Deichmann SE

Last updated

DEICHMANN Shoes
Company type Societas Europaea
Founded1913;111 years ago (1913)
Headquarters Essen
Key people
 Heinrich Deichmann (CEO)
Products Shoes, Bags
RevenueIncrease2.svg~€8.1 Billion EUR [1] (2022)
Number of employees
48,000 (2022) [2]
Website www.deichmann.com
Deichmann flagship store in Essen, Germany Deichmann-Filiale in Essen.jpg
Deichmann flagship store in Essen, Germany

Deichmann SE [3] is one of Europe's largest footwear retailers [4] and is headquartered in Essen, Germany.

Contents

Company structure

Deichmann SE is a wholly owned family company. [5] Among other countries, the company's stores are called Dosenbach in Switzerland and van Haren in the Netherlands.

History

Founding years 1913–1940

Heinrich Deichmann, born in 1888, opened a shoemaker's shop, called Schuhreparatur Elektra, in 1913 at the age of 25 on what is now Johannes-Brokamp-Straße in Borbeck, [6] which was incorporated into the city of Essen two years later. At first, his customers were mainly miners from the then up-and-coming Ruhr area who needed inexpensive shoe repairs, being part of the lower income bracket. After World War I, Deichmann and his shoemakers produced their own shoes for the first time. Soon afterwards, Heinrich Deichmann bought cheap new goods from shoe factories to resell them to his own customers. Heinrich Deichmann opened his first large shoe shop at Borbeck Market in 1936. His wife, Julie, took over the business after his death in 1940.

After World War II

After World War II, Deichmann made 50,000 pairs of shoes out of poplar wood and parachute harnesses. In addition, a swap shop was set up for used shoes, which grew to 5,000 customers on file. Early on, their son Heinz-Horst Deichmann helped out in the company, opening the first shop outside Essen on Ackerstraße in Düsseldorf in the late 1940s. He studied theology, received his doctorate in medicine and continued to run the small family business together with his mother. He gave up his career as a doctor in 1956 to fully take over the management of the shoe business, buying out his four older sisters. By 1963, the company was operating 16 shops along the Rhine and in the Ruhr. Under Heinz-Horst Deichmann's management, the company formed a significant part of the German and European shoe retail trade. Deichmann introduced display stands and later the rack-room concept in Germany, where shoes are presented in boxes for customers to try on directly. [7]

International expansion and acquisitions

The company acquired the Dosenbach shoe chain in Switzerland in 1973, followed by shoe and sports chain Ochsner in 1992. The two chains were merged to form Dosenbach-Ochsner. Their names are still used today for the branches located in Switzerland. The company expanded to the USA in 1984, the Netherlands in 1985, Austria in 1992 and Poland in 1997. Heinz-Horst Deichmann's son Heinrich Otto took over as chairman of the board in 1999. His sisters do not work for the company. In 2001, branches were opened in Hungary and the United Kingdom. This was followed by Denmark and the Czech Republic in 2003, Slovakia in 2004, Slovenia and Turkey in 2006, Romania in 2007 and Bulgaria in 2009. Germany's thousandth branch was opened in 2006. The company was legally changed to a Societas Europaea company on 1 January 2010 [8] and Deichmann opened its first stores in France [9] and Belgium in 2017. The group had a total of 4,565 branches worldwide in 2022. [10]

In the US, Deichmann SE acquired the KicksUSA chain in 2018 with over 60 stores in the streetwear and athletic shoe sector. In 2019, Deichmann opened its first branches in Estonia, Latvia and Dubai. [11]

Deichmann set up its first online shop in 2000. The company currently runs 41 (2017: 36) online shops internationally and is working to expand its omnichannel concept. [12]

Market positioning

Deichmann store in Frankfurt Deichmann-Filiale in Frankfurt.jpg
Deichmann store in Frankfurt

In the 2022 financial year, the Deichmann Group sold around 178 million pairs of shoes worldwide, around 33% of them in Germany. As of 31 December 2022, it employed over 48,000 people in 31 countries and significantly shapes the European shoe retailing market. [13]

