—but as far as any cataclysmic event in the coming weeks? Nah. My reserved outlook was backed by many of the recent Fall ’11 collections I had reviewed: Designers, by and large, played it safe again, opting for subdued hues and classic themes rather than going bold. Who could argue when consumers continue to play it equally close to the vest in terms of spending (still not a lot and certainly on fewer pairs), prefer-ence for conservative styling (befi tting an austere psyche), and demands for versatility (day-to-night styling as well as working with a variety of outfi ts). I

may be a bit jaded, but I would be lying if I said I wasn’t affl icted with a case of been there, seen that syndrome.

Then revolutions started happening—fi rst Tunisia and then Egypt. While political upheavals in tiny countries are not necessarily front-page news, when citizens of the world’s most populous Arab nation took to the streets to demand political and personal freedom and actually prevailed, I started to believe that something big might be afoot. If Algeria, Libya, Bahrain and Yemen join the fold, and movements in Iran and Saudi Arabia take root, then the world could be changing on the scales of post-Nazi Germany and the collapse of the Soviet Union.

Thanks to tiny Tunisia and an army of plugged-in youth capable of capi-talizing on the power of social media, a new generation of millions could be open for business. Not to mention, the movement possibly sparking a much-needed dose of worldwide optimism for a brighter future for Middle Easterners as well as those still repressed elsewhere. At the very least, it felt good to feel good about the world again. And if the movement spreads, it most certainly would be a catalyst for creative rejuvenation among design-ers—that level of optimism is simply too inspiring to ignore.

So once again, I fi nd myself musing about a cultural revolution. Only this time, I’m not nostalgic for the Mod era. It’s right before us: a massive, young generation hungry to learn, contribute and prosper. Or, think of it this way: the footsteps of a revolution that must be shod.

Walk Like an Egyptian

Greg Dutter Editorial Director

e d i t o r’ s n o t e7you say you want a revolution

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8 footwearplusmagazine.com • march 2011

THIS JUST IN

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10 footwearplusmagazine.com • march 2011

S P E C I A LR E P O R T

From New York to Atlanta to Salt Lake City to Las Vegas—twice—here’s the skinny on what was trending and buzzing about

shoes and shows. By Greg Dutter

Show Time!

FIRST THINGS FIRST: At almost every trade show held during this Fall ’11 market, organizers reported increases in exhibitors and buyer traffi c. And before you scoff and say they always report such rosy fi gures, this time around it’s actually accurate, thanks to an improved economy that is causing the footwear industry to come out of its recession-induced shell. The cost of traveling and setting up shop at Outdoor Retailer (OR), FFANY, ENKWSA, FN Platform and The Atlanta Shoe Market (TASM) was more economical when wholesalers had increased confi dence that buyers would be in attendance and—more importantly—willing to write orders instead of “just browsing” or, worse, looking for make-good deals a la the previous (scary) show seasons.

The fact is many retailers have weeded out their inventories and need to restock. In addition, they are becoming increasingly confi dent as business continues to pick up. Weather was also a wildcard that played to the industry’s favor, as much of the nation experienced record cold and snowfall—re-sulting in plenty of ruined shoes. It might also fuel spring fever on the part of shoppers who can’t wait to dress brighter and lighter when the freez-ing conditions fi nally break.

Let’s start chronologically at the OR show, held in Salt Lake City, UT, in late January. Show or-ganizers reported a “record-breaking footprint” of exhibit space. (That’s 349,950 net-sold square feet, to be precise.) As for attendance, OR re-ported 11 percent more buyers and a 16-percent rise in overall attendance. “Record-breaking show numbers are indicative of the strength of the mar-ket and also the faith the industry has in Outdoor Retailer,” says Kenji Haroutunian, show director. “People know that they are going to get business from participating in this show.”

The vibe at OR was defi nitely jovial: the aisles were crowded—many attendees with complimen-tary beers in hand and a few others with pooches and/or tots in tow. Most footwear exhibitors re-ported they had a “good show.” OR fi rst-timer Clarks experienced strong traffi c as its extensive boot offerings received rave reviews. “We found the show to have high energy and to be really up-

beat with the retailers having a positive attitude about during more business this year,” says Joe Salzano, vice president of sales. “We met potential new accounts and found that a lot of the retailers were looking for new vendors as well.”

Seth Cobb, vice president and general manag-er of Merrell, also reports that sales at OR were solid. “Our booth was packed the entire show,” he says, adding that retailer entourages were bigger this time around. “We saw a return to normalcy, with more assistant buyers and marketing heads in attendance.” Cobb says a show highlight for Merrell was its Barefoot natural-motion collec-tion as well as its women’s casuals and expanded kids’ offerings.

The scene at the FFANY show in New York, held during the beginning of February, saw many people talking about the great outdoors as well. Only, this had to do with the ice storm that struck the Big Apple during the fi rst day. But it didn’t prevent intrepid buyers from hitting the Hilton Hotel and area showrooms in force. “We saw steady traffi c, despite inclement weather,” reports Joe Moore, president and CEO of FFANY, noting more than 400 people turned out for its appre-ciation cocktail party held during the fi rst night of the show. “We had six exhibiting fl oors in the Hilton, which was the most ever for a February FFANY show.”

Rob Moehring, CEO of Washington Shoe Com-pany and makers of Chooka rain boots, says FFANY delivered on its expectations. “We had steady traffi c and saw a lot of buyers who are not attending any shows in Las Vegas,” he says. “We’ve had appoint-ments with a lot of the majors, including Kohl’s, Macy’s, DSW, Piperlime and Amazon.” Moehring adds that many of the locals came to FFANY de-spite the horrible weather. Of course, the inclem-ent weather was a bonus for selling rainboots, according to Moehring. “The weather has been ideal. When retailers see what we are selling, they instantly are interested and get in a good mood,” he notes.

Traffi c at FFANY was also strong for Earth and Earthies. Dave Aznavorian, vice president of mar-keting, notes the show is held at the right

TREND SPOTTING

FURIOUS FEET: Taking a more styl-ish stance on the utilitarian needs of men, designers are lining and trimming fashion boots with luxurious furs in complimentary colors that are intended to make a cushy statement. Spotted elsewhere: Blondo, Magnani.

>59

JUST DANCE: After spring’s wooden plat-form fl ower child revival, design-ers are clamoring to disco. Exaggerated silhouettes inspired by the late ’70s swing into fashion, this time in today’s favorite shades of red, blue, nude and black patent. Spotted elsewhere: Kork-Ease, Dusica.

MEDLEY: With so many trends to choose from, why not combine them into one great shoe? A mélange of textures, colors, prints and details that hark back to sport and dress shoes deliver a quirky look that packs more bang for the buck. Spotted elsewhere: Morenatom, Coye Nokes.

John Lennon

Eric Rutberg

Zoe Kratzmann

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12 footwearplusmagazine.com • march 2011

WHEN ASKED FOR a word to describe the current state of our industry, Steve Lax, without hes-itation, responds, “turmoil.” The overriding reason for this assess-ment from the 25-year shoe vet-eran is the ongoing worldwide economic uncertainty and its re-sulting wet blanket affect on just about everyone.

From a broad perspective, Lax sees everyone—from John and Jane Does living in Baton Rouge, LA, to Butte, MT, as well as close personal friends residing in his leafy Long Island suburb—as still suffering from the fallout of the great fi nancial collapse. If people aren’t fi ling unemploy-ment forms and struggling to fi nd new jobs (most likely for less salary and fewer benefi ts if they do), then they are living in fear that they might get the pink slip. The result: Consum-ers have drastically altered how they thought the rest of their lives might turn out fi nancially and, not surprisingly, it is having an enormous impact on what and how much they are currently spending. “A lot of my friends were movers and shakers and now they’re unemployed and unemploy-able—they’re aging and overqualifi ed,” Lax offers. “Some are even going bankrupt.” It’s real scary stuff, Lax says, and despite pundits that report that the economy is on the mend, he sees it differently. “I hear all the news about how the economy is improving, but I don’t think it’s translating to the average consumer,” Lax says. “It seems like our government took care

of the extremely wealthy but the people who are really in need are becoming more and more alien-ated.” Lax believes that the in-creasing divide doesn’t bode well for the country long-term.

Take health care, for example. As a business owner, Lax wants to provide adequate coverage to his employees, but says rising in-surance costs are “killing” him. So much for President Obama’s health care reform cure: “Health care plans are getting worse,” Lax says, noting he was rooting for the reform act at fi rst. “I just don’t think we have good leader-ship in the country,” he adds.

In addition to the worldwide economic uncertainty and na-tional crises like health care, un-employment and budget defi cits, Lax also points to several indus-try-specifi c problems causing turmoil. For starters, there are

the trade show wars. Lax believes that the ongoing lack of a clear national show is adding to exhibiting and travel costs for brands and creates con-fusion among retailers. “The retailers simply don’t know where to go,” he says, adding that working in smaller booths is both diffi cult and limiting because entire collections can’t be showcased properly.

Then there’s the skyrocketing cost of raw materials. “Pricing is out of control, and no one knows what tomorrow is going to bring,” Lax says. Blame China, he adds—specifi cally its explosive growth as a consumer na-tion. The immediate effects are production delays, lost orders and price

O&A Industry veteran Steve Lax, CEO of Yaleet, distributors of Naot, offers a no nonsense lay of the land: the good, the bad, the ugly—and why, despite it all, sales continue to boom for the comfort fashion brand. By Greg Dutter

S T R A I G H T T A L K

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14 footwearplusmagazine.com • march 2011

increases that manufacturers are passing on to retailers. Long-term, Lax predicts footwear manufacturing will move to other parts of the world. “There’s going to be a huge adjustment on how and where a lot of goods will be made,” he expects. And while Naot products are predominantly made in Israel and Europe, the brand is not completely immune because certain components, like jewelry, are made in China—and those costs keep rising and the deliver-ies are sketchy at best.

All these troubles culled together have the makings of a perfect storm: “I think the industry is in absolute chaos. The retailers don’t know what’s going on, fashion is all over the place and so is pricing,” Lax warns. “Costs are go-ing up, but the average consumer is not making more money.” Lax adds that any attempt to increase prices is met with an instant backlash—fi rst from retailers and then from consum-ers. “It is getting more and more dif-fi cult to make a quality product for a reasonable price,” he adds.

Despite the gloomy assessment, Lax still says he’s an optimist, par-ticularly about Naot’s prospects. It helps when growth continues to defy the stingy market conditions: Sales are up 30 percent this year over last and Lax reports there are already 30 percent more orders booked for 2011. He credits much of the success to re-maining focused on what the compa-ny can control and believes a Golden Rule approach to doing business pays enormous dividends. “I keep a posi-tive outlook for my company and the people that work for me,” he says. “I can’t control anything else, except to continue to do what we do well in ad-dition to trying to make the world a better place.” Lax adds, “Personally, I’m not depressed. [Editor’s note: Lax laughed off the “Debbie Downer” accusation.] It’s just that everyone around me is scream-ing, ‘The sky’s falling, the sky’s falling!’ and, after awhile, you start to say to yourself, ‘Well, maybe the sky is falling!’” Other people’s mis-fortunes remind Lax how thankful he is for his company’s continued good fortune. “Every time we hold a company meeting, I open it up by say-ing, ‘We are so blessed and we cannot, for an instant, take our success for granted.’”

