Winning Formula

Ecco focused on core categories and revamped its distribution strategy to drive growth in 2022 and beyond.

center of our conversation. We fixed our supply chain issues. We reset our merchandising and distribution strategies. We opened a New York design studio. And finally, we developed a new brand platform that we will debut in the second half of 2023. In the end, we’re exiting the pandemic in a much stronger position than when we entered it.

What were some key product highlights? The highlights revolved around three aspects. First, a strategic shift to a “Core of Ecco” approach, focusing on making Ecco the best and most authentic version of Ecco that we could be and not trying to be something else or to chase the market. For us that meant focusing on comfortable, Danish by design, dress/casual leather shoes for the modern family, which is 90 percent of the consumers, 90 percent of the time. Second, we adopted a franchise approach: win with our proven winners and drive color, material and style extensions on our best-selling platforms, which are Soft, Helsinki, Yucatan, Street, Track, and Biom. Third, we delivered real product benefits to the consumer taking advantage of our “farm to foot” vertical supply chain, where we own our footwear factories and leather tanneries. The result is shoes that are better built, and built better.

What were some other successful brand initiatives in 2022? We returned to our roots and refocused our distribution on our great wholesale partners, especially the independent channel that really built this brand with consumers in the U.S. as well as with our best-in-class department store and ecommerce partners. We continue to believe in a premium, multi-channel distribution approach but now see our full-price brand stores more as brand lighthouses and less as national scale distribution. We believe our return to a wholesale focus will give us more access to more modern family consumers and force us to be the best Ecco that we can be given the highly competitive nature of the channel. Wholesale keeps you sharp.

ECCO PLAYED TO its strengths in 2022, doubling down on its core platforms and winning styles. The strategy proved successful for the Danish brand, a repeat winner in the Men’s Comfort category.

In expanding choices within its best-selling platforms, Ecco gave consumers more of what they wanted, and the response was strong. The company also revamped its merchandising and distribution strategies. While its full-price flagships remain a key piece of its multi-channel mix, Ecco’s renewed focus on wholesale is designed to drive growth going forward. The company also opened its first U.S. design studio, a 7,000-square-foot facility in Brooklyn, NY, early last year to facilitate the development of meaningful relationships with wholesalers, vendors, and designers.

Though Ecco posted strong sales overall in 2022, supply chain woes caused sales to fall shy of projections. But by renewing its focus on what it does best and adjusting its distribution strategy, Ecco has set itself up for future growth, according to Tom Berry, president and CEO of Ecco Americas.

Here, the exec recaps a challenging but rewarding year. —B.S.

How was business in 2022? We had strong consumer demand that was undercut by significant supply and delivery issues. Despite these issues, we managed to deliver healthy growth but far lower than it could have been. However, our real result in 2022 was in setting up the brand for accelerated future growth. We put the consumer in the

What was the biggest surprise of the year? The rebound and strength of physical retail, both our wholesale partners and our own stores. While there is the obvious and important ongoing move toward digital commerce, the pandemic distorted this conversation, and in this past year, we saw many consumers return to stores. Last year proved, beyond a doubt, that plenty of consumers still want to shop in-store.

What was the toughest challenge? By far, our supply chain and getting the right products into the market to keep up with the strong demand. Early in 2022, we had factory issues. Then later in the year, we had inbound issues. Some were pandemic related; some were our own issues. The result was that we left a lot of money on the table. We’re thankful for our wholesale partners who worked with us to navigate these challenges. And while we are not yet where we want to be, 2023 is already showing dramatic improvements on on-time and in-stock metrics, and we are confident that the changes we made to our supply chain in 2022 will continue to drive further improvements.

How would you grade your team on its performance navigating these challenges? Two answers. The first is incomplete as we have just started our new Ecco journey. I’m proud of what the team has accomplished so far, and I expect us to go a lot further. The second is that I think it’s more appropriate that our retail partners and ultimately our consumers give us a grade. We’ll only be satisfied when they give us an A.

Looking back on 2022, what are you most proud of for Ecco? That we rediscovered ourselves, and that we’re ready to reintroduce Ecco to both the consumers that already know and love us, as well as to the majority of consumers who’ve never even heard of us.