Footwear Plus | April/May 2017

THE POWER OF LOYALTY PROGRAMS

A P R I L / M AY 2 0 1 7

THE NEW FLATS Designers Roll Out Choked-Up Vamps for Fall

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CAN’ T-MISS COMFORT STYLES

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TREND SPOTTING: DOWN AND DERBY

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Style Featured: Earth Ronan

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A P R I L / M AY 2 0 17 Caroline Diaco Publisher

FEAT UR ES 22 Get With the (Loyalty) Program Why investing or reinvesting in a loyalty program might be the most profitable move retailers can make right now.

By Emily Beckman 12 Fresh Perspective Glen Barad, president of Taos Footwear, on how the brand’s number-one goal— to generate repeat customers—serves as the basis for its every move.

By Greg Dutter 18 Home Run Derby A powerful lineup of projected bestselling comfort styles look to have retailers swinging for the fences this fall.

By Ann Loynd 26 Pin-Up Girl High-cut flats for fall offer added coverage and striking geometry.

By Ann Loynd

DEPA RTM ENT S 4 Editor’s Note 6 This Just In PA G E

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8 Scene & Heard 22 Note To My Younger Self 24 Trend Spotting 36 Shoe Salon

On the cover: Leather and neoprene flats by Earth, Cupcakes and Cashmere pants, Marcmarcs tights, vintage top.

This page: Dirty Laundry slip-ons, Mavi jacket, Adidas hoodie, slip dress by Elizabeth and James, Marcmarcs fishnets and socks.

Photography by Trevett McCandliss Fashion editor and stylist: Ann Loynd; stylist’s assistant, Daniela Lukomski; hair and makeup: Abraham Sprinkle/ Next Artists; model: Vika R./APM

38 What’s Selling

Greg Dutter Editorial Director Nancy Campbell Trevett McCandliss Creative Directors EDITORIAL Ann Loynd Fashion Editor Emily Beckman Associate Editor Kathy Passero Editor at Large Melodie Jeng Contributing Photographer ADVERTISING/ PRODUCTION Jennifer Craig Associate Publisher Katie Belloff Associate Art Director Production Manager Ana Novikova Office Administration Bruce Sprague Circulation Director Mike Hoff Digital Director OFFICES Advertising/Editorial 135 W. 20th St., Suite 402 New York, NY 10011 Tel: (646) 278-1550 Fax: (646) 278-1553 editorialrequests@ 9Threads.com Circulation 26202 Detroit Road, #300 Westlake, OH 44145 Tel: (440) 871-1300 circulation@9Threads.com Corporate 9Threads 26202 Detroit Road, #300 Westlake, OH 44145 Tel: (440) 871-1300

39 Trend Spotting

Xen Zapis Chairman

40 Athletic

Lee Zapis President

42 Scene & Heard 44 Last Word

FOOTWEAR PLUS ™ (ISSN#1054-898X) The fashion magazine of the footwear industry is published monthly (except for bimonthly April/May and October/November editions) by Symphony Publishing NY, LLC, 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. ©2008 by Symphony Publishing NY, LLC. Printed in the United States.

Rich Bongorno Chief Financial Officer Debbie Grim Controller

N AT U R E X T E C H N O L O G Y P E R P E T U A L N AT U R A L M O T I O N â„¢

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E D ITOR ’S NOTE

Heavy Lies the Crown

The Kingdom and the Power IF YOU TOOK an informal poll of industry members right now, the overall sentiment would probably skew heavily negative. I’ve covered this industry for two decades, and never has the collective mood seemed so disillusioned, disoriented and downright depressed. I used to think fear about the end of Capitalism back in 2008 was an industry downer, but the end of retail as we know it makes that episode seem like a walk in the park. This one hits much closer to home, where our industry lives and breathes. Retail is our heart, but for the past year or so it’s been in a state of cardiac arrest. Many mighty retailers have flat-lined and many others—in all tiers and sizes—are gasping for breath. Bleak is the new black, as another the “mother of all bombs” (Amazon) lays waste across the landscape.

To be fair, plenty of other factors have contributed to the great retail shakeout. Over-expansion, tired formats, stale fashion, stagnant wages, crazy politicians, an even crazier and scary world, nutty weather, athleisure’s overwhelming dominance, intense competition for discretionary dollars, head-in-the-sand syndrome, apathy...pick your poison. Collectively, it’s a witch’s brew that has cast a spell paralyzing sales industry-wide, with only a handful of sneaker brands and retailers managing to escape. Everyone knows that when sneakers reign, the rest of the industry feels the burn—and not in a good way. And this time it’s like sneakers on steroids. The ubiquitous yoga pants trend stretches well beyond gym and casual attire, bringing (mostly retro styled) kicks to the height of everyday fashion.

Here in Manhattan, a woman in heels is as scarce as a subway seat at rush hour. And the few guys who might still wear suits on occasion can now pair them with sneakers without being labeled a walking fashion faux pas.

Of course, reigns come and go. Not long ago, Adidas couldn’t get arrested in a town outside Germany. Now look at the brand, giving Nike a run for its money in A-lister status and brand buzz.

(Overall sales volume still has a way to go.) At the very least, it will force Nike to double down and become even more innovative and in-tune with influencers. It’s also a reminder that the business of fashion changes constantly. There’s always a fresh contender vying for the crown. And that’s where retailers can help play the role of kingmakers. They serve as the gatekeepers and curators of cool. At least, they should. Why else go through all that effort and expense to showcase brands?

Unfortunately, too many retailers have abdicated their powers of late, choosing to play it safe, which causes a chain reaction of brands doing the same. It’s a cycle of stagnation that has been going strong since the Great Recession. Retro, heritage, nostalgia, classic—call it what you want, these factors have been the driving themes in fashion. None of it is really “new,” yet newness is the lifeblood of this business. Is it any wonder consumers are spending more on dining out, drones and smartphones these days? Fashion has lost its status as a top draw for discretionary dollars, and it’s got itself to blame. The industry has allowed consumers to become complacent when it comes to their closets. It’s given them little impetus to update their wardrobes. Chances are, that “new” retro item is already hanging in their closets. What’s more, the rise of fast-fashion chains has reduced garments to disposable commodities.

The loss of power across the fashion spectrum has been sweeping. Price has become king, displacing product and brand status. Relentless margin and brand erosion, caused largely by online shopping, is taking a hefty toll on many full-price retailers and wholesalers. (Enforced) MAP policies and controlled distribution are the first lines of defense, but ultimately product has to rule again. It will require passion and risk-taking from both sides. Meetings can’t be stalemates over margins and terms where the product suffers. It won’t be easy, and it won’t happen overnight. It will require all the king’s horses and all the king’s men to put the business of fashion back together again. But it’s the battle we all must fight to save our kingdom!

Greg Dutter

Editorial Director

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THIS JUST IN

flight club Retro bomber jackets are in tight formation with a broad range of shoe silhouettes.

Photography by Mary Kang

6 footwearplusmagazine.com • april/may 2017

SCENE & HEARD

Footwear Cares Now Year-Round For the past four years, April has marked Footwear Cares month, where, under the umbrella of the Two Ten Footwear Foundation and corporate sponsors (Footwear Plus, Amazon Fashion, Jones & Vining, AAFA, FDRA, Kohl’s and Zappos), thousands of industry members joined together through volunteerism. Plenty of good was done during those Aprils, and the figures surely back that up. Last year alone, more than 7,000 individuals from 130 footwear companies served local non-profits in 24 states as well as in Puerto Rico, Canada, China and Switzerland. Their combined efforts resulted in 179,710 meals sorted, packed or served to food-insecure children, families, seniors and disabled people; 5,708 pairs of new shoes distributed to disadvantaged children; 429 acres cleared in children’s playgrounds, schools, parks, beaches, nature trails, recreation facilities and camps; and 22,775 children and 15,360 families directly impacted through a multitude of volunteer activities that totaled 11,554 hours of donated time.

But why stop there? Why not make Footwear Cares a yearlong initiative? That’s the consensus Two Ten President Neal Newman and his team reached as the fifth annual Footwear Cares got underway this month. “We see Footwear Cares as a year-round initiative where we capture the good works of as many footwear companies as we possibly can,” he says, noting that the ripple effect should inspire more industry members to participate. Two Ten plans to work with companies throughout the year to support their existing corporate social responsibility efforts and maximize their visibility and impact. “Footwear Cares provides a wonderful opportunity to shine

a very bright spotlight on the industry’s collective goodwill and nature of service,” Newman says. The ultimate goal, he adds, is to engage the industry’s entire workforce of 250,000 employees and have Footwear Cares be an “inspiring, national model of industry-wide philanthropy and corporate social responsibility unlike any other in America.”

