Birkenstock Sets Sights on South Korea for Further Post-IPO Expansion
Stephen Garner
Senior Editor
Birkenstock is turning its focus to Asia as it continues to build its shoe empire.
Following the company’s IPO last year, the 250-year-old German footwear company has placed a renewed focus on wholesale, released a steady stream of fresh product and opened a steady slate of new stores across the globe.
Now, Birkenstock is turning to South Korea for its next play. In a release on Wednesday, the company said that it is taking over direct distribution in the country with the launch of its own country-specific e-commerce website. The site will be the first step in this growth plan, followed by the opening of its own stores and expansion with selected department stores to follow in spring 2025, Birkenstock added.
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The company noted that it has already been doing business in South Korea for “a few years” but that this new move will allow it to sell its product itself in the region without the help of a local third-party partner. In the past, limited production capacity had also prevented the company from expanding in the region at a faster rate, Birkenstock said.
The sales relaunch will be accompanied by a repositioning of the brand in South Korea in the premium segment, with a focus on a younger target consumer group. Birkenstock noted that it plans to expand brand awareness through regional content on its website and local social media channels, as well as through collaborations with selected local artists, fashion brands and influencers.
Birkenstock added in the release on Wednesday that the expanded business in South Korea will fall under the responsibility of the managing director of Japan and Korea, Raoul Wortmann. Over the past seven years, Wortmann has already successfully developed and established the Japanese market for Birkenstock, the company said.
This move comes as Birkenstock reported that its third-quarter sales and earnings in August came in just below analyst estimates.
Revenue for the footwear company increased 19 percent in the third quarter to 565 million euros, up from 473 million in the same time last year. Net income was 74.6 million euros, or 40 cents a share, for the quarter, up from 63.1 million euros, or 35 cents a share, in the year-earlier period. Analyst had expected revenues of 566 million euros, and earnings of 51 cents per share.
During the company’s quarterly earnings call in August, Oliver Reichert, chief executive officer of Birkenstock Group, teased the renewed focus on its Asian business segment.
“Our growth continues to significantly outpace our peers in the Americas and Europe, with strong and increasing momentum from our B2B partners and in our DTC footprint,” Reichert said. “We are entering the next chapter of growth as we tap into our largest white space market, the APMA region. We are increasing brand awareness, educating the consumer on the purpose of the Birkenstock footbed and are taking market share by following our playbook of disciplined engineered distribution to support ASP (average selling price).”
