Cobian is preparing to back the comfort and quality of their sandals by launching their new Endless Comfort Guarantee program this month. March will also see the start of Cobian’s second Every Step Matters tour, the faith-based company’s philanthropic effort that saw nearly 2,000 fans at each event last year.
We spoke with Cobian’s VP of Sales & Marketing, Aubrey Kuepper, to learn more about these two programs, as well as how Cobian started, how it has grown over the past 20 years, what’s new on the product front, and how their Christian faith ties it all together.
Can you give us a bit of background on Cobian’s footwear program?
Aubrey Kuepper: Cobian started more than 20 years ago to provide customers with quality footwear, especially sandals. John Cobian and his sister, Claudia, founded the brand in 1995. John was immersed in sandal manufacturing in the mid 80’s, and in 1985, was offered a job at Flojos by owner and good friend, Antonio Santana.
John became the marketing manager of Flojos, and eventually became the President at Flojos until 1993. During John’s time at Flojos, sales grew by a factor of 10.
In 1993, John left and in a step of faith invited his sister, Claudia, to start the Cobian Corporation. Like many great companies in our industry, the company was launched with humble beginnings out of a small office in North County, San Diego, in 1995. John always had a vision of running his own company where he could not only provide great sandals at a great price, but more importantly, run a company that reflected the same principles as his own faith-based background.
Today, Cobian has nearly 1,000 loyal account relationships domestically, and is sold in more than 30 countries. Cobian started in the surf market with great accounts like Jack’s, HSS, Ron Jon, Hansen’s, Surfride and other core retailers. We also sell to outdoor accounts with segmented and specialized footwear products for retailers such as Bass Pro Shops and Cabela’s.
We have about 50 employees in the organization, including outside sales reps, and run a tight and profitable company that ensures customers can enjoy margins up to 60% while offering a better value proposition for products than our larger, rival competitors.
Cobian is preparing to launch its Endless Comfort Guarantee program. Can you tell us more about what this program entails and why it is unique?
Aubrey Kuepper: Here’s how it works: first, you register your Cobian footwear within 30 days of purchase and you will receive an extended warranty that goes well beyond our 12-month standard guarantee against product defects or workmanship. So, if at any time after 12 months from the date of purchase you are not 100% satisfied with the comfort of your Cobian footwear, you can submit a claim for Cobian’s review.
If the damage or defect stems from a design or production flaw, we will replace your footwear with the same or like-kind quality, no questions asked.
If the claim stems from misuse, abuse or normal wear and tear we may either replace the product for free, or offer you up to 50% off retail on the replacement. Either way, you will be able to register the new pair in the Endless Comfort program and start the process all over – hence “Endless Comfort.”
Cobian’s 2016 Every Step Matters tour launches in March. What are the plans for the tour this year?
Aubrey Kuepper: We launched the Every Step Matters™ (ESM) program last year. In 2016, Cobian has expanded its non-profit partnerships to include: Friends of Bethany, Boys and Girls Clubs, Wild Oceans, Stand Up for the Cure, Christian Surfers, Na Kama Kai, Walking On Water, Surfing the Nations, Love Light & Melody, and Samaritan’s Purse.
Our ESM initiatives go far beyond financial support, however, as Cobian provides the opportunity for our employees, ambassadors and team riders to play a hands-on role in these events and outreach programs.
Recently Cobian team rider and WSL competitor Keanu Asing, HIC and Surfing the Nations (STN) convened on the North Shore of Oahu for an annual fundraiser involving an art festival and a community surfing clinic for at-risk youth. Keanu conducted the clinic near STN’s community center in Wahiawa on Oahu’s West side.
How do Cobian’s sandals stand out in a crowded market?
Aubrey Kuepper: From a sell-in perspective, we are flexible and we partner with retailers to offer them meaningful rather than cookie cutter programs. For example, we offer features like individualized marketing support, customized sales programs and flexible pre-book programs. Retailers tell us they appreciate our stance and our genuine approach.
Secondly, Cobian, unlike many of its competitors, has stayed well clear of distributing to mass merchants. Despite the allure of maximizing company margins via online sales, Cobian has made a conscious decision to minimize that competitive threat by encouraging online inquirers to check out the websites of its dealers for product fulfillment.
From a sell-through perspective, Cobian offers a great value proposition with lots of features and benefits incorporated into its footwear. For example, our men’s OTG (Off the Grid) sandal that retails for $40 has a non-marking rubber outsole available, molded foot bed, arch support, non-slip top-sole and a reinforced toe post that compares more than favorably to a top-selling style from another leading brand at $55.
A new product concept that we have put into certain sandals is the incorporation of DuPont Kevlar in the toe post so that customers will not experience a sandal “blowout.” After rigorous machine testing (which almost broke the machine) and thousands of wear tests we have yet to see a single toe post break while using the Kevlar.
You shared that in the past three years, Cobian has nearly doubled company sales. What has Cobian been doing new or differently in these past three years that has led to such growth?
Aubrey Kuepper: It’s a variety of factors, but we work really hard to help our retailers and to deliver a great product. Our development team has done a fantastic job designing new styles with updated materials, while keeping our cost of goods in check.
We implemented new technology initiatives like auto-replenishment. There has also been increased demand from our accounts that credit items such as margins up to 60%, sales guarantees, trade-outs, just-in-time inventory from our warehouse, and our dealer intranet with inventory access and order entry capabilities.
There has also been an increase in productivity from accounts that have upgraded their systems to integrate with our EDI (electronic data interchange) connectivity.
Finally, I would suspect that some of our retail events with ambassadors like Bethany Hamilton, which have been huge successes for our accounts, have played a role in our visibility and growth.
HSS said the Cobian event they held with Bethany created the largest turnout in their store’s history. Bethany is truly an inspirational icon and we are blessed to have her as one of our ambassadors.
Cobian has a Christian message that is a big part of the brand. Can you tell us more about this and how faith influences Cobian?
Aubrey Kuepper: Yes, simply put, we are a faith-based company. We also believe that every step truly matters in life. I feel this is an accurate reflection and focus of every employee at Cobian.
As it relates to products, we have always had a scripture reference on our hangtags. More recently, we have taken some of those and made them more visible on our build-outs.
As it relates to our non-profit partners, it means enabling them with their missions – through cash or in-kind donations. Fortunately, we have just concluded the best year in Cobian’s history, which is enabling us to serve others even more.
There are many examples of how this belief has translated into real world activity; ranging from conducting surf clinics with at-risk youth, providing more than 130,000 pairs of sandals to third world countries through organizations like Samaritan’s Purse and Beautiful Feet, supporting breast cancer awareness through stand up paddling events, to feeding the homeless through community outreach centers and so on.
When it comes to athletes, unlike many brands that focus on showcasing talent intended to be aspirational with an ultimate goal of creating mystique around a brand; Cobian has decidedly taken a different approach. We work really hard to personalize the inspirational stories of ambassadors like Bethany Hamilton, Derek Rabelo (the blind surfer who surfs Pipeline), and others who have overcome tremendous challenges.
We do this by providing a platform through unique events with retailers and customers to experience first-hand how these individuals’ lives have been transformed through their faith.
What is on the horizon product-wise for Cobian?
Aubrey Kuepper: An initiative that will be unveiled in 2017 is our innovative, closed-toe program. Cobian will be incorporating its signature comfort into our shoes while utilizing cutting-edge technology and high tech materials.
Even though the product will be sold in core surf, Cobian is focusing on the broader shoe market with more of an upper-end, boxed shoe program.
