Birkenstock is having quite the hot streak right now, as it is seen on the feet of men and women of all ages across the globe.
In a move to propel the German-brand forward, the company has created TM1 Trademark One AG, Starnberg, Germany, to establish its global licensing business, as WWD reported.
"Entering the licensing business is part of the offensive growth and investment strategy that we launched this past year," stated Oliver Reichert, chief executive officer of the Birkenstock Group, Neustadt, Germany, to WWD.
"This step comes at a time when our core business is booming and our brand is experiencing strong acceptance worldwide."
Birkenstock is setting its eye on categories that include: healthy sleep, living, workplace and running markets.
"The Birkenstock name carries tremendous relevance related to health/wellness, so we are exploring potential opportunities where the brand may connect with consumers across different categories," commented David Kahan, chief executive officer of Birkenstock USA, Novato, Calif., to WWD.
In another licensing deal, in May, Calvin Klein Inc., a subsidiary of PVH Corp, signed an agreement with American Designer Fashion SA, which is an affiliated firm of American Sportswear SA, for the distribution and retail store license to exclusively distribute the company's goods for a large portion of the Latin American region, as WWD reported.
Solly Azrak, chief executive officer of ASW Group, which includes both American Designer Fashion SA and American Sportswear SA, seemed to echo similar sentiments as Murry.
"Our vision is to leverage the strong global brand awareness of Calvin Klein and our current infrastructure and regional footprint in Latin America to successfully position Calvin Klein as one of the preeminent global designer brands in the fashion industry in the region."
What are your thoughts on licensing agreements in general? What about the most recent announcement of Birkenstock going down that route?