How Birkenstock Reinvented Its Brand to Meet Modern Demands

Even old brands learn new tricks, just as iconic shoemaker Birkenstock did to meet the demands of modern audiences.

Birkenstock is a household name in the shoemaking world because of its legacy and consistency. Sales continued to be dependable, but a shift in marketing strategy was necessary to go above and beyond. It teamed up with brand and business reinvention experts at Vivaldi to undergo a crucial transformation.

The goal was to reimagine its dated brand identity into an irresistible force for next-generation customers. Discover how Vivaldi reconstructed the Birkenstock brand into one that captivates the modern age.

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About the Brand 

German shoe manufacturer Birkenstock has been around since 1774. Its signature cork soles and sandal style have become a mainstay over the centuries. While brand loyalty could keep its products selling in the future, it needed a refresh to rise above its goals. Stagnation was in its future if it did not revise its identity to become more striking to astute, demanding buyers.

Why was 2023 the perfect time to rethink a centuries-old company? Birkenstock became available on the New York Stock Exchange (NYSE) in October 2023, bringing it into the public eye even more.

If Birkenstock would have its name on the NYSE, it needed to reinvigorate stakeholders’ interests in a stale image. The enterprise’s journey is rich but not without its arduous encounters. Birkenstock was no stranger to adversity in the shoemaking world.

Part 1: The Branding Objectives 

Birkenstock needed to reestablish its relevance in the shoe market to make a splash in the NYSE and receive a high initial public offering (IPO). Its core problem to solve was its culture. A tired image, resistant employee base, and stilted retail presence held it back.

It took around 200 years to enter U.S. markets, and when it did, the shoe style was divisive. The Boston clog, and Arizona sandals became associated with hippie fashion in the 1970s, alienating buyers who did not love the subculture. Additionally, Birkenstock limited itself by selling primarily sandals instead of expanding into new verticals. It mostly sought sales instead of brand recognition and consumer connections.

In the 1990s, perception changed. While the shoes were still popular with subcultures, they transitioned into grunge realms. Music icon Kate Moss posed with them in a popular British magazine, “The Face,” showing how they look to a new audience. Marc Jacobs used Birkenstocks in his 1992 collection, which fans did not receive well, but the publicity still made its mark. It was enough to inspire celebrities like Heidi Klum and Ewan McGregor to collaborate with the brand.

Things continued to change in 2013 for Birkenstock. Designer Phoebe Philo put Birkenstocks on the Paris runway with a fur-inspired upgrade, elevating the brand to new heights. The shoes were simultaneously associated with the luxurious elite while being an affordable product. The juxtaposition of the plain Birkenstock with couture solidified the shoe’s trendiness for the coming years.

After going public on the NYSE, Birkenstock raised $1.48 billion in its IPO. Its success was due to its commitment to salvaging its identity with Vivaldi before its groundbreaking announcement. Overcoming the rebrand was an ideal opportunity to reclaim its rightful seat on prime store shelves for a dollar amount equivalent to its dynasty.

Part 2: The Research 

Vivaldi and Birkenstock deployed a holistic analysis of the latter’s position regarding its customers. They started with a demand landscape analysis.

Birkenstock needed to determine where its most notable opportunities were within its target markets. Then, it could prioritize these focus groups to maximize how much its brand image penetrated communities that cared most. The demand landscape analysis also highlighted where Birkenstock could become the competitive leader, in addition to segments where it could capture advantages it may have overlooked.

Vivaldi used marketing segmentation to discover Birkenstock’s four essential categories. Consumer need states segmentation is a technique used to find out how buyer groups feel and behave in specific circumstances. Do they seek similar benefits from Birkenstock products, and do they use them in the same way? The four segments included:

• Comfort seekers: These practical customers dismiss trends because they prefer quality and durable construction.

• Independents: These trend-setting customers want hands-on time with the shoe before they decide, using their experience as proper judgment for the product.

• Acceptance seekers: These socially receptive customers read reviews and abide by trendsetters to guide their purchasing decisions.

• Balancers: These reasonable customers prioritize simplicity and easygoing lifestyles and products aligning with these values.

The results were a critical juncture in the process. Now, Birkenstock knew which segments had higher-than-average order values. It could increase profitability by familiarizing itself with individuals who buy from Birkenstock regularly and in large quantities.

If the company was going to put all its energy into these customers, it had to shift its brand architectureBrand architecture defines the role of each brand and acts as a guideline for the interrelationship between the brands in your organization.. Vivaldi led live customer testing to see how well people received specific merchandise and initiatives. Data proved it was necessary to phase out extraneous subbrands and home in on making staples stand out in modern markets.

Part 3: The Strategy and Implementation 

Birkenstock needed to tackle its oversights with three primary strategies.

A Brand Overhaul

Birkenstock needed to expand its audience outside the cultural associations, preventing its growth. The connotations of nurse footwear and counterculture had to go, so an overhaul in four parts occurred.

First, the plan required a strategic analysis. This clarified the brand, as well as the strongest competitors and consumers, based on needs. Informing the rest of the strategy demanded knowing more about the landscape and how shoppers’ desires played a role.

Then, Birkenstock had to reposition itself as a company inspiring higher-order values. This goal could live alongside many buyers’ preferences for comfort and functionality. However, they had to coexist for the overhaul to elevate the brand beyond its stereotypes.

