kedsnhose

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this promises to be perhaps the driest thread ever posted on this site. if you are looking for that thread where i self-immolate with my keds, that is in another group...

i was thinking the other day, what if i could buy keds - not just one pair, but the entire company?

i certainly would make some changes, as probably all of us would. i certainly have my aesthetic opinions...(larger label on the back, get rid of the side label and recent vintage soles)...but in terms of the company, i would...

...get rid of the non-champion styles. keds is like chrysler: one style people like (jeep) and dozens that people don't. converse, in general, sells two styles of shoes: low- and high-tops. nike owns them now, so comparisons are a bit weak, but let's just say that a trip to any keds outlet reveals aisles and aisles of rejected styles that have the keds label slapped on. wedges, skimmers, sandals, etc - under my watch keds would just focus on what made it great.

...vertically integrate and bring production back to the us. american apparel has shown that you can own every part of the production process, and they do it from downtown LA. i bet with just a little bit of creative thinking, the process could be automated and robotized...right now keds are made much the same way they were 80 years ago, partially by hand with low-wage, low-skill labor.

...move to a complete mass-customization model of sales, and do it over the internet...dell did this 25 years ago, it's not new at all, and the waste of rejected styles (once again, go to a keds outlet or famous footwear) would be completely avoided. people who want converse don't need to go to a store to find them.

...go back to the $16 pair of keds. $16 is the price of my first pair of keds in 1990 (and they weren't on sale). $16, even with whatever taxes one could slap on the price of a pair, would encourage people to buy multiple pairs...to buy a pair just on impulse to go with an outfit...to just buy them, period. it would undercut the knockoffs and would position the shoes back where they used to be - which is a shoe that everyone wore. at $34.99 a pair, what is the profit margin on a pair of keds now? it would be tons if their parent company wasn't making thousands of ugly unwanted other styles and paying lawyers to defend lawsuits brought by other shoe brands that payless (who owns keds now!) knocks off. once again, look at american apparel - their clothes are CHEAP and they manage to do it while being socially conscientious and extremely, um, edgy in the ad department.

...focus on women. pretty much the only men who wear keds are the men (like me) on this site. i guess the express for men rebranding worked for some men, but i still won't shop there (outside my little fetish i'm a typical straight married guy). just focus on making shoes that american girls and women want to wear.

...stop trying to "be cool." if you say you are, you're not. if you try to be, you won't be. good lord, go to austin or portland or san francisco and count the converse. you see them with everything in every combination on everyone, yet somehow they manage to retain an image of counterconformity. it was pathetic to see keds try to remake the images of the ramones back in the 70s (who wore keds, as did patti smith in one of my absolute favorite photos ever, the one with her like falling over screaming into the mike).

...focus. just make one good shoe that looks incredible with anything, and incredible on anyone. make champions in canvas, champions in leather, slipons in both. in whatever color you want.

now, if i just had $100 million...
 
Re: if i owned the company...

Evenin KednHose,
I nearly completly agree with you.. Keds can learn a lot from Cons.. The basic thing I disagree with is that I would bring back the Ahh's.. They are basicly a Champion anyway.. Also re-invent the Champion pebble sole exactly as they were back then.. LOVE EM.. I would still keep Skimmers and wedges as fashion dictates, but add a small variety of High Heels.. Stilleto style.. Keds used to do some and "I" thought they were pretty hot so I added some to the collection.. I would get rid of some of the crazy patterns they use and also add a champion hi top and extra high in say 4 different colors.. I reckon you need a little variety.. Cons do.. If you only sell one line for example you only cater to one market.. Much as I love my Champions pebble sole..
Every thing else I completly agree with you mate.. I still say that the head honcho's at Keds haven't a clue on marketing especially O/S.. Keds must be a good look or the Chinesse wouldn't have jumped on the Champion and Skimmer knock-offs so quick.. Nearly every chick in Ozz is wearing original Cons or Champs and Skimmer knock-off's... Only very very rearly do you see a blue heel lable or a side tag in Ozz... But who am I to comment on an American ledgend that I love... I only get cautions for trivilaties.. Cautions for bad spelling I could understand.. Ha Ha..
Come on people jump in on this topic.. This could be a great bebate.. Thanks KEDSNHOSE :icon_wink:icon_wink Walk softly people..
 
