Commentary: How ‘ugly’ orthopaedic shoe company Birkenstock created a brand worth billions

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Birkenstock’s IPO is the third-largest US listing so far in 2023. Not bad for functional footwear that was developed to improve foot health, says a University of Bath marketing lecturer.

BATH, England: Asked to choose between a brown Birkenstock and a pink stiletto, most people would be able to make a fairly quick decision., Weird Barbie challenges Stereotypical Barbie to make this very choice. To Barbie, the high heel represents a life of beach fun and dance parties, while the sandal means “knowing the truth about the universe”.

Birkenstocks have been the footwear of choice for the “brown rice” or hippie set for decades, but this negative image has recently morphed into something very different. But it wasn’t until the 1920s that affluent Europeans became more aware of the benefits of such footwear, leading to exports of the shoe across Europe. By the 1960s, the company was producing sandals. The Arizona was the third style introduced by the brand in 1973, after the Madrid and the Zurich .

From Dior to Fear of God, Birkenstock’s latest drops continue to tickle fashionable fancies without sacrificing orthopaedic support This is the value a company derives from consumer perception of its brand. Birkenstock’s collaborations with high-end designers like Dior and Manolo Blahnik have also boosted its brand equity.

Thorstein Veblen’s theory of conspicuous consumption suggests we use fashion to display financial wealth and status. Birkenstocks’ more accessible starting prices of £40 to £65 send the reverse signal. Wearers are avoiding overt displays of wealth, instead communicating their taste via subtle branding, and knowledge about materials, form and function.

 

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