In May 2005, Deichmann purchased the brands Gallus and Elefanten. Gallus is a shoe factory founded by Mönchengladbach shoemaker Heinrich Vogels in 1880, which was based in Dülken until 1997. The Latin name Gallus goes back to the Hahn family of manufacturers in Göttingen, from whom Heinrich Vogels acquired the rights to the brand in the 1930s. Elefanten (based in Kleve) was closed down by English shoe manufacturer Clarks in late 2004 after failing to find a suitable investor. Since then, shoes that Deichmann purchases from suppliers have been sold under the brand names Elefanten and Gallus. [14] Deichmann does not produce its own shoes, instead purchasing shoes in about 40 countries. Its primary purchasing market is Asia.

In addition to its own brands, Deichmann also offers third-party brands, such as well-known sports brands. [15]

The Pussycat Dolls collaborated with Deichmann on advertisements, starting in March 2006. Extreme athlete and musician Joey Kelly appeared in advertising for Deichmann's Victory brand of running shoes. The Sugababes collection was released in the spring of 2008, with their song "Denial" used in the campaign's television advertising. American supermodel Cindy Crawford brought her own shoe collection to market for Deichmann under the 5th Avenue label in 2009. Halle Berry appeared in advertising for Deichmann in 2012. [16] Sylvie Meis presented her first Deichmann shoe collection in 2015, [17] with additional collections released in 2016 [18] and 2017. [19] Ellie Goulding also released her own collection for Deichmann in 2017. [20] Deichmann collaborated with singer Rita Ora to release a collection of 40 women's shoe designs in 2019. [21] In 2022 and 2023 Deichmann launched the "Fila meets Leni Klum" campaign with model Leni Klum. [22] and collaborated with Spanish singer NIA as brand ambassador in the iberian territory. [23]

Dosenbach took over the title sponsorship of Switzerland’s second-tier football league for one season, which was called the Dosenbach Challenge League during that time. [24]

Public perception

2003: Founding member of the amfori BSCI (Business Social Compliance Initiative)

Deichmann is a member of the BSCI. More than 2,400 retailers and companies from 46 countries are part of the initiative. [25] They pursue common goals, including improving working conditions in factories, helping suppliers adapt to national laws and international guidelines, and facilitating socially responsible behaviour in the globalised economy. [26]

2012–2014: Chromium (VI) trioxide pollution

According to RAPEX, the EU rapid alert system for unsafe consumer products and consumer protection, there were multiple reports of leather shoes produced under the company's own 5th Avenue brand being contaminated by chromium trioxide between 2012 and 2014.

2018: Member of the cads association

Deichmann SE is a member of the cads association (cooperation for assuring defined standards for shoe and leather goods production). In 2018, the initiative, which was launched in 2007, became a registered association with some 80 members. These include companies from the footwear and leather goods industry, brands, retailers, test laboratories and chemical manufacturers. The cads is committed to sustainable development in the footwear and leather goods industry along the entire value chain. All members agree to abide by jointly defined production and environmental standards. [27]

Member of the Leather Working Group

Deichmann SE is a member of the Leather Working Group, which was founded in 2005. The multi-stakeholder initiative brings together brands, manufacturers, retailers and leading technical experts from the leather industry and non-governmental organisations. Its goal is to make the production chain in leather processing more transparent. [28] In addition, it aims to bring about sustainable changes to processing in tanneries and via distributors, including by reducing water and energy consumption. It also calls for occupational health and safety in factories to be monitored using a specially developed audit protocol. [29]

Social engagement

Deichmann Sponsorship Award

Deichmann is committed to the professional integration of disadvantaged children and young people. The Sponsorship Award, [30] which was launched by Heinrich Deichmann in 2005, rewards initiatives that develop creative, sustainable efforts to integrate people with an immigrant background into professional life and society.

