An expanding footprint: international strategy with FitFlop’s CCO

Should you focus on direct-to-consumer or wholesale business models? What is more important when looking to expand internationally – experiential physical stores or engaging digital platforms? Are fresh, new and innovative products the key to success today, or should brands lean in to their heritage and traditional bestsellers?

These are just some of the strategic challenges facing business leaders today.

Footwear brand FitFlop – which launched in 2007 and focuses on technology-driven “wellness products” that aim to make the wearer feel good through stylish, comfortable designs – is seeking to supercharge its international expansion with a new strategic plan that encompasses all of the above.

Although already present in 73 countries, FitFlop is expanding its 2,000-retailer wholesale network through new partnerships with distributors around the world, giving it access and local knowledge in new regions such as Canada, Spain, eastern Europe, Greece, Cyprus and the Baltics. It is also using its 133 stores around the world, as well as pop-ups to further build on brand awareness globally.

Drapers meets the brand’s chief commercial officer, David Schüttenkopf, to find out how he is striking a balance in the pursuit of international growth.

David Schüttenkopf, chief commercial officer, FitFlop

How is the footwear market performing? What are the biggest challenges and opportunities?

We are manoeuvring through special times. The global footwear market is predicted to grow by 4.3% in 2023, with revenue generation led by the US, and 93% of sales being driven by non-luxury brands.

While slow global growth is predicted, we feel the impact of the Russia-Ukraine war, which has caused rising energy prices – especially in Europe – inflation and more cautious buying behaviour from consumers. We are faced with daily news on brands and retailers disappearing, or adjusting their business model. Other power brands have changed their distribution strategy and are leaving many loyal retailers behind, unable to access the brand.

Although times are challenging, it does represent an opportunity.

FitFlop is a truly agile and nimble brand and organisation, navigating at a fast pace through these unpredictable times by being a reliable and valued business partner to our distributors, wholesale accounts and the consumer. I believe FitFlop today has more opportunity than ever before, driven by its well-being proposition, a progressive collection and demand for heritage brands that can support lifestyles with technologies that truly work.

Our spring/summer 23 season is showing improved performance across the globe, and an increased full-price sales mix versus SS22, driven by newness in the collection and a fast-growing wholesale account base elevating visibility.

What is selling well?

We had a strong SS23 season driven by our heritage styles, but newness and innovation are really what drove the growth, including new sneakers styles, such as the F-Mode trainer. Innovation in sandals, such as the F-Mode sandal, landed well across the globe, and we are seeing excellent sales of our iQushion collection, which was supported by a 360° marketing campaign.

The uplift on SS22 was further accelerated by our kids’ collection, which launched exclusively with a few premium partners across the globe. The collection is being rolled out in SS24 with positive indicators season to date.

FitFlop Wonderwelly rain boots

FitFlop has set an ambitious commercial plan for the years ahead. What is your strategy?

As part of our strategic five-year plan, we have ambitious individual distribution strategies by region, key markets and channels.

We have a dedicated focus on wholesale to accelerate growth through brand-elevating distribution. Next to wholesale, distributors are representing an important part of our sales mix, so we’re strengthening this network further.

What are the opportunities in wholesale?

Wholesale is a key growth channel for FitFlop. We have expanded our wholesale teams and opened showrooms in London’s Shoreditch and New York’s Midtown.

The brand will be at every relevant trade show.

From a wholesale standpoint, we are moving fast: we have entered new partnerships with strategic and premium retailers across the US, Germany, Austria, Switzerland and UK.

FitFlop Rally leather sneakers

You recently announced a raft of new distributors around the world. What will these new partnerships bring?

The distributor channel plays a vital role for our brand, and we have carefully assessed our set-up in each market.

Some countries, such as the US, the UK and Germany have strategic importance and are being developed directly, but we can’t cover it all and need to set priorities. We have identified markets where we have not captured their full potential. So, it was important to us to partner with distributors that understand our brand and technologies, are aligned with our values, and are keen to become part of our journey of growth.

You are accelerating your direct-to-consumer (DTC) business, with a goal of 40% of your global sales mix. Tell us more.

We have a strong digitally led DTC business, which we are looking to fuel further through expansion in new markets. Both on- and offline are important channels to engage with the consumers. We opened a successful pop-up store in Westfield London in June 2022, and our first directly managed concept store in New York’s Mercer Street has exceeded expectations since opening in April.

We are considering more stores, but the locations will be selected carefully, and will always have a focus on building brand awareness and visibility, as well as supporting the growth of our wholesale partners. The focus will be on creating strong partnerships with retailers across the globe, and working together to drive growth.