Barbie Mention Bumps Birkenstock Ahead of Anticipated IPO
Barbie still has consumers in a chokehold, and brands who have partnered with Mattel or were even referenced in the movie are reaping the benefits.
The most recent brand benefiting from the Barbie effect is Birkenstock, which was mentioned in the Margot Robbie film. The movie has garnered attention and amassed $774 million in global revenue. Simultaneously, there has been a surge in searches for Birkenstock Arizonas, with an increase of 110%.
On TikTok, users are sharing unboxing videos featuring their pink-hued Birkenstocks and describing how they acquired them — and searches on Google have been taking off. According to Google Trends data, searches for “Birkenstock sandals for women” have soared by 346%. Meanwhile, inquiries for “Birkenstocks on sale” have experienced a 102% increase, and searches for “buy Birkenstock sandals” and “Birkenstock sandals” have seen respective upticks of 76% and 70%.
The Barbie Effect on Birkenstock
Within the movie’s narrative, Barbie faces a choice symbolized by two distinct shoes: the stiletto heel representing a stay in Barbieland and the Birkenstock symbolizing a venture into the real world.
But why the Birkenstock? Casualization is very on-trend right now, and Birkenstocks and Crocs are the epitome of the trend.
In January, Crocs saw 53% growth. “2022 was an exceptional year for Crocs Inc., with strong consumer demand for both the Crocs and Heydude brands driving expected 53% revenue growth,” Crocs CEO Andrew Rees said in the release at the time.
In July, Crocs reported $1.07 billion in revenue. The new number not only surpassed projections for the second quarter, but also led the comfort footwear company to revise its full-year forecast upwards.
Read more: Post-Barbie Collab, Crocs Reports $1.07 Billion in Revenue
Rooted in its success is the footwear company’s ability to collaborate. These collaborations have resonated with consumers and furthered the trend of casualization.
Crocs collaborated with Barbie, Balenciaga and musicians such as Post Malone, Justin Bieber and Bad Bunny as well as designer Salehe Bembury.
Read also: Why Collaboration Works for Crocs and Not Adidas
Then there’s Birkenstock. At the end of last month, PYMNTS reported that the footwear company was reportedly getting set for a listing in the U.S. as soon as September.
The report unveiled that the brand’s proprietor, the private equity firm L Catterton, with the backing of the esteemed luxury French fashion house LVMH, is in the process of preparing for an initial public offering (IPO). According to sources not named in a Bloomberg article published on Monday, July 31, the firm is aiming to appraise the sandal maker at more than $8 billion. Such a maneuver has the potential to raise Birkenstock’s valuation for its U.S. IPO listing to an estimated $10 billion.
No final decisions have been made on the size or timing of an IPO, according to the report.
Furthermore, the sandal manufacturer has embarked on collaborative projects with esteemed luxury brands such as Manolo Blahnik, Valentino and Dior.
Approximately two years ago, L Catterton and the family investment firm led by billionaire Bernard Arnault secured a controlling interest in the company through a transaction that assessed its value at around €4 billion.
Upon the announcement of the acquisition in February 2021, Birkenstock expressed that the incorporation of new shareholders would facilitate the company’s expansion into key markets such as India and China. It would also fuel growth in America and Europe while supporting ongoing enhancements in its production, logistics, and sales operations.
In the previous year, Birkenstock achieved a notable 29% increase in its revenue, totaling €1.2 billion, while its earnings reached €394 million.
Read more: Birkenstock Preparing for September IPO in the US
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