To meet that goal, Footwear Cares will now focus on volunteer efforts in nine industry epicenters (Boston, Columbus, Los Angeles, Milwaukee, New York, Portland, San Francisco, Seattle and St. Louis) where participation will focus on fighting hunger during April. With an estimated 20 percent of the country’s families currently living in poverty and struggling to keep food on the table, the April events will focus on a national network of food banks and hunger relief programs where volunteers collect, sort and repack food donations; prepare and package meals; pack and distribute food boxes to families in need; and participate in similar volunteer activities co-organized by Two Ten and food banks. “We want to focus on these wonderful, positive experiences in these nine major markets to gain maximum impact and exposure,” Newman explains. Because such efforts involve a broad range of companies and are held in major markets, they have a good chance of being front-page news, he adds. For example, the Boston Globe covered this year’s kickoff event, which was held in the Massachusetts State House. Hundreds of children’s shoes from Wolverine Worldwide, BCNY, Clarks, Crocs, Khombu and New Balance were displayed on the famous steps to represent the number of

Afternoon shift volunteers at the Food Bank for NYC boxed 5,244 pounds worth of food, or 4,370 meals.

children in the state who suffer from abuse or neglect each week. The shoes were then donated to Boston Children’s Trust Family Center locations throughout the state.

“It was just a profound moment,” Newman says. “The fact that representatives from all the companies were in the room and were called out by the lieutenant governor [Karyn Polito] for doing good was also a powerful moment.

We received a standing ovation from those in attendance.”

Newman believes participating in Footwear Cares is a win-win for all parties. “Ultimately, it will grow Footwear Cares and help more people in need, it will help sell shoes and it will help people feel inspired in their jobs,” he says.

“People return to their offices energized after having participated in something impactful above and beyond selling or designing shoes,” he adds. “There’s something magical in that moment when volunteers transcend their company T-shirt and are thinking about a common, greater good. We’re all doing something good together.” —Greg Dutter

Growth Market Reebok, in partnership with DuPont Tate & Lyle Bio Products, will introduce a line of shoes made of 100-percent plant based materials. The aptly named Cotton + Corn initiative features soles made from non–food source corn and uppers made of organic cotton, thus making the shoes completely biodegradable at the end of their lifespan.

They can even be used as compost.

Bill McInnis, head of future for Reebok, says a key differentiation from shoes made of petroleum-based materials is that Cotton + Corn shoes are made of renewable materials. “You can grow it. It’s not part of the

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food source but is industrial corn, the same material used to make ethanol fuel,” he explains. “There’s an abundance of it and it can be replenished.”

Still in production, the plant-based sneakers will be offered first in a few styles from Reebok’s Classic collection. But McInnis hopes to one day see most of the brand’s footwear, including performance styles, crafted out of renewable materials. “This is the first step in what we see as a much broader initiative,” he says. “We want to keep building out the menu of sustainable materials we can use for more and more of our product line.” —Ann Loynd

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S P E C I A L R E P O RT

GET WITH THE ( L OYA LT Y ) P R O G R A M Why investing or reinvesting in a loyalty program might be the most profitable move retailers c a n m a k e r i g h t n o w. B y E m i l y B e c k m a n

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HE NUMBERS ARE enticing: a good bring in about 30 percent of total yearly sales. “Our loyalty program can achieve 2.4 times loyalty program customers spend significantly more more revenue from customers, 33-percent with us than our non-loyalty customers,” he reports, improvement in average order value and noting that members not only make higher dollars an 80-percent increase in repeat sales per transaction but also higher units per transaction. frequency, according to Samir Palnitkar, The first tip to creating a successful loyalty program founder of Zinrelo, a loyalty rewards and referral marketing is to keep it simple. Negen notes that the average program. “The lifetime value of a loyal customer is worth consumer is part of at least 26 reward programs, to 10 times their first purchase,” he says. “A loyal customer is which he insists making your program as stress-free highly profitable for a business.” and easy to keep track of as possible. “Nobody likes For many retailers, however, loyalty programs are a rules,” he says, reminding retailers that this is supposed missed or neglected opportunity, according to Bob Negen, CEO and cofounder to benefit the customer—not frustrate them. “If somebody earns the reward, of WhizBang Retail Training. “Retailers think they will get the sale anyway,” let them spend it the way they want!” he says. “Or they think they are giving away money or eroding their margins Tip two: Offer a variety of benefits and options. Kedar Deshpande, when in actuality they are increasing the total value of a customer.” Ignorance, senior director of quantitative marketing and digital customer experience in this case, is not bliss. “The reason they don’t choose to implement a loyalty at Zappos, notes that while it’s hard to give one-size-fits-all advice to difprogram is: A. They are thinking incorrectly or B. They just don’t think at ferent business models, there are key guidelines to always keep in mind. all,” Negen says.

“Putting all your eggs in one basket is not the way to go,” he says. “You should In today’s retail landscape where consumers can shop anywhere at any time have multiple values to the program.” Deshpande recommends thinking and find the lowest price with a few taps of their smartphones, the importance of ways your customer can benefit other than just providing discounts. of retaining existing customers is more critical than ever. Not only are loyal For example, he suggests birthday month goodies or certain time pericustomers a more profitable revenue stream, it is more cost efficient to try ods that allow for double the acquisition of reward points per purchase. and retain customers than trying to find and Zinrelo’s 360-degree loyalty program also attract new ones. But just as how consumcapitalizes on this idea of multiple values, ers are shopping is changing dramatically, awarding points not just for purchases but loyalty programs must adapt to be relevant for a variety of other activities such as friend and attractive in this new landscape. Offering referrals, account creation, social sharing, Show & Tell: Spell out the rules and benefits of frequent shopper discounts, for example, is email subscriptions, birthday bonuses your loyalty program clearly and openly. No secrets, not nearly enough in the age of Amazon. and win-back bonuses. Essentially, the surprises or bait-and-switches.

Paul Voss, director of customer relationmore creative the benefits, the better. For ship management for Rack Room Shoes, says instance, Voss says any Rack Room Shoes Seamless & Painless: Signing up and participating the trusty ol’ BOGO deal just doesn’t cut it loyalty member who calls customer service in a loyalty program should be user-friendly and like it once did to generate loyalty among its automatically gets bumped to the top of hassle-free. No delays or interrogations at the regisrewards program shoppers. Cheap is not the the queue. Other potential offers include ter, for starters. thrill it used to be, apparently. “Customers extending a return policy, giving additional have a lot of options these days,” he confirms. gifts with purchase, free shipping, exclusives The More the Merrier: Variety is the spice of life so “You need to make them feel confident that and sneak previews. Nordstrom Rewards, make sure your loyalty program can be customized they’re getting the best available offers when for example, allows members early access to the different desires of your customers. Let them they come shop with you.” Those offers now to its highly anticipated anniversary sales. pick and choose from an array of reward offerings. include members-only perks such as a special Customization is another helpful tip birthday reward, access to exclusive sales, to creating a successful loyalty program, Spread the Word: Online, in-store and often. A earning $15 for every $200 spent and an according to Bill Hanifin, CEO of Hanifin loyalty program is only effective if customers app to track rewards. In the chain’s case, Loyalty. He cites Sephora’s Beauty Insider know it exists. Engage and entice rather than the efforts are well worth it as Voss reports rewards program that allows consumers to neglect or annoy. about 10 percent of Rack Room’s customers create their own profile and receive trial >41

Rules of Thumb

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BY GREG DUTTER

FRESH PERSPECTIVE Glen Barad, PRESIDENT OF TAOS FOOTWEAR, on how t h e b r a n d ’s n u m b e r - o n e g o a l — t o g e n e r a t e r e p e a t c u s t o m e r s — serves as the basis for its every move.

LEN BARAD IS a dyed-in-the-wool product person. He’s an industry lifer who made his bones working on the private label side of the business for decades before crossing over to the branded world with the launch of Taos 12 years ago. His product-first principles (i.e. no detail is too small) have served as a guiding light, leading to the brand’s steady growth that, of late, appears to have reached a tipping point with double-digit sales gains the past few years and 2016 going down as the best in its history despite a difficult retail climate. Taos’s recent run of success will require a move this summer—its second in the past three years—to nearby Carson, CA, to accommodate the increasing need for office and warehouse space.

“Our customer has been coming back to us, and she’s bringing her family and friends,” Barad says when asked what fueled the recent growth. “She really likes what we are doing, and that’s the main reason for our success. We’re capturing a great fan base.”

Indeed, Taos has arrived. No longer a hot item or seasonal business, the brand has become a yearround cornerstone for many of its retail partners.

Perhaps the most impressive facet of Taos’s growth is that it’s being achieved through a distribution

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platform of primarily better independent and specialty chain brick-andmortar retailers. In the age of Amazon and the recent death spiral of physical stores across all tiers and formats, the brand’s recipe for growth runs counter to conventional industry wisdom. In fact, many industry pundits would argue it’s statistically a long shot or even a fool’s errand.

But Barad is nobody’s fool when it comes to the shoe business, and Taos is living proof. He’s confident the brand can continue to grow by adhering largely to its current distribution strategy.

For starters, he says there are still plenty of retailers in existence, an opportunity that is magnified as other vendors shift their attention to larger volume, online retailers and direct-to-consumer (DTC) efforts. Their neglect is Taos’s gain. “When other key brands choose to move out of the better independent and specialty retail distribution channel, there are openings for us,” he says, adding, “We’re just grabbing market share.” And while the numbers might not be big on a business-by-business basis, they add up. More importantly, for a brand like Taos, he says those channels are the preferred choice. “If you are looking solely for big numbers, then you are going to have to move elsewhere,” he suggests. “But if you are looking to build a full-price, full-service brand, then I believe we are in the right channels.”

