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Everyone told them Indians won't pay ₹6,000 for sandals. Today this German brand has 41 stores across 22 cities. BIRKENSTOCK's strategy is a masterclass in how global brands can attract Indians! Birkenstock is a 250-year old German footwear brand. Their products are sold in 90 countries. From being considered a ‘hippie staple’, their sandals are now become a fashion. When it entered India in 2019, it brought a global legacy tailored to Indian tastes. ↳ It has become one of India's fastest-growing footwear brands (as per Datum Intelligence) ↳ Its sales in India have been doubling annually, outpacing Crocs (as per a report by Tofler.in) ↳ It has made ₹200 crore in sales this year (as per The Ken’s July 2024 article) Here are 3 strategies that are helping it grow in India: 1️⃣ Glocalization—global strategy + local adaptation: They didn't dilute their premium positioning with discounts. Instead, they focused on what they do best - quality and comfort. They knew their target consumer valued authenticity over affordability. 2️⃣ Going Direct-to-Consumer (D2C): Birks launched its own website in 2019 and started with airport stores. Then, they rapidly expanded their physical presence in premium malls of Tier 2 cities for maximum visibility. 3️⃣ Capitalized on cultural moments: To reinforce its “cool” factor, they collaborated with Barbie ® in the 2023 Barbie movie where she switched from heels to Birks. They even leveraged the comfort-first movement during the pandemic and positioned itself as a go-to brand for comfortable yet stylish footwear. I'm seeing other global brands like McDonald's and Netflix adopt similar approaches. If any other global brand would want to expand India, they should understand that India's premium consumers aren't looking for cheaper alternatives. They're looking for brands that understand them while maintaining global standards. What's been your experience with global brands in India?
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Insightful!! Says a lot about the often used “Two Indias” in this part of sub-continent. Future is all about value creation and marketing.
These companies should be thankful to increased numbers of credit card users and buy now pay later schemes. I still remember, I moved for a tier 3 city to Hyderabad in 2010. I was earning around 15k in my initial days, getting credit cards for freshers was a bit difficult specially if they are from a different state. I would have never dared to spend 80-90% of my salary in shopping. But today, a large number of people spend a huge % of their monthly salary paying their credit card bills and left with almost nothing, most of their spends are shopping. They would have not over spent if they were paying in cash. The credit of huge success of these brands goes to plastic money.
Biggest marketing success story, able to sell ugly chappal type sandals for 6k
Gen Z would pay anything for a product which is “cool”, regardless of the comfort quotient. And birks entered the Indian market at the right time. Had this brand made an entry 15 years ago, this success would have been unlikely. Timing is the key.
Vikas Chawla i don't agree... I got them to be Retailed from THE LOFT, way back in 2002, it was an instant hit, used to sell about 100 pairs a month...
India is a handsomely rewarding market if u get ur mix right!
Solid insights, Vikas! 🙌 P.S. - Soleplay by Westside laughing in the corner! 😉 #IYKYK
Many international brands have entered Indian market and many have not been successful. I agree with Nissan Joseph the secret of success is in execution. Vinay Bansal and his team have been executing brand strategy from day one. Congratulations.
Chief Executive Officer at Metro Brands Limited
3dIt’s also about the execution done by the India team led by Vinay Bansal . As we all know the magic of any strategy is the execution.