Havaianas Case Study
Class 3:
Case Study Havaianas: A Brazilian Brand Goes Global
Question 1: What factors could explain the success of Havaianas in becoming a global brand?
1.) Stable and well developed economic background through acquisitions and expansions lead to a huge sandal market share * Sao Paulo Alpargatas exists since 1939, specialization in four business units: (sandals, sporting goods, industrial textile and retail) * Controling Shareholder (67%): Camargo Correa Group with operation in 20 countries * Acquisition of Companhia Brasileira de Sandalias (Dupé brand) in 2006 leads to increased share in the Brazilian flip flop market * Acquisition of 60% of Alpargatas Argentina to expand in Latin America
2.) Long experience and know-how in manufacturing sandals and producing the special rubber * Own operational and logistic framework * Extension of the manufacturing plant in 2007 ( capability to produce 212 million pairs of sandals annually) * Production in the northeast of Brazil, Santa Rita, in order to reduce costs, increase productivity and further streamline the logistic network * Headquters in Camargo Correas Centro Empresarial to optimize the administrative processes
3.) Product innovation * From one style with five colors to 509 new models of sandals and sport footwear * Different designs and colors * Special editions
4.) Product properties * Low price: affordable * Durability, robust * Comfortable * Trademark in 1962 * “shoes for the poor”, outside work (coffee bean pickers and blue collar workers), all day shoes * For hot and humid weather
5.) Repositioning of the brand (1994) * Before: one style and five colors, poor point of sales execution and functional based advertisement, image of a cheap product that can be bought everywhere * “Havaianas Top”, matching sole and strap * in 13 colors * slight premium price * advertising showing upper class
Case Study Havaianas: A Brazilian Brand Goes Global
Question 1: What factors could explain the success of Havaianas in becoming a global brand?
1.) Stable and well developed economic background through acquisitions and expansions lead to a huge sandal market share * Sao Paulo Alpargatas exists since 1939, specialization in four business units: (sandals, sporting goods, industrial textile and retail) * Controling Shareholder (67%): Camargo Correa Group with operation in 20 countries * Acquisition of Companhia Brasileira de Sandalias (Dupé brand) in 2006 leads to increased share in the Brazilian flip flop market * Acquisition of 60% of Alpargatas Argentina to expand in Latin America
2.) Long experience and know-how in manufacturing sandals and producing the special rubber * Own operational and logistic framework * Extension of the manufacturing plant in 2007 ( capability to produce 212 million pairs of sandals annually) * Production in the northeast of Brazil, Santa Rita, in order to reduce costs, increase productivity and further streamline the logistic network * Headquters in Camargo Correas Centro Empresarial to optimize the administrative processes
3.) Product innovation * From one style with five colors to 509 new models of sandals and sport footwear * Different designs and colors * Special editions
4.) Product properties * Low price: affordable * Durability, robust * Comfortable * Trademark in 1962 * “shoes for the poor”, outside work (coffee bean pickers and blue collar workers), all day shoes * For hot and humid weather
5.) Repositioning of the brand (1994) * Before: one style and five colors, poor point of sales execution and functional based advertisement, image of a cheap product that can be bought everywhere * “Havaianas Top”, matching sole and strap * in 13 colors * slight premium price * advertising showing upper class