Barad has been determined since founding Taos to build a meaningful and long-lasting consumer

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O&A brand. It’s doesn’t happen overnight, and there are no real shortcuts. Barad says it has required years of hard work, dedication, talent, (lots of ) reinvestment, perseverance, controlled growth and developing and maintaining trusted partnerships with its retailers. But none of it would be possible if the product wasn’t right in the first place. Barad believes Taos has built a loyal following by delivering comfort, quality and style—difference makers at the point of sale. “You have to give the consumer a real reason to buy your shoes,” he says. “It can be a fresh last, color, material or little detail—those are the things that add up. If you are vanilla, then there’s not going to be that much interest in what you do.”

Barad describes Taos’s overall design as “understandably fresh.” Think trend right but not over-the-top. It’s versatile, casual, lifestyle fashion. And while that might sound vanilla, Barad and his product team know What are you reading? A the subtle details that can turn an ordinary lot of sales reports, which shoe into an extraordinary one. “We’re just is part of the job. But I so product-focused, and all those small have a John Lennon biogdetails are what we constantly re-invest raphy laid out for my next in,” he explains. “We’re always searching for indulgence. new ideas that we think that our consumer will like and our distribution channel will What was the last movie embrace.” Barad adds that Taos is relentyou saw? Fences on Netflix less about improving and updating its with my wife. collections each season. It’s a team effort that involves a lot of role playing. “It’s very In a word, the state of important to the core of who we are, and the shoe industry is: sometimes it might not make sense when Challenging. But I proba buyer sees it for the first time, but we’ve ably would have answered probably been working on that style for at the same for the past 15 least six months and, in some cases, more years. It’s just a different than a year,” he says, noting that timing type of challenge today is key. “You can be too late or too early. Is because retail is changing your customer ready for it? What else is so drastically. in the market? There’s just so much to it, and we are fortunate to have a pretty good On a broader scale, the track record,” he says. state of the United States It helps that Barad is extremely handsis: Divided. on and a skilled product person. Unlike a lot of top level executives, the shoes must If you could hire anypass through his hands before ever making body, who would it be? it into the line. It’s also another example I would love to hire one of how Taos operates: No one is too big of our retail customers. I or important to involve themselves in the think if we worked togethtiniest details. “We are very entrepreneurial in spirit and not driven by accountants,” he says. “We consider ourselves product people, and having the right, great, understandably fresh product is more important than ever before.”

Much of what Barad says about running Taos involves common sense.

There’s no bombast when it comes to branding strategy or market analysis.

For example, he says, “If the consumer is happy and the retailer is happy, then we’re happy.” Another gem: “I don’t really care about an order. But I love a reorder, because then I know it’s really working.” Of course, it’s not that simple or easy. But sometimes overthinking matters can result in losing sight of that basic formula for success for any full-price, full-service brand. Taos,

in that regard, is refreshing proof that it can still be done the uncomplicated way. Barad is proud yet humble about Taos’s rise to an important brand for its retail partners. “We’re just a bunch of street kids really, just doing what we do,” he says. “It’s a different way to approach this business perhaps, but we’ve put together a good team and we’re in a nice growth mode. Maybe it’s just our time.”

Barad is excited by the prospects for future brand extensions and continued (controlled) growth. Just don’t expect a lot of fanfare or big brand mandates.

“We’re trying to build a brand as best we can by being as transparent as possible and without messing around,” he says. “We want to do well, but not just because we show up. We want to do well because our product is right and the consumer wants to buy it and continue to buy it. We have to make sure what we er they would see what do brings them back.” and why we do what we do

OFF THE CUFF

14 footwearplusmagazine.com • april/may 2017

and we would understand better where they are coming from.

What talent would you most like to have? I wish I was musically inclined. But no such luck.

What is the best business decision you’ve ever made? Moving from private label to the branded world. You never know if it’s going to work out, but in hindsight it’s way better to have equity in something versus not.

What is your favorite hometown memory?

My family moved to Los Angeles when I was seven and it’s of playing baseball during the summers. The relationships that I made…

I’m still in contact with some of those people today.

The brand I hear cited of late as performing well in the face of strong retail headwinds is Taos. Is it, as you modestly suggested, just Taos’s time?

The brand is hot overall and perhaps most encouraging is that the customer is now going into stores and asking for it by name. When you hear that as a brand builder, you feel pretty good.

Has it been a particular style or category?

While there are certain categories that are stronger than others, she has been buying from every category. In general, our shoes are comfortable, supportive and they look good. They don’t look frumpy.

Maybe we just have some pretty good eyes in our building that really understand what they are doing.

Exactly who is the Taos woman?

I don’t see her as being overly specific as we have a pretty wide demographic that ranges from fashionable boomers to young soccer moms. On the one hand, I wish we had something for everybody.

But I also see how being more focused with our collections and target customer is beneficial, too. We are learning that sometimes less is more. Specifically, if we can be more focused it will benefit us in the mid and long term. That way we will gain more of a brand identity. Iconic brands, for example, are known for certain looks just by sight. I would love for Taos to get the point where someone walking down a street sees a shoe and immediately says, “That’s a Taos.”

It takes time, not to mention talent, skill, dedication...

It does. But it’s not like we just showed up and this happened. It’s been 12 years of a lot of hard work. We have a very good team. In this business, you are either growing or shrinking. Companies rarely stay the same size. It’s the same thing

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O&A if you are playing a game, your lead is either decreasing or increasing. I always believed that if we could just maintain our business through the recession, we’d be able to grab a lot of market share. Fortunately, that’s been happening of late.

Primarily through brick-and-mortar retailers, no less.

We are finding a good amount of growth in those channels. The current retail climate has not been affecting us as negatively.

Yet many vendors are turning their focus away from those channels. Why? I think you have to ask: Is the company run by entrepreneurs or accountants?

Are you building a brand for the long term or chasing the money? We all have opportunities and options, and it’s hard to be everything to everybody today. At Taos, we’ve made a distinct choice: focused distribution in better independent and specialty brick-and-mortar stores, a strong MAP policy, truly partnering with our retailers and product, product, product. If we are going to build a strong brand, I believe it has to be done through those channels. Now I don’t know what tomorrow may bring and we could change our distribution if retailers no longer supported us. But right now, they need and want vendors like us, and it’s a conviction of ours to support them in return.

Some say those channels are no longer able to support meaningful growth.

I don’t believe that at all, and there will still be shoe stores going forward.

But the ones that survive are going to have to be fabulous at service, build relationships with their customers, integrate into their communities and work with brands that are true partners who will protect them. I believe it’s going to be the only way for them to survive.

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So, essentially, acting in the opposite manner as many retailers that have gone by the wayside recently.

There’s no service in those stores, so you might as well shop online. But if there is service from someone who is knowledgeable, courteous and you may even happen to know…We’re all human and I believe those types of relationships are important. Some will argue that it all comes down to price, but I believe good service and selection and the ability to shop local can be important factors in where consumers ultimately decide to shop.

Otherwise, you might as well buy it online, especially if you can find it for less and the shipping in free.

I was speaking recently with a friend who is a movie producer and I asked him how his business is doing, realizing that you can just as easily stream a movie at home today. He said business is down a bit but still healthy overall—people are still going to the movies. But he noted that they are going to the best movies.

They are going to something that they really want to see and not just because it’s a weekend. So it’s product, product, product. It’s the same with regards to making a shoe. I constantly ask my team: Who is this for? What are we doing this for? Who are we trying to hit? Why will they want to buy it? We have to make the best product that we possibly can. And those stores where it can be found have to be places that consumers want to shop—the service, setting and selection must make the trip worthwhile. Now those channels will probably shrink overall, but that’s OK because, again, I don’t think you can be everything to everybody. If consumers like what you’re doing, then I believe you can survive and even grow. We believe there’s a very big opportunity for Taos in a very tumultuous time.

It wouldn’t be nearly as tumultuous if MAP policies were adhered to and policed better.

Left unchecked, it hurts our retailers and it erodes our brand. The ability to find a lower price online than at a brick-and-mortar store instantly presents a dilemma for consumers, and most choose the option to save whatever amount they can. But they wouldn’t if they couldn’t. That’s one of the reasons why we’re so committed to trying to make sure everybody is on the same playing field when it comes to price. Today you must invest in policing your MAP policy, particularly the anonymous online sellers. It’s a shame that we have to, but we have no choice as a brand. And we won’t quit. We will find you. We will take whatever actions we need. If it means cutting that account off entirely, we will.

Is it true that Taos has hired a private investigator to root out MAP policy violators?

We did, in fact. And while I would much rather direct the money we are spending on protecting our MAP policy to charity or in further support of our retailers, that’s just one of the costs of doing business today.

Another area of growing tension between vendors and retailers involves DTC efforts. What’s Taos’s position on that channel?

We offer the ability to shop direct on our site but we encourage customers to shop locally via our dealer locator link. We are also investing in new software for our site that we plan to relaunch this summer to better assist the customer in finding a retailer that’s close to them with the particular style, size and color that they want. At the end of the day, the most important component

in this equation is the consumer and our goal is to support our retailers to take care of them.

