Footwear Insight

What does MBT stand for? Masai Barefoot Technology. Our story begins in 1996 with the Masai Tribe in Kenya. For thousands of years the Masai Tribe have lived with virtually no joint or back pain. ey have great posture, stable health and superior athletic ability. By walking barefoot on so, natural ground, the Masai had to balance their bodies with each and every step. "Masai Barefoot Technology" adopted by MBT shoes makes the natural instability of so surfaces accessible to people forced to move on hard surfaces. It helps people move more efficiently and effectively! MBT Footwear was very popular between 2006 and 2011. What happened to the brand? MBT's unique sensor and rocker technologies propelled the brand to reach a high level of popularity during that time period. Simultaneously, it caused several brands to "try" to create looks that resembled MBT shoes. ose brands called the category "Toning", making false claims that just by wearing their shoes, it would automatically tone consumer's legs and buttocks. It resulted in several brands losing millions in class action suits. MBT avoided these claims, but the negative impact for a category that MBT never laid claim to, resulted in the original company going bankrupt. Andy Chaw bought MBT to revive the brand and has spent a lot of time and money getting the product on trend and right for our consumers. Doug, you retired in 2016 and rode your bicycle across the USA for PHIT America. Why did you decide to come back into the Footwear and Apparel industry? I learned about the inactivity pandemic threatening the health and security of our nation while working with and attending meetings with the SFIA (Sport Fitness Industry Association). I learned that the current generation of children might be the first not to live as long as their parents. I rode my bicycle across the USA to raise awareness and money for PHIT America, a 501C3 started by Jim Baugh that provides "Go Grants" to schools in need. I knew I wanted to make a difference in the world and continue to try and reverse the inactivity pandemic plaguing our country. When the opportunity to join the MBT Movement came to me, the philosophy and values of the brand fit the bill. is is a brand that has an incredibly loyal following. e technology has changed people's lives, relieving many of their foot and joint aches and pains and getting them off the couch. How are you going to do that? First you have to look at why they are on the couch. Maybe they are busy, ill, have an injury, or somewhere along the way they just burned out and stopped moving and/ or working out. ey know they need to do something but just don't know where or how to begin. We are in the process of building a culture that promotes getting people off the couch and moving by partnering with fitness, walking and running leaders to help build activity which will build our brand. We will provide information and education through MBT.com, apps, listings of doctors, sport- fitness trainers and key retailers who embrace and believe in the "MBT Movement". What is your plan for MBT USA? e world doesn't need another footwear brand. MBT is a "Movement", a Movement to help people "Get Off the Couch!" by helping them Stand, Work, Walk or Run more efficiently and effectively. ere are roughly 22 Mil avid runners and 110 Mil walkers in the USA leaving close to 100 Mil Americans that aren't active at all. We want to help the 98% of us who aren't running/racing in the front of the pack and make their experience better! We will do this by creating a culture on MBT.com, promote wellness and provide MBT footwear that can help with foot, leg and joint pain. What is the technology that makes MBT different? ere are 3 harmful factors that cause most foot, knee, hip and back pain. 1. Repeated contact shock is sent through the heel and up through the joints and spine with every step. MBT shoes reduce the contact shock through a so sensor in the heel. e heel sensor, combined with the upturned rocker shape in the heel, simulates the position the foot would be in if the heel were stepping into sand. 2. Weak stabilizer muscles. e muscles that contract, stabilize and protect the joints and spine are only turned on when your brain senses instability. ere is no need for the brain to react and turn on these protective muscles when on flat, stable surfaces. e full length shank within the sole, balancing on the pivot area, acts like a small balance board or "see-saw", creating a responsible amount of instability and therefore activating the reaction to turn on stabilizers around the joints and spine. *MBT Running shoes like the Zee, GT and Speed 2's do not have this balancing instability, as it wouldn't be safe for the contact force of running. 