How I'd Grow Allbirds

Once upon a time, Allbirds were the ‘it” shoes.

They rose to fame. The eco-friendly wool sneakers flooded the streets of Silicon Valley and paired perfectly with Patagonia vests.

Then they went public in 2021…

And since their stock fell 97% from 3.75 billion to 127 million.

Tragic.

So what happened? And how would we reignite the growth of a brand that took the world of tech bros by storm?

Here is how we’d grow Allbirds.

Scaled beyond the core base of customers → Focus on the DNA

The initial Wool Runner, aimed at active urban explorers in the 30-40 age group was a hit.

But then Allbirds quickly expanded its product line…too fast.

And stopped creating for its core customer and instead tried attracting young guns with technical running shoes and other products like underwear, puffer jackets, and golf shoes.

Which is problem numero uno.

In co-founder Zwillinger’s words during the March earning call, they “ over-emphasized products that extended beyond their core DNA” and “consumers weren’t ready to shell out $160 for a technical running performance product from the brand, given that’s not the ethos of the brand DNA.”

So, here’s what we would do instead.

Time magazine called Allbirds “The World’s Most Comfortable Shoes”.

Don’t walk away from it.

Their first shoe was a success because of their target segment of 30-40 year old’s looking for a casual comfortable shoe to wear at a reasonable price point. That’s the white space that Allbirds filled that fueled their initial success.

Greenwashing? → No, better brand communication.

Allbirds champions sustainability.

They used materials like Merino wool, Tencel Lyocell, SweetFoam, and Trino in production, crafted shoelaces from recycled plastic bottles, and made activewear from recycled nylon and crab shells.

AllBirds claims a 30% smaller carbon footprint than standard sneakers, aims for 100% renewable energy, and plans for 95% ocean shipping by 2025.

Their mission is to do their part but also help other brands do their part.

AllBirds open-sourced SweetFoam's recipe for industry-wide green adoption (used by Puma & Toms) and shared a carbon footprint calculator and labeling template.

Despite all these efforts, Allbirds is currently in a lawsuit for “misleading advertising” about its sustainability language.

What’s the problem?

A clue can be found in the stats that co-founder Zwillinger recently shared.

The brand only has 15% aided brand awareness in the US.

They have a communication problem.

They need to amplify what they’ve done and continue to do.

What we would do instead.

Step 1: Have co-founder Tim Brown as the face of the brand.

“The initial idea of Allbirds was all about the reduction of the shoe down to its simplest form, which is the opposite of the streetwear model, with small changes and a million different models.” - Tim Brown, co-founder of Allbirds.

Allbirds was created to be the opposite of Nike (fast fashion).

That’s their enemy.

That’s who they’re going to war against.

Every army needs a leader. And that needs to be Tim Brown.

Allbirds should make Tim Brown front-facing to communicate their brand story, and the sustainability effort, to create trust and connection with consumers.

Many of Allbird's posts featuring Tim Brown already have high engagement, but this needs to happen not only from the brand account but also from his own X and IG accounts (neither of which he has).

Brian Chesky, co-founder of Airbnb, is crushing this.

Every post of his gets millions of views hundreds of comments and conversations directly with customers.

To make the fans believe in the brand and join the sustainability efforts, founders have to show publicly that they care and they are part of the community.

Allbirds should turn Tim Brown into All Birds’s Brian Chesky.

Step 2: Collaborate with influencers to promote a lifestyle

Allbirds’ collabs with influencers are mostly product-based. Which makes it easy to smell the BS.

Instead, for their words to matter - Allbirds needs to work with influencers to promote the product like a lifestyle.

One brand that has been doing a great job at this is Athletic Greens. They work with creators like Tim Ferris, with a continuous placement on his podcast, while seamlessly incorporating the products into his routine.

Some creators Allbirds can work with:

Step 3: Create long-form educational campaigns around key sustainability initiatives

Allbirds should use Patagonia as a role model in marketing its sustainability efforts.

For example, Patagonia launched a long-form educational series called Marine Life on YouTube where they told stories about the people protecting the ocean.

This cements what causes Patagonia cares about. And they also gain brand recognition in return.

Instead of dropping a page on their site claiming their 10-step sustainability commitment like “Allbirds Flight Plan” (Water, Fair labor, Chemistry, Animal welfare, traceability/transparency), Allbirds can collaborate with top leaders in each pillar, create content to show their commitment to sustainability and gain brand awareness.

To reignite growth while maintaining the brand's core commitment to sustainability, Allbirds must be clear about their core customer and find more effective ways to get the brand messaging across.

The Playbook:

• Focus on your core DNA
• Communicate your mission with passion
• Lead the cause with your Founder
• Collaborate with influencers to portray a lifestyle
• Create long-form educational content around sustainability