Birkenstock: From German Village to Barbie Blockbuster
The Rise of Birkenstock
In the hit summer movie “Barbie,” actress Margot Robbie traded in her high heels for pink Birkenstock sandals, showcasing the transformation of the brand from unglamorous, practical footwear to a highly-coveted fashion item. Founded 250 years ago by Johann Adam Birkenstock in a rural German village, the company has now taken another step into the big leagues with an Initial Public Offering (IPO) in New York, valuing the company at a reported $8.6 billion.
Historical Background
Birkenstock‘s history dates back to 1774 when Johann Adam Birkenstock worked as a cobbler in the small village of Langen-Bergheim in western Germany. In 1896, Konrad Birkenstock began focusing on orthopaedic footwear, creating comfortable, contoured insoles designed for cushioning the feet. The sandals gained international recognition in the 1960s when they reached the United States and were embraced by hippies who saw their no-frills look as a symbol of anti-fashion. It was in the 1990s, however, when supermodel Kate Moss famously wore a pair for a fashion shoot, that Birkenstocks shed their association with Germans wearing socks and sandals and became a trendy, must-have item.
The Birkenstock Brothers and the Sale of Majority Stake
For over two centuries, the Birkenstock company remained in the hands of the founding family. However, in 2021, brothers Alex and Christian Birkenstock sold a majority stake to L Catterton, an equity firm linked to LVMH, and Financiere Agache, the family holding fund of French billionaire Bernard Arnault. The reported sum of around €4 billion allowed the Birkenstock brothers to retain a minority stake while propelling the brand further into the international fashion market.
The Iconic Birkenstock Sandals
The most famous Birkenstock sandal is the Arizona, introduced in 1973. With its two wide straps and trademark cork and latex soles, the Arizona became synonymous with US counter-culture. While the sandal is available in different colors and materials, its basic design has remained unchanged. Another iconic model is the Madrid, introduced a decade earlier, which helped lay the foundation for Birkenstock‘s later successes. Known as “the gymnastics sandal,” the Madrid exercises the foot and leg muscles of the wearer as they walk. Other models include the thong sandal Gizeh, named after an Egyptian city, paying homage to the centuries-old history of sandals. Birkenstock also offers a range of variations on these models, including platforms and water-proof versions. Additionally, the company has expanded beyond shoes and ventured into products such as clogs, trainers, high-end beds, and skin care products.
Commitment to German Manufacturing
While many companies have moved their production to areas with lower labor costs, Birkenstock proudly states that 95% of its products are assembled in Germany. With its headquarters in the picturesque city of Linz am Rhein, the company operates multiple manufacturing sites throughout the country and employs approximately 6,200 people globally. In September, Birkenstock opened its newest factory near Pasewalk in the state of Mecklenburg-Western Pommerania, further solidifying its commitment to German production.
Beloved by VIPs
Birkenstock sandals have become a staple among celebrities and trendsetters. Margot Robbie is just one among many Hollywood A-listers and pop stars seen sporting the ultra-trendy footwear. Singers Katy Perry and Britney Spears, as well as actress Katie Holmes, have all been spotted in Birkenstock Arizonas. To further its reach in the fashion world, Birkenstock has also partnered with renowned fashion brands including Paco Rabanne, Valentino, and Celine, who have customized their own versions of the sandals.
Sustainability at the Core
Birkenstock places a strong emphasis on environmental sustainability in the production of its products. The company utilizes materials from sustainable sources such as cork, natural latex, jute, and leather. It offers vegan sandals that are manufactured solely with plant-based and synthetic materials. In addition, cork, a key material in Birkenstock insoles, is also central to the company’s cosmetics. Birkenstock offers skin care products featuring cork oak extract, known for its anti-aging properties.
As Birkenstock continues to expand into the fashion world and captivate the attention of trend-conscious consumers, the company remains rooted in its German heritage and commitment to sustainable practices. With its IPO and a reported valuation of $8.6 billion, Birkenstock‘s journey from a German village to a global fashion powerhouse serves as a testament to the brand’s enduring appeal.
<< photo by Jakob Owens >>
The image is for illustrative purposes only and does not depict the actual situation.
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