There’s a middle ground where both sides can coexist?

I believe so. Because, for example, there are some consumers who prefer the DTC option and we don’t want them to leave our site disappointed. We also don’t want to direct them to a retailer that may not have that particular item in stock and is then, possibly, presented three options from other brands that are in stock. That can annoy the consumer who wants to buy our brand. (We’re not overly thrilled about it, either.) The big picture being, no matter what, we can’t disappoint our consumer and we have to do whatever we can to ensure that they are able to buy what they want. Having said that, we believe that’s best achieved with the help of our retail partners.

In response to those brands pursuing DTC programs aggressively, some retailers are looking at private label and brand exclusives as alternatives.

As a former private label exec, is that an effective strategy?

First off, if a brand isn’t allowing a retailer to compete fairly on MSRP then they can’t continue to buy from that brand. Maybe another brand that doesn’t is an alternative? As for a retailer succeeding at private label, that depends on who, how big they are and how scalable that segment is. It’s not easy. No one goes from nothing to a huge private label business overnight. There are quality control issues and, for example, if something sells well, how quickly can you get it back in stock? I would recommend to start with a little test and see if it works. If it does, then try a little more. It’s the same approach for Taos. If it works, then we try a little more. At the end of the day, it >43

Home Run Derby A powerful lineup of projected best-selling comfort styles look to have retailers swinging for the fences this fall.

BY ANN LOYND

JUST LIKE AT the dawn of every new baseball season, where hope springs eternal among every team that this will be the year, comfort brands put together seasonal lineups with equal thought, talent evaluation and analytical

projections, with an overall goal of a competitive, winning lineup and a few home run styles that make for a memorable season.

With that goal in mind, here’s a list of styles that leading shoe sabermetric specialists project

will knock it out of the park this fall. It’s a lineup featuring a mix of proven (updated) veterans and rookie-of-the-year candidates. Each possesses the necessary tools—style, comfort and versatility—to be winners.

Team: Earth

Team: Ecco

Player: Ronan

Player: Kinhin

Stats: It’s all in the details—namely ruched, glove-soft leather uppers and a stylish side-zip give this shoetie everyday fashion playability. And the interiors are just as mindful: Premium leather insoles feature reinforced arch support, multi-density latex cushioning and an Earth Relief Pod for added shock absorption. Available in black, garnet or taupe (shown).

Stats: Available in men’s and women’s in a low and hi-top silhouette, the Kinhin hits on comfort and styling with minimalistic Scandinavian design and athleisure aesthetics.

Re-tanned leather uppers are met with removable leathercovered cork insoles and direct-injected, two-component PU/ TPU outsoles. “Our cork footbed contains 99-percent cork and only one-percent latex for breathability and moistureresistance,” says Felix Zahn, product director. “Plus, the uppers are crafted with a natural tanning process for a grain that provides more breathability than embossed leather.”

All-Star Qualities: “Like the perfect leather jacket you can wear every day, the Earth Ronan encompasses what the brand is all about: authentic comfort plus contemporary style with a twist,” says President Phil Meynard. “This super wearable shoetie is the right heel height, the right shaft height and the right amount of trend-forward style to make it easy to understand and wear.”

MSRP: $100

18 footwearplusmagazine.com • april/may 2017

All-Star Qualities: “First and foremost, it’s the look,” Zahn asserts. “The real ‘wow’ effect will come when [consumers] put on the shoes.”

MSRP: $160 for low; $180 for hi-top

Team: Naot Player: Helm Stats: This bootie may look understated, but the inside has MVP-type features and benefits. Part of Naot’s Aura collection, the Helm features a removable cork and latex leather-wrapped footbed, made with strobel technology to form to the wearer’s foot shape. A padded heel cup and instep up the comfort ante while a padded lining provides warmth and moisture absorption. A 1.5-inch polyurethane outsole features a metal shank and is lightweight, durable and abrasive to prevent slipping. Five color combinations feature mixed-material leather and suede.

Team: SAS Player: Scenic Stats: For SAS’s first ballet flat, Head of Design Becky Polina says the goal was to create “the most comfortable option out there.” The Scenic delivers with a modern and versatile toe shape and comfortable, removable and washable memoryfoam footbed. The forepart of the shoe features flex-strips and Poron cushioning, and the outsole is crafted from lightweight polyurethane for a combination that adds up to what Polina calls “a super lightweight and comfortable little flat.”

All-Star Qualities: “It is a shoetie, which makes it the perfect height year-round,” says Ayelet Levy, vice president. “You don’t need to commit to a bootie or a shoe!”

All-Star Qualities: “You don’t always get all those attributes in one shoe,” Polina states. “The combination of the flex-strips and PU outsole make it flexible and lightweight.”

MSRP: $200

MSRP: Upon request

Team: Birkenstock Team: Tamaris Player: Tora B Stats: All of the brand’s proprietary technology—like ANTIshokk heels that reduce step-by-step impact to relieve the wearer’s spinal column and TOUCHit soft insole cushioning that contours to body weight and foot positioning—are packaged into this fashion-forward bootie. Hand-finished Nubuck leather is met with soft velvet lining and crisscrossed decorative straps decorated with perforation and hardware, available in a black and cigar colorway.

Player: Boston Shearling Stats: Like every Birkenstock style, the Boston Shearling clog contains the ergonomic benefits of the brand’s proprietary cork footbed. Plus, the clog’s comfort is enhanced with the coziness of plush shearling lining, making this the “musthave Birkenstock that consumers will want next,” assures Jacqueline Van Dine, vice president of marketing. The style is crafted from suede and shearling and comes in tone-ontone mocha and black as well as a whimsical mink/natural color combination.

All-Star Qualities: “It stands out with stunning appearance that fits into the continuing short boot trend,” says Jan Brinkmann, president, Tamaris USA.

All-Star Qualities: “This iconic silhouette is setting trends in the fashion world by elevating its style with tone-on-tone shearling,” Van Dine reports. “Consumers won’t have to compromise comfort to look and feel great.”

MSRP: $145

MSRP: $165

2017 april/may • footwearplusmagazine.com 19

Team: Aetrex Player: Mia Stats: Lots of technical comfort features and benefits are wrapped up in this stylish heavy hitter by Aetrex. The Mia contains an ultra-light cork midsole, leather upper, adjustable strap and leather-wrapped heel at a comfortable 2.25 inches height. It also contains the Aetrex Healthy 3: Lynco orthotic footbed for support and alignment, memory foam cushioning and anti-microbial technology to combat odors.

All-Star Qualities: The trendy Mary Jane design can be dressed up or down, notes Product Manager Maggie Baumann, adding that the transitional style can be worn year-round.

“The multi-color braid detail on the shoe gives it a pop of color and a fun detail,” she adds.

MSRP: $150

Team: Rockport Player: TruFlex Chenole Stats: A dressed-up alternative to athleisure, the Chenole’s sleek, mixed-material upper is met by an ultra-flexible outsole, designed with a thin EVA platform. “The outsole is designed to promote flexibility and underfoot cushioning,” affirms Sally Murphy, senior director, women’s design.

“Meanwhile, the interior spine provides stability and motion control.” TruFlex also contains a molded anatomic footbed with a premium leather sockliner for additional support and all-day comfort. The patent-and-suede style is available in black, merlot and olive.

All-Star Qualities: “Women today want the underfoot comfort of a sneaker with the trendy appeal of fashion,” Murphy says, noting that the Chenole offers both.

MSRP: $120–$130

Team: Easy Works by Easy Street Team: Propet Player: Wash N Wear Slip-on Stats: This perennial bestseller for men and women gets a fall makeover with a newly designed slip-resistant outsole, firm heel counter, removable footbed (so shoes can be worn with or without orthotics) and a stretch neoprene gore sock-liner.

Scotchgard-treated suede uppers are machine washable with a brushed-nylon lining while EVA midsoles offer optimum arch support and durability. Available in an array of suede colorways, Director of Marketing Jennifer Sosko reports this Pewter hue is already a key part of many retail lineups.

Player: Appreciate Stats: Part of a new ergonomic work line by Easy Street, the Easy Works Appreciate combines the brand’s on-trend fashion capabilities with the technical comfort aspects needed for those on their feet all day. Slip-resistant outsoles are met with oil-resistant uppers that are anti-microbial and breathable. The brand’s new exclusive technology—the Easy Motion Pro-Comfort system—includes impact-absorbing arch support, a suede heel-cup footbed and an anti-shock EVA outsole. The style is available in seven colors detailed in various materials, including this bold cheetah print.

All-Star Qualities: “This shoe is now both washable and slip-resistant—perfect for this category,” Sosko says.

All-Star Qualities: “The unique factor, as with every Easy Street style,” states President Keith Gossett, adding that being available in 35 sizes (spanning medium, wide and wide-wide) enables retailers to fit just about any customer.

