Footwear Insight

8 • Footwear Insight ~ January 2020 footwearinsight.com STATE OF THE MARKET "We are at a critical time in our world in respect to global warming, use of natural resources, and our planet as a whole. The outdoor industry has been a leader in prioritizing sustainability and environmental initiatives — our challenge is balancing our business, selling footwear so people can enjoy the outdoors, with a responsibility to our planet and future generations. The first relies on consumer consumption, while the latter pushes back with emphasis on reduction of not only consumer consumption, but also of raw materials, energy, water usage and more. By sharing best practices and finding ways to come together as an industry, we can bring balance to the competing ideas of selling more goods and being responsible global citizens. We can compete on the sales floor, but we should be working together on land use, energy reduction, and climate initiatives. If we don't do so soon, there won't be wild places for us to explore and enjoy." Amy Beck, president, Oboz Footwear "We all have a responsibility to reduce our use of oil- based plastics and produce more sustainable products. This is not news. But certainly the urgency is growing. This is not a future issue, this is a 'now' issue. We began to take steps many years ago, and what we're seeing now is that consumer demand, and demand from our retail partners, is really accelerating at a rapid rate. What's encouraging is that the supply chain is catching up as well which will help build scale." Matt O'Toole, president, Reebok "The industry, by and large, is stuck in the mode of 'selling shoes.' By that I mean, much hasn't kept pace with changing consumer dynamics. People crave entertainment. It's why Netflix and new travel and restaurant experiences continue to thrive. This is the largest opportunity for the industry in general — [to] wake up retail, [and] create fresh environments and omni-digital experiences, rather than just transactional. We opened two retail stores, one in NYC and one in Venice Beach, California, and both are blowing away all expectations. Why? Because they are true immersive brand experiences. Bring the Apple mentality to footwear and thrive." David Kahan, CEO Birkenstock Americas "One of the biggest challenges our industry is facing is the economic uncertainty and our upcoming election year. We also have the challenge of continuing to attract consumers of diverse demographic, psychographic and socioeconomic backgrounds. We, as an industry, need to come together and continue to push innovation and inclusivity for the good of all people from all backgrounds of life. We want to be welcoming and exciting while continuing to keep people engaged in the sport of running and our industry as a whole." Todd Dalhausser, president, Altra "One of the biggest things that we have to sort through is product parity. I think we have the opportunity to figure out how we differentiate [ourselves]. There's a ton of retail fatigue, generally speaking, and the market is so reliant on promotions that consumers are bombarded with them." Anne Cavassa, president, Saucony "The industry still has not accepted the shift away from performance to athleisure. Results will be tepid until the industry confronts this change. I am most excited about the continued resur- gence of small brands." Matt Powell, analyst, NPD

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