How Allbirds Became A $1.4 Billion Sneaker Start-Up
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- Опубликовано: 29 сен 2024
- The simple wool shoe started as a Silicon Valley favorite and has spread to Hollywood and beyond.
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In 2012, Tim Brown called it quits on an eight-year professional soccer career that included a trip to the 2010 FIFA World Cup as New Zealand's vice captain. After retiring, one thing from Brown's playing days would not stop bugging him: the sneakers.
Throughout his playing career, Brown's teams (he played in the U.S., Australia and New Zealand) were sponsored by big-name sneaker manufacturers like Adidas and Nike. But Brown felt the sneakers he wore on and off the field were often too flashy, awash with too many different colors and packed with corporate logos.
He wanted something simpler. So, he decided to make his own.
Today, Tim Brown, 37, is co-founder and co-CEO of Allbirds, the San Francisco-based sneakers start-up that's taking the world by storm, one pair of feet at a time. The billion-dollar company's shoes are famous for being both unbelievably comfortable and constructed with natural, environmentally friendly materials like merino wool and eucalyptus tree fiber.
Google reviews of Brown's increasingly ubiquitous footwear include phrases like "shockingly comfortable" and "they're like slippers made of clouds."
Not only are Brown's sneakers cozy and sustainable, they're also minimalist in look and sales strategy. Allbirds sells only about half a dozen varieties of its shoes in solid, often understated, colors such as "Natural Grey" or "Tuke Honey" (which shares the name of a New Zealand river). That model stands in contrast to much of the $64 billion global athletic footwear market, where companies like Nike and Adidas churn out hundreds of varieties of shoes with endless options for customization while "sneakerhead" culture creates a market for flashy collaborations involving brands, athletes, celebrities and designers that can see the most coveted shoes sell for thousands of dollars per pair.
"I had a very, very simple insight that shoes were over-logoed, over-colored and changed all the time for no reason," Brown tells CNBC Make It. "And, it was very, very difficult to find 'simple.' And I set out to solve that."
Nearly all of Allbirds' shoes sell for $95 per pair (high tops released in November go for $115) and Brown says the company sold its 1 millionth pair just two years after officially launching in March 2016.
Read more about Allbirds here: cnb.cx/2LvGAk9
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How Allbirds went from Silicon Valley fashion staple to a $1.4 billion sneaker start-up | CNBC Make It.
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"Sometimes innovation can be about taking things away. It can be whispering when everyone else is screaming."
Like taking away the headphone jack lol.
@@808thampire LMAO 😅😅
Apple is great at that.
corny, meaningless line
I would pay for a statement like this. Good one.
i feel like allbirds paid yall to make this video lmao
Sky Kang totally agree!! I used to work at a media company. They make a lot videos for sponsors. I believe this is one of em too
Rubish.... goes to check out Allbirds.
I feel they paid a lot of ppl that 1st year and gave away nice shoes to key personalities.
@@7wiiskate Yes, this is exactly what they did. The material is cheap mix with synthetic and they doesn't tell you that! They just answer you question, confirming that there is and that they are not going to disclose how much. What I wonder about, why no blogger, writing about them, ever asked them this question. Nobody seems to be interested, since they probably pay very well...
So obvious lol
I've never heard of these.
Depends where you hang they ran a really heavy social campaign so people on Facebook and Instagram saw them a lot.
Thomas ikr taking the world by storm. Ha. I think not.
Well now you have.
Same
They were popular in NZ from when they first launched. Whenever I'm overseas and I see someone wearing them, I ask if they're from NZ - they're that much of thing.
Why is Tim Brown the only one subtitled in this video?? He is speaking English like everyone else!
Because his accent might be difficult for some people to understand. For those viewers, it helps them concentrate their attention on the value of his ideas (particularly the sustainability that underpins his products) rather than being lost trying to decipher his accent.
he a kiwi , kiwi english bad
@@isaacabodunrin7834 What about people from New Zealand trying to understand the American chap? Or is it only US consumers that count?
It's our New Zealand accent!!! lolololololol No one understands us kiwis!
@@27johnny people from New Zealand watch lots of American programming and are used to American accents , no one watches New Zealand tv outside New Zealand. Sometimes it's better to think about something before complaining.
I love how they make out in this video that celebrities just started wearing the shoes off their own backs... anyone who's worked in fashion, or knows anything about PR/marketing knows that's not how things work!
