>> A
>> LOT OF ACTIVITY INVOLVES
EVERYONE, A WELL-DRESSED MEN
ALSO KNOWN.
>> AS W DMB AS THE LEATHER
FOOTWEAR AND ACCESSORIES
COMPANY WHICH OWNS AND OPERATES
DIRECT-TO-CONSUMER MEN'S
FOOTWEAR BRANDS MORAL CODE WGN
HAS OPENED ITS FIRST BRICK AND
MORTAR LOCATION AND NO LOCKY
CALLED THE MILWAUKEE
BOOK COMPANY THAT WILL FEATURE
MORAL CODE HERE WITH MORE IS
MARK KOHLENBERG CEO AND FOUNDER
OF MORAL CODE GREAT TO HAVE YOU
HERE WITH US TODAY,
YOU ARE THE FOUNDER OF BOTH
MORAL CODE AND WGN FOOT WARE
WHY DID YOU DECIDE TO OPEN UP A
PHYSICAL LOCATION.
>> YOU KNOW HONESTLY IT WAS IT
WAS PRETTY OPPORTUNISTIC
WE ARE OFFICES ARE LOCATED IN
MILWAUKEE AND ALL HER EMPLOYEES
AND MILWAUKEE HAS A
RICH HISTORY 3 IN SHOEMAKING
AND LEATHER MAKING GOING BACK A
100 YEARS
SO WE FELT YOU KNOW REALLY KIND
OF PUSHING INTO THAT
AUTHENTICITY AND GREAT
BACK STORY. WALKIE BEING A
HEADQUARTERS FOR LEATHER
PRODUCTS AND SHOEMAKING WAS THE
FOR THE PERFECT PLACE TO PUT
IT.
>> ALL RIGHT LET'S TALK ABOUT
EXPERIENCIA RETAIL MARK BECAUSE
WE SAW THAT THAT WAS KIND OF A
BIG THING TO GET MORE PEOPLE
INTO THE STORES THIS HOLIDAY
SEASON GIVE THEM AN EXPERIENCE.
SO HOW YOU KIND OF GET BEING
ABLE TO GIVE THAT TO CONSUMERS
FROM THIS BRICK AND MORTAR
EXPERIENCE.
>> YOU KNOW WE WE
HAVE A.
>> THE NOMINAL A RETAIL STORE
MANAGER THAT REALLY HAS GONE TO
TOWN WITH THIS STORE IT IN
TERMS OF MERCHANDISING IT IN
AND CURATING THE PRODUCTS THAT
GO
IN IT, I'M OBVIOUSLY WE HAVE A
LOT OF FOOT WHERE WE HAVE A LOT
OF LEATHER ACCESSORIES THAT WE
DO OURSELVES.
BUT WE TRIED TO FIND ITEMS THAT
RELEASE IT INTO THE MIX OF WHAT
YOU KNOW, TODAY'S GENTLEMAN IS
LOOKING FOR ALSO WOMEN AS WELL
WHICH
IS THAT TARGET OF OURS GOING
FORWARD, BUT IN TERMS OF REALLY
MAKING AN EXPERIENCE YOU KNOW
WERE CRITICALLY INTEGRATED HER
PARENTS
IN INDIA. WE HAVE OUR OWN
WEATHER TANNERY WE HAVE A
AND ALSO FACTORY WE DO ALL
THEIR OWN LEATHER ACCESSORIES
BY AND IN OUR
OWN FACTORY. SO WE BROUGHT
HEIGHTS TO MILWAUKEE FROM OR 2
ANDREY IN LITERALLY MADE THEM
INTO THE SEATING SURFACES.
THE CUSTOMERS COME IN AND AND
SIT ON IN THE STORE SO
THEY CAN LITERALLY SEE YOU KNOW
THE RAW MATERIALS THAT WE USE
AND WILL BE PERSONALIZING
THINGS
YOU KNOW PRETTY PRETTY
AS WE BRING IN
BOSSING MACHINES AND GET THE
OPPORTUNITY FOR PEOPLE TO
REALLY PERSONALIZE THE
ACCESSORIES THAT THEY BUY
FROM US.
>> WELL BEYOND THE PERSON
ISOLATION EXPERIENCE WHAT IS
VERTICAL INTEGRATION ALLOW YOU
TO DO AS A COMPANY,
THEY OTHERWISE WOULDN'T BE ABLE
TO DO FOR EXAMPLE ON
AFFORDABILITY OF THESE
PRODUCTS.
>> WELL IT OBVIOUSLY
AFFORDABILITY IS
IS PERIL OUT IN IT ALLOWS US TO
REALLY BRING A PRODUCT TO
MARKET WITHOUT HAVING TO PAY
MARGIN TO A 3RD PARTY FACTORY
OR EMERGING ANYBODY ELSE TO
BRING IT
TO ME OUR PARENT COMPANY IS IS
A 3RD GENERATION COMPANY FOR
40 YEARS REALLY MAKING PRIVATE
LABEL FOOTWEAR AND ACCESSORIES
FOR SOME OF THE BETTER KNOWN
EUROPEAN BRANDS. THIS IS THEIR
FIRST ENTRE INTO THE US MARKET
BUT IN VERTICAL, YOU KNOW GIVES
US HUGE COMPETITIVE ADVANTAGES,
YOU KNOW NUMBER ONE IS JUST
BEING SPEED TO MARKET
SINCE EVERYTHING IS DONE
IN-HOUSE FROM TENDING THE
WEATHER TO MAKING THE OUT TOOLS
TO THE TO THE ACTUAL
PRODUCTION. WE'RE ABLE TO TO
REALLY CUT YOU KNOW DAYS EVEN
WEEKS OF PRODUCTION TIME AND
IN REALLY TURN AROUND PRODUCT
VERY VERY QUICKLY BRING IT TO
THE MARKET QUICKLY
AND THE OTHER THING YOU KNOW AS
I MENTIONED BEFORE IS COST BUT
YOU KNOW ALSO JUST CONTROLLING
THE PRODUCTION PROCESS AND THE
DEVELOPMENT
PROCESS FIRST THERE'S NO MIDDLE
BUT THERE'S NOTHING IN THE WAY
OF REALLY YOU KNOW MIXING UP
PRODUCTION ARE BRINGING A BAD
PRODUCT TO MARKET. IF THAT
WOULD HAPPEN GOD FORBID IT'S
THEIR OWN FAULT.
