In 2021, when the Allbirds share went to the stock exchange, the shoemaker could not go wrong. It has been a sensation on the popularity of his environmentally friendly wool gymnastics with Silicon Valley Valley Venture Capitalists and other Tech-Bros since it was founded six years earlier. The shares almost doubled in their debut.
The fast growth of Allbirds until then helped Wall Street to brush aside through deep losses – first. Since then, the shares of Allbirds have lost more than 95% of their value. And after he had reached a highlight of 297.8 million US dollars in 2022, sales decreased by more than a third until 2024 despite a healthy broader market for comfortable shoes. On Thursday that sales in the second business quartal decreased by 23%, which shows, as is discouraging, with which Allbird is exposed to the comeback.
Well, the co -founder of Allbirds, Tim Brown and his CEO Joe Rächio, say that the company has a strategy to regain customers from customers: nulling what it is primarily the best. This means making versatile lifestyle shoes with a unique look and using innovative, sustainable materials in order to keep the environment of a central importance for its identity. The company has closed business and abandoned some of its unfortunate attempts to expand into other categories to promote growth: leggings from merino wool, for example, or performance -oriented running shoes.
With the kind permission of all -floors
Fast growth and some missteps
It was a classic story of a hot brand that grew too quickly and made hasty mistakes in their climb. In the case of Allbirds, they included building a product range too far and opening too many shops. By the end of 2023, Allbirds Had 45 US stores; Now it’s back to 21 locations.
The brand was also overly optimistic about its ability to sell directly to consumers. It took too long to occupy wholesale partnerships with national department store chains such as Nordstromwrongly that your own shops and your website are sufficient to attract new customers and serve their technically experienced fans.
In the meantime, imitators of Allbird’s natural fiber shoes increased, and the convincing brand history, which was initially on hit, was in danger. “The time we had to develop and grow was this story compressed in such an intensive way,” says Brown Assets In an exclusive interview before Allbirds’ tenth anniversary. “With the quick success that came into our way, we lost part of our DNA.”
Like many brands in growth mode, Allbirds tried to give customers a wider network. A typical example was The Tree Flyer, a model that was introduced in 2022 and was aimed more at younger customers than the brand’s Sweet spot between the thirties and forty. The shoe has not accumulated and was discontinued. Other product flops: these wool leggings and an expansion to objects that far from their specialist knowledge, such as buffer jackets.
And in view of her sales volume, Allbirds not only opened far too many shops. These businesses were too big for their needs and did not allow his shoes to be temporarily exhibited.
Less can be more when it comes to a business
All of these misfires burdened the company’s finances: In the five years ending in December 2024, Allbirds lost $ 419 million for sales of $ 1.24 billion. Recently, she announced a loan facility spent in order to offer more for financial breathing space.
It has closed many of its shops, and the 21 shops that the brand is still in operation are smaller – over half the size of the shops in this flash over a few years ago. “We now have books and plants and sofas that we can relax, and we only bring people who spend a lot more time in the shop and give ourselves a better opportunity to get in touch with them,” says Negelio.
With the kind permission of all -floors
The company also hears concerns that express some analysts that the brand’s news focuses on environmentally virtues and to highlight the CO2 emissions -footprint of each article and the efforts of the company to reduce it. Some have asked Allbirds to concentrate more on the appearance and comfort of the shoes. RESACHIO rejects part of this criticism: The concentration on sustainable materials makes all -floors in its appearance and design more innovative, he says.
But he notices that Allbirds now uses the word “nature” much more than “sustainability” in its marketing. “We think the word ‘sustainability’ sounds like a annoying task, like sorting your garbage,” he jokes.
Fly again?
Brown and Restrichio, who took over the management last year and replaced Brown’s co -founder Joey Zwillinger, insist that the brand’s attractiveness is not just a fad. They focus on using what all floors primarily made a sensation: cool, innovative shoes that are comfortable.
Brown, a New Zealand, likes to quote a Maori saying (“Before and next “) That speaks of going back into the future. “At that moment it is about returning to the core principles that were lost at the beginning and back to the core principles because we had so much growth and expansion,” he said.
Just like in 2015, Brown sees a white space on the market for shoes that offer simplicity. Sneakers are often “convinced”, he said, tending to rely on plastic too much.
The fact remains, however, that many of the biggest hits in recent years in shoes are bulbous, striking in design and strongly synthetic materials. Brands like Hoka and running were big hits, and technical brands such as New Balance and Brooks Running have successfully introduced themselves to Lifestyle shoes and included part of the room that is once occupied by Allbirds.
Allbirds has redesigned its original bestseller, the Wool Runner NZ (an allusion to Brown’s New Zealand roots), with some design changes and functions such as an inner sole with two density, the padded memory foam.
At the beginning of next year there is also a plant -based leather shoe called Terraluxe with a look neglected with the name “Elevatter”. “We bend that people want to comfort sneaker level with every application,” he said.
With the kind permission of all -floors
Another promising product is the tree cruiser. It is made from tree fibers – an allusion to the early adapters who have chosen their green virtues. (A version made of recycled polyester and recycled Italian wool will be launched next month.) The cruiser line was marketed as a “court inspired”, which means that people who play tennis and other court sports were intended. But it has found its niche as a varied, everyday shoe with clear lines and characteristics such as the low rubber sole that can be worn in different situations. “We were long overdue in getting such a shoe in the customer’s wardrobe,” says Rächio.
Ten years after its foundation, the sneaker market and the world look very different. But back to the original values and aesthetics of Allbirds is the way forward and said: “This is a brand that is worth fighting for principles that have never felt full of potential and more important at that moment.”
