The brand says it is going to increase its marketing investments, pointing to its strong presence on social media.
Fascinating interview with the CEO Kenny Wilson of shoe brand Dr. Martens that we picked up at Marketingweek, but was already on the shelf for a while. Because a truly iconic brand, which for decades in every generation seems to get a boost from a new (youth)subculture. Since adopting a direct-to-consumer strategy, the brand seems stronger than ever. Dr. Martens sold 14.1 million pairs of boots, shoes and sandals this year until March 31. That’s twice as many as four years ago. Wilson spoke to professional media in June when the company announced its financial results and was almost wonderfully candid about a number of marketing KPIs.
Dr. Martens reported in its financial results an 18% year-on-year increase in sales to 1.06 billion euros, which according to the brand was mainly driven by its DTC strategy, following an unprecedented Covid-19 supply chain disruption. For Dr. Martens, covid seems to be working out well in two directions. E-commerce revenues increased 11%. Retail sales recovered “very strongly” as customers in the UK and US returned to in-store shopping. While the cost of living will have an impact on consumers ‘spending patterns, Wilson is confident that Dr. Martens will weather the storm: “In times of limited spending, consumers are turning to brands they trust, icon brands,” Wilson said, pointing to the “sustainability” of a pair of Dr. Martens as a true investment purchase for consumers.
Dr. Martens is a brand of footwear, clothing and accessories, developed by dr. Klaus Märtens from Germany. Märtens was an army doctor in the Second World War. On leave, he went skiing, injuring his ankle. The ordinary Army boot was uncomfortable for him because of this, therefore he designed adapted footwear for himself. This was the model for the Dr. Martens boots: a lace-up boot with a coarse sole. In 1947, near Munich, Märtens started the production of soles from discarded rubber of the German Luftwaffe. Later he began to produce shoes. The boots and shoes were initially popular with police officers, postmen and factory workers, later they also became popular among skinheads, punks, new-wavers and grungers. The company has been listed on the London Stock Exchange since January 2021 and is included in the FTSE 250 index.
The brand conducted a price survey in its main markets last summer to calculate the perceived price-quality ratio and the elasticity of demand. It followed that the brand was able to rise in price, which also happened by an average of 6%. Dr. Martens expects no impact on demand as a result of the price increase. Incidentally, Wilson stressed that the brand “has not implemented the full extent of the price increases” that it would be able to. The plan is to do research again this summer to determine prices for 2023.
Increasing brand value is first priority when it comes to keeping the iconic product highly relevant and driving growth for the future, Wilson said. Recent brand research by Dr. Martens would show that the’ awareness ‘had risen to 72%, four points higher and the’ familiarity ‘ by six points to 47%. The company describes its own employees as “brand custodians,” who protect and strengthen the brand for future generations.
The brand says it is going to increase its marketing investments, pointing to its strong presence on social media, which increased by 8% year on year. Wilson confirmed that the vast majority of market spending goes to digital channels, supplemented with some budget for out of home to build a “proximity effect” at stores. The theory behind the digital spending is that many consumers buy their first Dr. Martens when they are between 15 and 25 years old. Dr. Martens appointed its first CMO, Meg Johnson, in April this year, following the departure of Chief Product and Marketing Officer Darren Campbell in December.
