Shoeboxes that sell
A footwear designer shows how upgraded packaging can help boost your bottom line.
By Maggie Overfelt, FSB Magazine

(FSB Magazine) -- For the hundreds of small companies in the $20 billion women's footwear market, survival means keeping up with the lightning speed at which fashion changes.

In that respect, the Los Angeles-based manufacturer Chinese Laundry has succeeded, selling strappy shoes to Hollywood starlets and the young women they influence. With six brands at different price points, sold through retailers including Nordstrom (Charts) and Sears (Charts), the company increased revenue about 25% last year and crossed the $100 million mark.

shoe_before.03.jpg
Before
shoe_after.03.jpg
After

But to continue that growth, Chinese Laundry's co-founder Robert Goldman (who launched the company with his wife, Carol, in 1971) decided to address the one component stuck in the 1980s: the company's packaging.

All six brands had different logos and box designs. Worse, says Carol, "the artwork didn't go with the quality and fashion of our shoes - it made them feel cheap. None of that helped consumers get a clear, positive feeling for our company."

The Goldmans hired Chase Design Group, a Los Angeles firm that has worked with clients including the Cartoon Network and Mattel. "The quality of their branding was just horrible," says Margo Chase, founder of the firm (chasedesigngroup.com). "They broke every rule - there were three or four versions of their logo floating around, and some looked like knockoffs."

The re-branding process

Chase's design team spent two months interviewing Chinese Laundry's sales force, shoppers, and buyers at retail stores. That research confirmed that customers loved the shoes but were confused about how the brands were linked.

The solution? Chase advised the company to upgrade its entire identity, change the company name, and scrap one of its worst-selling lines. (The six brands had been organized under a corporate parent, Cels Enterprises; "Cels" is an acronym based on the initials of the Goldmans' children.)

"A company its size doesn't have the resources to build a lot of different brands in the eyes of the consumers," says Chase's president, James Bradley. "They need one strong visible name that people will remember."

Because Chinese Laundry is the best known of their brands, the Goldmans decided that it should be the company name as well.

Over the next 11 months, Chase focused on two initiatives: hand-drawn art that could tie the brands together - a hummingbird and a new typeface, which would appear on all packaging - and redesigned shoeboxes, which could act as mobile marketing campaigns when carried out of stores.

Chinese Laundry declined to say how much it spent; Chase typically charges in the range of $100,000 to $600,000 for such a project.

Chinese Laundry (chineselaundry.com) rolled out the first phase in February at a trade show, wrapping its booth and two cars (a Mini Cooper and a Toyota Prius) with the new artwork of its flagship brand.

Although the shoeboxes won't hit stores until fall, Goldman says that advance sales to retailers have increased by 40%. "We've had great products for a long time," she says, "and now we have great branding."

Business cards

"The cards were really ugly and industrial-looking - you couldn't tell that the company had anything to do with fashion," says Chase. The old logo featured a common typeface that washed out when set against bright colors.

In the new logo the black oval highlights the lettering, which Chase custom-designed to be easily reproduced on different materials (including the insoles of the company's shoes).

Shoeboxes

"The way the colors were slapped on the old box was arbitrary, meaningless," says Bradley. "It didn't connect to any of their other brands."

The new box, made of thicker cardboard, feels more sturdy and luxurious. The pink flower art appeals to Chinese Laundry's target customers - women in their 20s.

While the brands will remain distinct, the hummingbird appears on all of them as a visual connection. "Now," Goldman says, "they're very obviously a family."

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.