Despite a weak economy, rising costs, deliv-ery delays, scared consumers and trade show wars, Naot continues to do quite well. What gives?The reality for us has always been, even in diffi -

cult times, that we consistently do very well. The past few seasons have been no different.

What’s your secret? One, we manufacture most everything in Israel and, as a result, we aren’t as dependent on what’s going on with China’s production issues. Yes, some items are delayed, but we are not nearly as affected. Two, we spoonfeed our retailers so they can re-order, re-order and re-order within

a season, and we ship every order out the day it comes in. Now that gets harder to do as we grow, but we are still better at it than most. Basically, we ship goods when our retailers need it, and we don’t force them to buy huge amounts upfront.

Has the past year been unlike any other in your footwear career? Yes. But it does remind me a bit of how the industry was in the early ’90s. Back then the country was in a reces-sion and the industry was pretty much in shambles, but then the Euro com-fort craze started happening. All of a sudden everyone realized they should be selling comfort shoes. Everybody in that segment of the business was in for geometric growth and we all just went along for the ride. I remember hear-ing how things were really bad, yet we were doubling our business each year.

What was the catalyst?The country had changed. We went from everyone wearing suits and ties to casual attire in offi ces. The whole mood in the country changed as well, which was helped later by the Internet boom that led us out of the bad times. People became positive and our indus-try responded well. Of course, that’s when I fi rst learned about knockoffs in our industry. For me, that was a shock-ing revelation. I will never understand why everyone wants to kill the Golden Goose. Knockoffs just kill a good style or trend faster. My resentment is not helped by the fact that my daughter has designed some really cool shoes for us over the years and, as a father, you take pride in that. But then you see a knockoff in Wal-Mart for a quarter of the price.

It all starts with a comfortable, styl-ish shoe, but what else contributes

to your company’s success?I’m a throwback hippie from the ’60s—I’ve even lived on a collective farm. So I’m a big believer that if you try and make the world a better place, then good things will come to you. For example, our shoe donation program that we have run for many years is a really big part of what we are about as a company. We give away thousands of shoes to homeless people around the country every year. That’s not only helped those people

What are you reading? Walking Israel: A Personal Search for the Soul of a Nation by Martin Fletcher. He’s a CBS News correspondent who has lived in Israel for 30 years. Rather than the usual war sto-ries, he walked from north to south writing about everyday people. It comes from a really humanistic place.

What was the last movie you saw? I don’t even remember, but I want to see The King’s Speech.

To Facebook or not to Facebook? Not to, person-ally. My wife and friends are always on Facebook, but I pre-fer anonymity. However, from a company perspective, my youngest daughter set up our Facebook and Twitter pages this past summer and it’s been pretty active since. Our stance is social media should be fun. For example, we post a daily limerick and now have a lot of followers because of it. Our

company philosophy has always been to “give a hug through the phone,” and now we try to do that online as well.

What’s cued on your iPod? James Taylor.

What one word best describes you? Warrior.

Who is the world’s most infl u-ential person in fashion right now? Michelle Obama. She’s brought back a certain amount of normalcy and class to dress-ing. It fi ts the current mood of the country. I also believe she is the most infl uential First Lady in years.

Is there a perfect shoe? No. The closest to perfection is try-ing to emulate walking bare-foot in the sand, which is what Naot does.

What’s your motto? “Strength and courage.” It’s a Hebrew say-ing that my father used to say all the time.

O F F T H E C U F F

O&A

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in need, but it has generated good feelings and a positive atmosphere internally as well as with many of our retail partners who help in the distribution to their local shelters. I think we’ve created special rela-tionships as a result.

Maybe goodwill helps fuel your optimism despite the industry turmoil you cite?I’m very optimistic about my life and our business, but I’ll admit that I’m less optimistic about what’s going on around the world, especially the simmering tensions in the Middle East.

Do those tensions have a direct impact on Naot’s Israeli-based production?Well, we were just in the midst of an experiment with Egypt to out-source some sewing production and that is now up in the air. The truth is that every shoe we make is one of peace. Naot shoes are constructed by both Jews and Muslims. We are one of the largest employers of people in the West Bank. In fact, some of those residents have been sewing for us for 30 years and, no matter what the political situation or fi ghting has been, they have shipped shoes every week. They are amazing sewers. We are helping the people who need jobs the most. But we don’t sell our shoes based on those associations. We sell them just as great, comfortable shoes. We avoid all the politics.

Even when the rockets were exploding nearby they continued to show up for work?Two years ago, when the fi ghting in northern Israel was really intense, we were the only factory to remain open in the area and so did our

sewing workshops in the West Bank. And let me add that all of our workers receive Israeli wages. I believe the best form of charity is to provide good-paying jobs, because if people have economic tranquility then they tend not to want to go to war.

Who is the Naot customer?First off, she is getting rarer. The consumer most of our retailers have been dependent on for last 20 years or so is the baby boomer. She is growing older, having some health issues and wants to be comfort-able and fashionable. She also wants value, and I think Naot offers all of those product attributes. People want to be comfortable and they also want to feel like they’re not being taken advantage of. Along those lines, Naot has been described on many mom blogs as well as in The New York Times as the “perfect shoe to take on vacation if you’re just going to take one shoe.” It travels light and you can walk all day and go out at night in the same pair of shoes. We make comfortable shoes, and we are pushing the envelope in terms of fashion. We have a 30-person design team. Most companies today are just knocking off other brands and cutting back on design.

Has your customer changed since the recession?Well, the great thing about women is they are still crazy about shoes. For our industry, it’s a real blessing. She may not be buying a new car these days but she still wants to feel better, so she buys a new pair of shoes. Recently, we even had one customer buy 18 pairs of our shoes from two websites. At fi rst we thought it might have been purchased by a competi-tor, but the shoes were shipped to a residence in Connecticut. A lot of our customers become almost exclusive to our brand, which features a unique

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and healthy construction topped by very stylish designs. There are worse things a woman can indulge herself on, I guess.

Where do you see Naot in three years?We plan to continue to grow as we try to address more of our consum-ers’ needs. Along those lines, we just launched a new line of pumps to meet women’s dressier needs.

Will you be addressing the wellness market with any toning/shap-ing products?Not yet. We have something in the works, but that category has really been hurt by the fl ood of knockoffs. I’m not so sure I even want to be in toning and shaping category at this point. That said I believe the natu-ral-motion category, specifi cally what Vibram FiveFingers has done, is very cool and has potential. It’s the most interesting product on the market right now. It’s fun and different, and Vibram is doing a great job marketing the brand.

Any advice for retailers trying to survive in these tough times?Make the shopping experience as enjoyable as possible and don’t treat your vendors as if they are throwaways. Understand that the vendors are dependent on you but don’t abuse them on pricing. I think that the basic department store model of lowest prices is bad for business long-term. In contrast, I am a great believer in the Golden Rule: What’s good for me is good for you. So I say be straightforward with your vendors, staff and customers. In turn, I am incredibly loyal to our re-tailers. We are protective of the people we do business with and that’s why we refuse to sell to everyone in one area.

I would also advise retailers that sales commissions are fi ne but, as the owner of the store, you should decide what you want to sell and how you want to sell it. Don’t base decisions on what the spiff or commission rate might be that particular week because you want that consumer to come back some day. If your employees are over-selling your custom-ers—and I’ve seen a lot of that going on of late—they will lose them in the long run. The salesman may have done a great job selling a really ex-pensive item and received a good commission to boot, but the consumer went home and then suffered buyers remorse.

Your how-to recipe for succeeding in the shoe business seems to be working quite well to date.Yes. Last year, it was interesting to see how those retailers that re-ally stepped up to the plate with our brand reported that they had a phenomenal year. Those who backed off a bit with us had a fair year. And those who backed away from us entirely reported that they had trouble. The results were across the board and very telling.

What do you love most about your job?I love giving away shoes to people in need. I love making people feel good. I love the creativity involved in the making of our shoes. I also love the second and third generations coming into the shoe business. Spe-cifi cally, I love seeing my kids relate to other kids that are now working with our retail partners. My children have become good friends with many industry offspring and I think it’s terrifi c. That’s the hope for the future of our industry, because these kids are really talented. They have good values, they are good people and they are extremely good at what they do. You might say I’m very optimistic about that as well. •

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THE FUTURE IS HERE. JULY 27.2

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Representing design excellence across the footwear spectrum, the 2010 Plus Award winners wowed us with their imaginations, delivered on innova-tions and reminded us, once again, that greatness comes in many shapes, colors, materials and functions.

Winners’ Circle

P L U S AWA R D S 2 0 1 0

Michael and Robert Greenberg of Skechers

Sperry Top-Sider President Craig Reingold (seated, at right) and the design team

Camuto Group’s Vince Camuto and Neal Salisbury

Above:Mitzi Rivas, owner and designer, Livie & Luca

Gary Champion, CEO, Earth

Tony Post of Vibram

FiveFingers

Ray Hilvert,general managerof footwear, New Balance

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Rocky Brands CEO Mike Brooks (at left) and President David Sharp (at right) flank the Rocky design team

Clarks’ Frank Annunziata and Caroline Diaco, publisher of Footwear Plus

Wendy Svarre, CEO of Hunter Boot USA

Pat Delisle, national sales manager, Sorel

Timberland’s Deb Esola and Matt Feuer of LeatherLite

Primigi USA’s Bill and Gina LaRossa

Ugg Australia’s Connie Rishwain and Leah Larson

Phil Russo, VP of design,

Cole Haan

Dansko’s Ann Dittrich, creative director; CEO Mandy Cabot; and Peter Kjellerup, co-founder and EVP

Jessica Palermo, designer, Charles Jourdan

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Clarks’ Glen Arentowicz, senior director of men’s

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Timeless style, innovative design and expansive collections were just a few reasons retailers honored the following brands with a Plus Award for excellence in design.

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COMPANY OF THE YEAR (TIE): DECKERS OUTDOOR When it comes to selling shoes, it certainly doesn’t hurt as a manufacturer to have a former retailer at the helm of your company. “It’s easier for me to think like a retailer having been one,” says Deckers Outdoors CEO Angel Martinez. “I always knew what it took to get consumers in my stores and make the selling efforts easier.”

That intuition has served Deckers well, as its family of brands (Sim-ple, Teva, Tsubo, Ahnu, Mozo and powerhouse Ugg Australia) contin-ues to expand. Ugg’s epic record numbers have been well-documented: third-quarter sales increased a whopping 20-plus percent to approxi-mately $256 million. In addition, Teva third-quarter sales shot up 51.7 percent to $13.7 million compared to a year ago. Deckers’ international sales increased 48.2 percent to $73.2 million in the third quarter. While the numbers are certainly impressive, Martinez insists that it all starts with the company’s “new, fresh and innovative” range of products. “If you’re a retailer, the last thing you want is boring. Customers need to be stimulated. There needs to be something in [your store] they didn’t see six weeks ago because you need them coming back.”

