Birkenstock's lasting leather pieces
Considered the footwear industry's OG ugly shoe by many, the increasingly popular Birkenstock brand is rumored to be a target of a new owner with high-fashion links.
The brand has reportedly become an acquisition goal for L Catterton — a private equity firm with major industry shareholders including LVMH and Group Arnault, the family holding company of LVMH chairman Bernard Arnault. According to Bloomberg reporting, the firm is close to securing a race to purchase the family-owned Germany company with an estimate value of $5 billion.
The sudden luxury interest in the centuries-old brand that has remained more or less static for generations suggests a more powerful shift in the market, and in the fashion consumption habits across demographics. Amid COVID-19, the industry was propelled into a more casual mindset, with consumers placing an unprecedented importance on comfort and convenience in fashion. Coupled with the steadily rising trend of sustainable products and eco-consciousness among consumers, Birkenstock makes the perfect candidate to level up — as evident in the carefully sourced leather and suede that constructs most of their product line.
Although global shoe sales declined almost a full 20% in the last year, comfort-driven brands are expected to excel as the market begins to regrow. Birkenstock's selection of top-quality material including robust, untreated leather, breathable suede, and top-grain nubuck could provide the extra kick to elevate the brand's status to full blown luxury level.
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