“MBT congratulates the other brands that join our revolution,” says an advertisement that has been running in some trade publications over the last few weeks. Officials of the Swiss firm are in fact convinced that the entry of heavyweights such as Skechers and Reebok into the category can only benefit their company as it strives to maintain its unique positioning and its broad reputation as the first and the best in the growing physiological footwear market.
MBT had been used to strong double-digit sales increases in the past, and the new competition has seemingly slowed down its growth by offering different looks and strongly marketed alternatives at lower price points. According to MBT, their moves have increased the size of the pie by raising consumers’ awareness about the benefits that toning shoes can provide for the body, but the resulting segmentation of the market should lead more and more consumers to opt for the authentic supplier that can offer the highest guarantees of quality.
Jan Stig Andersen, the former Danish top executive of ECCO who took over the management of MBT last September, sees enormous potential for its further development by strengthening the organization, by improving the sourcing and the quality of the products, and by consolidating its cooperation with selected retailers who can transmit the values of the brand. He wants MBT to be perceived as “the best in the class.”
Company officials point out that MBT is certified by Gore-Tex and that its shoes can now be worn without a problem for 24 hours in a row – a claim that they could not make before. They note that MBT continues to spend 3 million CHF (€2.1m-$2.8m) annually on its MBT Academy, where 25 people are involved in R&D.
The appointment of Andersen, who made wonderful things for the ECCO brand in North America, coincides with MBT’s move from its original head office in Romanshorn, on the shores of Lake Constance, to a new building in Zurich.
The U.S. market makes up one-third of MBT’s total revenues, and a former official of ECCO, Paul Crimble, was appointed seven months ago as the manager of MBT in North America, in line with a regionalization of the market that is being completed under Andersen’s regime. It resembles in many ways the international sales structure of ECCO.
The latest move was the promotion of Markus Walt, who managed to double the brand’s turnover in Switzerland over the last six years, as manager of MBT for Germany, Austria and Switzerland. Southern Europe is now coordinated by Herbert Krisler, who has been with the company for seven years and has done an excellent job in Italy, where MBT took over the distribution in 2006. Nico von Offeren, a former executive of Nike and Intersport who joined MBT two years ago, is in charge of the Benelux countries.
Distributors cover Spain, Poland and other parts of Europe as well as other new markets in Asia, Africa and South America. MBT plans to take over the distribution in an important European market in the near future.
At the same time, the company is capitalizing on the development of MBT stores through its best retail partners, following a new concept presented at the GDS trade show in Düsseldorf last month. Excluding about 160 stores in South Korea, which are managed by MBT’s founder, Karl Müller (see following story), MBT has about 150 partner stores around the world. These stores represent about half of its sales in Switzerland. There are four of them in Italy, the last of which opened a few days ago based on the new concept in Bolzano. Others are planned at major locations in Milan, Paris and other cities (more in Shoe Intelligence).