The Sponsorship Award comes with a total of 100,000 euros of prize money and is given in the following three categories:

Actress and television presenter Fernanda Brandão became a patron of the Sponsorship Award in 2019. [31]

Deichmann Foundation

The Dr Heinz-Horst Deichmann Foundation promotes various social and welfare-based projects in Germany and other countries. The projects focus on the following fields: child and youth welfare; development aid and development cooperation; emergency aid and disaster relief; art and culture; education, science and research; and health. [32]

The projects receiving support in Germany include Stern im Norden e.V., which provides assistance in the socially deprived area of Dortmund's Nordstadt district. [33] During the COVID-19 pandemic, the Deichman Foundation engaged in multiple initiatives, including donating one million face masks to the Caritas organisation in the Archdiocese of Berlin in May 2020. [34]

"wortundtat" foundation

Heinz-Horst Deichmann founded the "wortundtat" foundation in 1977. The organisation has maintained DZI Seal of Approval status since 1992 (the DZI is the German Central Institute for Social Issues). The foundation is active in India, Tanzania, Moldova, Greece and Germany. In collaboration with local partners, people in need receive support in matters relating to education, health, sustainability and emergency aid.

Among others, major projects include: [35]

International engagement

Deichmann subsidiaries in Hungary, the Czech Republic, Slovakia, Italy, Austria, Poland, the United Kingdom and the United States support numerous social projects in their respective countries. Children's homes, hospices and educational projects receive support, primarily through donations. [36]