MSRP: $80

MSRP: $75

20 footwearplusmagazine.com • april/may 2017

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J O R DA N E L L E STAT E PA R K , U T

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A N OT E T O M Y Y OU N G E R S E L F

LIFE’S LESSONS Greg Tunney, CEO of RG Barry, looks back on a career filled with self-discovery, satisfaction, surfing, skiing and success. and, once again, believe you will work there the rest of your career. You DEAR GREG, Remember hanging out at the Christown mall work alongside wonderful and talented people. (The list is too long to on weekends in Phoenix? That was when you became infatuated with include.) You learn about brand management, product development fashion and trying to look the part. Times were tight, with three siblings and critical relationships within the retail sector—another building and a stay-at-home mother trying to get by on your father’s police officer block in your career. salary. You didn’t always have the means to buy the coveted brands, but Lesson Learned: Working with great people and good companies your burning desire for the best will serve you well in life. provides a foundation for a productive career.

Lesson Learned: Hungry dogs hunt best and no matter what your As the youngest of Brown’s management team by 20 years, you (misbackground is, you can be successful. takenly) assume you will eventually become “CEO by survival.” Those You will love what you do for a living. You are blessed because you will aspirations end when Daniel Green Company offers you the position work in the exciting, creative world of fashion. You will rise through the of president and CEO. Chairman Jim Riedman shares his vision of footwear industry, working for leading companies and traveling the world acquisitions, and you are all in. You move your wife and four children to feed your passion for footwear and to chase its sourcing migration. to a rural town in Upstate New York. Your industry friends say you are The odyssey begins in Italy, France and Germany, then shifts to Brazil, crazy to leave Brown and, at first, it seems they are followed by Japan, Taiwan, China, Vietnam and, last, right. At 35 years old, you are not prepared to be Cambodia and Indonesia. Over your career, you will president of a publicly held company. It’s a baptism work in St. Louis; Dodgeville, NY; San Diego and by fire and while you make mistakes, you have the Columbus, OH. Each experience will have challengsupport of management through it all. Under your es and triumphs. You will work alongside talented leadership, Daniel Green will acquire six compapeople who will help you grow as an executive and a nies in seven years and relocate to San Diego as the human being. As president and CEO of two publicly renamed Phoenix Footwear Group. held companies, you will even get to ring the mornLesson Learned: The journey is more important ing bells on the Amex and Nasdaq stock exchanges! than the goal. Enjoy the ride, don’t take yourself or Your journey starts in West High School, then your position too seriously. considered the “most ethnically diverse school in the For the first time, you are financially secure. You country.” You are fortunate to experience the beauwant to focus on the company’s systems and operty of diversity during those years. You will excel in ations, but the chairman wants to acquire more football, securing a scholarship and becoming the businesses faster. You learn the chairman is always first in your family to attend college. But before that, right and sign a multi-year non-compete. You take you will serve a two-year mission for the Mormon a sabbatical, surfing and skiing with your family for Church in East St. Louis, MO. The experience will a couple of years. change your life. You will learn to lose yourself in the Lesson Learned: Presidents don’t get fired in this service of your fellow man and how to love people industry; they have disagreements with their boards unconditionally. Upon your return home, you will Hot Shot: Greg Tunney circa his and move on to bigger opportunities. enroll in Brigham Young University and play football. high school gridiron glory days.

Your sabbatical ends in 2005 while you’re surfHowever, four knee surgeries over the following two ing in San Diego with your kids. RG Barry asks you to become presiyears will set you on a path to pursue knowledge instead of touchdowns. dent and CEO. Jim Riedman, a gentleman, releases you from the nonLesson Learned: Loving, serving and helping people is the foundacompete agreement. You relocate to Columbus armed with experience tion for leadership and a happy life. and lofty goals to change the corporate culture. With help from the During your senior year, you will be named president of BYU’s Retail Covey Institute to build strong work habits, efficiency, trust and disciManagement Association. Upon graduation, you accept a position as pline, RG Barry will generate more sales growth and profitability in the an executive trainee with May Company. The year is 1986 and departpast 10 years than in its previous 60 years! While proud of those fiscal ment stores rule the retail landscape. You fall in love with the compaaccomplishments, you are prouder of the corporate culture imbedded ny and believe you will work there the rest of your life. You have great in RG Barry, and you believe it will sustain the company [now privatementors—Ken Hicks, Tom Kingsbury, Scott Ramsland and many more. ly held] for decades after you move on.

Though 80-hour weeks are the norm, you’re too young to think any Lesson Learned: Develop culture and people, and the rest of the busidifferent, and you thrive. You will be forever grateful to May Company ness takes care of itself. for teaching you how to be a merchant.

The relocations, the learning curves, the challenges, the triumphs— Your hard work and long hours pay dividends. Brown Shoe Company you will love all of it! Most of all, you will treasure the relationships you offers you a position in its wholesale division. These are difficult years, will make over the next 30 years. Best of all, it doesn’t end here. New however. The company will shut down 32 domestic factories during your challenges, opportunities and relationships lie ahead! first two years, laying off more than 30,000 employees as it restrucLesson Learned: If you love change, you will love the footwear industry. tures its business model. Nonetheless, you love working for Brown

22 footwearplusmagazine.com • april/may 2017

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T R E N D S P OT T I N G

Helm

THINK THICK Chunky-soled derbies give guys a manly boost for fall.

P h o t o g r a p h y b y Tr e v e t t Mc C a n d l i s s

24 footwearplusmagazine.com • april/may 2017

Ecco

Aetrex

Birkenstock

Right Bank Shoe Co.

Pikolinos

2017 april/may • footwearplusmagazine.com 25

Thierry Rabotin color-block flats, dress by 360 Cashmere, Scotch & Soda button-down, Fashionest choker (worn as bracelet). Hosiery and socks throughout by Marcmarcs.

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Convertible slip-ons by Bill Blass, Asos dress and Aella trench, Spartina 449 earrings, stylist’s own scarf. Opposite: All Black highcut flat, Elizabeth and James blouse, Maje tank, Cinq á Sept jeans, stylist’s earrings.

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Embroidered flats by Seychelles. Opposite: Fly London wedge, 360 Cashmere sweater, Maje tank, Prps jeans, sunglasses by Etnia Barcelona, Mon Purse bag.

31

Pointy-toe rose flats

by Azura, Born slip-on.

32

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Sculptural slip-ons by French Sole. Opposite: Rockport high-cut ballet flats, dress by French Connection, Scotch & Soda bomber jacket, Fashionest choker.

Aella, Maje, Cinq á Sept, French Connection, Elizabeth and James and Scotch & Soda available through Bloomingdale’s.

Fashion editor and stylist: Ann Loynd; stylist’s assistant, Daniela Lukomski; hair and makeup: Abraham Sprinkle/Next Artists; model: Vika R./APM

35

EDITOR’S PICKS

Kennel & Schmenger

Hispanitas

D E S I G N E R C H AT

DESIGNER IVY KIRZHNER is a true artist in every sense of the word.

Born in the Philippines and raised in Queens, NY, she attended high school at the prestigious LaGuardia School of Music Art & Performing Arts (with famed classmate Nicki Minaj) before graduating Summa Cum Laude from the Fashion Institute of Technology, where she studied footwear and accessories design. Also a musician and painter, Kirzhner decided the best path for her talents was in shoes. “I have always known I wanted to be in fashion, following my sisters’ footsteps,” she says of her two older siblings, both designers. “But I wanted to do something that utilizes a bit of architecture, industrial design and engineering.”

Before launching her eponymous label in 2012, Kirzhner honed her skills working for such brands as BCBG Max Azria, Herve Leger and Dolce Vita. Then, she says, “It was time to do something different that would truly challenge me.” The designer also saw an untapped niche between contemporary and luxury—one that she addresses with a bold women’s empowerment design ethos. “Our signature elements always consist of unique hardware and fine embellishments that amplify our voice,” she says. “Our shoes, just like the rest of an ensemble, can be like armor. It’s a protective layer, and how you wear it defines your statement to the world.”

For Fall ’17, specifically, that translates to footwear statements that are whimsical and nostalgic yet modern. “We have crystal patchworks and ornamentations, metal heels in fresh new colors as well as lots of fur pom-poms and jewel-toned velvet treatments,” Kirzhner says.

Having attracted a celebrity following that includes Beyonce, Jennifer Lopez, Jamie Chung and Tori Kelly, Kirzhner’s label also counts influencers and young professionals in creative fields as loyal fans. “She definitely desires luxurious items, but is always in search of something unique and different,” Kirzhner’ notes of her target consumer. The brand’s downtown vibe also makes Manhattan’s Greenwich Village an ideal location for its new flagship, opened earlier this year. “The West Village is a landmark that has the best bars, restaurants and shopping,” Kirzhner says. “Our 36 footwearplusmagazine.com • april/may 2017

French Sole

BE JEWELED BEAUITIES Pearl de tails transform ordinar y flats into real gems.

store sits on the juncture between the Soho and Meatpacking districts, and I just love the overall vibe and scenery.” —Ann Loynd Where do you look for inspiration?

Inspiration is everywhere. It all depends on my mood, the narrative I want to evoke for the season and, of course, I always look for a new story to tell with each collection.

That’s the part I enjoy. But I also think about how our girl—our modern muse— is going to apply these articles in her seasonal wardrobe.