How do things work? (for us who aren't in PR)
@@Gilotopia They get paid to wear it in public. Mainly on event where lots of news company keep their eyes all time. They charge $20k to $200k for posting it on their social media randomly so that it doesn't look like Ad
12sin8 Yeah I’m sure google’s founder and Obama agreed to get paid $10k to wear some shoes, they must be going through bankruptcy or something.
@@AmitSinghco I do think you still need to declare that as an ad (if you post it on social media), however wearing it in public obviously doesn't require you to wear a sign.
@@GameFuMaster Now most of company ask influencer to write "#Ad" somewhere in the description to be on safe side of law. I'm in SMM so I know this.
*SHAUN THE SHEEP WANTS To KNOW YOUR LOCATION.*
This is a billion dollar company... Wtf...
No it's not they just lying to there investors
*No it's not! They are just lying to their investors.
it's valued at 1 billion, because of sales projection and investments.
"Valued"
@@keenenwalker8708 look, that's what these "experts" say okay. IMO they're probably wrong, like they were wrong with Uber and WeWork, but that's how they value it and that's how these companies can get a massive exit.
Why do these look like cheap Kmart shoes
Legend say he never blinked his eyes
Mulle
Love the subtitles only for the Kiwi accent parts
Is this really innovation or just marketing hype? Nike make shoes out of plastic because its cheap. Wool is expensive because it's a natural material. If wool prices have increased 30% in 2017 because of some hype imagine if the shoes really became mainstream. More demand for wool = more sheep = more land clearing for the sheep to graze = more c02 emissions. Its a nice shoe but I don't see this as environmentally friendly.
Long-term if the market explodes for wool you are probably right, but surely despite that it may still be better environmentally that the plastic alternatives? (also its cows that are the bigger issue, not sheep)
@@tedward191 I suppose it comes down to which problem is easier to solve; plastic in oceans or global warming.
@@Tinfed might the wool industry be better than plastics for both oceans and co2 emmisions? (Despite all the sheep)
Just tax the plastic and subsides the sheep, case closed
environmental issues all come from consumerism, not only eco-friendly or plastic products.
These are Facebook mom shoes.
Who's here because All birds is announcing their IPO soon? Anyone?
Ok.. 😐
So he got a government grant and had connections in business world not really a surprise he got a billion-dollar startup
Patjersey3000 jealous
A government grant and connections in the business world does not guarantee any success. Many have failed, despite these 'advantages'.
MyAkachi name 1
@@rodrigozapata3356 no just stating the obvious nobody said he didn't work hard to make the company viable people like you are the reason why we have communist running wild all over the world
Do you know how many startups fail? Dude went back to college in a different country after his successful professional athletic career and you're hating on him? Good for him and all the people he has helped with his brilliant idea!
How much money do I need to pay CNBC to get a storyboard coverage like this for my company?
I'm curious too. If you figure out, let me know... ;)
Perfect for a minimalist
I might pick up a pair, my current low profile shoes are Mexico 66s which I love
lol no r u high or smthing
Light Yagami what?
It is just naturally weird to hear a New Zealander non-rugby player achieving great amazing heights.
Can you believe a member of the minority football code developing a footwear solution for all people!?
Richie McCaw and company will be amazed.
I’m so confused these look so cheap and horrible !!!! I must be wrong and have bad taste though !! As they have 1billion in sales
Dang I've been on Allbirds for about a year and a half... No idea they were this big now.
v5a they’re not this big lol .
Are the shoes still in good condition?
Are the shoes really that comfortable?
@@SydneyMadueke Not, they use chip material with synthetic in it and don't mention it. It will not sale well - using at the same time "natural" and "sustainable"... ;) All customers seems to be blind and don't care. I would wonder, how much they are going to sell, after some company will call on them, based on act of dishonest competition.
Just a reminder, u can make shoes that are comfortable AND STYLISH. Nobody forces u to pick between the two. They look terrible
I bought some and got them yesterday. The uppers are pretty nice but the soles are hard and uncomfortable.
They're meant to be more like a business shoe, perfect for all day wear and tear. More like a Vans Era or Oldskool Vans.
Abhimanyu Khadwal so they’re meant to be uncomfortable?
Abhimanyu Khadwal stop . Just stop . He literally said uncomfortable and you’re still defending it and you don’t even own a stake in the company . Why are you defending something you have nothing to do with ?
Well yeah what do you expect? People cry about other people buying nike and adidas being “ brand whores “ and show offs . No ! I buy them because no matter what design i buy it will be comfortable and durable . Period
Maybe they have to break in
Absolutely love my Tree Runners! Saw a few pairs in New York when I was there. Cool to see the company growing!
