How Birkenstock became a $1.48 Billion IPO fashion icon
Birkenstock's historic $1.48 billion IPO success reflects the revival of the clog, now a sought-after fashion icon. Despite Birkenstock's silence, their demand consistently surpasses supply.
Over the last years, fashion has witnessed a resurgence of a shoe brand that has turned an "ugly hippie sandal" into a coveted fashion statement. Birkenstock, known for its comfortable cork-sole sandals, recently made waves by raising a staggering $1.48 billion in its initial public offering (IPO). This achievement marks the latest chapter in Birkenstock's nearly 250-year history, which began as a small family-run business specializing in insoles.
The star of this resurgence is none other than the Birkenstock Boston, a classic slip-on shoe that first appeared in the fashion scene around the late 1970s (and famously worn by Apple’s Steve Jobs). It's a testament to its enduring appeal that this once understated footwear choice is now considered a prized fashion item. However, it's not just any Boston that has taken the fashion world by storm. It's the taupe suede variant that has become the ultimate must-have, pushing the boundaries of supply and demand to their limits.
As Birkenstock classics are constantly out of stock, enthusiasts and collectors have turned to extreme measures, from daily store check-ins to paying higher prices on platforms such as eBay, where prices have gone over 330€ (original prices are around 130€) for a pair.
What caused this remarkable surge in popularity, especially for the taupe suede version? A compelling blend of celebrity endorsements and the wildfire effect of TikTok. Celebrities like Kendall Jenner clog back in 2021, but it was TikTok that fueled the trend's rapid spread, leaving Birkenstock struggling to meet the surging demand. And from social media to cinema, the famous shoes even made a guest appearance in the $1 billion global box office hit Barbie movie this year, which boosted the sales to an even higher level.
The Birkenstock brothers have shared that the demand for Birkenstock products has consistently outpaced supply for the past decade, with the Boston shoe's sales boasting double-digit growth. This iconic footwear brand, which has seen many ups and downs over its long history, has now secured a place in fashion.