Plus, each brand is careful to create footwear perfectly targeted to-ward its end consumer, thanks in part to extensive consumer insight and marketing research Deckers conducted during the past two years. “I think [each brand] has a unique point of view, a unique attitude,” Martinez explains. “We don’t blur the lines.” For Ugg, that’s meant an ongoing diversifi cation of the product line, including more fashion and a successful collaboration with revered designer Jimmy Choo. For Teva, a well-received move into close-toed product and insulated products for cold weather helped transform the brand beyond its water-sport roots. “And I think you’ll see in 2011 Ahnu really starting to resonate, as is Simple,” Martinez says. As for Tsubo, he notes the brand is “re-vived and back where it needs to be as a trend-setting footwear brand. These are shoes for people who love shoes.” —Audrey Goodson

WOMEN’S COMFORT: DANSKO Dansko takes home its fi fth straight Plus Award in the Women’s Comfort category. And while it may seem routine, CEO Amanda Cabot says the recognition never gets old because each year it refl ects how the company—now celebrating its 20th year—contin-ues to evolve to meet the expanding tastes and needs of its customers. “Every year, we push the design envelope fur-ther and further, capturing a wider and wider audience,” Cabot says. “I was very excited to hear so many retailers talk about younger, fi rst-time consumers entering our brand space, largely because of these new collections.”

In addition, Cabot notes that research indicates that these new constructions are also striking a chord with its primary audience of 30- to 40-something consumers—ones who already own multiple pairs of Danskos. “As a re-sult, retailers are growing their Dansko business both with existing customers and new ones, ” Cabot maintains.

Specifi cally, the new collections that tipped the balance for Dansko in 2010 were Rio, a higher-heel, fashion-for-ward wood platform collection, and Sanibel, a funky, vul-canized “sneaker-clog line,” Cabot says. Rio sales more than doubled on its initial forecasts and Sanibel proved to be the strongest new collection in Dansko’s sales history. The brand also experienced signifi cant growth in its core clog businesses, specifi cally the fl agship Stapled, tailored Sau-salito and casual Arcadia collections.

Cabot is quick to credit the individuality of the brand’s core followers for helping inspire the design team each season. “Both our marketing and design teams spend a lot of time engaging with our consumers—our fans,” she says. “They’re the ones who give us inspiration and permission.”

Last year was another record year for Dansko—the best in the company’s history with solid double-digit growth in comp door sell-throughs. And this year looks to be off to a very strong start as well. “We expect another record year in 2011 based on early sell-throughs and a record orders booked from our retailers,” Cabot says. —Greg Dutter

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WINNERS

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BRAND OF THE YEAR & MEN’S COMFORT: CLARKS “It was a record-breaking year in all parts of our business,” confi rms James Walsh, men’s design director at Clarks. The reason: “Comfort and more comfort,” he posits.

Certainly it’s not unusual for a comfort brand to craft shoes that are, well, comfort-able, but Walsh credits the brand’s success

total commitment to the concept. From the very first moment of design, Walsh explains, “We concentrate on the last shape and fit points and then build all the necessary un-derfoot cushioning that would make sense for that particular design.”

But Glen Arentowicz, senior men’s design director, says the secret behind the company’s current success branches beyond the brand’s comfort roots. “Clarks is known for comfort, but we are now recognized as a leader of innovation and style,” he explains, pointing to the Wave collection, launched in 2009, as the perfect example. In a year when natural-motion and rocker-bottom styles were all the rage, Clarks’ made a splash with the Wave, featuring a rocker sole construction that uses the foot’s natural momentum.

It also doesn’t hurt that at a time when most companies were cutting back, Clarks was ramping up. “I think the biggest part of what were doing is just providing a very extraordinary value and developing these partnerships with our retailers,” says James Salzano, executive vice president. During a tough economy in ’08 and ’09, Salzano say the brand focused on building a stronger partner-ship with key retailers and emphasizing value over price when it came to product—which paid dividends in ’10. “We had boots that were some of the highest price points we have ever had in our line, but they also had the highest sell-through,” he notes.

As for the success of the men’s collection specifically, Walsh credits the line’s strong dress casual range for everyday wear and a tight collection of boots with an outdoor construction. The company’s key inspiration, Arentowicz notes, are its customers. “We ask ourselves the same questions men think about before they make a purchase,” he says. “If we succeed in all of those facets, the decision to buy Clarks is an easy one.” —A.G.

COMPANY OF THE YEAR (TIE): SKECHERSWhat makes a business win a Plus Award as the 2010 Company of the Year? How about being a trusted resource with an extensive roster of product categories that spans women’s, men’s and kids’. Now ranked as the No. 2 lifestyle footwear brand and the leading source of toning footwear (Shape-Ups) in the United States, Ske-chers completed 2010 with record sales, which surpassed the $2-billion mark on net earning of $136.1 million. What’s more, the company is settling into new corporate offices where it con-tinues to unveil new products to key accounts.

Factor in the brand’s expanding children’s, boot and fitness ranges as well as its best-in-class service-oriented attitude and President

Michael Greenberg says you have a company capable of meeting and exceeding retailer and consumer expectations. “It’s the talent, passion and hard work of the entire Skechers team that carried our fitness and core brands and product to an entirely new level of success in 2010,” Greenberg says.

An area Skechers once again garnered plenty of attention as well as momen-tum during last year was in its extensive advertising efforts. The company enlisted Brooke Burke, Joe Montana, Karl Malone and, most recently, Kim Kardashian to promote its line of Shape-Ups toning footwear. With more than 5 million Twitter followers, Kardashian is helping the brand reach a wider global audience.

Expect more growth in 2011. David Weinberg, chief operating officer, reports plans are in the works to open another 30 to 35 company-owned stores and, with the anticipation of a return to more full-price selling during the latter half of this year as the economy continues to grow, revenues and margins are forecasted to improve. “The brand outlook remains very high globally, and our momentum will continue in 2011,” Weinberg predicts. —Angela Velasquez

ITEM OF THE YEAR: VIBRAM FIVEFINGERS KSO “In 2010, the retailer got belief,” reports CEO of Vibram FiveFingers, Tony Post. “The consumer is our biggest advocate, and that created belief among the retail community. The truth is, when they saw the consumer react, they rallied behind it strong.”

And did they ever. The toe-accentuating, minimalist shoes helped bump the company’s sales by fivefold in 2010. “In the early days, everybody was a little skep-tical about the product being used for fitness activities,” Post says. “We didn’t hard sell that position; we knew it worked because we used it. As we’ve gotten better at designing products for the user experience, the line has gotten a little more ath-letic.” And although he admits that the FiveFingers aesthetic is a stretch for some at first sight, he feels that if the retailer can get it on the customer’s foot, it usually ends in a sale.

The KSO style is the brand’s most popular selling model. It features a thin, abra-sion-resistant stretch polyamide and breathable mesh upper that wraps the entire forefoot to keep out debris. “We’re all heavy users of the product,” Post explains. “Inspiration comes from the user experience, from conversations with consumers, but also from us,” he says.

In the FiveFingers’ trophy case, the Plus Award sits beside an award from REI for Vendor Partner of the Year, an accolade Post is also especially proud of. “That was against 1,300 different brands—apparel, equipment, electronics—everything they sell,” he says. “It wasn’t just measured on uniqueness, but on how well you service the business and provide product education.” —Meagan Walker

march 2010 • footwearplusmagazine.com 23

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in 2010—leading to two Plus Awards—to its

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CHILDREN’S: PRIMIGI For the second year in a row, Primigi takes the Plus Award in the Children’s category. The European company has been around for more than 30 years, establishing a place in many a household—generation after generation.

Gina LaRossa, director of marketing for Primigi USA, attributes the company’s repeated success

to brand trust. “Mothers have really come to look to us,” she says. And LaRossa believes that’s for a number of different reasons—from the uniqueness of its Gore-Tex boots, to the superb designs put forth by the team in Italy and its affordable price points. “In a time when mothers know that they may only be buying a couple pairs of shoes for their child, they’re looking for something they know they’re going to get their money’s worth out of, and in our case, we’re notorious for mothers coming and saying they pass the shoes on.”

Offering the largest kids’ collection in the industry, Primigi designers focused on luxurious leathers and suede in 2010, many featuring jewel-toned bases accented with silver studs, rhinestones and faux fur. LaRossa adds that Primigi picked up its advertising this past year at a time many kids’ brands cut back. “We’re really one of the few kids’ brands that advertises extensively,” she notes. LaRossa adds that fall sell-throughs were “really great.” The cold and stormy weather was a definite plus as parents will spend the extra dollar to protect their children’s feet. However, spring’s fashion-based products are more unpredictable, LaRossa says. “It’s always a tough season—no matter what you’re selling. Weather wise, it can be difficult to coax the customer out of the house to shop.” —M.W.

ATHLETIC PERFORMANCE: NEW BALANCE When Tom Carleo was brought on as New Balance’s general manager of running in 2009, he wanted to make the sport the meat and potatoes of the brand—a move which led to booming sales in 2010, recog-nized by retailers with a Plus Award. Carleo says the brand’s first move was to study its own history and position in the industry—from the competition in the marketplace to its core audience of both young and devoted runners. “From there, we built some simple platforms to work off of. We simplified a lot—from what the consumer sees, but also on the inside, focusing on reducing clutter in the product.”

As a company that began in the early 1900s as arch support outfitter, the new commitment to comfort and simplicity makes perfect sense. Of course, with all of the overhauls, it was the ideal time for New Balance to recraft its image, using integrated marketing, athlete endorsements and race sponsorships. Carleo says the brand also subtly tweaked the branding of the product and the logo itself. “We made it sleeker, a little bit more technical and faster. The ‘N’ logo integrates with the product even more. It blends better.” He also believed New Balance lacked the buzz it once held in the ever-avid running community, so the brand dove in headfirst into the sport to bring back that mojo. “We worked more closely with end users and athletes as more than a promotional vehicle,” he says. “The design team would get in their heads about what they love.” The sponsorship of Armory Track in New York City, for example, brought the brand closer high school runners. On weekends, 8,000 budding athletes can gather at the track for competition. “We’ve got some really neat inspiration and ideas on what to do for them,” Carleo says.

Promotions and buzz aside, a good running shoe must perform, and with 2010 product accolades from Shape, Tennis and Fitness magazines, among others, it seems New Balance has delivered. “The most critical thing to the trade is that our focus on running is the foundation of the company, but also that we have a mentality of reduc-ing the clutter in the shoes and listening to the end users,” Carleo says. “A lot of the technology and simple ideas we have in running are quickly being shared across the company.” —M.W.

WELLNESS: EARTH With a multi-tude of brands on the market re-nowned for delivering comfortable, healthy footwear in the rapidly expanding wellness category, what makes a company stand out among retailers? For Earth President Gary Champion, the answer is simple: style.

“We built a whole strategy around shopping close to the market to dis-cover what the drive in marketplace might be, so we get the most current trends that are working. And we incorporate them into our design,” Champion reports. For last year that meant lots of upper ornamentation; for Fall ’11, buckles and fur-lined boots will be big. “We always try and find something that’s unique that we can incorporate into our design to make the product look special on the shelf,” Champion explains, noting that while the brand strives to be fashion-forward, it’s not neces-sarily trying to be trendy. “We’re not always after the mass market; we’re after the person with a sharp eye. That’s where we stand out from the competition.”

This keen eye for fashionable, comfortable and healthy footwear is also what inspired the brand in 2010 to launch Earthies, a line of wellness footwear with higher fash-ion profiles and silhouettes, includ-ing short heels and wedges made of premium leathers and suedes. “We design for an intelligent, sophisti-cated consumer who cares about the way she looks and understands wellness,” Champion explains.

The pitch is working: “We opened up about 75 new accounts in the fall of 2010,” Champion says, noting that the retailers who stood solidly by the brand grew by an average of 15 to 20 percent. He also credits last year’s boots bonanza with helping drive the brand’s success. “We had a tremendous boot season,” he con-firms. But Earth has no plans to rest on its laurels, Champion says: “2011 and 2012 is really where we see the growth.” —A.G.

