Birkenstock entering licensing business

German comfort shoe manufacturer Birkenstock is gearing up to license its brand after signing an exclusive deal with brand consultancy firm TM1 Trademark One AG to establish the footwear giant’s global licensing business. The footwear brand is using licensing as a way to

conquer “new strategic business segments, markets and target groups” with new line extensions that will focus on four themes that dovetail with the Birkenstock brand including, healthy sleep and living, healthy workplace, healthy feet and running, and a healthy outlook on life.

Birkenstock group CEO, Oliver Reichert, said: "Entering the licensing business is part of the offensive growth and investment strategy that we launched this past year. This step comes at a time when our core business is booming and our brand is experiencing strong acceptance worldwide.

“This means an increase in our customers' expectations of us as a global brand. Our customers have become accustomed to healthy solutions for walking and standing. Now they expect our brand to provide solutions that go beyond footwear, as well as products for both daytime and evening. That's what our evaluation revealed."

Birkenstock is a family-owned business with a 240 year-old history, which sells its products in more than 80 countries worldwide and last year was chosen as ‘Brand of the Year’ in the US. It is the heritage of the brand that means that all licensing agreements are planned as “long-term partnerships” with “quality and function” being the top priorities for partner selection and product development, the footwear company stated in the release.

Birkenstock partners with TM1 Trademark One AG to license brand

In moving forward with entering the licensing business, Birkenstock did extensive research to see what its “loyal” customers would want, and apparently that included demands for new and innovative products.

Reichert, explained: "Many of our customers see our brand as much more than a synonym for healthy and comfortable shoes. It is also a symbol of a conscious lifestyle. Our customers value healthy nutrition, green ideas and approaches, active leisure, family life, kids, pets, and solid education. Basically, we are taking the next logical step by extending our product line to include these areas."

Michael Caudera, CEO of TM1 Trademark One AG, added: "There will be enormous opportunities for companies that get in early and start building up the brand in their own segments.

“Birkenstock is a true stroke of luck in the global licensing business. It's very rare to find a global brand that has such a strong identity but still hasn't been analysed in terms of moving outside its core business. This situation holds a huge economic potential for both partners as we set up licensing agreements."

The first Birkenstock licenses are expected to be announced in the near future.

Images: Birkenstock