Who is your ‘girl’? She’s someone who loves being fashionable, cultured, welltraveled and enjoys making a statement through unique fashion pieces. She’s a trans-Atlantic downtown creative, who’s got both New Yorker and European sensibilities. She covers a spectrum of styles from being laid-back chic to fun, bold and eclectic.

As a New Yorker, how does the city influence your designs? New York is everchanging, and I aim to capture how rich its culture is in my designs. The city also keeps me honest. I have to think about heel heights, comfort factors and truly what we would all really wear out and about.

Who is your fashion icon? David Bowie.

He was the only true unicorn.

What is your motto? Kick ass, roll with the punches, keep it real and never ever give up.

What’s the greatest shoe of all time?

Sneakers. They’re the future.

What would you be doing if you weren’t a shoe designer? I’d be doing a myriad of random yet wonderful things—from being a fine artist and musician to rescuing animals and hunting for ghosts.

E D I TO R ’ S P I C K S P H OTO G R A P H Y BY T R E V E T T M CC A N D L I S S

IVY KIRZHNER

TWO TEN

The May Event Call or email the USRA office for Membership info or a May Event package * i\Ê­n£n®ÊÇäÎ ÈäÈÓÊÊÊUÊ > \Ê `>J1-, i° À}ÊÊUÊÜÜÜ°ÕÃÀ> i° À}

W H AT ’S SELLI N G

Comfort Specialty

ZFEET COMFORT SHOES & ORTHOTICS

W

Charlotte, NC

HEN KEN ZELIN turned 40, he went to the doctor for his annual physical complaining that his feet had been killing him. The doctor ruled out anything severe but recommended purchasing a “good pair of shoes,” to which Zelin questioned what exactly that entailed.

“It was a real eye-opener when I realized doctors don’t necessarily know anything about the technology behind a good comfort shoe,” Zelin remarks. Serendipitously, that discovery came during a fork in the road at his stuffy corporate job, leading Zelin to make a career leap to becoming a pedorthist.

After a brief run as a franchisee, Zelin decided to go it alone with the opening of Zfeet in April 2015. The 1,200-foot-shop features a tight selection of key comfort brands, including Naot, Saucony, Taos, Aetrex, Brooks and Vionic. In addition, orthotics by Aetrex, Orthofeet and Saluber, as well as custom-made options are in the offering. Zelin is focused first and foremost on finding the perfect shoe (i.e. fit) for each customer. Call it the Zfeet advantage as its two certified pedorthists—Zelin with 10 years experience and his partner Paul Henderson with more than 30 years—know plenty more about fit and foot health than the average 19-year-old store employee or a consumer searching online for answers. “We apply our expertise and really put hands on feet,” Zelin says, adding, “This is where we can make a difference in brick-andmortar as opposed to some sort of online diagnosis service where the foot can’t actually be analyzed.”

—Emily Beckman

come into our store and say, “Just make me comfortable so I can go to work.”

Once she finally gets put in the right pair of shoes, it makes such a difference.

What are your top-selling brands? Our best-selling brand is Naot. The removable footbed allows us to make modifications and they offer many style options that are well-constructed and last a long time. Naot is also moderately priced, which our customers appreciate. Other top brands are Vionic and Taos.

What is the most effective way to reach potential customers? Word of mouth. But we are doing a little more advertising than we used to, mostly in newspapers. I’m thinking about where and how to get into social media. The majority of my clients, however, are not the type to be looking at their phones all day. They might have a Facebook account, if anything.

Any new brands added of late? I just started bringing in Aravon. They make a solidly constructed shoe that comes in multiple widths. Their sandal line, for example, comes in at least three widths, sometimes four. The styling is also much better, which includes some with two-inch heels while still providing a lot of support. I also brought in some new spring styles by Taos, which feature a very wide base with a three supportive straps and a back strap.

In general, it’s important that the styles we carry are able to accommodate a variety of widths.

Who is your clientele? Anyone whose feet hurt! We help athletes to the elderly. We get many referrals from doctors, even pediatric cases that don’t necessarily need new shoes but simply new insoles to help with flat feet and other issues common in children ages 5 to 17. That said our most common customer scenario involves nurses. Coming out of school, she still wants to look good and will walk concrete floors for years in trendy shoes. But by the time she’s married and has had children, her feet will have changed, and she’ll 38 footwearplusmagazine.com • april/may 2017

What are you looking for in a brand? Quality of construction. Whether or not the shoe has a shank, strong heel counters and a broad toe box. Not a lot of women with bunions are getting into pointy toe shoes.

How important are orthotics to your business overall? We do a pretty big business in over-the-counter orthotics as well as custom-made, which we make in the shop. With the over-the-counters, we carry brands that we’ve expertly selected based on their high-quality support. While there are cheaper brands you can buy in supermarkets or Walmart that provide relief for 15 minutes, we only offer our customers brands that have arch support and heel cups that work.

What’s the biggest challenge currently facing your business? Online competition. The Internet is a wonderful place, but it can also be an awful place.

Just Google plantar fasciitis, for instance. Your search will result in more than 9 million hits of “the perfect cure.” However, about 8,999,992 are wrong for you. The fact is everybody’s foot is different. Take, for example, Dansko—arguably one of the most comfortable shoes in the world. But only if they match your arch. If they don’t fit correctly, then you need to take into consideration aspects like motion control. That’s where we step in, and it’s amazing when people who have been searching for help come into ZFeet. Oftentimes, they might be skeptical, but once we talk to them, bring out a model of the foot and explain where it hurts and why, we immediately see that customer grow more trusting.

What about doctor referrals? There are a lot of orthopedic surgeons in the Charlotte area that know what we can do for their patients. On the other hand, there are a couple podiatrists that won’t work with us because they view us as competition. In my opinion, let them diagnosis, let them cure, even let them make the orthotic. But at least let us put that patient in the right footwear to complement their orthotic.

What’s the most difficult business decision you’ve made in the past year?

I finally got out of the diabetic shoe business with Medicare. The program is just absurd. It was a major part of my business, but it just wasn’t worth it anymore. That will be my biggest challenge: trying to replace that revenue.

What do you love most about your job? When someone recognizes me, shows me their shoes and says thanks. That’s happened even three or four years after I’ve sold them shoes! It feels good to know you’d helped people find relief.

P H OTO G R A P H Y BY J O S E P H P LU C H I N O

T R E N D S P OT T I N G

HEARTFELT Nubby wool adds craft appeal to mixed-material styles.

Clockwise from top left: Woolrich, Sorel, Alegria, Thierry Rabotin

2017 april/may • footwearplusmagazine.com 39

U P C L O S E AT H L E T I C

Moose Crossing

Fitness Craze Beachbody adds footwear to its regimen.

BEACHBODY, MAKERS OF such popular at-home workout regimens as P90X, Insanity and 21 Day Fix, flexes a serious following. To be precise: there are an estimated 23 million followers to the $1 billion–brand’s fitness, nutrition and weightloss programs—many of whom are guided by the company’s 450,000 independent “coach” distributors—and 5 million–plus monthly unique visitors across its digital platforms. The stats scream brand extension potential, which is exactly what Killick Datta, CEO of Global Brand Partners (GBP) and licensee of Beachbody footwear, aims to do with the launch of a performance fitness line for Fall ’17.

“We’re treating fitness as its own sport,” Datta explains. “We’re going to specialize in that world—you won’t see Beachbody running or basketball shoes.” To that point, GBP invested in extensive studies that focused on how the body moves during high intensity interval training (HIIT), examining workouts like burpees, power jumps and squats to determine impact and joint movement. To address those factors, Beachbody sneakers are lightweight and feature a full-length memory foam molded sockliners designed to help with shock absorption. In addition, breathable and flexible uppers provide comfort and motion control.

The line is divided into three segments—Elite, Performance and Sportstyle—that target specific workouts and fitness levels. Elite is for professional athletes and hardcore gym-goers, and will retail in high-end boutiques and specialty shops. Suggested retail is up to $160 on select styles. Performance is aimed at specialty sport shops and sporting goods stores, retailing between $85 and $130. Sportstyle targets the yogi/Pilates athlete who wants a transitional look from gym to street. Prices will range from $75 to $110.

Datta, the former CEO of GBMI and licensee of Diesel Footwear, stresses that while he would be happy to see Beachbody styles “trickle down” to street fashion, the target demographic is athletes. “It’s for the person who goes to the gym to work out,” he says. “We’re not focusing on people who want to wear them to the mall. But if that’s a byproduct, great.” He notes that the approach is similar to Nike’s. “You’ll never see Nike ads that show people going to the mall. Everything Nike does is sports,” he says.

So far so good as Datta reports the reaction to Beachbody’s debut at the fall market shows (ISPO, Magic, Active Collective and Project) was “incredible.” He notes that the brand already has a foothold in 25 countries. “We’re selling to all the majors, and the reaction has been tremendous,” the athletic industry veteran reports.