>> YEAH, THE MEN'S FASHION AND
FOOTWEAR INDUSTRY HAS CHANGED
AND EVOLVED SO MUCH OVER THE
LAW LAST FEW DECADES AS A
VETERAN OF
THIS INDUSTRY. HOW DO YOU FEEL
LIKE THIS INDUSTRY HAS CHANGED
AND HAS A CHANGE FOR THE BETTER
JUST IN TERMS OF MORE OPTIONS
FOR MEN.
>> YOU KNOW IT'S IT'S CERTAINLY
CHANGE FOR THE BETTER IN AND
YOU KNOW BEEN IN THE BUSINESS
FOR MORE THAN 20 YEARS BUT I'VE
SEEN MORE CHANGE IN THE LAST 12
MONTHS THAN I THINK
I'VE SEEN IN THE PRIOR 20
YEARS, YOU KNOW WHEN YOU YOU
LOOK AT THE NUMBER OF BRANDS
BOTH IN FOOTWEAR AND APPAREL
RIGHT NOW THAT ARE
YOU KNOW REALLY LEANING INTO
THE WHOLE SUSTAINABILITY
ARGUMENT WHICH IS SOMETHING
THAT YOU KNOW WILL BE BRINGING
A PRODUCT TO MARKET FOR THE
AUTUMN WINTER 20 SEASON
IN JULY. BUT SUSTAINABLE
LEATHER SUSTAINABLE MATERIALS,
YOU KNOW THEY'RE MENTALLY
SOUND PRACTICES IT'S CRITICALLY
IMPORTANT AND YOU KNOW IT'S
REALLY COME INTO ITS OWN WITHIN
THE LAST YEAR. I THINK THE
OTHER THING IN
A PARTICULARLY AND THE MEN'S
SIDE OF THE BUSINESS IS THE
CASUALISATION OF MEN'S FOOTWEAR
WHEN YOU LOOK AT YOU KNOW
ICONIC BRANDS IN THE MARKET
SUCH AS ALLEN EDMONDS AND ALL
DONE AS
AN EXAMPLE THAT REALLY HAVE IN
A BASE THEIR ENTIRE BUSINESS ON
THE MEN'S DRESS YOU MARKET
ACCESSORIZING MEN INS SUITS AND
TIES AND EVERYTHING ELSE THAT
GOES WITH IT YOU KNOW THAT'S
REALLY TURNED ON ITS HEAD IN
THE LAST 12 MONTHS AS WELL IT
STARTED REALLY WITH THE
INVESTMENT BANKS CASUAL IS A
CASUAL ICING THE DRESS CODE FOR
THEIR WORKERS AND THAT REALLY
HAS CREPT VERY VERY RAPIDLY
INTO THE RETAIL MARKET AS
WELL SO WE'VE HAD TO RESPOND TO
THAT FOOT WARE IS ALWAYS AN
ACCESSORY TO APPAREL AND
ACCESSORIES AND WE'VE HAD A
CASUAL AS OR FORWARD TO.
>> I THINK FOR SOME PEOPLE FOOT
WHERE IS THE LAST REMAINING
TYPE OF PRODUCT WHERE THEY DO
WANT TO GO IN PERSON TRIED ON A
WALK IN THEIR SHOES, WALK IN.
BUT LOOKING AHEAD THE NEXT
10 YEARS HOW DO YOU THINK
E-COMMERCE AND ONLINE SHOPPING
OF SHOES IS GOING TO TRANSFORM
HOW TO GET SHOES TO OUR
DOORSTEPS.
>> IN EXAMPLE STARTED IT, YOU
KNOW TO 12 OR 13 YEARS
AGO AND AND YOU KNOW EVEN I WAS
SKEPTICAL IN TERMS OF IF PEOPLE
COULD BUY WHAT WHERE AND IN
JUST IN TERMS OF THE FITTING
PROSPECTS AND THAT THE TOUCH
AND FEEL ONLINE BUT IT'S ONE OF
THE BIGGEST CATEGORIES ONLINE
RIGHT NOW BOTH FOR HIM AND
WOMEN THAT EVEN
KIDS SO IT'S ONLY GOING TO
BECOME MORE PREVALENT THAN IT
IS TODAY. I THINK FOR SOMEBODY
TO BE SUCCESSFUL IN A PHYSICAL
BRICK AND MORTAR ENVIRONMENT
FOR FOOT WHERE YOU HAVE
TO OFFER NUMBER ONE A DIFFERENT
EXPERIENCE UNIT TO PURCHASE IT
IN NUMBER TO A DIFFERENT
MERCHANDISE MIX. IT'S NOT
SOLELY BASED ON PRICE BECAUSE