The Rap on Shoes

It seems no industry so clearly defines whom it's targeting through product and merchandising than the footwear industry: Hip-hop licensed shoes for the urban set, John Deere boots for the farmer, Ugg boots with mock fur for the high-fashion folk are a few examples.Marketers not only are licensing well-known "proper-ties" to pinpoint target customers, but also to establish a sense of brand trust. Names like Mark Ecko, 50 Cent, Harley-Davidson, 310 Motoring and Smith & Wesson are attracting customers who want to live the lifestyle of the brand. P-O-P displays play up these properties and lifestyles to catch consumers in-store. "Retailers are trying to spice things up a little bit on the shelf and offer freshness in some various ways," says Greg Dutter, editor in chief of New York-based Footwear Plus magazine, noting that color is helping them do that. "Most consumers don't necessarily need a new pair of shoes; it's purely based on want," he says. "If retailers don't really intrigue them with their product and merchandising, those consumers are going to keep walking by in the same pair of shoes they already have. That's what it's all about -- retailers have to make them want to buy."Marketers are doing their part to help retailers grab consumers. "We're following the fashion trends in apparel and accessories," says Teresa Powell, visual marketing director, Nine West Group. "Things are a little more sophisticated and higher-end right now, and we're trying to bring in some more of the fashion trends into our fixturing for the fall."The White Plains, N.Y.-based company is using such materials as pearl-finish acrylic and brushed stainless steel to give its displays a more elegant finish and luxurious feeling. It also will use faux fur on the build-up blocks in its company-owned stores.Leveraging With Licenses"Everybody wants a piece of this young, hip-hop artist lifestyle," says Michael Atmore, editorial director of the footwear group for Fairchild Publications, New York, which publishes Footwear News. "Brands are interested in doing deals with other brands that have a young, hip demographic. There are a lot of music and hip-hop lifestyle connections going on between both athletic and non-athletic brands."In the last two years, hip-hop artists have launched clothing lines or partnered with shoe companies, creating a solid connection between the music and fashion. Beyond that, footwear companies have recently done more than just license the names of hip-hop artists. They are grabbing any connection to the hip-hop culture.Reebok International Ltd. added hip-hop artist 50 Cent and his group G-Unit to its list of hip-hop partnerships (Jay-Z and Pharrell Williams are others). The G-Unit Collection by RbK also targets the young, urban male. Tatiana Stefanco, manager of retail design services, says bringing in a name like 50 Cent and creating a shoe line was key for the Canton, Mass.-based company. The shoes are being highlighted in-store on tabletop and slatwall units made of metal and a semi-opaque acrylic on the sides to resemble a lightbox. An image of 50 Cent helps call attention to the unit. Stefanco says the graphic was an essential part of the larger display and can be changed out to feature a woman model for the women's shoe line, for example."We're so segmented as a company, and we're a lot of different things to a lot of different people," she says. "We've done walking, classics and performance and we wanted to hit a new segment of consumers." The line is all about fashion, Stefanco says. "It's just another way for Reebok to go into a different direction to grab those consumers who are looking for a fashion component within the athletic segment."With the advent of MTV's show "Pimp My Ride," where a lucky kid gets his car revamped complete with new rims and loud stereos, it's not unusual to see Skechers partner with 310 Motoring, a shop that soups up cars for rappers, sports stars and other celebrities. 310 Motoring footwear hit stores in May. The idea behind the line was to captivate urban, affluent males with shoes that have details similar to a high-end car, says Jenn Rosumny, director-visual merchandising for Manhattan Beach, Calif.-based Skechers USA. "There are a lot of burlwood and chrome accents, very nice leathers and different textures that you would actually find in a car," she says.The footwear is highlighted in-store on pieces that resemble car racing pedals. Because the line is going into high-end specialty stores and Macy's department store, the company chose risers, shoe shelves and glorifiers to showcase it.Similarly, Skechers zeroed in on a different consumer than it had targeted in the past when it introduced its Ecko Unlimited (for men) and Ecko Red (for women) lines, inspired by Mark Ecko. "This is more of an urban brand than Skechers," says Rosumny. "It targets the young, urban, very fashion-forward consumer with a really eclectic look." Every women's style has a beauty mark on it in the form of a little rhinestone placed somewhere on the shoe. "They're almost like pieces of artwork. They're not just a simple black shoe or sneaker; they're for those consumers who want something different and out of the box," Rosumny says.Logo blocks, post signs, single shoe glorifiers, risers and floorstands feature the rhino from the Ecko logo in-store. "The logo is so popular right now that the second these consumers see a post sign, they'll realize Ecko has new shoes out," Rosumny says. All advertising and graphics focus on current hip-hop stars or up and coming stars, she adds.Finally, Latitudes Inc. has licensed the name Smith & Wesson from the 150-year-old revolver manufacturer. Andy Knouse, president, says the first-ever line of footwear was designed to be performance-based for the law enforcement and security communities as well as EMTs and private detectives. "That was the primary goal, but the reality is we seem to be getting some interest in the urban community because of a certain amount of appeal with the name," he says.The Smith & Wesson logo is prominent on all P-O-P, says Knouse. The Sullivan, Mo.