Despite an increasingly cluttered athletic footwear market, not to mention dominant brands within it, Datta is confident Beachbody is coming to market at the right place and time. “It’s a legitimate fitness brand,” he says, noting that everyone is health conscious today. “This gives us a huge opportunity.” It also helps that Datta has a long track record of helping build large athletic brands. “I’ve done this so many times before,” he says. “We have a great team, a focused strategy and great product.” —Ann Loynd 40 footwearplusmagazine.com • april/may 2017

Moose Knuckles extends collection to boots and sneakers.

KNOWN FOR ITS luxury coats and streetwear, Moose Knuckles is debuting a tight line of high-end boots and sneakers for Fall ’17. The stateside launch will be through its e-commerce site and an exclusive retail partnership to be announced later this year.

The strategy follows the brand’s outerwear launch in the U.S., which debuted exclusively at Saks Fifth Avenue before extending to luxury retailers the following season.

“We find the very best luxury retailer and partner exclusively with them on our launch,” explains Steph Hoff, creative director, adding, “We want to nurture that new-market growth.”

The collection includes four fur sneakers for women and two winter boots available for men and women (with or without fur), retailing between $450 and $695. Women’s styles include the Massawippi and Magog boots, featuring a silver fox and blue fox fur collar, respectively. The men’s Tungsten and Wrigley leather boots feature waterproof and Thinsulate linings as well as a TPR shell for added protection against the elements. And while Hoff says the boots can hold their own compared to other all-weather styles on the market, Moose Knuckles doesn’t promote technicality, preferring the looks do the bulk of the selling. “We saw a hole in the marketplace for a boot that was technically superior, which we knew we could bring to the market, but that could also just look jiggy,” she muses, noting its Canadian heritage is a tremendous design asset. “We have to wear this more than half of the year,” she says. “The only way to look cool when it’s cold is to look warm.”

Hoff says for those less wintry days, consumers can opt for its sneaker styles, which blend lightweight construction with cozy fur treatments. Styles span the Clemence all-over blue fox–fur moonboot sneaker, Coursol blue-fox trimmed court sneaker and Berri hi-top with muskrat or beaver trim. All styles feature full-grain leather uppers, pigskin linings and lightweight and flexible cupsole constructions. “The fur winterizes the sneakers and gives them an après ski feel,” she says. “The look is wintery, but you don’t really need to be that warm.”

Moose Knuckles footwear is crafted in partnership with Rallye Footwear Inc., a family-owned business and factory founded in 1991 and based in Anjou, Quebec. “We wanted to bring that slick, urban-contemporary vibe to a heritage company,” Hoff says of the collaboration. To drive that message forward, Moose Knuckles is launching an aggressive seeding program among its celebrity clientele that runs the gamut from musicians The Chainsmokers and Drom to actress Kate Bosworth. “If you walk down the street in Toronto or Montreal, everyone cool wears Moose Knuckles,” Hoff asserts. —A.L.

S P E C I A L R E P O RT THE POWER OF LOYALTY PROGRAMS

ACE YOUR SPACE NYC’S STORY : EMBR • P L E F O R G U YS T H E N E W S U M M E R STA

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Lost in the flood: Many South Carolinians are in continued from page 10 need of footwear and clothing donations. products suggested via their buying preferences as an example. Along similar lines, Ann Taylor Loft customized an entire loyalty program around one target audience: teachers.

It offers special discounts, exclusive sweepstakes, events and even grants.

Another tip: Make your loyalty program as pain-free as possible. Rack Room Shoes did just that when it recognized that the initial requirement of an email address in order to join was a real pain. “Customers didn’t like giving their email at the point-of-sale because they don’t want to get a bunch of emails,� Voss says. “Plus, it takes the associate longer to complete the transaction.� The solution? Rack Room Shoes now requires only a mobile phone number to be given at the register. When customers sign up, they receive a text message that allows them to respond with their email address (hereby eliminating the high rate of misspellings that were happening at the register). And if they still don’t wish to provide an email, customers can remain part of the program and get periodic text messages with rewards or upcoming promotions. Voss says the changes have been a win-win for customers and employees—an important aspect to keep in mind. “Does this idea benefit the customer and store associates? If not, then that’s how you know it’s time to change your program,� he says.

Perhaps an obvious but important tip to keep in mind when evaluating a loyalty program’s effectiveness is the ROI. “Compare the revenue-per-user for loyalty users and non-loyalty users to monitor the success of the program,� advises Palnitkar. “The ROI from a loyalty rewards program should be very high.� Zappos’ Deshpande also recommends keeping tabs on Key Performance Indicators (KPI). “There should be a lot of different KPIs around the program,� he says. “As soon as you start to see the slipping of those KPIs, that’s when you say, ‘OK, what are some other value propositions we can deliver to customers?’�

Negen concurs, noting that the minute a loyalty program starts feeling fatigued to your customers (meaning they aren’t paying attention to it anymore), then it’s time to start thinking about doing something different. But rather than bury yourself in analytics searching for solutions, he advises to go direct and ask store associates and customers what they like and dislike about the program. Sometimes, he notes, the fix might be simple. For example, Negen says it’s important(S4S) to make are spreading the word effecSouth Carolina is a high SOLES4SOULS IS sure associates tively about the program anda its he recalls priority for us.�being a loyal customer answering callbenefits. for help Case in in point: of a hardware store where, for two years, employees repeatedly asked atS4S theoutregister, “Do Tiffany Johnson, South Carolina after catastrophyou have a rewards withravaged us?� Negen answered reach no each time, waiting vain for the coordinator, takesinthis ic card flooding the state relief effort She recently. follow-up question, “WouldRecord you likerainfall—more to join?� His takeaway being:personally. “The loyalty program has was raised in one of sort the hard25into inches—forced thouto be structurally than woven the fabric of your business.

You can’t just of poke at it.� est hit areasprogram and her mother sands from their homes and “The biggest mistake you can make is to build a great loyalty but not promote still lives there. soon as wefeatured 20 counties haveadding, been declared it aggressively,� agrees Palnitkar, “The program should be “As prominently realized the scope of this, I was about federal disasters.

While 17 peoin your communication to customers.� He advises to place the link to information the phone vari-as well plehome lost their lives, tens of thou- andon the program on the page banner, header footer of thetalking store’swith website ous agencies in South Carolina sands more rewards are without power as create a dedicated loyalty page.

In addition, there should be an introductory about how and when we could and water, and many others lost email and monthly email communication about the program. help,� she says, noting one of all of their belongings.

One more tip: Patience is a virtue, according to Voss of Rack Room Shoes. A loyalty proher mother’s co-workers lost In response, S4S is issuing a gram isn’t necessarily instant magic, as the benefits can take time to appear. “Don’t expect everything. “My mother asked plea to footwear retailers and or promise an immediate lift in sales,� hein says. yeartogether or two to understand if weneed couldaput a few manufactures to assist a “You really who is shopping and what their behaviors are before you can really drive strategies against pairs of shoes for her co-worker, relief mission. The non-profit is that.� Similarly, Hanifin stresses importance out with clear so I sent casual, dress objectives and ten- when partnering withthe local emergencyof starting creating a program that will be compatible and supportive. “The first meeting everybody nis shoes,�

Johnson says, adding responders in order to provide talks about the types of rewards, how the creative will look, whether there will be a card‌ that such a small, but meaningshoes and clothing to those in Put the brakes on need. that,â€? “We he says. “If you any begin with thefulend in mind, go through a good gesture, hadyou an enormous are asking and process and get where you need to be.â€? impact. “My mom brought the all retailers or manufacturbox of shoes to for work and her to fit in, ersdone to donate boots,communities, athletic Loyalty programs well build offering a place customers was overcome with painand children’s footwear,â€?it’s says feel special and appreciated.

Ultimately, all about co-worker the experience.

Make it simple, emotion,� she says. loyalty program.

Brian free and rewarding, andGranfors, you’ll becreative on yourdirecway to creating a successful tor of S4S.that Addsloyalty CEO Buddy To donate shoes and clothing What’s more, experts agree programs are the strongest solution to attracting Teaster:“I“Responding to natural South Carolina floodin victims and retaining customers. think everyone is going tofor need a loyalty program the future,â€? part ofgrow the a customer or makedatabase a monetary to kind Voss says. “There’sdisasters no otherhas waybeen to quickly thandonation offer some Soles4Souls mission from the S4S, contact Pattie Graben at 615of value proposition, and loyalty is the best way to do that.â€? Negen believes foregoing a very beginning and helping 541-7007 or pattieg@soles4souls. loyalty program today is not even an option. “Without a loyalty program, all you can do is people get back on their feet in org. —Laurie Cone hope people will come back again,â€? he says. “But hope is not a marketing strategy.â€? •

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Feel free to contact us anytime at circulation@9threads.com or (440) 871-1300 with your questions. june 2008 • footwearplusmagazine.com 51

SCENE & HEARD

Branching Out EARTH SHOES LIVED up to its name this Arbor Day by donating 100 percent of proceeds from its e-commerce site to Trees for the Future, a non-profit organization dedicated to planting trees and developing forest gardens in Third World countries. The initiative aims to combat poverty by bolstering communities’ abilities to create renewable food sources.

The charity’s ethos is in line with Earth’s ongoing efforts to plant trees worldwide.

Currently, the company plants a tree for every item sold on its website and has planted more than 120,000 since the program launched in 2015.

