There are some markets that defy all logic about what will or will not sell. Shoppers know what they like, and have become accustomed to comfort in their daily lives. The fashion shoe segment is one such market. Shoppers are perfectly happy to jump on a trend, but are they really willing to part with a tried-and-true Armani or Jimmie Chew?
Skinns Inc., a new-concept shoe company, offers a shoe designed to straddle the shoe/apparel wearer concept. The shoe itself is a cross between a comfortably correct skeleton-type shoe structure called a “BONE”, and a covering which is placed over the BONE to provide the style the wearer would like to project. From a fashion standpoint, the product makes it easier to change shoe styles on the go without having to carry a separate conventional shoe, while from a business standpoint the concept allows for a wide variety of product diversification at a substantially reduced cost.
Given that this type of shoe concept is fairly new, its base of customers is relatively small. Currently, retailers number in the few rather than in the many, but all report exceptional sales. For the spring/summer selling season, the company reports that its retail outlets will be growing substantially to 45 by April and over 100 by mid-June. Given the current retail consumer’s proclivity toward saving money in a tight market, having a base shoe which provides the option to change its style by changing the covering may show good timing. Whether the company can meet price points in this regard is an issue, given the international flavor of its design staff. However, the concept does seem to lend itself to easily modifying coverings to meet given shopping trends and price points.
Overall financing of the company appears to be strong, with employees and individual investors putting what is needed into the company when it is needed. There seems to be a solid sense of fiscal discipline within the company which prevents expenses driving business, rather than profits. A new concept in the shoe market is always an interesting place to be. The key will be to convince the savvy shoe shopper that the styles being offered are “in”, or whatever it takes to get a shoe shopper to do what shoe shoppers do. Once this occurs, the problem will become how to keep up with orders.
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