American companies are often overvalued. All those Unicorns offer 0 but some VCs think they’re the next big thing😂
Maybe that's why you're not a VC
Someone can make money from an overvalued company too. Idk why fools those haven't studied well share their opinions without knowledge
My only problem with the shoe design is they are made to be worn sockless and the heel rubs away and gives you wicked blisters. It's a pretty common issue with them for a lot of people
I always wear them with thin socks and it's perfect.
I wonder if Allbird can design a simple socks for their shoes. It would be a great product line. Alright ss me and send to allbird. I dont ask much, just a small bucks to start my small food company.
Thin socks are better with these. Thin running socks are the best.
they sell socks now
You never wear closed in shoes without socks. Toe jams people!
Very ugly shoes ! I dont understand who's buying this Ugly shoes...🤦
why does he look like a really good CGI character or silicon robot which doesn't blink that often ?? 0:37
The sheep herd mentality
They look good but i cant wear them as I need support in my shoes and that shoe is basically a sock
Never heard of AllBirds. 😁😁
I love them. Comfy but also really lightweight, so perfect for travel.
they sell for around $90...they must think we're mugs.
What price is a good sneaker for you
But this one doesn't smell with sweat after 1h coz merino wool breathes and regulates temperature.
Really like the designs; the variety.
Never heard of it even a year after this video was made.
Got gifted a pair of these, love it. But I do still think new balance 574 are best simple classic shoes.
It's nice not having logos
If Allbirds collab with Boost.
This is the first time I've heard anybody express the way I feel about overly colorful and flashy sneakers. That's neat.
90£ for I pair of this whear it couple times the sole go this not worth eve 20£ for I pair
No thanks. Maybe as gym shoes. Home gym. Not wearing grandpa shoes in public
Tech hipster shoes
Wow that's me, I've always wanted plain shoes with no logos. And something that lasts. Though I've heard of allbirds I haven't tried it.
3:53 Joey Z with the “Start With Why” mentality... Shoutout Simon Sinek
Toby Ilogu I know right? I thought I was just the only one that noticed
As a sneakerhead i find these shoes quite ugly
he came to my school in New Zealand, nice guy
This is how markets crash. Propped up prices
Those wool runners are actually SUPER COMFORTABLE
I like less flashy shoes 💪
Dont waste your money the shoes are trash..
These shoes are ugly!!
So he got lucky ? I don't see the shoes.being anything special tho. And what innovation ?
Building a sustainable, comfortable, simple shoe.
You sound like you have a tannie haircut.
Check their website and try one then comment
I owned 3 pairs, awesome!
This shoe will never succeed among people that are into sneakers, but among the rest of the general population, this shoe can succeed
I just spent $500 on some jays
70 million REVENUE = 1.4 Billion market Cap. Someone needs the take a basic finance class. Ridiculous.
Agree with you. 99% of the valuations of companies these days makes no sense at all in terms or economics / finance
I haven't watched any of the video or seen their financials but that valuation is ridiculous
100M in rev Ann.
Expensive shoes. Never heard of it and probably never will again.
What price is a good sneaker for you
Lamb stew....no wonder so much success.
I never heard of these and I won’t be buying.
I've lived in New Zealand all my life. How come I've never heard of this guy or the shoe brand before?
Boss Lady Tee - The algorithms haven’t gotten to you.
@@christopherarmstrong2710 😂😂😂😂
This guy is so calm
Not really a start up when you have a government grant and youre rich to begin with
jsk - its still a start up, the same way companies that have investors are startups. Some companies start with millions let alone 200k but to take 200k and turn it into 1.4b is just amazing
*All **-birds-** Sheep*
I have a pair, they are very comfortable indeed.
I never heard about these Ugly Sneakers !!
Now I want a pair so I can support the company
Wild 野性 it’s a multi billion company. You can give your support to a local sneaker shop. 👍🏼
Make sure you order a size up at least. I've had to return shoes twice to get the right size - fingers crossed 2 sizes up actually fits as there isn't a larger size....
@@kamransayed2634 pretty sure its better to give money to companies with better products and not give it to local company that doesnt have the same level of innovation.
nike will be nike!
My pair didn’t last past 6 months.
Really, how did you use them? Running or just casual everyday use?
Because you got whole in merino wool fabric. Well why not repair your shoes by sewing and weaving it?
