Category Report: Footwear

Ahead of the game as the wider merchandising world seeks more sustainable methods, in-store marketers in the footwear category are making big strides to reduce their footprint on the earth. Many companies in the growing "outdoor" shoe category are now producing responsible P-O-P to house their earth-friendly footwear.The U.S. footwear market has seen steady growth since 2003 and was projected to reach sales of $43.2 billion last year (which meant a 6.1% increase over 2004), according to Rockville, MD-based Packaged Facts, publishing division of MarketResearch.com, but footwear marketers still face plenty of challenges in-store. Leveraging a greener impact is certainly one way marketers can maintain power identity for their brands. However, embracing new in-store technology, increasing their commitment to measure display results and ensuring a consistent presentation around the globe are a few other strategies at the forefront of footwear marketing."Just getting in the door is a challenge these days," says Michael Atmore, editorial director of Footwear News, New York. He points to consolidation in the department store channel, and specifically the Federated Department Stores/May Co. merger, as a main reason. "The retailers are in the driver's seat. I think when you have consolidation, you see perhaps a bit more tension on the marketers' side. That side of the business gets nervous about any kind of retail consolidation because it just means the power is in fewer hands."Going GreenAnders Bergstrom, marketing manager for the Simple Shoes and Ugg brands within Deckers Outdoor Corp., says the launch of the Goleta, CA-based company's Green Toe line last fall has been widely accepted by retailers, thanks in part to the sustainable materials it's merchandised on."The most important thing retailers have been asking for recently is more product," he says. "Once they're able to display the line in the proper way such that the consumer walks in, looks at it and says, 'That's so natural-looking, so sustainable and so responsible,' there is absolutely no resistance to a sale. That's part of our culture right now. People hear the story and they embrace it."The Timberland Co., Stratham, NH, is becoming more invested in the use of earth-friendly materials like hemp and recycled rubber, and has also increased its investment in water-based solvents. "There's both a materials story and a process story, each of which help to ladder up to the idea of reducing our environmental footprint," says David Aznavorian, senior manager of global brand management. "Especially relevant for us is something that can be communicated at the point-of-sale to create a halo effect for our brand." P-O-P made of earth-friendly materials clearly supports the message at retail.Bergstrom says the most crucial area of communication for Green Toe is in-store. "We knew from the start with this line that we had to design and manufacture P-O-P in exactly the same way we make our shoes," he says. "We can't really take all this care to develop sustainable materials using water-based adhesives and soy vegetable-based inks in our footwear and then put it on top of a P-O-P fixture made out of polyurethane with lead-based powder coating. It's absolutely inconceivable to create a piece like that."A four-piece program, made of durable, recycled MDF chipboard wrapped in an untreated textile similar to jute, began shipping in July. The branding is done on linen with sustainable inks and attached with the same water-based adhesives used in the footwear. Up next, the company will introduce Green Piggies, an all-natural line of footwear for kids. Recycled heavy-duty corrugated and a wool-felt logo patch with organic cotton stitching is the basis of the three-unit Fun Pack that will ship to retailers in time for the spring selling season.Erika Bruhn, marketing manager at Keen Footwear, Portland, OR, says her company is thinking along the same lines. The company recently partnered with outdoor specialty retailer REI to sell key trail running styles in a new box. "It's a 100% biodegradable box: You can literally put it in your garden and it will decompose," she says.Bruhn says the company's product development team is always looking at new eco-friendly materials to use for products and P-O-P, but notes that making displays versatile and modular is another environmental concern. "We want to design pieces with sustainability in mind, and also longevity so it doesn't get tossed at the end of the season," she says.Getting InteractiveFor the marketers mentioned previously, their aim to be more environmentally sound doesn't mean the brand can't also be sophisticated and tech-savvy. Timberland is working on an in-store video that will combine with RFID technology."The RFID chip is inserted into the sole of the shoe so when the shoe is lifted off the display shelf, the video screen above it will automatically start playing a video that speaks to the specific technology in that shoe," says David Curtis, senior manager of environments group, global creative services.Radio-frequency hits will be tracked on a weekly basis, and the team at Timberland will be able to see how many times each shoe was touched or picked up. "Then the sales team and field marketing teams will work directly with the account to benchmark how many times it was touched against how many pairs were sold," says Curtis. The company is partnering with one of its national department store accounts in this testing phase.Timberland's PreciseFit technology, which allows shoppers