It achieved this by redefining the company’s branding. Discussions revealed the phrase “genuine spirit” captured everything Birkenstock strives for. This includes empowering customers through original designs, delivering high-quality craftsmanship, and inspiring buyers to feel confident in what they wear. These qualities connected the company more with its shoppers.

Finally, these ideals and insights were taught to employees through training and workshops. Aligning the company’s culture was critical for long-term success and cohesion when maintaining the new brand image.

Deeper Customer Understanding

Ethnographic research and mass consumer surveys were the backbone of Birkenstock’s revelations. This included “wardrobe safaris,” which were surveys of consumer wardrobes. Buyer behaviors, preferences, and style choices made clear to Birkenstock the type of customers it needed to appeal to the most.

Then, the surveys collected more information while considering the four customer segments. It pinpointed internal motivations for purchasing, as well as external and environmental influences, so Birkenstock knew how and why to target each one.

Attach to a Wider Array of Lifestyles and Contemporary Values

How could an old company adopt modern values? Vivaldi did this in a few ways. First, everyone reimagined the product portfolio. Previously, the company organized it based on objective spec characteristics. Now, it is organized based on style and need.

Engaging with these subject areas would convert Birkenstock into a customer-focused brand instead of its classic sales-focused image. The driver of this was remerchandising the stores. Customers would not know how Birkenstock’s values modernized if the store gave no visual cues. Displays became edgier and less traditional. It appealed more to modern aesthetics and sensibilities, even if the shoes still had a classic touch.

Implementing research insights began with identifying the organization’s foundational styles. Then, Vivaldi incorporated the engagement types that changed public perception. Over time, people would see the dated shoes as a masterclass in the industry.

Brand Pop-Ups

Some of the most beneficial suggestions were pop-ups and townhouse events. They gave Birkenstock novel opportunities to connect with stakeholders, whether they were buying shares or shoes.

It was also a space for journalists and industry executives to get an insider look. This would lay the foundation for the brand’s reputation post-overhaul. The impressions left on the reporters needed to be apparent enough to transform opinions. 

An event was held in one building with multiple floors, where each zone showcased Birkenstock’s brand development, exhibiting its rich history of corporate partnerships and orthopedic roots and contextualizing how much the product has evolved. The storytelling of this setup made attendees feel more invested in the narrative rebrand before reaching the top floor, where food and drinks solidified their satisfaction. You can see pictures here.

Retail Strategy

These experiments transformed how retail clerks and managers operated, forcing them to dive into the customer journey more intimately. They did this by highlighting the brand outside of their home and setting up displays in specialty stores. These were controlled by Birkenstock employees, affirming their attentiveness to the brand redesign. 

Then, employees were retrained. Their sales strategies and pitches were better informed by consumer needs and the brand’s angle. It encouraged them to translate the company’s new position to customers in an organic way that could lead to sales based on their segment. 

Finally, Vivaldi implemented experiential merchandisers. This tactic enhanced accountability within the staff, helping them know more about the brand while encouraging them to participate in display creation that would engage customers. It also made shopping experiences more seamless because they felt more knowledgeable about the styles they were buying.

Part 4: The Results 

Several years after rebranding efforts, Birkenstock is still growing. Financial reports from early 2024 prove the 2023 fiscal year had a 20% increase over 2022. The report attributed the win to several factors, including a demand shift to premium products. This long-term success validates the value behind the Vivaldi-Birkenstock collaboration.

This sales improvement gave the company a more favorable reputation, especially in terms of becoming public. It was no longer an ancient business entering the NYSE past its prime. Birkenstock was a pertinent player worthy of novel investors and cross-generational buyers.

Foundational stability with newfound growth is only one of the advantages of the brand redesign. Birkenstock eliminated unsuccessful product lines and opened shelf space for more eye-catching stock. Because the shelves contained more items high-value customers cared about, retail stores no longer feared shutting down due to public disinterest.

Birkenstock also garnered another unexpected win. Investment firm L Catterton — which backs the luxury fashion parent company Louis Vuitton Moët Hennessy (LVMH) — witnessed the transformation and purchased a majority stake, totaling €4 billion. LVMH supports the world’s leading brands, including Christian Dior, Fendi, and Marc Jacobs. Birkenstock’s ascent into these legendary enterprises’ leagues further elevates its image.

Analysis and Conclusion 

Birkenstock might have faded into obscurity if it hadn’t asked for the assistance of modern-thinking brand professionals. Operating for over 200 years signals a company is doing something right. However, the techniques reached a ceiling. The research and implementation were profitable for Birkenstock, and now its stores are more stable and profitable.

The case study highlights these important takeaways about branding and partnerships:

• Sales-focused strategies are outdated, and consumer-aligned methods yield long-term gains and buyer commitment.
• People need more from a brand than a solid product — they require connection and value alignment.
• Rebranding research is a years-long endeavor with a lifelong commitment.
• It is possible to dissolve stereotypes for a fresh approach.
• No matter how much legacy an enterprise has behind it, there is always something to learn because marketing is an ever-changing field.

The future outlook for Birkenstock is bright because it has demonstrated it is fearless enough to step out of its centuries-old comfort zone. More companies should feel inspired to follow Birkenstock’s literal and metaphorical footsteps to understand how pivotal brand identity and customer connections are.