BRAND HEALTH CHECK: Dr Martens - Can Dr Martens regain its relevance to youth?

Once a cutting-edge cultural and style icon, recent years have seen DMs overtaken by trainer culture. Where have all the boot boys gone, asks Ravi Chandiramani.

Dr Martens has been the brand icon for a succession of youth movements over the past four decades. Embraced by skinheads, punks, followers of grunge and elements of the gay scene, Doc Martens, DMs, Docs - whatever you call them - has become the definitive name in hard-wearing boots.

As an illustration of its wider acceptance, even the Pope donned them and ordered 100 white pairs for Vatican staff.

But Dr Martens has fallen on tough times, hit by the universal adoption of trainers by designer sportswear-clad youth. Late last month, owner R Griggs announced it would close its British factories and move production to China, resulting in 1068 job losses. A trimmed headcount of 80 will continue to operate at its administrative headquarters in Northampton.

The company reported a 拢24m loss earlier this year.

Ironically, this great British brand was invented by a German, Dr Klaus Maertens, in 1945, after he injured his foot skiing. He sought to ease the pain of walking by designing an air-cushioned shoe.

Northamptonshire businessman Reginald Griggs, snapped up the global rights to the brand, anglicising its name to appeal to post-war consumers.

The first Dr Martens boot was sold here in 1960, arriving just as youth movements began to emerge. Since then it has traversed many fashion trends.

While the brand stayed cutting edge until the early 90s, it is no longer the standard bearer for any cultural movement. R Griggs now manufacturers DMs for men, women and children and devised categories such as 'classic', 'outdoor' and 'street' to bolster its appeal to new customers.

So Dr Martens faces its biggest test yet. How can it revive sales and re-establish its status as a desired expression of youth culture?

We asked Robert Senior, who heads the ad account for Timberland as managing partner at Fallon, and Brent Hollowell, a former US marketing director at Adidas, now vice-president of marketing at directory enquiries brand The Number.

VITAL SIGNS

R Griggs financial results*

Mar 01 Mar 00 Mar 99

Revenue $280.0m $370.5m $412.4m

(拢179m) (拢236.8m) (拢263.6m)

Cost of goods sold n/a $196.9m $210.2m

(拢125.9m) (拢134.2m)

Gross profit n/a $173.5m $202.2m

(拢110.9m) (拢129.2m

Gross profit margin n/a 46.8% 49.0%

Operating margin n/a 3.0% 6.1%

Net profit margin n/a -4.4% 2.9%

Source: Hoovers Online

*Mar 02 figures to be published by R Griggs at the end of 2002

DIAGNOSIS

Robert Senior

Dr Martens always had a peculiarly English connection to the cultural underground, but in 2002 it is a brand that has almost entirely lost its relevance.

The killer blow came from the same tribal identification that made the brand a success in the first place. With the rise of the 'house nation', and the ubiquity of trainer culture, Docs became positioned as the footwear of the out of touch.

But for a brand with 30 years of 'cool equity' this seismic cultural shift should not have been as disastrous as it was. It turned itself into a Carnaby Street theme park of its past glories, and atrophied into a past cultural moment.

Dr Martens failed to innovate, it failed to evolve and it failed to keep pace.

The good news is that fashion brands in particular can reinvent themselves on a sixpence.

For a brand that used to enjoy such a clear, robust positioning - to the extent that it became the ultimate negotiation with your parents - something dramatic and extreme is required. Almost to the extent of change for change's sake.

Brent Hollowell

Dr Martens is about working class values and urban durability. It's about being functional without any bullshit. Its authentic street credentials contrast sharply with Timberland's trendy outdoors/urban lifestyle brand.

But its products and marketing often undermine this. The brand stewards could do more to ensure Dr Martens is always fashionable, rather than patiently hope for style cycles to bring it back in fashion.

This brand arrived from nowhere in the cultural explosion of the 60s.

For the next three decades, by luck or judgment, successive waves of fickle consumers - skinheads, punks, football hooligans, grunge rockers and women who like comfortable shoes, adopted it.

Why not tap in to the inherent goodwill toward this British icon? Why not embrace and celebrate its diverse urban roots? But recognise that you won't stay in fashion by waiting for the next wave of customers to define who you are and what you stand for.

It's time for Dr Martens to stand in its own boots and see how big they really are ... and how much bigger the company behind them could be.

TREATMENT

Senior's suggestions

- At its best the brand was decisive and rebellious. Time to take its own medicine: put the boot in.

- Supply DMs to celebrities under fire - Angus Deayton, say.

- Reduce supply and put the price up to increase brand stock.

- Hold a Dr Martens amnesty. Encourage people to return their old DMs.

A sign that the brand is breaking from the past.

Hollowell's hints

- Your urban heritage gives the brand its personality. Make sure the products and marketing line up. Consumers will give you points for longevity, but there's no substitute for relevance.

- Put the boot in to 75% of your product line. Simplify and focus.

- Clean up your distribution. If your retailers don't respect the brand, neither will customers.

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