Havaianas APAC Expansion

 Executive Summary

  • Havaianas was experiencing significant growth, and to capitalize on this momentum, we needed to act swiftly and innovate.

    Although the brand was gaining global recognition, its distribution in the APAC region remained limited and underdeveloped. The product offerings were not aligned with consumer demand, and key markets were not maintaining optimal inventory levels to maximize sales.

    The Havaianas distributor network consisted of entrepreneurs focused on branding and sales, yet they were still in the process of developing the necessary resources and infrastructure to effectively manage operations.

  • Given constraints on resources and time, we concentrated our strategy on three key markets to generate brand awareness and exert influence across the APAC region. These markets were chosen based on their fashion influence, volume potential, and the capabilities of local distributors.

    We negotiated bespoke local strategies with each distributor to leverage their strengths and develop case studies for potential expansion into other markets.

    The strategy was structured as follows: (a) Japan: Focused on lower volume but emphasized co-brand partnerships to target niche markets with significant influence throughout Asia. (b) Philippines: Aimed at expanding the standalone retail network to establish a robust distribution channel and increase volume. (c) Australia: Designated as the creative and design hub for the region, with products developed for resale in other markets.

    While each market operated independently, their combined efforts facilitated scalable projects that could be adapted and implemented in other regions.We negotiated with the local distributor specific local strategies that could be leverage and form part of a case study to explore other markets.

    The strategy was divided into (a) Japan to be lower volume although more co-brand partnership to focus on niche markets that would influence Asia, (b) Philippines to expand stand alone retail network to build a distrbution channel that could raise volume and (c) Australia to be the creative and design hub of the region with products that could be on-sold into other markets.

    Those 3 markets were operated individually, but with their specific focus the region had multiple activities that could be scalabled to other markets.

  • The APAC region emerged as the most profitable for Havaianas, effectively balancing high margins with substantial volume.

    The region included two of Havaianas' top ten accounts and initiated projects that are now central to the company's profitability.

    The Havaianas Australia collection produced some of the most successful and profitable products for the business. The Filipino operation became a key component of Havaianas' standalone operating model, while the Japanese market established notable co-brand partnerships, such as Havaianas Chiso, which are now considered significant milestones in the company’s history.

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