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26 footwearplusmagazine.com • march 2010

WOMEN’S STREET: JESSICA SIMPSON “A true culture and symbolic pres-ence,” is how Christine Fuchs, senior vice president of Jessica Simpson Foot-wear, a licensee of Camuto Group, describes the brand’s namesake, inspira-tion and megastar. “Jessica defi nes Americana of today, and women relate to her,” Fuchs adds.

In fact, those women related to Simpson’s fashion empire to a tune of $750 million in sales last year, snapping up the brand’s shoes, denim, dresses and coats. Not to mention, sportswear and career lines that will launch in Fall ’11.

The footwear brand’s 2010 designs encapsulated Simpson’s joie de vie with a mix of silhouettes and fabrications that celebrated trendy fashion for all occasions. “Retailers appreciated the balanced assortment from flats to dress shoes and casual boots to dress boots,” Fuchs explains. Fuchs adds that con-sumers didn’t shy away from color either. Rich shades of blue, violet, plum, teal and red took the lead in 2010. Additionally, cheetah pony hair, bows, studs and color blocking were popular accents. Last year’s bestsellers, the Dianara flat studded thong, Ely peep-toe Mary Jane and Cougar platform slingback—which were all reordered into 2011—are a solid representation of the line’s diversity. —A.V.

WORK: ROCKY The hard work that led to Rocky’s 2010 Plus Award in the Work category began more than two years ago with a commit-ment to develop a more collaborative process for making the best possible work boots. David Sharp, president of Rocky Brands, says every-one was included in the process from start to fi nish, which involved members from market-ing, sales, design and sourcing. While such a team effort may seem logical, Sharp says it’s not a common industry practice and it wasn’t easy to get everyone on the same page at fi rst. “We even held team-building exercises that demon-strated how a collective decision is much better than working individually,” Sharp offers.

Two years later, the team effort is paying enormous dividends: Work boot sales increased by 34 percent in 2010—not bad considering the overall work boot market shrank in size thanks to a brutal recession leaving many construction workers in the unemployment line. “We wanted to get closer to the consumer,” Sharp says, not-ing the brand conducted more focus groups. “It has resulted in a much better percentage of styles being selected by the consumer as opposed to two or three years ago.” Sharp adds that improvement is noticeable at a distance: “At 15 to 20 feet away from a shoe wall, Rocky product now stands out. Even the logos are in the right, consistent places, which increases our brand identity. There is a brand DNA now that is now pretty strong.”

Specifi cally in 2010, Sharp says Rocky scored a couple of home runs. Boots featuring the brand’s Net-Fit welt construction resonated with consumers seeking comfort, value and du-rability. The boots are backed by six-month out-sole and 60-day comfort guarantees. “Basically, we are putting our money where our mouth is,” Sharp says. Along those lines, Sharp says the brand’s Hi-Vis collection (designed especially for road crews and EMS employees) was an-other big success. The brand’s exclusive refl ec-tive leather addresses a worthy need: increased visibility of workers where such improvement can be the difference between life and death.

Sharp describes Rocky’s new approach to its work boots’ design as more purposeful. “We actually had more employees working on our designs, but actually making fewer shoes—better,” he says. It’s a logical approach, considering the importance footwear plays in a tradesman’s job. “Boots are on the same level of importance as their tools,” he adds. “They have to be really comfortable and hold up to whatever the conditions.” —G.D.

BOOTS: UGG AUSTRALIA Multiple boots-category Plus Award winner Ugg Australia credits its 2010 suc-

sheepskin silhouette. From clog boots to suede riding boots, the collection included a wide array of options combining the brand’s well-known style and comfort. Not to mention, last year saw the release of an eagerly awaited collaboration with Jimmy Choo, featuring elaborately fringed and studded sheepskin boots.

“Our fashion product has legs and can easily cross into new categories—evident with our clog collections and wedges—while still remaining true to our brand,” says Leah Larson, vice president of product for Ugg Australia. That commitment to the brand’s original vision is what helps set it apart from its competitors, Larson notes. “The Ugg DNA is evident in all of our collections and seasons,” she explains. “Sticking to

our brand heritage and authenticity is important, along with Ugg’s luxurious materials and comfort.”

Styles like the Lynnea, a sheepskin-lined clog bootie, and the Rosabella, a tall suede boot with a short wooden heel, were standouts, as were weather-proof favorites like the Belcloud, Ashdale and Jillian. “Weather-appropriate fashion styles were also huge for the East Coast crowd this winter—looking great and staying warm and dry are both necessities,” Larson notes. But parent company Deckers Outdoor CEO Angel Martinez says the biggest reason the brand resonated with retailers was its success at the register. “We’ve continued to have very strong sell-through—at full price, which is important—in the Ugg brand in men’s, women’s and kids.” —A.G.

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28 footwearplusmagazine.com • march 2010

OUTDOOR: SOREL It’s no coincidence that Sorel’s sales have skyrocketed as winter temperatures have plunged to record lows and snowstorms have wreaked havoc in many major U.S. cit-ies. The company’s 50-year history of making sturdy cold-weather footwear certainly meant it was in the right position to capitalize on the current demand for weatherproof boots. But that’s not the only reason the brand prospered in 2010.

“I think retailers noticed that while Sorel is still making durable cold-weather boots, we’re also making cute, fashionable boots for women on the city streets,” notes Johanna Koeberle, product line manager. “We are fusing our heritage of authentic winter function with the trends of the present, and making footwear consumers want to pur-chase our brand.”

And purchase they did: Net sales for Sorel shot up 48 percent in 2010, thanks in large part to the company’s savvy decision to capitalize on the current consumer desire for authenticity by returning to the brand’s original looks. “Sorel’s heritage pieces were really our inspiration for this line,” Koe-berle notes. “We looked back into Sorel’s archives at the first boots the company ever created, and we took inspiration from the designs, materials and colors used.”

Koeberle says women gravitated toward the brand’s “Cate the Great” style, a tall lace-up boot inspired by Cree Moccasins and built on Sorel’s iconic 1964 Pac shell, featuring hand-sewn whipstitch detailing, an on-trend faux fur cuff and a sleek spat design. On the men’s side, consumers loved the retro look of the 1964 Premium T CVS, modeled after the first boot Sorel ever made with yellow and brown coloring, waxed canvas and the brand’s classic silhouette.

Sorel also upped its advertising efforts to reach the cosmo-politan set in the last couple of years, with everything from ads in Vogue to the New York subway, says Linda Reese, direc-tor of brand and marketing communications. “Anytime Sorel can be in front of consumers, showing them the breadth and strength of our products, helps contribute to sales,” she says. —A.G.

GREEN: TIMBERLAND Timberland uses a lengthy acronym to describe its eco-friendly product line, Earthkeeper, but Lisa DeMarkis, vice president of women’s and kids’ footwear, can rattle it off—just like that: “BPTPTAG. Beautiful Products That Perform That Are Green,” she says. “Because unless it’s beautiful, consumers

are not into it.” That’s why Timberland transformed itself from a rugged, men’s-driven brand into a company known not only for protecting against the harsh elements but also for protecting the environment and making stylish shoes, too.

Now the brand has been recognized by footwear retailers nation-wide with a Plus Award in the Green category, which is presented by

ISA Tan Tec, makers of the eco-friendly Lite Leather. DeMarkis says Earthkeeper represents Timberland’s most prominent message and commitment: being green. “It’s how we breathe as a company,” De-Markis says. “It’s no small collection—it’s our philosophy.” Part of that philosophy includes occasional “inspiration trips” by its design-ers into the great outdoors in nearby New England. “We spend time outside in the cold weather, ice fishing and snow-shoeing, testing our products and thinking ahead to next season,” she says.

Although the country continued to trudge through a difficult economy for much of 2010, DeMarkis believes consumer loyal-ty—and a treacherous winter in the Northeast—contributed to the strong sales of Earthkeepers and Timberland overall. “When the economy gets difficult, people go to brands that they understand and trust,” she says. “Timberland is at the top of mind.” —M.W.

WOMEN’S DRESS: CHARLES JOURDAN In a category that, as of late, has cast a lot of attention on edgy designs, Charles Jourdan proves that

hyper-trends. With dress styles that reference the French fashion house’s original avant-garde and subtle approach to glamour, Charles Jourdan designer Jessica Palmero says the line’s 2010 “sexy classics”

proves “women love little luxurious details and they deserve more credit for what they notice.” Last year’s styles revolved around updated lasts and heels that channeled the line’s heri-tage—two elements of construction that Palmero, who likes to design with a light hand, considers key to “staying current without becoming consumed by trends.”

“When we were conceptualizing how the brand would go forward, we looked back at Charles Jourdan advertisements from the ’70s,” she says. “They were minimal in composition, but had sex appeal.” Core styles, such as pumps revamped with cutout and mesh details and strappy sandals, as well as the new Amanda, a stiletto peep-toe shoetie with a low top line, were 2010 bestsellers. Palmero says there will always be a market for super high dress shoes, but notes an uptick in single-soled shoes. “They looked new on the sales floor,” she explains, and the simple silhouette complimented the much talked about return to ladylike dressing. “Vintage dress is back in style; shoes are more refined and effortless in styling,” Palmero describes. The line’s new sculpted wedges caught buyers’ eyes, too, and Palermo promises new styles with a more casual feel will carry into 2011.

Still, little elements of traditional dress, like touches of pearl-ized patent, work well for the brand, and as Palmero notes, traditional doesn’t speak only to a mature group of consumers. “We’re not necessarily designing for a younger demographic, but they are finding us,” she explains. The new consumer may not be aware of Charles Jourdan’s rich heritage as a forerunner in haute footwear, but Palmero says you don’t need to know the brand from its heyday to know that it is special. —A.V.

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30 footwearplusmagazine.com • march 2010

MEN’S STREET: SPERRY TOP-SIDER Clear, focused and steeped in 75 years worth of style cues, in 2010 Sperry Top-Sider celebrated its diamond anniversa-ry with a special capsule collection that paid tribute to the original boat shoe created by Paul Sperry. Mimicking the original outsole that Mr. Sperry carved into his sneaker, the 2010 design team delivered the same traction and perfor-mance originally intended for slippery decks to men’s streetwear.

Complete with shoeboxes inspired by the original 1935 packaging, the heri-tage brand rode the wave of consumers’ newfound enthusiasm for Americana-styling straight to the checkout counter. President of Sperry Top-Sider, Craig Reingold, says best sellers such as the Navigator slip-on and the new Wetland Boot collection, blended style, comfort and performance traits that received exceptional attention from retail-ers and consumers. The end result: record sales for the company in 2010. “We offer footwear that resonates with a broad range of consumers,” he says. “They value our heritage as an American original while appreciating our commitment to innovation that has fueled our continuing evolution beyond boat shoes.”

Part of that evolution includes luxuri-ous touches, like deerskin linings and memory foam footbeds that can be found in Sperry’s Gold Cup collec-tion. Driver mocs and an oxford were added to the popular line as well. “Our design process takes industry trends into account while adding our own spin to them, offering looks that are on-trend but uniquely Sperry Top-Sider,” Reingold explains. “Most of all, retailers took notice of our clear focus on the con-sumer and how we are translating their feedback into our product line.” —A.V.

