It is proof of recognition that the German footwear model Birkenstock by no means wished. Within the combat towards fakes, the shoemaker has been sending groups of undercover investigators with hidden cameras into what they are saying are counterfeiting factories.
Birkenstock's CEO Oliver Reichert is aggressive. "We do not simply punish the marketplaces or the resellers. We actually go to the factories. Turkey, Philippines, China, wherever."
"Sounds such as you're operating particular ops," stated correspondent Seth Doane.
"Sure, however that is mandatory."
His unconventional method is obvious at their Munich headquarters. Doane stated, "You had been sitting at your desk listening, at occasions blasting, music. It is not what you'd anticipate from a CEO."
"Most likely I am not the common CEO," Reichert stated. "I by no means tried to be common in something."
And Birkenstock has proved it is not common, both. If you have not seen, Birkenstocks are in every single place, revealing the toes (or, sure, socks) of not simply essentially the most retro amongst us, however fashions and celebrities, too. It is plain that Birkenstock is having a second, almost 250 years within the making.
And "Birks" have come a good distance from their days as a hippie staple.
Since he took over this previously family-run enterprise in 2009, Reichert has tried to inject a "startup" power. "When you have such a convention and such a historical past, the menace is to get up in your personal museum," he stated, "and I do not need to have this."
He is ruthless relating to brand-collaboration requests. They get lots. "Eight out of ten, we are saying no."
They stated "sure" to Dior, and at the moment are producing a felt-covered shoe.
Doane requested, "How a lot is that this?"
"Not sufficient, I'd say," Reichert replied.
It is retailing for over $1,000.
"It is about supporting the concept behind the product and never harming the DNA of both model," he stated. "It is like a wedding, you already know?"
And there is luxurious shoemaker Manolo Blahnik, recognized for his coveted stilettos. Blahnik, an avid Birkenstock buyer, is now a collaborator.
Doane stated, "You consider Manolo Blahnik in 'Intercourse and the Metropolis' and Sarah Jessica Parker."
"Yeah, yeah, however she's sporting Birkenstocks as effectively, even within the non-public life," stated Reichert.
"Once you see some movie star pictured with Birkenstocks, what do you suppose?"
"I am proud that they are sporting Birkenstocks, and I do know – and this makes me even prouder - they purchase for it."
"You do not give them to some well-known individual?"
"No. We do not have a Hollywood workplace or one thing like this."
"And if some movie star says, 'Hey, I am going to put on this shoe,' you will not ship them a shoe?"
"Why?"
"Come on!"
"In the event that they ship me cash, I'll ship them a shoe!" Reichert stated.
It is a glamorous twist for an organization that traces its roots again to a cobbler in central Germany in 1774. Within the late 1800s, a descendant, Konrad Birkenstock, started making and promoting versatile insoles. For many years that humble "footbed" was the household enterprise.
Reichert stated, "Within the Sixties, Carl Birkenstock was by some means annoyed that, 'OK we make one of the best insole on this planet, however no person sees our product.' So, he determined to attempt to carry the footbed out of the sneakers, and that is the birthday of the sandal."
"However the shoe shops in America did not need the product?" stated Doane.
"It was the 'ugly shoe'! You understand, they are saying, 'Oh, OK, are you loopy?'"
Ugly, maybe, and for a time uncool. However in simply the previous decade, Birkenstock studies gross sales have greater than quadrupled, with the most well-liked mannequin being the Arizona.
Then, COVID offered one other sudden increase: "Sadly, we turned the primary house workplace shoe," Reichert stated. On-line demand was "loopy."
"So, why do you say 'sadly'?"
"It is painful to don't have any gross sales, but it surely's very painful to have an excessive amount of gross sales, attempting to handle this international demand. It is difficult."
Doane noticed that at one in all their factories within the east of Germany, the place they had been racing to fill a backlog of almost 1,000,000 pairs.
Managing director Hilmar Knoll juggles the logistics. "Now we have right here inventory just for ten days," he stated. "We're at all times on the restrict of our capability."
Each day, they produce 80,000 footbeds, which all begin as a mixture of cork from Portugal. Their "secret recipe" of jute, cork, latex and leather-based is heated, then squeezed into molds.
Birkenstock nonetheless makes all its sneakers in Germany, and is fiercely protecting of that high quality. As a part of its effort to crack down on counterfeiters, it stopped promoting on Amazon, citing the variety of fakes being bought.
How arduous was that? "For us, nothing," stated Reichert.
"Effectively, it is an enormous outlet!" stated Doane.
"Possibly, however not a great one. I feel in the beginning Amazon was a pioneer in on-line buying and selling. It's important to kill monsters when they're small. They're getting too massive? You may't kill them, okay? They are going to eat you. And we determined to kill our monsters early."
In a press release, Amazon informed "Sunday Morning," "Fewer than 0.01% of all merchandise bought on Amazon obtained a counterfeit grievance from prospects and we cannot relaxation till that quantity is zero."
The strong marketplace for fakes reinforces (as if anybody wanted a reminder) simply how common these sandals are, regardless of the purpose: "Even the individuals who hate the model put on them as a result of they're good," stated Reichert. "It is like, you already know, do you want taking medication? No. It helps! So, you swallow it."
Doane stated, "You appear nearly proud that some folks don't love your product?"
"It is a proof of idea. It would not matter for us, as a result of when you get the product, you'll put on this, and also you re-buy it. So, you already know, at some point we'll get you."
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Story produced by Mikaela Bufano. Editor: Brian Robbins.