to customize the fit of their shoes for both their left and right feet, is launching this fall and will be on the display. Additionally, a 70-second flash animation piece will support PreciseFit on its website and in other areas.Asics America Corp., Irvine, CA, is introducing two interactive kiosks this season -- one freestanding and one designed for slatwall or gridwall -- that play three- to five-minute videos about the company's key technologies. Both units are LCD players equipped with a flash chip, and both are designed to hold a shoe."Consumers are starting to get used to this at retail," says Joe Alfidi, P-O-P manager for Asics. "They're seeing it in a lot of different channels, not just sporting goods, but in grocery stores, banks and even in restaurants. Some of it is entertainment, but we're just trying to create a little more buzz at the retail level."Retailers are more than willing to bring it in, Alfidi adds. "They're almost mini training tools that help [sales staff] get more familiar with our product." The freestanding kiosk has an Asics logo on top, changeable graphics areas on the top and bottom, and the shoe shelf and a large graphic area on the back. "We've shown it to some of our retailers and sales reps and we're probably going to have to double production from initial estimates," he says, adding that the company is also exploring interactive touchscreen technologies for next spring.Beginning this season, Waltham, MA-based Earth is using lenticular messaging to help illustrate what its trademark Negative Heel technology can do for the body. Vern Aisner, director of marketing, says the graphic compares someone standing naturally and properly to someone wearing a heeled shoe that pitches the body forward. The pieces are modular: They can be used on a tabletop or wall, or inserted into any of the company's displays.Tracking EffectivenessWhile most marketers we spoke with say the use of RFID technology to monitor P-O-P is still a ways off, some are taking more steps to measure the effectiveness of their programs.Caren Vredenburgh, senior director of creative services for Brown Shoe Co., St. Louis, says the company's regional merchandisers work with its biggest department store accounts, especially during special-promotion weeks. "When we're running a LifeStride week in a Macy's store, these people will go in and make sure that our product and our signage is set up correctly, and they'll hold seminars with the salespeople. After the event they'll list the sales, the lifts, the bumps, and they help us evaluate whether a promotion in-store was effective or not.""A lot of the key measurements we have right now are based on internal sales and future orders," says Asics' Alfidi, but he says the company is investigating options with some of its vendors to better track a display's effectiveness. "'In-Store Checks' is a program we're starting right now with some of our P-O-P where we actually have a company go in and check to make sure the displays are up, ask the managers how they're doing, take pictures, that sort of thing," Alfidi says. "That's more of a qualitative assessment as opposed to quantitative, but there are some other things out there that we're currently looking into with some of our partners."The Global ApproachFor those companies that ship and sell product around the world, the stakes are raised in terms of P-O-P logistics. "If the execution is manageable from a production and cost perspective, we'll produce for global usage, but this is typically the exception and not the norm," says Timberland's Curtis.Shipping costs, importing fees and taxes can make a U.S.-made package cost-prohibitive for global distribution, he notes. "More often than not, the U.S. team sets the standards for design and production and provides detailed engineering drawings as well as a materials palette for our global colleagues to follow to produce and roll out in their respective geographic locations."To maintain a consistent look for its global brands, Vredenburgh says the team at Brown Shoe establishes a standards guide. "We include dimensional drawings of fixtures, all the specs and all the materials that we use in our stores in hopes that they'll duplicate it in their country so we have a consistent brand image overseas."Brooks Sports, Palo Alto, CA, introduced its first cross-merchandising fixture in more than five years this summer, and the high-capacity, versatile, mobile unit can now be seen in stores worldwide. "It's always good for a brand when you have a consistent image that can be taken globally," says Peter Mannos, director, retail marketing for Brooks. "Our international partners came to our sales meetings, saw the value there and ordered them."The first units off the production line were shipped internationally via ocean freight to limit the time from production to arrival. "Good sourcing, buying in appropriate quantities, planning ahead and staying on our production schedule all help to keep costs down," says Mannos.Shipping internationally doesn't really add to the challenge, he says. "Our specialty running accounts dictate that we be very responsive to the needs of small retailers everywhere, whether domestic or international accounts. Limited space and maximizing our brand message in a way that makes every square inch of retail real estate pay off is what it's all about. Plus, customers everywhere are looking for retail environments that are easy to shop and compel them to buy."Brands Within BrandsFor most marketers we spoke with, clearly distinguishing the different