Introduction
Foot Locker is an up-start, trendy footwear brand that was launched in the City of Manchester in 2013. The company is a full leather and footwear business with its own tannery and two manufacturing units. The business aims to satisfy the increasing demand for fashionable, branded leather footwear in the United Kingdom. The footwear brand operates under a family ownership model. The brand is perceived as a luxury model and seeks to blend tradition and innovation to come up with classic designs with modern stitching patterns. As a result, the footwear brand will develop a reputation for delivering the art of living across the world.
Social Enterprise Idea
The company will be presenting its version of the Buckle Boot to the European and United States market. The shoe brand places a strong emphasis on targeting millennials and Gen Z via stylish designs for everyday practicality. The shoe is designed to offer the user comfort with the level of high detailing giving it a classy rock and ‘English-private’ school look. Therefore, the boot can be worn with ragged jeans or formal suit skirts. The pricing will be set not cheap or expensive to allow the shoe to capitalize on all market segments of the footwear industry.
Social Innovation Context
Foot Locker sets out to send its own political and environmental messages to the world and its consumers. As a leather-based shoe company, the company must highlight its contributions to reducing carbon-emissions in the beef and dairy industries. A research at Stanford University found that cattle farming was associated with 15% of global carbon emissions (Torreila 2022). Foot Locker integrates the power of technology and natural solutions in its supply chain and educates its audiences on sustainable consumership. Foot Locker also seeks to bring down stereotypes on what constitutes acceptable formal wear for women with its generic boot. The shoe conveys a strong personality that cannot be limited by corporate cultural constraints born out of organizational norms that promote gender inequality.
Social Community Impact
Foot Locker wants to inform its investors and stakeholders that it is a sustainable shoe brand operating using the traditional norms of the leather shoe segment. The brand wishes to employ its focus on animal rights to differentiate itself from its competitors. Balenciaga was able to achieve differentiation by focusing on reducing its environmental impact. The company introduced a policy that prevented the deforestation of indigenous trees and forests in its supply chain (Balda 2023, p. 194). Foot Locker will achieve the differentiation function by adopting an animal welfare policy for its supply chain. The sourcing of leather to its use and waste management will be made a transparent process in the manufacturing plants.
Sales Channels
Foot Locker will focus on non-traditional distribution channels, meaning a focus on social media marketing, use of virtual market places, and influencer marketing. Leading shoe brands in the footwear industry, including Nike, Adidas and Timberland have dedicated online stores and also use social media marketing, with social media platforms being the most used distribution channel (Sichol 2019, p. 21). Foot Locker will establish online stores in the leading online retailers, including Amazon, eBay, Alibaba etc. Therefore, online distribution will be the primary sales channel. Going online is the best and most effective way of promoting the haute couture culture of the Buckle Boot.
Marketing Strategy
Balenciaga has been able to achieve international success by not marketing or selling itself. Instead, the footwear company has focused on selling consumer exclusivity (Chen 2022, p. 43). However, the approach means that the company prioritizes a particular market segment, middle and upper class consumers. Foot Locker will employ disruptive content as its primary promotion strategy, conveying that the Buckle Shoe is designed to end corporate stereotypes about female footwear. The objective will be to go viral on social media, sparking debates on what is acceptable corporate wear with the Buckle Boot at the center of the discussions. The marketing approach will also contract controversial celebrities, such as Cardi B to kick start the online discussions.
Industry Analysis
The footwear industry has been expanding in recent years, with the branded shoe segment recording the highest growth rate. The global market was estimated to be $373 billion in 2021 with an annual growth rate of 4.3% (Douglas Insights 2022). The high sales volume is associated with the increased penetration and expansion of e-commerce. Moreover, raising consumer awareness on lifestyle issues has led to a surge in demand for comfortable, sporty footwear (Douglas Insights 2022). Athletic footwear dominates the shoe market, comprising nearly 75% of it. However, the availability of counterfeit products is eroding the market shares for branded footwear.
Competitor Analysis
With well-established players in the Haute couture segment, Foot Jocker will be entering into a market saturated by competition. In terms of brand positioning, Fendi, Gucci, Prada, Versaca, Dior, Chenel, Dolce and Gabbana, and Saint Laurent are some of the established names. Gucci represents the biggest rival in terms of sales volume in 2019. To counter the competition, Foot Jocker will have to be as disruptive as Balenciaga was with the Croc (Satenstein 2021). The shoe is considered the ugliest, yet the most comfortable and individualized shoe in their product line. Disruption will be key to establishing a core consumer base for Foot Jocker.
Competitive Advantage
It is often the case that the number of buckles in a boot is not an indicator of quality. However, our Buckle Boot comes with two pairs of buckles, offering more stiffness, support, and adjustability. The customer can tailor the size to attain optimal performance. The Buckle Boot is equally less priced compared to boots in its class, such as the Alpine Buckle. The lower pricing will enable the company to reach and engage a wider consumer base, implying a higher sales volume. The stylish design of the Jocker boot makes it wearable in formal corporate environments and casual settings. Its diversity in use will allow it to target millennials and younger adults.
Source of Investment
References
Balda, A. (2023) ‘Balenciaga and the importance of creativity in human flourishing’, In las Heras Human Flourishing. New York: Springer, pp. 183-197.
Chen, X (2022) ‘Research on the advertising strategies in luxury marketing’, Highlights in Business, Economics, and Management, 4(2), pp. 41-49.
Douglas Insights. 2022 Footwear market is growing steadily in coming years.: Know how big is it? Available at https://www.globenewswire.com/en/news-release/2022/12/07/2568941/0/en/Footwear-Market-Is-Growing-Steadily-In-Coming-Years-Know-How-Big-Is-It-Report-Available-on-Douglas-Insights.html, (Accessed 12 May 2023).
Satenstein, L. (2021) I wore Balenciaga’s ugliest shoe yet-and it was their most comfortable. Available at https://www.vogue.com/article/test-driving-balenciaga-croc-heel, (Accessed 12 May 2023).
Sichol, L. B. (2019) From an idea to Nike: How marketing made Nike a global success. Boston: Houghton Mifflin Harcourt.
Torreila, K. (2022) This is how much meat and dairy hurt the climate. Available at https://www.vox.com/future-perfect/22905381/meat-dairy-eggs-climate-change-emissions-rewilding, (Accessed 12 May 2023).