Havaianas Indonesia operated as a joint venture between Havaianas Australia and a local partner. The local operation was primarily focused on wholesale but failed to gain sufficient traction to meet the initial investment return and achieve the sales targets set by Havaianas headquarters.

The partnership encountered difficulties, resulting in cash flow issues that negatively impacted the local business.

We quickly recognized the need for a turnaround to restore profitability and meet the objectives outlined in the distribution agreement.

Our strategy focused on three main actions: (a) restructuring the team to instill a higher sense of urgency and reduce expenses, (b) renegotiating and exiting the existing joint venture, and (c) shifting the business model to a retail operation.

In the first six months of the turnaround, we successfully exited the joint venture, improved cash flow through cost-saving initiatives, and redirected efforts towards retail channels.

Post-exit, our strategy concentrated on expanding the retail network and evolving our standalone stores into multi-brand lifestyle outlets to increase average ticket value.

Within 12 months, the retail operation expanded from one clearance outlet to seven multi-brand stores, achieving a healthy profit and positioning the business for scalable growth.

We transitioned the operation to a local country manager, allowing us to focus on further territorial expansion and enhancing operational efficiency.