-based company uses a wide range of metal materials in its merchandising mix. "We know it's extremely important to communicate the presence of the product to the consumer and when we began putting the P-O-P together, we felt it was important to do everything from banners to standup vertical metal units." All of the pieces feature black and gold, which Knouse says is fitting for the all-black boot line.City Shoe, Country ShoeThe urban market isn't the only area hot on licensing. Coming in October is a premium line of John Deere-licensed work boots, including Rain Deere's (rubber boots for farming and turf management) and logging boots manufactured by EJ Footwear. "It's a very powerful thing for us to be able to put this name on a line of boots and shoes, because John Deere has always represented high quality," says Karyn Brown, vice president of corporate communications.Every shoe and boot has a shank for maximum durability and support and must pass the company's "Shovel Test," which means the wearer can drive a shovel into the ground or climb a ladder without injuring his foot or the boot. Plans are underway to develop a slatwall system that looks like the front end of a shovel. The company will also incorporate vintage John Deere signs as part of its merchandising efforts. All P-O-P will be done in John Deere's trademarked green and yellow, says Brown. "They govern us closely to make sure we stay right on the colors and that we provide the quality they expect us to provide."Similarly, Rocky Shoes & Boots Inc., known for its rugged outdoor footwear, is getting into some styles "that are a little more trendy-looking and less workish," says Joe Hanning, marketing director. The company is in its third season offering Western work boots, and the first series was completely functional. They were waterproof and had a lot of technology built into the sole because ranchers need to be comfortable in them all day, but even these men want a little style, Hanning says."It's a look thing, but they have to be able to work in them, too. They may work on the ranch in morning but then go out and have fun at night and they're still wearing those same boots." Coming this fall is a women's line of Western footwear that is even more fashion-oriented, he says.The Nelsonville, Ohio-based company is offering retailers a foamboard medallion of the Rocky logo. It comes with pegs to make it pop off a slatwall shelf or with hook-and-loop fasteners to go flat against the wall. Also available is a countertop glorifier with a faux rock base. An acrylic holder that resembles wood holds a removable information card. In an effort to serve all retailers, the company will create a specific card depending on the style being shown. "The retailer can give us five styles and if they want to interchange and do a different boot every week, they can replace the cards as well," Hanning says.Hi-Tec Sports USA, a manufacturer of hiking and outdoor boots launched its Approach collection this fall. "The sport-fashion product as we call it is definitely a growing market right now and many of our products are leaning in that direction," says Brett Weitl, marketing manager for the Modesto, Calif.-based company. "We can appeal to a lot of different consumers with more fashion-forward styles."Weitl says often the same P-O-P is used in-store to highlight the company's various collections. His team focuses on what he calls "brand-driven P-O-P" and favors fewer, but high-quality pieces. It recently scrapped an acrylic shoe shelf, for example, in favor of an attractive metal version. "If a retailer is going to put your branded shelf on his slatwall, it might as well be a nice presentation instead of a generic one," he says. "Our brand is as strong as it's ever been, and by putting quality P-O-P out there, it keeps that perception in the consumers' eye."Michael Hebreard, director of marketing for the Harley-Davidson Footwear Group at Wolverine World Wide, says the company's shoes provide both function and fashion for the biker-boot category. "Many of our sandals, shoes, and short and tall boots are designed exclusively for riding although more would be for fashion purposes."The Rockford, Mich.-based company launched complete merchandising systems from large floor units to small logo signs and graphic stands to hundreds of Harley-Davidson dealers across the country, department stores, major chains and upper tier independents. The P-O-P is "metal, metal and more metal," which Hebreard says is in keeping with the quality of the brand name. "We probably have one of the five most recognizable brand names in America and even the world. When we associate footwear with it and footwear that is functional from a Harley-Davidson standpoint but fashionable at the same time, it's a win-win for both parties."All pieces feature the recognizable bar and shield logo. The materials designed for the dealerships feature only gray and black, while materials for other stores are orange, black and white. Hebreard says the company is constantly refreshing the P-O-P to reflect new styles. Another significant niche market is children's. "You would be really surprised how much 4-year-olds know what they want in shoes," says Marlene Russell, marketing manager for Elefanten USA.She says the Port Washington, Wis.