Allbirds, the sustainable sneaker label that was once the must-have footwear for Seattle and Silicon Valley tech workers, has sold off its assets and intellectual property at a startling markdown. The formerly soaring brand has, at last, come crashing down. This outcome is hardly unexpected. For the past four to five years, Allbirds has been faltering, relying heavily on constant promotions and discounts. Four years back, I wrote about Allbirds: “According to The Wall Street Journal, Allbirds, once a Silicon Valley startup footwear brand, has ‘lost its way.’ Allbirds lost its way by looking beyond its core base; by coveting others at the expense of Allbirds’ lovers.”
Allbirds succumbed to three classic brand management pitfalls, each contributing to its decline. What stands out is that the company has been unable to reverse its downward trajectory. Instead, nearly every move Allbirds has made appears to have intensified its destructive spiral into oblivion.
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Ignoring The Core
Allbirds fell prey to one of the most damaging strategic tendencies: neglecting the core customer. In an effort to drive growth, Allbirds introduced products aimed at younger, more fashion-forward audiences. These offerings strayed from the original brand promise. In fact, that promise was effectively sidelined. Allbirds also moved beyond footwear into apparel, and not all of these items met high quality standards. In its recent coverage of the Allbirds sale, The Wall Street Journal noted that “… nothing could replicate the success of its…”