Key Takeaways

• In August 2021, Clarks joined hands with Wunderkind, a New York-based company that provides 1-2-1 marketing solutions, to improve the company's existing digital targeting strategy. This partnership will help Clarks to increase its digital revenues through improved user engagement.
• Marcus Oughton, the head of e-commerce at Clarks, says the following in relation to how its partnership with Wunderkind will help the company to move forward in its digital transformation strategy, "It's enabled us to have a more segmented approach to how we implement email. Rather than relying on sending emails based on product or gender preference segmentation, we are able to ‘personalize’ the message to align with a consumer's last digital point of interaction with the brand. The functionality being delivered by Wunderkind is enabling us to automate personalization, which is powerful."

• Clarks faced corporate challenges even before the pandemic hit the economy. The company's management showed concerns that the external environment was not conducive to the company's growth, including factors such as "uncertainty in the global economy", lower footfall at its brick-and-mortar stores, and "ongoing popularity of the online shopping" during a time when Clarks lacked a strong digital strategy.
• The Clark family was the main investor and owner of the business from its inception in 1825 until November 2020. In November 2020, C&J Clark Limited (also known as Clarks) announced that it sold the company's majority stake to LionRock Capital, a private equity firm in Hong Kong. Even though the company's majority stakeholder is LionRock Capital now, the Clark family will still remain invested in the business as "a key shareholder". LionRock Capital made an investment of £100 million (around $131 million at press time) through this acquisition.

Introduction

I — Company Overview

1. About the Company and Products & Services

• C&J Clark International Limited (also known as Clarks) is the international footwear giant that manufactures and markets shoes and accessories in over 75 countries globally, including the United States. The company has a large US footprint. In the US, it operates through its subsidiary company — Clarks Americas, Inc. The company was founded in 1825 by two brothers, Cyrus Clark and James Clark.
• Clarks Americas, Inc., a US subsidiary of the England-based C&J Clark Limited, offers shoes and footwear products through brick-and-mortar stores as well as through its online e-commerce site.
• The company's main product offerings include boots, flats, flip flops, sneakers, sandals, wide-fit footwear, slippers, loafers, slip-on, sneakers, and toddler shoes. It also offers accessories such as socks, shoe care products, belts, and wallets.

2. Funding History and Annual Revenue

• The Clark family were the main investors and owners of the business from its inception in 1825 until November 2020. In November 2020, C&J Clark Limited (also known as Clarks) announced that it sold the company's majority stake to LionRock Capital, a private equity firm in Hong Kong. Even though the company's majority stakeholder is LionRock Capital now, the Clark family will still remain invested in the business as "a key shareholder". LionRock Capital made an investment of £100 million (around $131 million at press time) through this acquisition.
• Clarks Americas received funding from 3i Group in January 1988 through a private equity round. The amount of funding was not disclosed in the public domain.
• The company's annual turnover was estimated to be around £775 million (or approximately $944 million) in 2020-2021, which plunged 44% year-on-year as compared to £1,374.8 million (or approximately $1,674 million) in 2019-2020.

II — Corporate Values & Mission

• Some of the company's values are built on the following principles:
• "We are feet experts": Clarks' expertise in the biomechanics of footwear for people from toddlers to old age will always help them get things right.
• "We learn from how you live": The company believes that it is able to learn and innovate from how its customers live and what they love.
• "Everybody should wear good shoes": The company's value revolves around making shoes that can make a difference in people's lives by designing stylish yet comfortable wear.
• "Create without compromise": Clarks believes in making shoes that are right for its customers and not what's "easiest, fastest, or cheapest."
• "We will innovate": The company always finds new ways to innovate and create products for tomorrow, by setting a benchmark that is their own and setting the innovation pace.
• "Create lasting value": Clarks aims to deliver sustainably and responsibly grown business to its customers, employees, shareholders, and other stakeholders.

• While the company did not explicitly state its mission, the company hints about its mission repetitively on various sections of its website. Clarks' mission is to pursue innovative comfort. The company is on a sustainable mission to "protect the planet, champion people, and inspire for change." The company states that it has always been its priority to reduce the environmental impact of its business on the earth. Clarks also believes that "every move matters, every person matters".

III — Strategic Initiatives and Quotes From the Company's Leadership Team

• Partnership with Wunderkind for enhancing the digital strategy:

• In August 2021, Clarks joined hands with Wunderkind, a New York-based company that provides 1-2-1 marketing solutions, to improve the company's existing digital targeting strategy. This partnership will help Clarks to increase its digital revenues through improved user engagement.
• Marcus Oughton, the head of e-commerce at Clarks, says the following in relation to how this partnership will help the company to move forward in its digital transformation strategy, "It's enabled us to have a more segmented approach to how we implement email. Rather than relying on sending emails based on product or gender preference segmentation, we are able to ‘personalize’ the message to align with a consumer's last digital point of interaction with the brand. The functionality being delivered by Wunderkind is enabling us to automate personalization, which is powerful."
• Investment in digital capabilities:
• In September 2021, the company announced that it is making investments in digital channels and social capabilities to increase its digital consumer base. Clarks announced new investments into social platforms such as TikTok as well as into the gaming segment.
• Tara McRae, the chief marketing officer of Clarks, talks about how investments in digital and social capabilities will help the company attract younger consumers, and says, "There’s a huge opportunity for us to unlock the younger generations, this current generation of consumers. It's the company's goal to meet consumers from their first step all the way through their lives."
• Clarks enters into the metaverse, a network of 3D virtual worlds:
• In May 2022, Clarks announced its launch of "the Cicaverse immersive experience on Roblox to celebrate the children’s unisex sneaker style, Cica, in partnership with the metaverse development studio Melon."
• In relation to this new digital strategy, Tara McRae, the chief marketing officer of Clarks, said, "We’re super excited to bring our iconic brand offering to the metaverse as Clarks is passionate about empowering kids and teens to be the best that they can be. Roblox is all about understanding and enhancing people’s shared experiences, which is what made this feel like such a natural place for us to have a presence. The Cicaverse is the perfect way that allows our early learners to explore, create, learn, and play in a dedicated community space that they can call their own."
• Restructuring the company's ownership and operations model to focus on digital strategy
• In 2020, Clarks got a new owner, that is LionRock Capital, to help the company to move forward in its digital transformation journey. The company also had to lay off 900 corporate employees to shift its major focus on Clarks' digital business growth.
• Giorgio Presca, the chief executive officer of Clarks, talks about the loss of 900 jobs and how they are trying to reshape the company's digital future, and said, "Our strategy is designed to put the consumer at the heart of everything we do through a focus on brand segmentation and revitalizing our brand communications, digital experience, and product design to create consumer desire. The challenges to our business brought on by Covid-19 have meant that we need more resources and investment in order to fully deliver this strategy and safeguard the future of our business. The new partnership with LionRock Capital will provide this as well as the expertise to grow the Clarks brand in China, which remains a primary opportunity. Our people, partners, and customers remain our top priority and we are committed to building a relevant, accessible, and desirable brand that reflects the way consumers live their lives."

V — Marketing Tech Stack

• According to data on third-party sites, the company uses the digital marketing automation software provided by the Salesforce Marketing Cloud (formerly ExactTarget).
• According to BuiltWith, some of Clarks' marketing campaign and advertisement tech stack includes Criteo OneTag, DemDex, Ezakus, Facebook Custom Audiences, Facebook Exchange FBX, Falk Realtime, Geniee, Google Floodlight Counter, Google Remarketing, Improve Digital, Index Exchange, IponWeb BidSwitch, Kauli, Media Innovation Group, Movable Ink, Nativo, Neustar AdAdvisor, Omnitag, Open AdStream, Openads/OpenX, Outbrain, Pubmatic, Resonate Insights, Rich Relevance, RichRelevance Apps, Rubicon Project, Semasio, Sharethrough, SkimLinks, Smartclip, Snap Pixel, Sonobi, SpotXchange, StickyAds TV, Struq, Taboola, Tapad, Teads, The Trade Desk, TripleLift, Turn, Twitter Ads, Yahoo Small Business, Yieldlab, Yieldmo, adingo, and eXelate.
• The company's content management system (CMS) tech stack includes Adobe Scene7 and WordPress (WordPress 3.9 and WordPress Daily Activity among others).

VI — Corporate Challenges

• Clarks faced corporate challenges even before the pandemic hit the economy. The company's management showed concerns that the external environment was not conducive to the company's growth, including factors such as "uncertainty in the global economy", lower footfall at its brick-and-mortar stores, and "ongoing popularity of the online shopping" during a time when Clarks lacked a strong digital strategy.
• Recently, the company stated that its "business has become increasingly less profitable over the last five years". Clarks has not been able to keep up with the changing consumer demand and also faced challenges of increased costs and overheads as compared to its competitors.
• Clarks also faced inventory challenges, and to solve this challenge, the company partnered with Fynd "to power the brand’s omnichannel strategy." With this partnership, Clarks will be able to balance "the brand's inventory across sales channels and improve its store and warehouse efficiency."

VII — Major Competitors

1. New Balance Athletics

• New Balance Athletics (also known as New Balance), founded in 1906, is a US-based multinational company that offers athletic footwear and apparel products to its customers worldwide. The company's website can be accessed here.

2. Skechers

• Skechers, based in California, United States, and founded in 1992, is a multinational footwear company that offers varied styles of products for men, women, and kids. The company's website can be accessed here.

3. Wolverine World Wide, Inc.

• Wolverine World Wide, Inc., founded in 1883, is an American multinational footwear company that manufactures and markets casual and performance outdoor footwear. The company's website can be accessed here.

4. Crocs

• Crocs, founded in 2002, is a Colorado-based casual footwear company that manufactures and markets the signature Crocs footwear for men, women, and kids. The company's website can be accessed here.

 

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VIII — Additional Facts

• According to Similarweb analytics, Clarks' website witnessed around 2.2 million visitors in May 2020, an increase from 1.9 million and 2 million in March and April 2022 respectively.
• The company's digital marketing channel distribution is as follows: search keywords (53.75%), direct traffic (36.5%), display advertising (3.76%), social media platforms (3.13%), other website referrals (2.66%), and email marketing (0.21%).

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