-based company infuses colorful and decorative product, such as appliques or embroidery, into many of its shoes and P-O-P to attract attention at retail. "Our products have a lot of fuschia, teal blue and lime green, which tend to match some of the apparel brands that are in the forefront for kids right now," Russell explains. "When the parents walk into the store, they see the Elefanten slatwall system, header, riser, rug or floor tower," she says. "Retailers know that if they differentiate or separate Elefanten from the fold, they'll begin to see a lift in their sales."Fur Flies at RetailThe most sought-after fashion this past winter was the Ugg boot. "It's probably the hottest shoe style of late," says Footwear Plus' Dutter. "Every celebrity in the book was wearing them.""The Ugg boot was a phenomenon and it led to a lot of imitators," adds Atmore. "It also dovetailed with this whole shearling trend we saw in clothing, accessories and everywhere else."Generally worn after surfing or skiing, Uggs had not gotten much attention outside of California until this past winter, even though Goleta, Calif.-based Ugg Australia had enjoyed six straight years of double-digit growth in sales. It has been promoted in-store with signs, tabletop displays, risers and a shoe tower, all made of wood with metal detailing to communicate a rustic, outdoor feeling. "We have a cumbersome product, so we don't have a whole lot of space to work with when it comes to P-O-P design. Our challenge is creating merchandising that calls out the product but doesn't take a lot of space," says Anders Bergstrom, marketing coordinator.San Clemente, Calif.-based Aussie Dogs, which has produced sheepskin footwear since 1989, saw its sales quadruple in just three months earlier this year. Chris Watt, president, says the company has found success with a slatwall display sporting the Aussie Dog logo on the front, along with a modular wooden sign. "We try to keep our P-O-P simple," says Watt. "We don't go high-tech or make it really elaborate. If we keep it simple, we don't have any problems, and everybody seems to be happy."The company is now introducing new styles of boots, moccasins, slippers and clogs in trendy colors for adults and kids. Watt predicts consumers will again go for the natural tan color or the pinks and reds. "Black used to be our second-best color but it has fallen," he says. "They always say when the economy starts to pick up, the color black in footwear goes away. Consumers move away from the basic that can match with everything and start accessorizing with color."The Retail LandscapeAs marketers continue to focus on target markets, retailers find ways to offer exclusivity to consumers. "Specialty stores and independents have more opportunity than ever," says Bill Boettge, president of the National Shoe Retailers Association in Columbia, Md. "There's a lot of different product out there today and if these stores find their right niche, they can cover new segments of the market, create some excitement or just give very good service, which not too many retailers succeed in doing. The price game is difficult to win unless you're very large, but these stores can certainly win the game of good customer service, unique product and an exciting store." Regarding how the retail landscape is changing, Boettge points to price-driven stores such as DSW and Kohl's. DSW falls into the off-price category of channels, which was up 9.5% in sales last year, and Kohl's falls into the national chain category, which was up 1.2%, according to NPDFashionworld. "Customers may have to do self-select and it may not be the freshest merchandise out there, but it's brand-name merchandise at a very compelling price," Boettge says. "It's more of an evolution than revolution, but the self-service channel of distribution is getting stronger." Although data showed sales were down 1.8% in the discount channels at the end of 2003, many experts believe some of the major players could begin to pose more of a threat to other shoe retailers. "There are a lot of customers who are price-sensitive and, just like apparel, these stores may not have the brand names, but the consumer in that price range may be more price-conscious than brand-conscious," says Boettge."The footwear industry overall has a very healthy distribution model," adds Footwear News' Atmore, pointing to the independent shoe stores, specialty chains, sporting goods stores and big department stores, many of whom saw double-digit growth last year. "But the Wal-Marts of the world are moving closer to the point where they'll be a viable threat to all of the above." The concern is that Wal-Mart could bring in brand name shoes and capitalize on a lot of untapped potential, he says. "Anytime Wal-Mart moves into a category, it has an enormous impact." Payless ShoeSource Inc., with more than 5,000 stores, has had an enormous impact on the market as well, Atmore says, and could have an even bigger impact by adding brand names. "They are predominantly under their own label, but the company has recently incorporated a few brand names [such as Spalding and Champion].""We're trying to improve the quality, use the latest technology and then put the well-known brands on the footwear," while still selling at the traditional Payless value price point, says Mardi Larson, public relations for the Topeka, Kan.-based retailer. For example, Dunkman athletic shoes, endorsed by basketball superstar Shaquille O'Neal, were introduced in January and priced under $40. Special promotions in-store made the launch extremely successful for the company, says Larson. "Our overall strategy is to drive lots of traffic so people come back again and again. Every time they do, we want not only the merchandise to look fresh, but also the front of store and the endcaps. We're refreshing those graphics all the time."

The Rap on Shoes

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