Meindl Footwear (1683), a company review.

Selling to Early Adopters vs Selling to the majorities.

This is a huge challenge in our industry. Selling product to early adopters through launches, either through your own site, Kickstarter, Indiegogo etc. is enormously different to selling to the majority. Some have described this challenge as ‘Crossing The Chasm’. a phrase coined by Geoffrey Moore in his book of the same name. There, he was focused on tech applications, but it rings very true in consumer behavior as well.

First we have to go back a step. The diffusion of innovation theory is a framework originally proposed by sociologist Everett Rogers to explain how new ideas, products, or technologies spread through cultures over time. Applying this theory to online purchase behavior sheds light on how consumers adopt e-commerce, new online shopping platforms, or digital purchasing habits, at first principles. You may recognize what the theory looks like in a graph:

Now, Moore evolved this theory with the following:

Clearly, he identified that there is a considerable gap, or chasm, between selling to the early ‘crowd’, and selling to the majority. From experience I can absolutely attest to this.

As an aside, The Bass model was a further evolution originated by marketing professor Frank Bass. It is used to predict new product diffusion patterns. It is based on a mathematical model to predict new product adoption patterns adopted in a market.

While the Rogers model describes all four stages of the product lifecycle (Introduction, Growth, Maturity, Decline), The Bass model focuses on the first two (Introduction and Growth). Some of the Bass model extensions present mathematical models for the last two (Maturity and Decline).

The long and the short of it is that there are tools to help predict sales cycles. Knowing them and being able to use them effectively are two different things. And the using of them is what we’ll get into during our proposed course, with real life examples.

Meindl - a legend in hiking

I was shopping for a pair of hiking boots recently, and, as usual, went overboard on the research. I ended up buying a pair of Meindl Journey Mid GTX. Partially because of what I read, partially because they felt comfy yet very sturdy (slightly wider fit) and partially because of the enthusiasm from the very professional sales person for the brand. Now, she was German, and as Meindl is a German brand, there may have been some hometown bias…but it got me thinking and delving further into the iconic brand. And here is what I found, presented in more summary form this week as I’m trying to bring these newsletters down to or below 1000 words….easier said than done!

1683: Origins of the Meindl Craft The story of Meindl begins in Kirchanschöring, Bavaria, where Petrus Meindl is recorded as a shoemaker, and the first in the village. This small village would become the cradle of Meindl's shoemaking tradition, handed down through generations.

1928: Establishment of Modern Meindl as Lukas Meindl, a descendant of the original family, officially founded the Meindl footwear brand. As an independent cobbler, Lukas began crafting high-quality handmade shoes, adhering to the ‘tradition of precision and durability’ that the Meindl family had upheld for centuries. In 1935 he also added leather clothes to the product lines, traditional Bavarian ‘Lederhosen’.

Post-World War II - Expansion and Innovation: By the mid-20th century, Meindl was one of the few traditional shoemaking companies in Germany that had survived the war. Under Alfons Meindl’s (Lukas’s son) leadership, the company adapted to the changing marketplace, transitioning from small-scale production to more industrialized manufacturing while maintaining craftsmanship as its cornerstone. This is another great example of the next generation taking the business to a new level. A trend I’ve seen among many great brands. By 1955 Hannes, Alfos’s brother, also joined the company.

1974: Meindl's groundbreaking Air Revolution technology went quite a way towards revolutionized hiking boots by enhancing breathability and comfort. This innovation cemented Meindl's reputation as a leader in outdoor footwear, managing to appeal to both professional mountaineers and casual hikers alike.

1978: Hubert Hillmayer reaches the roof of the world, Mount Everest, wearing Meindl boots.

1981: The company entered its next phase of growth under the leadership of Alfons Meindl and his brother Lars. They emphasized sustainable production, more innovative designs, and maintained a balance between tradition and modernity.

1989: Meindl integrated Gore-Tex into their boots, offering waterproof and breathable footwear. This advance elevated their products, making them an essential choice for outdoor enthusiasts facing extreme conditions.

1990s-2000s: During this period, Meindl expanded internationally, distributing products to countries worldwide. Their footwear became even more synonymous with reliability and comfort, favored by adventurers, military personnel, and outdoor professionals. The company was split into the Shoe division and the Clothing division. Alfons, Lukas and Lars Meindl took over the Shoe division. Hannes and Markus Meindl took over the Clothing division.

2010: The Comfort Fit system, which focused on foot health and ergonomic design, was introduced. This innovation targeted users seeking long-term comfort for extended activities such as trekking and hunting. Oh yeah - and their boots went to space in 2013..

2024: Today, Meindl remains a family-owned business under Lars and Lukas Meindl (which is refreshing to see - 9th generation). The company has achieved annual revenue estimates ranging from $75 million to $100 million (not a lot of figures made public so this is just above ‘best guess’ territory), underscoring its significant presence in the premium outdoor footwear market. Meindl continues to innovate with technologies like MFS Vakuum® and Vibram® soles while still maintaining its strong commitment to traditional craftsmanship. I know that sounds like a sales pitch, but I’m really impressed with their focus. Albeit with a premium - I’d estimate they were about 20-25% above average in that mid hiking range, from what I saw and tested.

So, what does the brand represent?

“Meindl stands as a symbol of premium Bavarian craftsmanship in the crowded outdoor footwear market.” In fairness, their products are designed for durability, comfort, and versatility in categories including hiking, trekking, hunting, and urban use. The company’s innovations, such as the Air Revolution and Comfort Fit systems, help to make sure they remain innovative. This is absolutely critical. Meindl's ongoing focus on quality over quantity solidifies its position as a preferred choice among serious outdoor enthusiasts and professionals. But you can also occasionally find them on the street now, a little more than before at least, as trends continue to cross traditional boundaries. And my new boots? Well, typically German. Not the most comfortable boots I’ve ever worn, but they feel like I could trust them impeccably. A bit like driving a BMW, I’m told! We’ll leave the last word to the 9th generation of caretakers..

Lars Meindl: On the one hand, we stand by our traditions because they are part of our history and they make us what we are. We still make mountaineering boots using a traditional double-stitching method, for example. It’s a craft, and every one of our boots is unique. We are also fiercely loyal to our base in Kirchanschöring, and we are investing in its future. This sends out an important message both to our region and most importantly to our employees, who can depend on us.

Lukas Meindl: And yet Meindl is also known for its innovations on the outdoor boot market. The foundations for this were laid by our father, Alfons Meindl, when we were very young. From the moment that we were able to think for ourselves, we would spend Saturdays with him in the workshop, helping to come up with new developments. While we were still small, it was still just playing and tinkering with leather materials for Lars and I, and over time this grew into development work.