When it first hatched, Allbirds was a direct-to-consumer, online brand, selling a single design of casual wool sneakers that it promised would be produced with the least environmental impact possible. From that founding principle though, the retailer has expanded in nearly every direction, due to its growing popularity, combined with its continued insistence on high ethical and environmental standards.
First it expanded its product lines, adding more styles of shoes, such as a running shoe in addition to the initial casual sneaker. Then it diversified into other materials, in addition to the merino wool that initially launched the idea for the company. It derives fiber from trees, and it transforms residual sugarcane biomass into a type of foam that builds the soles of its shoes. Next, it added other clothing options, such as socks, shirts, underwear, and jackets—all still made of renewable materials.
Sales kept growing, and consumers kept asking to interact more closely with the brand. Thus in 2018, it opened two stores, in San Francisco and Manhattan. Their success led to further expansions of the brick-and-mortar infrastructure, including internationally. The most recent count identifies 23 stores, throughout the world, where shoppers can go try on the diverse array of shoes and clothing.
In line with its general ethical stance, Allbirds does not plan to grow in ways that benefit only the firm and not broader society. Having achieved the ability to manufacture its products with approximately 60 percent less energy than conventional practices, using all renewable materials, it hopes to spread these insights globally as well. The process it uses for building the SweetFoam shoe soles is posted on open source forums, available to anyone. In addition, the company explicitly invited Jeff Bezos to review its manufacturing processes, in the hope that Amazon would embrace similar efforts when it produces items.
Discussion Questions:
- What types of expansion has Allbirds undergone to reach more customers?
- Where should its continued expansion efforts focus? Other retail channels? More locations? Expanded product lines? Defend your answer.
Source: George Anderson, “Allbirds’ Profitable Business Soars Higher as It Continues Opening Stores,” Retail Wire, February 2, 2021; http://www.allbirds.com