Further reading

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References

  1. ↑ Deichmann (28 March 2023). "Rekord-Umsatz" [record Sales volume]. corpsite.deichmann.com (in German).
  2. ↑ TheSpinOff. "How-store-redesign-and-investments-helped-Deichmann-hit-8-billion-sales-in-2022" [How-store-redesign-and-investments-helped-Deichmann-hit-8-billion-sales-in-2022 volume]. the-spin-off.com.
  3. ↑ "Document of the society's founding at Amtsgericht (local court) Essen; trade register number HRB21020". Common register portal of the German federal states. 19 August 2008.
  4. ↑ "Der Schuh-Riese baut weiter aus" [The shoe giant continues to expand]. Handelsblatt (in German). 15 March 2017.
  5. ↑ "Deichmann ist "Familienunternehmer des Jahres"" [Deichmann is "Family entrepreneur of the year"]. PRO – Das Christliche Medienmagazin (in German). 12 November 2012.
  6. ↑ "Deichmann – ein Schuhimperium made in Germany" [Deichmann: A shoe empire made in Germany]. Wirtschafts Kurier (in German). 27 December 2017.
  7. ↑ "Geschichte der Firma Deichmann 1913-2010" [History of the Deichmann company 1913-2010](PDF). Deichmann (in German). 2016.
  8. ↑ "Shearman & Sterling begleitet Deichmann-Gruppe bei Gründung der Obergesellschaft Deichmann SE" [Shearman & Sterling advises the Deichmann Group on founding the parent company Deichmann SE]. Shearman & Sterling (in German). 5 January 2010. Archived from the original on 27 October 2011.
  9. ↑ Deslandes, Marion (18 October 2017). "Deichmann etabliert sich auf dem französischen Markt" [Deichmann establishes itself on the French market]. Fashion Network (in German).
  10. ↑ "The Brands: Store redesign and investments helped Deichmann hit €8 billion sales in 2022". the-spin-off.com. Retrieved 19 June 2023.
  11. ↑ Langwald, Theresa (14 March 2019). "Essener Schuh-Konzern Deichmann geht nun auch nach China" [Essen shoe group Deichmann is now also going to China]. Westfalenpost (in German).
  12. ↑ Kolbrück, Olaf (15 March 2019). "Deichmann baut auf Omnichannel" [Deichmann builds on Omnichannel]. Etailment (in German).
  13. ↑ "Deichmann spürt noch nichts von Kaufzurückhaltung – WELT". DIE WELT (in German). 29 March 2023. Retrieved 7 June 2023.
  14. ↑ "Zwei Traditionsmarken kommen bald in die Regale: Deichmann lässt Schuhmarke "Elefanten" aufleben" [Two traditional brands will soon be on the shelves: Deichmann is reviving the "Elephant" shoe brand]. Wirtschaftswoche (in German). 20 May 2005.
  15. ↑ "Schuhhändler Deichmann merkt keine Kauf-Flaute". FAZ.NET (in German). 28 March 2023. ISSN   0174-4909 . Retrieved 7 June 2023.
  16. ↑ Saal, Marco (7 March 2013). "Halle Berry spielt blinden Passagier für Deichmann" [Halle Berry plays stowaway for Deichmann]. Horizont (in German).
  17. ↑ "Sylvie Meis präsentiert erste eigene Schuhkollektion" [Sylvie Meis presents her own first shoe collection]. Süddeutsche Zeitung (in German). 23 November 2015. Archived from the original on 24 November 2015.
  18. ↑ Hartmann, Michelle (6 October 2016). "Günstig und cool: die neue Overknee-Kollektion von Sylvie Meis für Deichmann!" [Inexpensive and cool: the new overknee collection by Sylvie Meis for Deichmann!]. Elle (in German).
  19. ↑ "Erfolgreiche Testimonials: Promis Als Werbestars" [Successful Testimonials: Celebrities as Advertising Stars]. Tag24 (in German). 18 December 2017.
  20. ↑ "Deichmann bringt neue Kollektion mit Ellie Goulding heraus" [Deichmann launches new collection with Ellie Goulding]. Fashion United (in German). 23 February 2017.
  21. ↑ Klesper, Laura (29 August 2019). "Deichmann und Rita Ora präsentieren gemeinsame Kollektion" [Deichmann and Rita Ora present a joint collection]. SchuhKurier (in German).
  22. ↑ Ayoud, Amina (1 April 2023). "Leni Klum Dons Ganni Denim on Denim with Chunky Platform Filas for 'Fila Meets Leni Klum' Party". Footwear News. Retrieved 7 June 2023.
  23. ↑ [Nia protagoniza la última campaña para Deichmann España "Nia protagoniza la última campaña para Deichmann España"]. Retrieved 29 July 2023.{{cite web}}: Check |url= value (help)
  24. ↑ "Challenge League Schweiz: Hauptsponsor Dosenbach" [Challenge League Switzerland: Main sponsor, Hosenbach]. Tipponline.ch (in German). Archived from the original on 4 March 2016.
  25. ↑ "Our Members". amfori.
  26. ↑ "BSCI – Business Social Compliance Initiative". Aktiv Gegen Kinderarbeit (in German). 29 November 2010.
  27. ↑ Bielert, Silvia (6 February 2018). "Das schmutzige Geschäft mit den Schuhen" [The dirty business of shoes]. Frankfurter Rundschau (in German).
  28. ↑ "Was uns bewegt – Teil 4: Leder" [What moves us – Part 4: Leather]. Frankfurter Allgemeine Zeitung (in German). 15 December 2017.
  29. ↑ Henkel, Regina (16 January 2017). "Leather Working Group: Die Lederverarbeitung wird transparent" [Leather Working Group: Leather processing becomes transparent]. ISPO Sports Business Network (in German).
  30. ↑ "Die Idee". Deichmann Förderpreis für Integration (in German).
  31. ↑ "Fernanda Brandão wird Schirmherrin des Deichmann-Förderpreises für Integration" [Fernanda Brandão becomes patron of the Deichmann sponsorship award for integration]. Deichmann Förderpreis für Integration (in German). 16 May 2018.
  32. ↑ "Deichmann-Stiftung: Wie sich das Unternehmen im In- und Ausland für soziale Projekte engagiert" [Deichmann Foundation: How the company is involved in social projects at home and abroad]. Deichmann-Stiftung (in German).
  33. ↑ "Partner und Unterstützer" [Partners and Supporters]. Stern im Norden (in German).
  34. ↑ "Deichmann spendet eine Million Masken an die Caritas im Erzbistum Berlin" [Deichmann donates one million masks to Caritas in the Archdiocese of Berlin]. Caritas Deutschland (in German). 13 May 2020. Archived from the original on 15 July 2020.
  35. ↑ "Where we help: overview". Wort und Tat. Archived from the original on 25 July 2017.
  36. ↑ "International Engagement". Deichmann.
  37. ↑ Koch, Brigitte (14 February 2013). "Vom Borbecker Markt bis zum Multichannel-Handel" [From Borbecker Markt to multichannel trade]. Frankfurter Allgemeine Zeitung (in German).
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