Re: if i owned the company...

Heres a couple of pics I just took of the Keds heels I mentioned last post.. YEAH Yeah I know it's a sneaker site blah blah, but they are canvas have pebble soles and Champion foxing.. My wife has a pr and man these are head turners.. I catch guys and Girls susing them out every time she wears them.. One girl actually came up to her and wanted to know where she got them.. When my wife said that I got them for her off E-bay the girl offered to buy them then and there... Thought some of you might be interested in what Keds CAN do with a little colaboration... :icon_bigg:icon_bigg Walk softly people...
 

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Re: if i owned the company...

As long as Keds is owned by a parent company that could care less about tradition and continue the destruction of the good name of Keds, Keds as a shoe that we buy, wear & love will become a thing of the past like Studebaker cars, American made TVs, and soon to disappear Chrysler & GM!

Our only solution to solve this decline of Keds is to buy Keds from the parent company and run it like we Keds-lovers think it should be run! I'm sure there are fellow Keds lovers out there from all parts of the world that have the knowledge, skill, and most important, access to money that can accomplish this goal. Forget about Converse, although they are now popular the parent company are making huge mistakes in the manufacture of the popular Cons with poor materials & refusal to promote the shoes as they should be. Those are mistakes that we Keds Lovers can avoid. So what's it going to be: are we going to just sit on the sidelines and let Striderite Corp ruin the Keds we love or are we going to make a solid effort to take control of this situation and gain ownership of Keds ! Come on now, let's do something NOW!:icon_mrgr
 
Re: if i owned the company...

That would take a hell of a lot of U.S.D my friend.. IF THEY WOULD SELL..??.. Wonder what we would be looking at..??.. :icon_cry::icon_cry: Walk softly people..
 
Re: if i owned the company...

Interesting comments. The Keds brand is now part of the Payless world and forced into whatever Payless wants which is ; 1. Use payless factories in China eg quality will be less. and 2. Sell Keds in Payless stores soon. The brand is not doing well in the US and could be had for probably around $75 million today if Payless wanted to sell. An uncertain future at best.
 
Re: if i owned the company...

In the good old days, one could just use debt to acquire Keds. Ask the guys at Cerberus Capital who bought Chrysler. I haven't looked at Keds financials in years, but $75mil sounds high to me. I doubt they'd go for more than about 2x earnings at this point. I can speak from experience that getting any debt for any reason is almost impossible right now, but I think things will improve. It might be more reasonable to do a start up and just go to the factories in China or Taiwan and develop exactly what you want, rather than buying a dying brand. That could be done for far less than purchasing an existing company. Just a thought.
 
Re: if i owned the company...

In the good old days, one could just use debt to acquire Keds. Ask the guys at Cerberus Capital who bought Chrysler. I haven't looked at Keds financials in years, but $75mil sounds high to me. I doubt they'd go for more than about 2x earnings at this point. I can speak from experience that getting any debt for any reason is almost impossible right now, but I think things will improve. It might be more reasonable to do a start up and just go to the factories in China or Taiwan and develop exactly what you want, rather than buying a dying brand. That could be done for far less than purchasing an existing company. Just a thought.
I agree with you on most of this. My thoughts though would be to produce the lines in Canada or Mexico where wages are lower by still help the North American economy. A shoe like a Keds champ should cost about 2.00 to make and sell for 20.00.
 
Re: if i owned the company...

I think putting the plant in Mexico or Canada would be a good long term goal, but I would go directly to the current manufacturer to get started. I bet a minimum order would be less than $100K(including shipping to the US or Canada). You could get exactly what you want for cheap. Start marketing it on this site, or another site for web only sales. Seeker already has lots of models lined up. The demand for knockoffs seems to be pretty great world wide right now. I'd be up for this if there is enough interest. I am not sure about 90%margins, but I bet they would be better than 20%( a $20.00 dollar pair of Keds copies might cost 16.00 by the time they are delivered and stored in our warehouse.) If there were a hundred people interested, it would cost $1000.00 each to run this experiment.

I am currently running a business with $8mil in annual revenues here in the US. I have some experience with international trade and manufacturing. I'm willing to discuss this further if there is more than passing interest.
 
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