PRE-WALKERS: LIVIE & LUCA The old saying rings true for pre-walker Plus Award winner, Livie & Luca: It’s not the size of the dog in the fi ght—it’s the size of the fi ght in the dog. “We’re a company that’s not afraid to take chances and it’s paid off,” says Mitzi Rivas, owner of Livie & Luca. “We’re a group of gals who design from our hearts. Even though we’re the little guys, we’re mighty.” The company launched in 2005 by three friends, all new moms, who compared notes and discov-ered there weren’t any shoes on the market with the modern designs, fl exible soles and the affordable prices they craved. Deciding to create their own shoes, Livie & Luca was born with the tagline, “Adorable shoes for adorable feet.”

Doubling business in 2010, Rivas says suede and whimsical details were big stories for the brand. Suede styles like the Pia Pia in brown and accented by a turquoise bird as well as the new Holland boot, also in brown suede and adorned with faux rainbow-colored buttons, were both a hit. Overall, Rivas describes the collection as “staying true to our formula and our sense of design,” erring on the side of “jovial, colorful and vintage-inspired.”

In terms of the inspiration behind 2010’s collection, Rivas says it all comes back to her children and to nature. “I left my corporate job to start a family, because I was really unhappy and thought, ‘Wow, I’m going to be a mother very soon. I want to be a good example for my little boy. I want to show him the way.’” Now with two kids, Luca and Maya, the adventures they take together are the catalysts for Rivas’ inspiration. One of the trio’s favorite places is the enchanted Children’s Fairyland in Oakland, CA, a park on the shores of Lake Merritt. Enormous shoes, gnomes and fairytale characters are scattered across 10 acres of land.

Looking ahead to 2011, Livie & Luca will take another leap of faith by launch-ing a women’s shoe to complement its kids’ line. “It was our response to women who would pick up our shoes and say, ‘Adorable. Can you make them in my size?’” Rivas says. “It’s exciting, and we just did it. What do we have to lose?” —M.W.

MEN’S DRESS: COLE HAAN “The Cole Haan con-sumer appreciates authentic, versatile products that are engineered with confidence and lasting quality products that are made with materials of meaningful provenance,” explains Phil Russo, Cole Haan vice president of design.

With a hearty grasp on what their consumer wants, in 2010 the brand revisited iconic Cole Haan classics such as the oxford, the wingtip and the penny loafer. “We applied modern sensibilities in material treatments, construction, color usage and engineering,” he explains. Those details included hand-burnished leather and nubuck combinations and unexpected pops of blue, ivory and gray.

Russo reports the best-selling styles were the Air Jefferson oxford, a four eyelet lace-up with topstitching detail and a soft square toe, and the Air Colton wing-tip made of handsome leather. Both styles featured concealed Nike Air cushioning technology. “For decades, Cole Haan has been creating goods for the consumer that shares our respect of fine craftsmanship, enduring style and cutting-edge in-novation,” Russo says. —A.V.

P L U S AWA R D S 2 0 1 0 • P R O F I L E S I N E X C E L L E N C E

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ATHLETIC LIFESTYLE: NIKE SB It’s no surprise that the key in-spiration for Nike’s skateboard collection is actual skateboarders, but what sets the brand apart is its enthusiasm for the sport. “Our athletes are the key inspirations that motivate our designers,” says Darin O’Brien, global business director for Nike SB. “We all live and breathe skateboarding.”

In 2010, that meant collaborations with some of the best ath-letes in the skateboarding community—from Omar Salazar to Paul Rodriquez—to create a collection was both perfectly suited to the sport and stylish enough for daily wear. “For the P. Rod 4 [for Paul Rodriquez], we aimed for something clean and paired down but maintained the cushioning Paul needs with Zoom Air technology,” O’Brien says. “It’s a shoe that Paul can wear all day casually but also skate in.”

With clean and classic constructions, suede and leather uppers and pops of vibrant color, the SB collection certainly packs enough style to capture consumer interest outside the skateboarding community, but O’Brien credits the line’s authenticity for its success. “We work with the best athletes in the world, and we work very closely with all our athletes to create products to their exact specifi cations while in-jecting Nike innovation,” O’Brien explains. “Listening to their needs,

incorporating their feedback and bringing it to life through product, ads and in-store helps us stand out every season.”

That means fi rst and foremost ensuring the line is made with technology to satisfy the most hardcore skaters. “For Omar Salazar’s fi rst signature shoe we added Nike Flywire, which is used to reduce weight while increasing support,” O’Brien explains. “In the footbed we inserted Zoom Air to cushion impact and added a stash pocket in the tongue.”

The brand is planning on an even bigger year in 2011, O’Brien re-ports, thanks in part to the continued release of the Zoom FP, which began in November. O’Brien calls the style one of Nike’s “most in-novative and lightweight skate shoes.” Skateboarders should be pleased by the shoe’s technical specs. “We incorporated Nike Free fl ex, Zoom Air and a one-piece inner booty construction to elimi-nate seams and abrasion,” O’Brien says. “The upper is also made from a single piece of TPU infused synthetic leather thus elimi-nating seams. A herringbone tread on the sole provides increased traction.” Not to mention, the shoe’s classic look promises plenty of crossover appeal. “We are lucky to work with the best athletes and designers on the planet, and that seems like a good recipe for suc-cess,” O’Brien says. —A.G.

P L U S AWA R D S 2 0 1 0 • P R O F I L E S I N E X C E L L E N C E

FOP_32 32 2/24/11 9:35:24 AM

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march 2011 • footwearplusmagazine.com 35

• OFFICIAL NAME: Federal Democratic Republic of Ethiopia

• CAPITAL: Addis Ababa, headquarters of the African Union

• LOCATED: Horn of Africa

• CLAIMS TO FAME: Where the coff ee bean originated; archeological site of some of the oldest traces to humanity; and home of the Blue Nile Falls, 14,500-foot Mt. Ras Dashen and the continent’s largest cave, Sof Omar

• ECONOMY: Top-producing coff ee and honey exporter in Africa; top-ranked East African GDP

• LANGUAGE: Afro-Asiatic

• NOTABLE ASIDES: Home of numerous Olympic gold medalists in long-distance running, spiritual homeland of the Rastafari religious movement and site of the oldest Muslim settlement in Africa, Negash

expanded to more than 20,000 pairs a day. The country’s capabilities continue to grow as older factories upgrade their equipment and new factories quickly come on line. Helping to fuel production growth further, the Ethiopian govern-ment is discouraging the exportation of some of its hides as well as providing incentives for shoe manufacturing. “The government has laid out an incentive package allowing Ethiopian shoe factories to become more competitive, includ-ing the provision of land at low lease prices, loan programs for the purchase of machinery and working capital, tax holidays, training, and technical assistance,” says Alemayehou. In addition to local and government investment, China, India and Turkey have been committing signifi cant resources to Ethiopia’s footwear-making capabilities. “These countries are making Ethiopia their base of produc-tion,” Alemayehou says, adding that they are investing heavily in infrastructure projects, including new highways, factories and residential buildings.

In addition to vast leather supplies, a massive and affordable labor pool, and government and foreign investment, Ethiopia owns several other sourcing ad-vantages for footwear manufacturers. Turnaround time from the nearby port of Djibouti, along the Red Sea, is only three weeks to the East Coast of the U.S. and there is a daily, direct fl ight from Ethiopia to Washington, D.C. offered by Ethio-pian Airlines. In addition, there are other preferential trade agreements for duty- and quota-free imports from Ethiopia to the U.S. as well as the European Union, Canada, India and China markets, among others. “The most attractive benefi t for U.S. buyers is the absence of any import duty,” Alemayehou maintains.

Another key factor making Ethiopia an attractive factory base is China’s pro-duction woes. While still the world’s largest manufacturer of footwear, China is becoming increasingly expensive as a manufacturing base for many buyers. The increasing demands from its own population is maxing out production capabili-ties and, at the very least, resulting in much longer lead times and, at worse, unfulfi lled orders.

Alemayehou and his team are now focused on spreading the word to the footwear industry that there are legitimate and affordable sourcing alternatives. To this end, Ethiopia had six of its leading shoe factories exhibit at the recent FFANY and Magic shows where they reported strong interest. To be precise, more than 80 meaningful contacts were made at the Magic show, according to Alemayehou. “We’ve had outstanding responses and it’s been very encourag-ing,” he says. “Major U.S. wholesale and retail brands have expressed interest in manufacturing in Ethiopia. In fact, a few buyers are ahead of the curve and already producing in our country.” Another good sign: Alemayehou reports that more prospective buyers have visited Ethiopia in the last 10 months than in the last four years combined. He adds that many more buyers are planning to visit Ethiopia to see fi rsthand its factories and production qualities. [Interested par-ties should contact Jordan Saliman, USAID contractor and Ethiopian footwear specialist, at (303) 808-5655.]

The prospects for Ethiopian footwear production look bright. “As design-ing and marketing capabilities continue to improve, we expect our production numbers will soar,” Alemayehou says. “Ethiopia will become a footwear force to be reckoned with.” The fi ve-year plan is for Ethiopia to generate $500 million in annual income from footwear production. In the meantime, Alemayehou says Ethiopia is learning to walk before running. “Our motto is: ‘Developing Ethio-pia one shoe at a time,’” he says. “The whole concept is to create jobs and wealth through the production of quality products for export.” •

Ethiopia at a Glance

Top-notch designs showcase Ethiopia’s talent

and craftsmanship.

Style & Substance

FW_03_Ethiopian_Feature_02.indd 35 2/23/11 12:03:50 PM

36 footwearplusmagazine.com • march 2011

GROUP-BUYING SITES are hotter than ever, and it’s no wonder: Offering deep discounts at businesses in hundreds of local markets, Groupon and its competitors are a bargain shopper’s dream come true. But the reality can be a nightmare for retailers who offer steep discounts without sufficient preparation.

Marketing experts urge merchants to use common sense when signing up for a social promotion. The extraordinary bargains—at least 50 percent off—usually mean the retailer will lose money, especially since many deal sites require stores to split the sales of the coupon 50/50. That means a retailer who offers $40 worth of merchandise for $20 is actually receiving $10 for $40 worth of merchandise—not even enough to cover the cost of goods.

“It’s not necessarily a way to make money right off the bat, but you are pulling in those new customers to the store,” says Jill Hathaway, owner of J.Hathaway shoe boutique in Leawood, KS. Hathaway sold 214 coupons for $75 worth of

merchandise for $35. “I pulled some [money] from my marketing and advertising budget, because that’s what you’re doing.”

“We always position Groupon as a marketing spend,” explains Groupon spokesperson Kelsey O’Neill. “This is something that you’re going to do instead of buying ad space, because you’re going to reach

thousands of consumers you’ve never reached before.” Since the social-promotion concept is relatively new, the verdict is still out on whether the long-term benefits of luring lots of new customers outweigh its short-term costs, but an increasing number of retailers think the risk is worth the gamble. Interested in getting your Groupon? Or LivingSocial? Or being a Daily Dealster? Be sure to follow these top tips.

KNOW YOUR GOAL “I don’t think every single business benefits from a promo-tion like this,” says Utpal M. Dholakia, an associate profes-

More and more retailers are using social-buying sites to boost business,

but it’s a risky bet. Follow these top tips from marketing pros and fellow

retailers to avoid the most common social-promotion pitfalls.

By Audrey Goodson

GET YOUR GROUPON?

POPULAR SITESGroupon

BuyWithMeLivingSocial

Tippr

FOP_36 36 2/23/11 12:12:12 PM

march 2011 • footwearplusmagazine.com 37

GAMEPLAN

Start by determining the terms of

your deal with a reputable

group-buying site—including

the length of the

promotion, discount amount and any

exclusions.Depending on

the service, your deal can be ready for the Web in

as little as a week.

