Footwear Insight

Jim Engel, VP–Sales, Blundstone How do you see the overall footwear market in terms of growth, challenges and opportunities for 2018? "This is an exciting period for the growth potential of the footwear market. New technologies in production and design combined with the power of social media create an environment for brands to bring new product to the consumer at an extremely quick pace." Kitty Bolinger Executive Vice President–Sales, Dansko How do you see the overall footwear market in terms of growth, challenges and opportunities for 2018? "There is the potential for single-digit growth in 2018. The challenges will be iden- tifying new hot items as the current trendy items are on the back half of traditional trend timelines — several notable brands have been trending for multiple seasons, and it's time to infuse some freshness and additional brands into the trend mix. "This represents a real opportunity in the market, but it will need to be organic, which means that the consumer will decide what the next "it" brand will be. The challenges to the industry are consistent with overall economic challenges in our space – concerning which large retailers will significantly reduce their footprints or go away entirely in 2018." What are you reacting to with new prod- uct and direction? "Our new product is a direct reflection of consumer trends and attitudes. We are cre- ating on-trend, comfortable footwear that is made with the absolute most premium materials and constructions. The consumer is looking for quality and seems willing to pay for it. We have taken a no-compromises approach that results in product that is very current and incredibly well made." How do you see the retail market? What are the successful stores doing? "The retail market is a mirror of consumers' lifestyles — experiential retail and destina- tion shopping environments continue to succeed. Mixing types of product – acces- sories, handbags and gift items -- into a traditional footwear environment is provid- ing the consumer with "a ha" moments in her favorite shoe store. "We continue to support our independent retailers by doing in-store events and the energy and enthusiasm that these events bring to the store results in loyal customers and great retail performance. The key mes- sage is that bricks-and-mortar is far from dead — consumers want to touch and feel products and will seek out the most enter- taining place that they can do this." If you could offer any advice to retailers, what would it be? "Have fun! Consumers love to enter envi- ronments that make them feel special and important, and they will return to the stores where that is accomplished." If you could offer any advice to online sell- ers, what would it be? "Make it easy and provide added value. Consumer reviews, strong brand identity -- clearly communicating each brand's story in a concise manner -- and ease of complet- ing the transaction seem to be what the consumer wants when she is online." O "Our new product is a direct reflection of consumer trends and attitudes." "The female consumer has definitely discovered Blundstone as a great fashion and functional footwear brand." PERSPECTIVES What are you reacting to with new prod- uct and direction? "The female consumer has definitely dis- covered Blundstone as a great fashion and functional footwear brand. Our sales in the women's size scale have sky rocketed. In 2018 we will release our first women's lasted boot with a new heel height. We will also be stocking our entire collection start- ing at a women's U.S. size five." How do you see the retail market, what are the successful stores doing and what advice would you offer to retailers? "Retail is a tough game for sure. Successful stores must make the experience of walking in their store a pleasant one. From stocking and carrying great brands to having knowl- edgeable staff who can help the consumer make the right choice. Being professionally serviced and fitted is an experience that consumers still value. "Choose brands that believe in not over distributing their product and demand that their retailers respect MSRP. If you are sell- ing brands that are not profitable you are slowly going out of business. Once you get a customer you have to retain them. Stay in touch. The technology is available. Use it. If you could offer any advice to online sell- ers, what would it be? "Having a pretty website is one thing. If your checkout and return experience is tedious you will not survive. The big online players make it easy to checkout and exchange. We are not selling toasters. All shoes fit differ- ently, so the return rate is a constant. "I'd also suggest everyone read Sun Tzu, "The Art of War." O Dansko's Hartley in Grey Nubuck, $200 Blundstone's new block heel boot is shaped exclusively for a women's foot and built to deliver a distinct feminine and stylish fit. 28 • Footwear Insight ~ January/February 2018 footwearinsight.com B R A N D S T R A T E G I E S 2018

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