3. Poor Circulation. When we stand on a hard, flat surface, the bones in our heels and the balls of our feet press into the floor and restrict circulation causing achiness, soreness and reduced healing to problems such as plantar fasciitis. e shank, pivot and rocker bottom in MBT shoes all work together to keep the heels and balls of the feet off the ground and re- direct the pressure into the arch. is decreases restriction of blood flow in the common high- pressure areas and adds support to the arch. Who are the consumers you are targeting and why? e MBT Movement is about wellness and our goal is to help people "Get Off the Couch"! Our goal is to target the masses, the 98% of us that are behind the leaders of the race, just trying to finish the walk, run or race. We will partner with leaders in the health/fitness and walking/running community to help people get started with a Walk-Run program and will also partner with retailers and loyalists to start Walk-Run clubs. MBT recently entered the running market? What is your go forward strategy in running? We are committed to the elite runners but focused on the masses, the 98% of runners with no hope of winning the race or placing in their age group. Rather, they are the ones who know they need to put in the time to get fit and stay fit! We want to help do this more efficiently while helping them prevent and/or eliminate foot and joint pain with our physiological footwear. Current brands are now promoting rocker technology in running shoes. Rocker technology has been a part of MBT Footwear's DNA from the beginning and we are taking it to the next level by providing different levels in our Running Matrix through our different platforms, (Lightweight/Fast, Endurance, X-Cushioning). What makes you different from other brands in running? We are not just another cushion shoe or minimalistic shoe that comes and goes with the latest trend. MBT Footwear is Physiological Footwear, our technologies are about helping people stand, walk, run, work and play more efficiently and effectively in our shoes. We will stay true to these principles. It isn't always about how far you can walk-run in 40 minutes. Sometimes it's about just doing it for 40 minutes, making it enjoyable and not hurting yourself. We will try to make it social, fun and enjoyable; something you look forward to and not another thing you have to do! What is your MBT.com and Amazon Strategy? We are a best of breed brand. It is important that we start with MBT.com. We need to build our culture and spread it to our retail partners and our loyal consumers. In order to do this, we need to have control of our brand and how it is presented and perceived. We will no longer sell directly to Amazon and we will be very selective with 3rd party partners. We hope to build affiliate programs and partnerships with doctors, walk-run fitness advocates and key retailers. We will help them tell our story and offer trend right products across multiple categories on their website. is will allow us to consistently present a clear and powerful brand message. What is your sales strategy? We are going to enhance our service to customers who have been loyal to MBT over the years with our "Classic" styles as well as styles that are more clinical and relevant to the medical community. We will also target strategic partners in the Comfort/Brown Shoe business as well as Running and Outdoor Specialty. Our product needs to be fit properly, our story needs to be told and our technology explained and demonstrated. We have changed lives and we want to change more. We will do it with trained specialists and their sales staff and have hired a group of experienced sales representatives that know how special the MBT brand can be. ey know this is a "Movement" and are committed to getting folks off the couch. is isn't just about sales, this is about "good" sales! You talked about engaging with the Medical and Health/Fitness Community, how are you going to do that? We actively present our footwear to the medical community and all those who are trying to prevent and treat foot, leg, hip and back pain. We have certified many of our shoes with the APMA to make consumers and retailers aware of the fact that we make physiological footwear that has a purpose, is trendy and helps prevent pain. As our outreach grows and develops we will share affiliate and partner listings on MBT.com and with our loyal retailers and their customers. What is new and on the horizon for you? We just recently moved to a 3PL, UFSI on the Missouri side of the Mississippi River. It is in a 1 million square foot cave 180 feet below ground. e temperature is always at 65 degrees and the humidity can be controlled, which is perfect for footwear. is move will help us serve our customers even better with advancements such as same-day shipping on most orders and better technology. We are excited to show pictures of our new warehouse facility on MBT.com. MBT is Back and Getting People Off the Couch! A D V E R T I S E M E N T GT 2 Women's Gray/Pink for Spring '19 Speed 2 Men's & Women's Chili Red Lightweight Running Shoe

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