Key Takeaways

• According to its LinkedIn page, Nine West Group describes itself as a “collection of globally-beloved shoe, handbag and accessories brands.” It was established in 1987, and according to its website, it has a presence in 78 countries worldwide.
• Nine West prides itself on its core values of quality, collaboration, “exceptional service, energy, talent, and passion of its diverse team.” Other values extolled by the company include integrity, excellence, and continuous improvement. 
• Reuters reports that in April 2018, Nine West filed for bankruptcy after it failed to make a payment on the interest owed on its business loans. The article records that Nine West had accrued over $1.5 billion in debt, with a 2018 article by the Washington Post adding that this amount was spread across 50,000 creditors.

Introduction

Company Overview

• According to its LinkedIn page, Nine West Group describes itself as a “collection of globally-beloved shoe, handbag and accessories brands.” It was established in 1987, and according to its website, it has a presence in 78 countries worldwide.

• Its website also states that its products include a “thoughtfully curated” variety of footwear, handbags, and accessories.

 

Source

 

• Dun and Bradstreet (DNB) posits that the company is home to over 500 employees and could possibly be generating about $17 million in annual sales. Zoom Info, another business intelligence site similar to DNB, offers a different figure, postulating that the Nine West Group’s annual revenue could be in the excess of $3 billion.

• Crunchbase notes that the company is part of the Authentic Brands Group and its last funding round was in 2002.  

Mission, Values, and Strategic Initiatives

• Nine West prides itself on its core values of quality, collaboration, “exceptional service, energy, talent, and passion of its diverse team.” Other values extolled by the company include integrity, excellence, and continuous improvement. 

• Its website, in part, reads, “Each collection illustrates our commitment to balancing essential pieces with the season’s iconic trends, always maintaining a focus on wearability, quality, and style.” Its profile on LinkedIn adds, “We collectively and not-so-secretly believe that shoes, handbags, and accessories are transformative. Done right and well = outfit tears of joy and confidence beyond compare. It’s our mission to lead the trend, be freakish about quality and detail, and design wonderful things for women with discerning taste and fabulously chameleon-like fashion ways.”

• According to Retail Wire, an online publication dedicated to the US retail industry, ABG dictates the marketing strategies of all its brands. It leaves manufacturing, inventory, distribution, and other responsibilities to its licensee partners.

• Retail Wire also adds that ABG’s main area of focus has been in its digital capabilities, noting that the group has invested its marketing resources in digital to “serve as a basis for brand development.”

CEO Quotes

• Regarding handling its brands’ marketing strategy, ABG’s CEO, Jamie Salter, states, “We are a licensing business and are purely focused on brand identity and marketing. This unique approach allows us to unleash brand performance through reimagined storytelling and staying ahead of the distribution curve, create a sustainable, strong royalty model with recurring, asset-light growth, drive a flywheel of successful revenue and brand growth that fuels free cash flow to invest in additional brands, and focus most of our time, efforts and resources on building incredible brands.”

Marketing Tech Stack

• Slintel records that the Nine West Group has over 150 technologies across 19 categories. For marketing, for example, Slintel lists at least 6 different types of technology purportedly used by Nine West. Some include;
• Qubit- a tool that helps marketers “understand their visitors, and personalize their online presence to drive conversions in real-time.”
• Bronto- this is a marketing automation platform that provides online and email marketing campaign solutions for big e-commerce retailers.
• Listrak- this is a digital marketing platform that gives omnichannel retailers like Nine West access to their clients through mobile and email marketing.

• A 2017 article by Retail Dive reports that Nine West employed the use of Demandware (now Salesforce Commerce Cloud), to power the brand’s mobile commerce store.

Challenges

Bankruptcy

• Reuters reports that in April 2018, Nine West filed for bankruptcy after it failed to make a payment on the interest owed on its business loans. The article records that Nine West had accrued over $1.5 billion in debt, with a 2018 article by the Washington Post adding that this amount was spread across 50,000 creditors.

• According to the Washington Post, the Group opted to sell its Nine West and Bandolino brands to ABG. Ralph Schipani, the group’s CEO at the time, is quoted saying, “This is the right step to address our two divergent business profiles.”

Failure to Adapt to Market Trends

• The Washington Post also reports that Nine West did not adapt quickly to changing market trends to stay relevant and profitable. According to the article, while other brands hopped on the athletic shoe trend, Nine West missed it. “The retailer has faced several challenges in recent years, including slumping demand for ballet flats, sandals, and high heels as consumers spend more of their money on athletic shoes and sneakers. Analysts said the decline of shopping malls and department stores — many of which sell Nine West products — also exacerbated its demise,” the article goes on to say.

• Research firm Forrester’s Sucharita Kodali adds, “This is a brand that has really struggled to differentiate itself. The only bright spot in the footwear industry has been athletic wear, and that’s not what Nine West sells.”

• Jessica Couch, a retail technology expert, contributes, “I couldn’t help but wonder why Nine West did not embrace the shoe trends of the time which later led to their demise. Not embracing the athletic trend for the sake of preserving brand identity proved to be a disastrous decision. Companies are supposed to serve the customer, provide for the customer and give the customer what they want. Your identity and your core products are only as good as the demand for them. Making design decisions outside of what is being asked from the consumer is a mistake many brands make. Fashion is no longer dictated from the top down. Fashion and design are decentralized and come from the bottom up. The idea is not to stifle creativity, but to ensure brands survive.”

Major Competitors

Steve Madden

• Steve Madden is a New York-based retailer of “fashion-forward” footwear, accessories, and clothes for men, women, and children. It was founded in 1990 and is publicly traded under SHOO.

• A link to its website can be found here.

Aldo Group

• Bloomberg reports that the Aldo Group is a Canadian-born retailer of shoes and accessories such as watches, belts, and hats, among others. It was founded in 1988.

• A link to the website can be found here.

DSW

• DSW is a footwear retailer that specializes in branded shoes and accessories. It boasts of over 300 stores spread across 40 states. The Reference for Business website posits that the company went public in 2005.

• A link to its website can be found here.

Kenneth Cole

• The Kenneth Cole Production, founded in 1982, specializes in footwear, handbags, and accessories, as well as sportswear and tailored clothes specifically for men. The Reference for Business further reports that Kenneth Cole products are showcased in over 2,500 stores in the US.

• A link to its website can be found here.

Additional Relevant Facts

• In July 2021, Nine West’s parent company, ABG, filed for an initial public offering with the Securities and Exchange Commission. In its prospectus, it is selling Class A common stock shares. Under its description of Nine West, it notes that the brand’s main target is Millennial and Gen X women and that the brand enjoys over 3,000 distribution points across the globe.

Research Strategy