They should start selling it in Europe and rest of world instead just Us markets....
Jesse This.
they have always shipped worldwide...............
@@brosnan nope they won't ship to Europe
@@jesset3395 They ship to AUS, but not Europe :|
@@brosnan Worldwide means all around the world... Australia aint worldwide -_-
What a lot of BS. this video is. 73 M in revenue and you guys evaluate it as 1.4 Billion startup company. Try to sell that company for that price. Even pre-COVID no one on earth would agree to invest with such inflated evaluation.
Pretty good video. I learned a lot.
Ugly shoes🤢
Its ugly ngl
I'm sure they are not better looking and more comfortable than ultra boost !!
Not familiar with this brand but congratulations! Hope to try soon.
overrated
Summary : Goofy tech guys will spend a lot of money to not look in any way like a minority ;these shoes are ugly and lame but they aren’t Jordans or Adidas
To all those hypocrites who say only Chinese companies copycat others, look what Steve Madden did in this video!
That doesn't prove anything. Chinese companies are rarely founded off of original ideas because the CCP encourages it and protects them from the original company's wrath. They also go and outcompete that said company because of the much larger middle class that is continueing to grow in China.
Betelgeuse How so? Give me ONE successful American, European, Japanese, or Korean company that has NEVER rip off the idea/design/strategy of another company (or another person outside of its company) in its history! Come on, I dare you, in fact, I double-dare you to give me just ONE such company that is still in business today!
You know why you can’t come up with even ONE such company? Because every successful company need to adapt to this ever changing world and market, and as soon as another company comes up with a success in the market place, most of its competitors follow suit because they know it works. So tell me how is it not hypocritical for you people to single out only the Chinese, when the whole world is full of copycats???
@@JayJay-pm5ze double standard is why, he's unable to come up with a response. To him, others can copy chinese, but chinese can't copy them.
Are they in Asia yet? They should be.
Hi guys I'm running my Startup, 3:15 if he takes $77.5 million from outside investors, how is he going to payback all the investors money? Pls advice. TQ.
U do noy have to pay them back. He sold STOCK for 77.5, he did not get a loan. Sp they own a %of the company (profit and stock)
@@onurkutlu5298 I see. But can you really sell the Stock for $77.5 Million if you're not a Public Company? If yes how do you divide the stocks for each investor?
@@Gary-cc8oe it's a private limited company; investors get their share from profits according to the terms and conditions.
Same doubt 🤔
A company does not need to be publicly traded to have stock. Stock is simply a unit of ownership of a share of a company.
Plot twist: this is actually an Allbird ad
Minstrel
I love the design of these cause I am a designer my self, but those shoes are not made for rainy weather like Wellington. I kept falling over, again and again.
Gumshoes makes wellingtons out of chewing gum they cleaned from street.
like if u never heard of these shoes lmao
They are not adorable in india. Not for people of middle class and below it
COOL 🔥🔥🔥🔥🔥🔥🔥🔥🔥
I don't see them taking the world :/ marketing bs lol
Screaming and whispering, it also depends on timing or new outlook.
They are the most comfortable shoes I've tried!
yet they still don’t ship to Europe
the only thing is no kids shoe made for the youth lover
God I want a pair so much... this guy summarized it for me, every shoe is overly branded with too much design. I was looking for a simple one. (don’t like wearing brands too much.)
Too bad I live in Germany where they don’t sell yet. So I heard about these but can’t get em...
next time
Tristan Möller so buy cheap shoes from Walmart no brand
Tried via internet?
My god they are hideous.
Cool company
Lmfao I ain’t heard of these before
Is the shoe affordable? Sounds like gonna be an iPhone price
calvin yip About $90 last time I checked
calvin yip And then you have to upgrade lol the shoelaces 😂
@@alfredoalcantar8691 extra charge for that
I've never heard of them ..
Can confirm, they're extremely comfortable. I wear mine constantly
but are they durable ? Well sewed, solid rubber ...
Its overvalued. With $80 million/year rev should be appraised $400m-$800million max
When it came to Indonesia?
There's no "How" did they get there!!
It cannot be just because of materials used or Kickstarter campaign!!
You guys have only reported milestones such as Kickstarter, famous celebrities used it and boom they are now big!! Seriously!?!
If their success is mainly because of material & celebrity influence, then why on earth did you miss out on covering How they run their marketing to capture influencer?!
Nice to see the subtitles cuz no one can apperently under the kiwi accent✌️