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The classic German sandal "Birkenstock" (Birkenstock), which has a history of nearly 250 years, was married to a wealthy family at the beginning of this year for 30 billion yuan!

Wonderful review of past issues

Recently, Birkenstock and the new owner are launching a comprehensive new strategic plan.

The new boss is a company under the LVMH Group and is eager to increase the global production capacity from 30 million pairs to 40 million pairs.

Private equity firm Catterton bought a majority stake in Birkenstock three months ago. CEO Oliver Reichert proposed a strategy for the new boss, hoping to do something in fast-growing Asian markets such as China, Japan, Singapore, South Korea and India. .

Invest 760 million yuan to build a factory

Birkenstock plans to invest 100 million euros (approximately 760 million yuan), of which 50 million euros will be invested in the current largest production plant in Goerlitz in eastern Germany to modernize the factory. The factory has 1,900 employees and almost all the most popular cork sandals are produced in the factory.

In addition, Birkenstock will invest 50 million euros to build a new factory with 400 employees in the initial stage and 1,000 employees in the mid-term. Plastic sandals will be produced by the factory.

The company will decide on the location of the new factory in September and October at the latest. Currently three or four candidate locations are located in Germany. Reichert said that these investments are a commitment to the German factory, Birkenstock will continue to produce only "Made in Germany" shoes.

The new plant is expected to start production in 2023. At present, the biggest competitor of Birkenstock is Ecco from Denmark. The company is also one of the world's largest shoe retailers, and its products are not limited to sandals.

"Birkenstock" was established in 1774. It started with healthy shoes, and then expanded its sandals and casual shoes product lineup. It is known for its fit and comfort. In the 1990s and 2000s, it was booming under the blessing of celebrities. The French boutique brand "Celine" (Celine) , "Givenchy" (Givenchy) has launched similar Birkenstock sandals.

In the fiscal year ending in September 2019, Birkenstock sold 23.8 million pairs of shoes a year, and revenue grew by 11% to 721.5 million euros.