STEP 1 STEP 2

GETREADY

Spruce up your website,

stock your inventory

and train your employees on ringing

in the coupon and keeping

your customers happy. Develop

a plan for upselling and devise tactics

to keep buyers coming back.

STEP 3

GO LIVE

Your promo-tion will be e-mailed to hundreds,

or even thousands, of shoppers in your area.

Buyers have anywhere from

24 hours to a week

to purchase, depending on

the site.

STEP 4

FIRST DAY

customer@mail.com

hh

hhgg

gg

Anywhere from 80 to 800 new customers may

walk through your door—some

as early as day one—to redeem their deal. Don’t

forget to collect

contact info, like e-mail addresses.

$ 2 3 4 5 $

7 8 9 10 11 $

Some sites pay vendors immediately after selling

the deal, while others will pay you in

installments over the life of the promotion

(anywhere from six months to a year, typically).

STEP 5

CASHFLOW

Social-promotion deals can be complicated, time consuming and expensive—but may lead to loads of new customers. Follow this basic breakdown for success:

HOME STRETCH

Get ready for another round

of shop-pers near the promotion’s

expiration date. Be prepared to

handle procrastinators

who missed the deadline but still want

to redeem the deal. Be sure to use Facebook,

Twitter and e-mail to keep in touch with

your new customers.

STEP 6

HOMESTRETCH

sor of management at Rice University, who surveyed 150 businesses that used social promotions, like Groupon, between June 2009 and August 2010. “They work better for businesses who are new, who don’t have established customer bases, are struggling or have had a change in management,” he explains. Dholokia also suggests that retailers “try to sell items that are less popular, running out, lower quality or late sea-son.” This was Hathaway’s strategy, when she ran her Groupon promo-tion last July—a time that she says, “worked for me to move out a lot of old merchandise.” Hathaway recommends all vendors run promotions in their off months. “I don’t do a lot of sales, so I kind of felt like that was my end-of-summer sale.”

Many retailers say exposure alone is the best reason for running a deal. Tim Siemers, director of marketing for Shoebacca.com, says his site has sold 15,000 coupons in the last several months using various deal sites. “We’re in customer acquisition mode,” he explains. “I’m able to make the math work on the back end because it spawns a lot of sales.” In fact, Siemers reports that Shoebacca sees its traffic quadruple

on days deals run in major markets. “It does have a halo effect, because the overall reach that you’re able to achieve with the exposure you get through e-mail, word of mouth and social sharing is exponential to those that just buy the voucher and redeem it,” he says, adding, “We’ve certainly have gone through this series of campaigns with some cau-tious optimism, so we’re not naïve to the potential downside in certain areas. And while some markets don’t shoot the lights out and we’re los-ing money on some deals, the aggregate has been very positive for us.”

Social promotions can also be a good way to reach customers who might consider boutique prices beyond their budget, says Scott Kominers, a Ph.D. candidate in business economics at Harvard, who co-authored a study on social-promotion sites. Services like Groupon give retailers the chance to make the case to budget-minded buy-ers that their wares are worth the price. “You might get people who are low-valuation consumers but become high-valuation consumers when they discover they really like the product,” he explains. But Dholakia warns that price-sensitive shoppers are less likely to come

FOP_37 37 2/23/11 12:12:15 PM

38 footwearplusmagazine.com • march 2011

back the second time and pay full price. “When the deal goes away, they’re probably not going to come back,” he cautions. But Debbie Honore, who ran a LivingSocial deal for her Houston boutique, Shoe Fetage, says many of her coupon customers have already come back—with family and friends in tow. Honore’s deal ran last December, and about 50 percent of the purchasers have already stopped by. Of those folks, she estimates that 30 percent have returned. Hathaway cites a similar number: “I would say easily 25 percent of the customers have come back.”

UPSELL, UPSELL, UPSELLOne way to keep a social promotion from bleeding into your bottom line is upselling beyond the face value of the coupon, Dholakia sug-gests. In his survey, 66 percent of respondents said they turned a profit using Groupon and other social promotions, but the businesses with unprofitable promotions reported significantly lower rates of spending by Groupon users beyond face value of the deal. “You’ve got to upsell those customers,” Hathaway confirms. “It was our job and opportunity to upsell. If you’re not going to do [a social promotion deal] during a slower period, then you better plan that it’s going to drop your margins down, so you better be upselling your products.”

“The reason the math works for us is the incremental average order value,” Siemers says of Shoebacca. “We do see people spend well up and above the voucher value,” he explains. The website also employs the use of cookies so that advertisements for specific products follow the site’s visitors around the Web. For people who visit the site on the day of a promotion but don’t purchase the deal, the targeted advertising can provide a strong temptation to buy on a later date.

Lee Sloane, owner of Mr. Shoe boutique in Milwaukee, WI, rec-ommends that vendors offer smaller deals so that customers are likely to spend more than their Groupon amount. “We’d probably do it a little bit different next time, and give away for $35 for $19 instead of $40 for $19,” he says, noting customers would be more likely in that case to spend over their Groupon and the giveaway would be less painful for the shop’s bottom line. “That would be a little more profitable for us. I think we gave a more than we really had to in the beginning.” KEEP ’EM COMING BACKExperts and retailers agree: The key to making any social promo-tion successful is to turn deal addicts into lifetime customers. “In the beginning [of the promotion], we were giving Groupon customers a $10 coupon for their second visit,” Sloane says. “It was just another incentive to get them back in the door.” Another tactic for ensuring repeat shoppers is staying in touch about new merchandise and sales. “We always are very adept at gathering information,” Hathaway notes. “We’ve got phone numbers, e-mail [addresses] and dates of birth, and we do a lot of social media too.”

Dholakia recommends structuring social promotions in ways that force customers to come back—for example, instead of offering one large discount, offer three smaller coupons that must be used on separate purchases. “The whole idea is to try and make the customer a relational customer. And getting them in the door just once probably isn’t going to cut it. If you can force them to come back a few times, you will have a better chance of converting them into loyal customers.” But Kominers warns that it’s unlikely to be profitable if you allow custom-ers to repeatedly receive the discounted price. “If the new customers attracted by the voucher promotion use vouchers every time they visit, then they will never become positive-margin customers,” he warns.

SELECT THE SITE CAREFULLY The big question for many merchants, in a marketplace overpopu-lated with Groupon knock-offs both beneficial and ineffective, is which social-promotion site to choose. “In my sample, Groupon was the out-performer and everyone else was significantly worse,” Dholakia says, although he notes his sample was relatively small. “Groupon is much higher on the learning curve,” he explains. “Many of these other sites are very new shoestring operations. They don’t know how to help small businesses do promotions like this.”

“The most bang for your buck is to go directly with Groupon,” Hathaway confirms, noting that many other deal sites don’t have the high member distribution numbers that Groupon boasts. Plus, she says that the company was “very easy to work with.” Honore has similar praise for LivingSocial, which is quickly catching up to Groupon (it has approximately 20 million worldwide subscribers; Groupon has 60 million). “Everything that they said they were going to do was done. There was great follow-up as far as receiving my payment in exactly the timeframe they said they were going to do it, and they were readily available to answer any and all questions that I had,” Honore says. Plus, Groupon’s competitors have several other major advantages. First, many other sites offer a better share of the profit to the retailer. For example, LivingSocial typically takes 30 to 50 percent from the deal, says company spokesperson Maire Griffin, as opposed to Groupon’s 50 percent split. Second, many sites run their deals online for up to seven days, wheareas Groupon’s flash sales come and go in 24 hours.

KEEP YOUR STAFF SMILING Somewhat surprisingly, the single most important factor in a success-ful social promotion is employee satisfaction, according to the results of Dholakia’s survey. “For the majority of the businesses that didn’t succeed, it was because they went into it without much thought. They didn’t have plans in place for their employees on how to deal with the customers,” he explains.

Successful retailers prepared for the sudden influx of customers by sprucing up their inventory, training their staff in ringing in a coupon and politely upselling. Hathaway notes that, “you have to have a good, valid website that shows a lot of your product, too,” since many deal site users will decide whether or not to buy the promotion after browsing your site and getting a feeling for the store. Not to mention, vendors with an online arm may receive visitors who decide to purchase prod-ucts right away.

Dholakia agrees that this type of preparation is key: “When cus-tomers come in and are confronted with disgruntled and dissatis-fied employees, and are treated with poor service, the inclination to come back is washed away.” Retail strategist Bob “The Retail Doctor” Phipps warns that dissatisfied Groupon customers can lead to loads of bad publicity and a precipitous drop in a store’s online ratings on sites like Yelp. His blog includes a 10-part series describing the dangers of social-buying sites. “The very thing that makes Groupon and its online clones powerful is that they’re all socially driven. So if [Groupon users] try and get an exception to your policy and you don’t give it to them, they’re going to rail all over their social network, and that’s potentially going out to thousands of people.” Of course, glowing reviews have the potential to reach thousands of customers as well, and that’s the ultimate goal for many of the businesses who choose to use Groupon and its ilk—to generate buzz that brings an increasing number of shoppers coming back again and again. For many retailers in a tough marketplace, it’s a gamble that may just be worth taking. •

FOP_38 38 2/23/11 12:12:20 PM

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40 footwearplusmagazine.com • march 2011

S P O T T I N GT R E N D

Blue Man GroupMen’s classics evolve in shades of inky blue.

PHOT

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Clockwise from top: suede boot by Bass; Birki’s canvas clog; J Shoes brogue; Florishiem by Duckie Brown wing-tip boot; Dragan Mrdja patent oxford; Sebago boot; Eastland deck shoe. Center: Frye oxford.

fw_03_trendspotting_03.indd 40 2/23/11 12:27:56 PM

Velvet AngelsCaressa

MadelineAra

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41

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JUNE 7-9, 2011

Tuesday – Thursday

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FOP_44 44 2/23/11 12:08:47 PM

COMFORT DESIGNERS UNEARTH A TROVE OF

VINTAGE-INSPIREDWOMEN’S AND MEN’S

Sweater by Billy Reid.

45

FOP_45 45 2/23/11 12:08:54 PM

STYLES.

46

FOP_46 46 2/23/11 12:08:58 PM

Born cuffed boot; tall lace-up boot by Blondo.

Opposite: vintage floral dress; men’s

Gucci jacket; Kimberly Stillman hat.

FOP_47 47 2/23/11 12:09:03 PM

From left: Sebago moccasin-style boot; Ecco wing-tip boot; distressed boot by Auri.

Opposite: vintage tuxedo shirt; Shipley & Halmos blazer;

Riviera Club pants; Billy Reid hat.

48

FOP_48 48 2/23/11 12:09:07 PM

FOP_49 49 2/23/11 12:09:12 PM

FOP_50 50 2/23/11 12:09:17 PM

Distressed boot by Gabor.

Opposite: vintage blouse; RRL vintage Ralph Lauren pants.

Style Director: Michel OnofrioFashion Editor: Angela Velasquez

Makeup: Vanessa EvelynHair: Yoichi Tomizawa @ See Management

Models: Raan Tilki @ Red Model Management;Tatiana Turin @ IMG

51

FOP_51 51 2/23/11 12:09:21 PM

52 footwearplusmagazine.com • march 2011

Comfort brands mix classic styling with a dash of Western infl uence for a

sophisticated American blend.