brands under their umbrella has become a focus. In the past year, Brown Shoe has reworked its brand portfolio to make specific delineations between each of its brands."We've crafted it so there's no overlap in the consumers we're targeting by brand," says Vredenburgh. Isolating four "brand essence" words for each brand helps focus creative efforts. "Each brand has a point of difference, which makes it easier for us to develop our signing, imagery and P-O-P. At one point we were stealing business from one to get more for the other," she says.Making its brands stand out in different channels is also crucial, she adds. "We may use the same imagery but use different sizes, croppings, or add a gift-with-purchase that is custom to an account."The Keds Corp., Lexington, MA, is repositioning its Keds brand toward teen, 20- and 30-something consumers with a campaign featuring actress Mischa Barton as the spokesmodel. "Obviously bringing someone in who is a style leader and has a lot of credibility and clout with the end consumer is beneficial for the brand," says Jennifer Weiderman, vice president of marketing."If consumers are in the store and see some of our merchandising with Mischa wearing a cute sneaker, we're going to be much more likely to grab them than a table with just 10 sneakers. It's a sorting mechanism for the consumers as they're seeing the myriad products out there."Weiderman says the company is also mindful of segmenting its products, depending on the location. "It's a different product portfolio in a Macy's or a Nordstrom or a boutique," she says. "We'll still do a brand brick or risers or a tower and we'll still showcase Mischa, but she might be wearing a different product on the poster in Kohl's or DSW than she would be in the one at Macy's or Nordstrom."What Retailers WantMarketers are happy to accommodate retailers' requests in-store -- but in a way that will work for everyone. "Especially if it's a big retailer, brands are going to be all over them to try to partner to benefit their brand and the store as well as the customer who comes in to shop," says Greg Dutter, editorial director at Footwear Plus, New York. "They're asking what they can do, together, to really maximize both of their businesses. Selling in is great, but these brands also need to sell through so the retailer will order more."Sarah Wortham, creative director for Famous Footwear, Madison, WI, says the company coordinates with manufacturers to create eye-catching merchandisers for launches and promotions. For last summer's launch of a new line from Margaritaville Footwear, the sandal company created elaborate islands made of resin."We did a whole coordinated launch with them," says Wortham. "We used their design elements and logos and put them into our focal walls, and the islands sat on display tables throughout the store. That's not something we would have ever paid the money to do ourselves, but they wanted these in the stores to launch the product and we were very happy to work with them."Famous Footwear's visual merchandising budget will not allow for these types of launches year-round, and the chain has made it a policy to give the store a clean, harmonious look with limited amounts of big storytelling. "If we did it for everybody, the store wouldn't have the integrity and the cohesive, appealing look for our customers that we want it to have," Wortham says.Victor Holler, marketing director for Super Shoes, the Haggerstown, MD, retail division of HH Brown that sells shoes from all major brands, says his main goal within its stores "is just to remove sign pollution. We have traditionally had a tendency to over-sign things, so we're trying to clear signage out and do more displays to feature the footwear instead of trying to explain what it is."Karen Sadick, executive vice president of merchandising for Edison, NJ-based Aerosoles, says the company runs an "Aero Week" twice a year in certain department stores. "We support the program with P-O-P in those locations and many times give a gift-with-purchase." The company sees anywhere from 50% to 100% increase in volume during the run, and Sadick says retailers are always willing to take in the extra merchandising to support it.Candy-colored Crocs are enjoying their run as one of the year's fashion crazes. Laura Neyland, brand manager for Niwot, CO-based Crocs, says its main concern is keeping up with retailers' demands. "We're evolving our fixtures because of the styles we now have and the range of colors," she says. "It's been impossible to keep up with the demand as far as displays that fit 100 pairs for retailers who now want something that fits 300 pairs."The company's new P-O-P is slated for release early next year and will house all of the styles while being modular, customizable and updateable. "We're looking forward to being able to house all of our styles because people don't realize we're more than a one-shoe company," says Neyland, "but we'll be able to do things for different retailers to get them what they need."Working closely with the right people to provide the retailers with the appropriate information and imagery is important, Vredenburgh notes. "It used to be we'd deal only with the shoe buyers, but now we work more closely with in-store visual merchandising people and store planners. They're the ones who tell us what we can and can't do, not the shoe buyers. The buyers may know what they want, but whether they can have that put in-store or not is another issue."

Category Report: Footwear

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