“Trees for the Future was a natural partnership for Earth Shoes, not only because of their tree planting efforts, but because of their dedication to improving lives of thousands of poor families through sustainable farming,” says Katie Dobbs, director of marketing. “Working with the organization has an impact on the earth and the lives of the people who truly need help, and we hope to only increase our partnership in the future.” —Ann Loynd

Kicking it Up a Notch THE LIMITED EDITION Gallery, distributor of artworks with sneakers as subject matter, showed select pieces for the first time at Art Expo New York in April.

Curator Raeven King sought to introduce the kicksrelated works (paintings, photographs, sculpture and drawings, including “Uptowns” by Graph Atik, pictured) to an audience who may not be familiar with sneaker art.

“The show provided exposure to a different audience, people who weren’t necessarily looking at sneakers as a form of art,” King says, noting that the nostalgia factor gives sneaker art its appeal, along with a grown-up outlet for adult collectors. “As you get older, you can’t keep collecting sneakers,” she suggests. “Art is also a commodity. It’s another way for fans to express their passion for sneakers.” —A.L.

Camper Opens WTC Flagship CAMPER HAS OPENED a flagship in the Westfield World Trade Center mall, becoming among the first 116 stores and food service outlets at the 365,000-square-foot shopping center (the largest mall in Manhattan) at the base of the new World Trade Center complex.

The 650-square-foot store continues in the Spanish brand’s tradition of unique designs and shopping experiences. (Camper operates more than 300 stores worldwide.) Designed in collaboration between the brand’s in-house team Studio Camper and the New York–based firm Montroy Andersen DeMarco (MADGI), the store’s layout centers on white-painted, aluminum diorama cabinets of varying dimensions intended to showcase either individual pairs of shoes or small collections. “The store’s design is based on the idea of diorama-like exhibits, in which shoes serve as the focal artifacts,” says Steven Andersen, principal at MADGI. “The boxes feature Orion Sword LED light strips hidden in the top sections of each display, and replaceable photo backgrounds that reflect changing seasons and inspirations for each shoe design,” adds MADGI Project Manager Ajay Waghmare. —Greg Dutter

42 footwearplusmagazine.com • april/may 2017

O&A continued from page 17 can’t be just about price. If it is, then you are probably not going to succeed. It has to be about the product, first and foremost. If you happen to be a great eye, then maybe it’ll work. And while I believe the majority of consumers prefer to buy name brands, I encourage retailers who are curious to give private label a shot. Sometimes it’s just fun—going to Micam, picking up 100 pairs and seeing what they might mean. It’s not going to drive your business, but how cool is it to have your store name on the label?

Nothing in this business is easy, but you have to at least try new things.

That’s why an entrepreneurial spirit is nice. But, I agree, none of this is easy. If you are doing a start-up, for example, are retailers as likely to give you a shot today? And if they do and the shoes don’t sell well, will they be able to pay for them? That’s why start-ups tend to go away. Personally, I would hate to start a business in this climate. It’s just a tough environment and a lot of retailers are scared. But I would also argue that if you don’t try new things, you are going to get hurt in the long run. You can’t be afraid to fail. Vendors also need to try new things, and retailers should be willing to give tests and not just send it back if it doesn’t work right away. That’s a disincentive for vendors to test new concepts. If we think a new item makes sense and we explain why, then why not test three colors and 18 pairs and see what happens? If this test doesn’t work, just mark those down, move them out and we’ll move on to the next thing. Because, as often has been the case with Taos, you’ve tried three other tests that worked and you went on to sell a ton of pairs. Unfortunately, the overall mentality isn’t like that today if a test doesn’t do well. We need work together more in this regard.

Is there more confrontation between vendors and retailers these days than usual?

Perhaps. But this is a blip in time. The industry continually evolves and you just try and find a way to adapt and survive. Whatever the outside factors may be, we must always keep focus on trying to make our retail customers and consumers happy. The rest usually sorts itself out. That’s why we don’t obsess over dollars, pairs, etc. We just want consumers to come back to our brand. We also want retailers to not only love our shoes but also love working with the people in our office. To know that they are there to truly help them. In return, maybe they will feel more indebted to do the same by us?

Common courtesy and sense, really.

Yes. But we are living in a unique time and you really have to think long and hard about the business. You can’t just dial it in anymore. It’s not just about numbers. It’s passion about your store and, as a vendor, passion about your product. It’s passion about making the consumer want to come back.

Where do you envision Taos in five years?

While we take it one day at a time, we envision a nice growth trajectory because, for starters, we’re sill relatively unknown. This has all been grassroots, to date.

As we continue to develop and grow our fan base and retailers continue to see our shoes turn well, I think we are going to grow nicely over the short and midterm just because of those factors. We also have several additional opportunities for growth, like expanding into men’s and kid’s categories as well as accessories. Overall, we see a huge amount of opportunity going forward and hopefully we’ll get there when we get there. We’re in no rush.

What do you love most about your job?

The relationships. If I’d been an accountant, sitting in some office in Century City, I’d probably only know my coworkers and those in my neighborhood.

Because of this industry and our company, I have relationships with people all over the world. To be able to visit our retail partners in any state or meet with our agents and factory owners in Spain, Portugal, Italy, China or wherever and maybe have dinner…How great is that? That’s the beauty of this business. •

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Wild Ambition

Sultan of Sneakers Mo n e y K i c k s , D u b a i ’s f a m e d teenage sneakerhead, to open first sneaker boutique.

B Y E M I LY B E C K M A N

Home Sweet Home: Money Kicks inside his sneaker house.

RASHED BELHASA, A.K.A. Money Kicks, lives large. Really, really large.

Considered Dubai’s first certifiable sneakerhead, the 15-year-old’s coveted kicks collection—estimated currently at 500 pairs and stored in a personal “sneaker house”—has helped make him such famous friends as Wiz Khalifa, Mariah Carey, French Montana, Fat Joe and TI and generate an impressive social media fan base of nearly 600,000 YouTube Hear Us Roar: Money Kicks, subscribers and 450,000 followers on Wiz Khalifa and tiger.

Instagram. When in Dubai, celebrities often drop by to view his collection, which is estimated at more than $30,000 in value, as well as tour the 400 exotic animals in his at-home zoo that includes monkeys, white tigers and designer-bred “ligers.”

Belhasa, whose father is a United Arab Emirates (UAE) construction mogul, is now branching out with plans to open his own sneaker boutique in the coming months. The store, Up Dubai, is a franchise by rapper Fat Joe that Belhasa hopes to make the most successful sneaker boutique in the Middle East. He plans to sell his favorite brands, including Nike, Jordan, Adidas, Philipp Plein, Off White and Dsquared2, as well as his own apparel brands Money Kicks and KA-1 (stands for King’s Ambition). As with any sneaker boutique, exclusivity will be key, according to Belhasa. He claims the store’s selection won’t be available anywhere else in the Middle East, and he’s already attained exclusivity in Dubai for Sprayground backpacks.

Belhasa is mum on store specifics but says the location in the Dubai Mall—the world’s largest shopping center by area and featuring 1,200 shops—will feature huge attractions, including a “Ferris wheel of sneakers.” He also plans to stage frequent in-store events with celebrities by enlisting the help of friend and business associate, Fat Joe. In addition,

44 footwearplusmagazine.com • april/may 2017

he will host interviews for his YouTube channel in the store. “Nothing in Dubai is impossible,” says Belhasa. “My store will be a place to see and definitely the shop to stop in and shop.”

Due to UAE’s strict regulations on consignment, however, one thing customers won’t be able to buy at Up Dubai is anything from Belhasa’s coveted sneaker collection. Nonetheless, the teenage entrepreneur hopes to cash in on some of those styles some day. “Every year the prices go higher, so it’s an investment,” he says. “People have become millionaires [selling sneakers].”

The priciest shoe in the collection right now? A game-winning pair of soccer player Paul Pogba’s cleats, worth $20,000. Other notable styles in the collection include a 2004 pair of Air Jordan 13 “Breds” complete with a certificate of authenticity and approximately 200 pairs of Yeezys. “I love sneakers and I love getting [pairs] other people don’t have,” Behlasa says, adding, “I like to be different. In Dubai, nobody had been a sneakerhead before, so I became the first one.”

Belhasa has never been a retailer before, either. But he’s smart enough to know that he must hire the right team to manage the store and is seeking out the best minds to guide him. “People always say that I only hang out with grown-ups, but it’s because they teach me what can’t be taught in schools,” he says. “Everyone I hang out with has been through different things to make them successful, so I’m like a sponge, and I take a little from everyone I meet.” Belhasa assures, however, that he will be involved with Up Dubai on a regular basis. “I will always be hands-on with the store; it’s my baby,” he says.

Belhasa has plans to open additional outlets across the Middle East, followed by expansion into Europe. “I want to be on the cover of Forbes 20 Under 20, and I will not stop until I get it,” he says, adding that he hopes his drive inspires other young people. “I want all kids my age to start young and take over the world.”

Asked if he hopes to launch his own footwear brand one day, Belhasa quips, “They don’t call me Money Kicks for nothing!” We’ll take that as a yes.

C ALV IA

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