Ugg Australia

Chubasco

Clarks

COUNTRY STRONG

Dansko

FW_03_fashion_still 3.indd 52 2/24/11 3:45:06 PM

Oh! Shoes

SofftAriat

Dana Davis

Earthies

Cougar

Think!

Minnetonka

Camper

Ahnu

Spring

Bernardo

FW_03_fashion_still 3.indd 53 2/23/11 4:00:17 PM

54 footwearplusmagazine.com • march 2011

what ’s selling sit & fits

Best new brand added in the past year: Bogs. It has emerged as an extremely strong selling line for men, women and kids. Earth shoes are also a popular newcomer to our mix.

Projected “it” brand or style for this spring? We took a little break from Born and now we are re-introducing the brand this year follow-ing customer requests. Ahnu is a new line for us and I’m looking forward to that. In addi-tion, we have high expectations for Wolky, FitFlops and spring Ugg styles. Another one we think to watch will be Camper.

What looks to be the key colors for the new season? Birkenstock and Papillio are going for bolder fl oral patterns. Overall, I feel bold and bright colors will be key.

What’s your take on natural motion catego-ry’s potential? We’re watching this category closely, waiting to see if the people who bought FiveFingers come back to buy a sec-ond pair. We think that will be the case.

Has toning and shaping footwear jumped the shark? We’ve carried MBT for fi ve years and they sold quite well at one time. But when all of the imitators came along, it changed their sales. I feel the category’s sales have defi -nitely reached a plateau.

Would you say your customer is in “recovery mode,” like the economy may be? In this part of the country people are still very cautious. There’s a new normal as far as employment levels and compensation and, generally speaking, people aren’t shopping as freely as they once did.

Best-selling accessories: SmartWool socks and casual bags by Keen, Simple and Ellington.

Current top-selling brands: Sorel, Hunter, Ugg, Merrell and Clarks. Also, even in the winter, Vibram FiveFingers sales continue to be strong.

Projected “it” brand or style for spring: The FiveFingers, Merrell and New Balance along with Nike Free barefoot shoe craze will be a strong in-fl uence this spring. I am also very confi dent that Toms, Superga, FitFlop and Sperry Top-Siders will play a major volume role this season, with rope, canvas and espadrille styles.

What’s your take on the natural-motion category’s potential this year and long-term?This spring the category will be fantastic, and down the road I think they will also be sold as a fashion product and not just as performance.

What looks to be the key colors for the new season? Beige and bones, because when prices go up people look for wearable neutrals.

Did this winter surpass or miss expectations sales-wise? The [cold and snowy] weather helped drive waterproof boot sales, with Sorel and Hunter styles leading the pack.

Best new brand added to the mix in the past year: The revival of Tecnica.

Would you say your customer is in “recovery mode,” like the economy may be? Slowly, the customers are coming back. But they will also have to since lots of footwear was ruined in the weather this past season.

Do you have any special spring promotions or in-store events in the works? Clarks and Soff t are looking to do major in-store events and we will also have guest appearances by Munro Group.

Best-selling accessory: Hunter socks.

An independent sit-and-fi t stalwart located in Manhattan’s Upper West Side since 1969, Tip Top Shoes is a comfort brands mecca as well as incubator of the latest footwear fashion fi nds. Owner Danny Wasserman is always a step ahead when it comes to the next big thing—having been one of the fi rst to embrace Ugg Australia, Merrell, MBT and Vibram FiveFingers, to cite a few. The way Wasserman sees it, for a shoe to make Tip Top’s shelves, “Products must be compelling and unique. It’s good to have a strong brand story and a purpose to the product as well.”

TIP TOP SHOESNew York, NY

Terry Reilly, manager of Footprints for 19 years, says the store is one of an increas-ingly rare breed of retailer: the independent family shoe store. “It’s harder and harder to fi nd,” he says. “We sell men’s, women’s and kids’ shoes, and we sit down with our customers face-to-face and measure both feet properly.” Reilly notes that Footprints’ selection is equal parts classic comfort and wearable fashion. “I always make sure something isn’t so radically diff erent that it sticks out like a sore thumb,” he says.

FOOTPRINTSAnn Arbor, MI

Ahnu

Merrell Barefoot

Sorel

Clarks

Vibram FiveFingers

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56 footwearplusmagazine.com • march 2011

FIRST-TIME DESIGNER Gio Metodiev doesn’t shy away from dan-ger. The launch of his women’s line, Gio Diev, is executed with precision, hints of mystery and a devastatingly fi erce sword-like heel. “I like design that speaks for itself,” Metodiev says.

never go out of style.” Metodiev began his career as a

package designer for Chanel and then switched to front-of-house production for Fendi and Dolce & Gabbana. But the Bulgarian-born designer’s childhood obsession with shoes ultimately led him to Italy’s footwear factories. He says working for high-end fashion brands helped set the standards for his own line. “As a new designer, you have to set that bar even higher to be noticed,” Metodiev says.

One point of reference for Metodiev is fi lm noir fashion. “They were sexy without revealing everything,” he describes. The collection echoes the genre with slivers of chiffon, black satin ribbon, patent and mirrored leather and rich shades of plum, midnight blue, gold and bronze. “Black is predictable for fall/winter. I like to go against expectations,” he explains. Highlights from the fall collection include: a patent and mesh open-toe shoetie, a metallic pump with a satin ribbon ankle tie, a leather and mesh over-the-knee boot and a boot equipped with an armor-like knee plate. The line retails between $700 and $2,000. —Angela Velasquez

What inspires your designs? Strong women

Designer Chat: Gio Diev

throughout history—Joan of Arc and other heroines. Powerful and confi dent women are inspiring. I like to think I’m making shoes for 21st century warrior women.

Which footwear designers do you admire? The factory I work with produces Manolo Blahnik. It’s where I learned to appreciate his entire process. I admire how he doesn’t fall into trends. He nurtures his own aesthetic. I also admire Pierre Cardin’s bold designs. He makes footwear for women of the future.

Describe a shoe we’ll never see in your line. No suede. It’s my least favorite leather.

What is your favorite fashion magazine? The editorials in Vogue Paris are along the same lines as my own aesthetic: striking

and bold. They’re not afraid to surprise or shock. The magazine is daring.

Who is your fashion icon? Marlene Diet-rich. If she were alive today, I bet she’d make people raise an eyebrow. She was ahead of her time and lived by her own rules.

What shoes do you wear the most? My Balenciaga or Pierre Hardy hi-tops. I also have some nice desert boots, but those aren’t as comfortable as my hi-tops.

If you weren’t designing footwear, what would you be doing? When I see an interest-ing woman on the street, I like to think of what her life might be like, so I’d probably be direct-ing or writing fi lms about women. Women are more complex and interesting than men.

EDITOR’S PICKSTongue Tied

Designers cross wires with exaggerated lacing.

EDIT

OR’S

PIC

KS P

HOTO

GRAP

HY B

Y M

CCAN

DLIS

S &

CAM

PBEL

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From top: Velvet Angels cuffed bootie, Bernardo woven flat, Chinese Laundry stiletto platform, Impo peep-toe, Jolie distressed oxford.

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“Powerful, sensual and confi dent

KIDS’ FURNITURE DESIGNER turned shoemaker Sharon Blum-berg says that her budding footwear business, Chooze, is as much of a surprise to her as it is to everyone else. “If you told me a year ago that I was going to create this line of shoes, I’d think you were crazy,” she says. Blumberg, whose home furnishings for children were sold in the Neiman Marcus Child catalog, debuts her offbeat line of mismatching footwear this fall.

“The idea behind the whole brand is about celebrating individual-ity. Kids need to appreciate that we are all different,” Blumberg says. “Any chance we can give them to do something out of the box—or ‘out of the shoe box,’ as we say—helps to nurture that creativity.”

Blumberg’s inspiration for the line came from watching her own children express their individuality with their footwear—remixing the shoes in their closets and stepping out with mismatching lefts and rights. Loving their quirky sensibility, Blumberg developed her line of shoes with subtle pattern differences or color variation between shoes.

The line, available in sizes 10 to 5T and youth sizes 11 to 5 for a suggested retail of $45 to $48, is also vegan, meaning there are no leathers used in production. Each shoe’s outsole is exactly the same, but the upper materials—many in vibrant colors—are differ-ent. Once in stores, Blumberg plans to run contests, inviting kids to design a pattern for inclusion in an upcoming Chooze collection.

“Chooze is really all about celebrating the kids’ power of choice—that they get to choose who they want to be,” Blumberg says. “It’s about choosing to live life out loud.” —Meagan Walker

The Power to ChoozeMix-and-match footwear lets kids’ imaginations run wild.

The brand expands to reach 6-year-olds.

SEE KAI RUN continues to grow—just like the company’s inspira-tion and ongoing muse, Kai, the son of its founders, Cause Haun and Chen Gang. Founded in 2004 in Seattle, the family-owned and oper-ated company debuted with a toddler collection and shortly afterward sized down to crib styles. For Fall ’11, the brand adds a kids’ collection in sizes 8 to 13. “Since day one, our customers have been asking for the same style in bigger sizes,” says Haun, the label’s designer.

Haun says the decision to push into bigger sizes was made at the beginning of 2010, and was inspired by parents who liked the brand’s fun and fresh aesthetic. It’s “cute, but not cutesy,” she says, adding that she chose a more sophisticated neutral color palette than what can be found in the brand’s crib collection. The kids’ line also features cow leather instead of goat, and the sole has a bit more toughness to it.

The initial kids’ collection features eight styles—three for boys and five for girls—with the same comfort and quality features the brand has become known for: all-leather linings, a forgiving wide toe box and a flexible outsole. For boys, Kai offers a sleek brown ankle boot with white stitching that’s appropriate for dressing up or down. On the girls’ side, standouts include a calf-height boot in gray with leather flower embellishments and an updated, black patent leather Mary Jane adorned with pink hearts. Suggested retail begins at $50.

So far, Haun has presented the line to Nordstrom and Amazon, noting a strong reception. Following a year of double-digit sales growth in 2010, Haun optimistically looks forward to 2011 for the new collection and the brand overall. —M.W.

See Kai Grow

march 2011 • footwearplusmagazine.com 57

KIDS

ATHLETIC

COMFORT

STREET

WORK

OUTDOOR

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LOOKING FOR A way to honor the local aboriginal communities whose traditional footwear helped inspire the creation of his moccasin and mukluks company in 2008, Manitobah President Sean McCormick struck upon the perfect idea: the “Storyboot Project,” a collaboration between Manitobah and native artists to produce limited, handcrafted designs. The project aims to revive the traditional arts by building business partnerships with arti-sans who craft moccasins and mukluks the original way—using moose hide, rabbit fur and beading. The boot is first crafted in the artisan’s home, and then a limited number of hand-cut and hand-sewn replicas are created in Manitobah’s Winnipeg factory.

“I’m borrowing those designs, so it’s our responsibility to pay that back somehow,” McCormick explains. “As we’ve grown, it was really important to me that some of the arts don’t just go away. And it’s very difficult for people living in these remote communities to get their art out there, and we’re in a unique position to do that.”

Launched last year with one style, the Fall ’11 collection includes three new styles by two Cree Indian artists, Edna Nabess and Annie Madeleine McKay, who designed last year’s model. “She basically raised her family on making moccasins and mukluks,” McCormick says, adding that the project’s 50/50 profit-sharing arrangement means the women are now earning “probably 100 times more than they ever got from a pair of mukluks or moccasins before.”

