How Kenneth Cole, Birkenstock and Oofos Found a Place in the Booming Wellness Movement
In the wake of the COVID-19 pandemic, the focus on healthy living has become a booming business.
In fact, McKinsey & Co.’s 2022 Future of Wellness report estimated that spending on wellness products and services totaled $450 billion in the U.S. and is growing more than 5% annually. The company also noted that 50% of American consumers list wellness as a top priority in their day-to-day lives, up significantly from 42% in 2020.
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For consumers, though, the definition of wellness has become muddled amid this rapid rise.
It encompasses everything from sleep and meditation apps to vitamins, at-home gyms, skincare and juice cleanses. Within the footwear industry, it can include products that promote foot health from brands such Birkenstock; performance athletic styles from the likes of Hoka, Brooks or New Balance; or the growing recovery category, led by Oofos.
So how can companies wisely capitalize on the wellness movement without being guilty of a marketing ploy? Leaders say the key is, as always, authenticity.
Last month, as Kenneth Cole Productions Inc. touted its 40th anniversary, the company announced it was taking a bigger step into the wellness category with the launch of a CBD-based collection of skin and body care products.
Jed Berger, who joined as president of Kenneth Cole in November after more than a decade at Foot Locker, said that wellness will now be the red thread that extends throughout the company, stemming from founder Kenneth Cole’s commitment to promoting mental health.
“The idea is, we’re in the feel-good business both physically and emotionally,” Berger said. “Everything we do is rooted in the young professional customer, so we asked them about the most important things they want to get out of life. The top four things, in order, were: More fun; be happier; find mental and physical balance; and find a greater sense of purpose.”
Courtesy of Kenneth Cole
Berger said that led to the company’s new mantra, “Always on purpose,” which requires that all products be built with comfort and technology in mind to give the customer an advantage — and that they help advance the company’s social-impact goals. Internally, as well, KCP recently backed up its wellness message by changing its policy for paid time off, giving unlimited vacation and personal time to all full-time employees.
From this vantage point, Berger believes there are many areas of wellness that KCP can explore — even cannabis. “We’re looking at does that have a place with balance and sleep. Those are real things that we’re exploring,” he said.
For Oofos, interest in its recovery footwear products has risen tremendously in recent years. President Steve Gallo told FN the brand grew 80% in 2022 and is now selling in 32 countries. Here in the U.S., its retail base has expanded from specialty running shops to include REI, DSW and Nordstrom.
Gallo believes more growth is on the way, especially as the health and wellness field continues to thrive. “The population is aging. People in general have a lot more money than they had in past generations, and they want to enjoy it. They want to live longer, but in a healthy way — as opposed to having to use an aid to help them walk.”
As one of the pioneers in recovery, Oofos is the dominant name in the category, with 70% market share, according to the Running Industry Association. But each day more players are getting into the market.
To maintain its standing, Gallo said Oofos is focusing on what it does best. “We want to stay in our lane of active recovery, defining that for multiple people,” he said. And the company plans to continue to be aggressive in its marketing and advertising, sharing its benefits through athlete ambassadors such as Alex Smith and Derek Carr (who are also investors).
On the product side, it continues to launch new styles, including the OOmg Sport, a slip-on athletic look that launched March 31 and will be followed in the summer by the brand’s first laced shoe.
Courtesy of Oofos
Gallo said Oofos’ current customer base skews older, but he believes there is an opportunity to reach a younger audience. The brand is looking at ways to reach elite high school and college athletes by partnering with trainers and coaches.
A wellness brand that has already found favor with the youth crowd is Birkenstock. Season after season, its clogs and sandals have topped sales lists among Gen Z and millennial shoppers, who typically aren’t the key demographic for orthopedically correct footwear.
“We have 14-year-olds dragging their moms into the store to buy the shoes,” said Megan Sajdak Holten, director of marketing at Stan’s Fit for Your Feet in Wisconsin. She noted that many of those customers are drawn to Birkenstock because of its fashion appeal. “So we as retailers need to educate them, to say, ‘yeah, Birkenstocks are cool, but do you know they’re actually really good for your feet?”
David Kahan, CEO of Birkenstock Americas, agreed that fashion trends could serve as a gateway to better health for customers.
“We are connecting with [the younger demographic] at a point in their life when foot health may not be as important as it is for a more mature consumer. But they are now understanding what real orthopedic foot health feels like,” he said. “When you think about the benefits for a generation right now, it’s pretty phenomenal where this could lead.”
Courtesy of Birkenstock
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