Amid a challenging economy that has kicked and bruised retail sales, Valley area shoe manufacturers are working to put their best foot forward with diversified product lines, style innovations and new partnerships. Local companies such as K-Swiss Inc., Flojos, and Salpy Shoes, are rolling out their product strategies to the market, as they do every year around this time. The companies attended MAGIC, a global trade show for the fashion industry, held last week in Las Vegas. And though they serve vastly different footwear categories — ranging from athletic to high-end, hand-crafted styles — they’re all looking for a way to boost business and appeal to fickle consumers. Rising manufacturing costs coupled with the cautious consumer have created new challenges for manufacturers over the past few years, said Matt Priest, president of Washington, DC-based organization, Footwear Distributors and Retailers of America. With the Internet changing the way in which consumers shop and widening the variety of options available to them, manufacturers are challenged with the task of keeping consumers interested in an ever-changing market. To remain competitive, innovation and a diverse product offering must be a part of a company’s business model, Priest said. “(Manufacturers) have to be responsive to consumers and light on their feet,” Priest said. The domestic shoe and footwear manufacturing industry, which generates an average of about $2 billion in revenue annually, has seen revenues decline about 4.4 percent on average over the past five years, according to Santa Monica-based market research firm IBIS World. Even after more than 40 years in business and establishing itself as a mainstay in the sports and fitness shoe category, Westlake Village-based K-Swiss Inc. has the daunting task of continuously having to reinvent itself. “The challenge is remaining on trend but also remaining true to K-Swiss,” said David Nichols, executive vice president of K-Swiss. The public company, which employs between 500 and 600 companywide, has experienced an uptick in sales this past year. K-Swiss reported total revenues of $80.5 million in the quarter ended Sept. 30, a 31 percent increase from the prior year. With retailers adopting a more conservative business approach and the shoe business becoming increasingly competitive, it’s important to “break through the clutter and get noticed,” he added. This year, the company is returning to the company’s roots in lifestyle footwear in hopes of further boosting sales, Nichols said. For the first time since 1966, K-Swiss has stripped its “Classic” shoe of its signature five-stripe design and developed a modernized version known as the Clean Classic Collection. Prices for the three-style collection will be between $50 and $120. The company also is expanding its assortment of running shoes, a category which consistently calls for innovation in order to remain competitive in the marketplace. Thousand Oaks-based sandal maker, Flojos, is diversifying its product offerings to include boots and a new type of outdoor athletic footwear geared to offering consumers a firm grip on the ground while walking or running. The 30-year-old company has catered to surf shops and beach lifestyle stores such as national retailers Flip Flop Shops and California Sunshine as well as online retailer Zappos.com. Alan Beatty, vice president of Flojos, said diversifying the company’s portfolio will help the brand appeal to a wider range of retail clients. “We want to give our retailers greater options,” he said. While Flojos prices typically range from $18 to $60, the brand’s new boot line will scale up to about $84. “We are extremely competitive,” Beatty said. The company’s new two-toe shoe will launch in retail outlets in August and is designed to be worn outdoors. Similar to the Vibram FiveFinger running shoe, the two-toe will split the big toe and four finger toes separately, allowing for some gripping power and stability when walking or running. Flojos currently has a patent pending on the shoe, which will be priced at about $55, Beatty said. Also feeling the challenges of serving a niche market is Sun Valley-based Salpy Shoes. Founded in 2005, the manufacturer has a 19-person workforce and is run as an in-house operation — a rare business model in the domestic shoe market, said Salpy Kalaidjian, who started the company with husband Kevork. From alligator heels and snakeskin ankle boots to cork wedge sandals, Salpy shoes are hand-crafted. The company’s artisanal concept, coupled with its price point, which ranges from $300 to $600, has made Salpy shoes popular in high-end boutiques and resorts shops nationwide, a market which has taken a hit in recent years. “People think that (serving the) high-end market isn’t hard,” Kalaidjian said. “My little niche is tough.” Over the past three years, Salpy has lost 36 retailers to closures or bankruptcy. Kalaidjian has invested in buying an exhibitor’s booth at trade shows such as MAGIC in hopes of growing business with her existing clients, as well as bringing in new ones. When designing for the upcoming seasons, Kalaidjian said stays true to the artisanal look the Salpy brand is known for among customers. The company may tweak its classic styles and switch the types of leathers it uses, but it avoids major design changes. And whether it is taking special orders or delivering a quick turnaround on a shipment, customer requests always are a top priority, Kalaidjian said. “I spoil my customers,” she said.
Valley Shoe Makers Aim to Win Over Fickle Consumers