As with any original and limited-edition item (the company plans to only produce 100 pairs of each style), the suggested retail is premium at $199 to $450 for the moccasin style and $329 to $999 for the mukluks. “People need to understand it’s a one-of-a kind piece of art, just like any other art they would purchase,” says Josh Fine, vice president of brand and global distribu-tion at Manitobah. The company plans to target boutiques, specialty outdoor retailers, gift stores and museum shops, where customers will appreciate the shoes’ rich history and artistry. “If someone is used to paying $600 for a Jimmy Choo, they can certainly find value in these Storyboots that are real works of artistic integrity,” Fine offers. “I would even go so far as to say the market is much bigger than the possible supply, because these aren’t mass produced.” But McCormick promises the line will expand next year. “Just based on the success we’ve had so far, I can pretty much guarantee it will be a growing enterprise,” he says. —Audrey Goodson

Manitobah partners with aboriginal designers to create handcrafted styles.

Art Project

Good SportBirki’s updates its look with an active sandal collection. IN AN INCREASINGLY crowded wellness and comfort footwear marketplace, how does a brand stand out? For Birki’s, it meant finding a way to con-vey the concepts without using the labels. “Comfort is kind of just a generic word and we wanted to use a word that hasn’t been overplayed,” explains Robert Mangione, vice president of sales and marketing for the division of Birkenstock.

So when the brand launched its latest collection, company execs picked out a name that was perfectly suited to the shoes but also unique: Active Recovery, representing both the sporty new look and the well-ness benefits of the parent brand’s famous footbed. While keeping the classic footbed and sandal silhou-ette, Birki’s made a few changes to the basic formula. “We added an EVA wedge to the construction, which gives it a uniquely different look,” Mangione says. “We came up with it to help us differentiate our-selves from the other brands in the [Birkenstock] family, and also to look and feel a little more con-temporary.” In addition to the wedge, the active col-lection features three new fabrications: Active Basic, made of shiny, textured nubuck-like material; Active Sport, with stripes in a striking color palette; and Active 3D, which was launched last year in a rich, dimensional leather. The suggested retail price range of Active Recovery is $79 to $99.

Even with the updates, Mangione emphasizes that the brand was careful not to change the shoe’s footbed, shape and contouring. “A lot of brands come and go, but this is one of those brands that has consistently withstood the test of time because of what the product has delivered from a functional standpoint,” he notes. The key, Mangione adds, is balancing the brand’s functional benefits with fash-ion-forward designs. “The challenge when you’re an iconic brand is to continue to try to interpret the trends and be relevant—but only relevant to the point that it’s not a departure from where you really are. The consumer is too smart.” —A.G.

KIDS

ATHLETIC

COMFORT

OUTDOOR

STREET

58 footwearplusmagazine.com • march 2011

WORK

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march 2011 • footwearplusmagazine.com 59

time and place to present the brands’ stories. “Traffi c was steady and we had a lot of appoint-ments booked,” he says. Overall, Aznavorian re-ports retailers were in more of a buying mood. “We are seeing retailers make commitments, where as last season they were more cautiously optimistic,” he says. “Retailers have cycled through the down-turn and are now thinking strategically about which brands, collections and price points work best.” Aznavorian adds, “It gets back to retailers wanting to have compelling stories that justify a range of price points.”

Shifting to the West Coast, the ENKWSA show unveiled a lot of new initiatives in an effort to re-gain its footing as a national draw. David Kahan, president of ENK Footwear Group, reports mis-sion accomplished. “Both exhibitors and retailers were extremely impressed with our inaugural EN-KWSA show,” he says. “Our attendance exceeded initial expectations and we received many com-ments that we had succeeded in creating an event that united and captured the energy of the foot-wear industry.” The commitment to service kicked off curbside to the Sands Expo Center. “Exhibitors were met with porter service that carried their bags to the brand’s respective booths to facilitate quick and easy set-ups,” Kahan says. “It was our intent to treat attendees with world-class service from the moment they came.”

To that end, ENKWSA’s pre-show Super Bowl party at Dos Caminos restaurant had nearly 1,000 attendees watching the game with complimentary food and an open bar. It was followed the next night with an industry appreciation party attend-ed by 1,000 people at Tao nightclub, which culmi-nated in the drawing for a new 2011 Smart car.

As for the business aspect of ENKWSA, Rob Rask, managing director for Ara, says it was a solid show. “Everybody that said they would be here came by,” he says. “We had a lot of appoint-ments and we were booked solid through the sec-ond day.” Ari Levy, sales representative for Naot, reports similar success: “In the fi rst day alone we had almost 45 appointments, half of which were drop-ins.” Levy adds that the overall mood was upbeat—buyers liked the new vibe and friendly service, which, he adds, puts them in a good mood right from the start. “ENKWSA stepped it up. It made it easier for us to work our accounts, and we appreciate that,” he says.

Next up was FN Platform, which was held in conjunction with the Magic show at the Las Ve-gas Convention Center during mid February. Only in its third incarnation, Leslie Gallin, vice presi-dent of footwear for Magic, says the show moved

to the larger South Hall to accommodate the ap-proximately 35-percent growth in exhibitor space since its debut. “More than 1,250 brands covering women’s, men’s, juniors and children’s footwear were on display,” Gallin notes. “Our fi rst night was excellent; the place was rocking until 8 p.m.”

The opening night of FN Platform was high-lighted by a Shoe Chef party. Similar to the hit show “Iron Chef,” the event, held in conjunction with the American Apparel & Footwear Associa-tion, included three teams of industry execs com-peting to assemble shoe-themed desserts. The winner made a donation to the charity of their choice. “We had 12 CEOs don aprons for a good cause,” Gallin says. “It was an incredible experi-ence that united everyone—folks from Clarks and H.H. Brown working together.”

As for the show’s all-important traffi c report, most exhibitors left impressed. Dave Murphy, se-nior vice president of sales and marketing for Dan-sko, a fi rst-time exhibitor, reports: “Our booth was very busy throughout most of the show with both current and prospective retail partners.” Steve Libonati, president of Steve Libonati Company and distributors of El Naturalista, concurs on the strong traffi c. “Platform has exploded, so we were very busy meeting with both our independent and major customers as well as new accounts,” he says. Same for Kevin Powers, U.S. brand manager for Gidigio: “We were extremely busy since the start of the show. They were jumping right into orders.”

Last, but surely not least, TASM, which touts it-self as “the nation’s largest shoe show,” once again broke attendance records. “We had a 24-percent increase in booth sales and a 16.4-percent increase in retailers that pre-registered,” reports Laura Conwell-O’Brien, show director. Specifi cally, it broke down to more than 1,500 exhibitors and 1,600-plus buyers. The show has become so big, in fact, that Conwell-O’Brien is looking at mov-ing TASM to a bigger venue in Atlanta. “We’re in the infancy stages of talking to the Georgia World Congress Center,” she reports.

In the meantime, attendees gave high marks to TASM’s buyer traffi c and easy-to-shop format. Ara’s Rask reports: “We were really happy with the traffi c at the show.” Moehring of Chooka noted the traffi c was up over the previous show and buyers were “defi nitely writing orders.”

“This has become a great work show,” Conwell-O’Brien says. “Typically, many retailers go to Magic or FFANY to look and they write orders here.” She adds that the overall mood was also more posi-tive: “Retailers are opening up their purse strings a little more.” •

SPECIAL REPORT • continued from page 10

SINGLE SENSATION: Is it the return of ladylike dressing? Or, is the industry growing tired of the recent onslaught of wedges? For Fall ’11, vendors are reporting orders of single sole shoes on the rise, particularly styles that vamp it up in patent. Spotted elsewhere: Anyi Lu, Donald J Pliner.

WESTERN UNION: In addition to leather boots tinged with southwest-ern bravatas, casual boots and moc-casins with Native American-inspired prints, fringe, beading and whipstitch-ing compose a colorful fall landscape. Spotted elsewhere: Inca & Manitobah.

HIDE & SEEK: Brass, stud and chain em-bellishments are still aplenty; they are just hiding under leather. Punk-inspired details that ruled previous seasons are being covered and toned down in favor of subtle texture. Spotted elsewhere: Dusica, Free Lance. —Angela Velasquez

ROYAL ICING: Lavished with bows, velvet, ruffl es and ribbon, designers are channeling an opulent air fi t for holiday dressing. Breaking with tradition, many collections are delivering Victorian-inspired designs in white and cream. Spotted elsewhere: Unleashed, Plenty by Tracey Reese.

Suecomma Bonnie

Jon Josef

Fred & Toto

Ponce

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60 footwearplusmagazine.com • march 2011

LAST WO R D

QUINCY FREEMAN HAS been in the saddle for some time now. “I’ve been riding since before I was born,” says the 19-year-old col-lege sophomore and current member of the California Polytechnic University rodeo team. The seemingly impossible notion proves true, though. Her mom, whose family was one of the fi rst ranching families in Nevada, rode while she was pregnant with Freeman. From pretty much that point on, Freeman has been riding horses and, at a young age, competing in rodeos. You just might say she’s a natural. And now it appears Freeman possesses at least one other natural ability as a budding Western boot designer—a talent marked by the launch of her eponymous lifestyle collection in collaboration with Ariat.

It all started back in 2009 when Shane Johnston, a product man-ager for Ariat, was on one of her journeys around the country in search of the latest boot trends. Johnston was attending the National High School Rodeo Finals in Farmington, NM, when she noticed Freeman’s unique presence, which had little to do with her riding style. Rather, Freeman stood out from the crowd based on what she was wearing. Her boots and shirt had hand-painted accessories that she made herself, Johnston says, noting that the common fashion scene at these events is classic Western styling in bland neutrals and basic black. “That’s when I realized that a lot of Western consumers might want to look individualistic, so we asked if Quincy wanted to partner with us in making a collection, because there’s nothing like what [she was wearing] out there.”

“The Western world’s colors have been traditional, not bright,” Freeman concurs. “I thought the Western industry was moving toward mainstream fashion, and I wanted to use youthful colors—something atypical.” Think vibrant red and orange roses, bright blonde cowgirls, turquoise embroidery and Swarovski crystals that all pop off the line’s deep mahogany leather. The collection combines screen-print, embroi-dery and rhinestone details with a tattoo- and Mexican-inspired fl air. Johnston describes it as contemporary and eclectic. “It’s for a youthful-minded customer who likes to make a statement and show individual-ity,” she says. “She might be a true horseman with a non-traditional look, or simply someone who appreciates the vibrant lifestyle of the cowgirl.”

The debut Quincy Collection includes four women’s boots styles (Holly Rose, Nevada Rose, Bronco Billie and Rodeo Rosita) and one for men (Lefty Luck). All styles feature Ariat’s patented ATS (Ad-vanced Torque Stability) technology that supports and cushions the foot as the wearer moves, which promotes good posture and reduces fatigue. The line includes leather and rubber sole options and ranges from a wide square toe to a pointed snip toe style. Suggested retail is $399.95.

Freeman believes these boots offer a lot of bang for their buck and is simply thrilled that she and other rodeo girls don’t have to choose between fashion and function anymore: “Beauty used to be pain,” she says, “but now it’s comfort, too.”

Rodeo Drive

giddyup cowgirl!

Ariat lassos young rodeo star to collaborate on colorful and edgy hand-painted lifestyle collection. —Meagan Walker

Quincy Freeman

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