Dr. Martens Plc · LSE:DOCS
Dr. Martens — Investor Presentation (September 2023)
72 slides from Dr. Martens's investor presentation, Sep 14, 2023
Slide 1: Product and Brand Teach-in
PRODUCT AND BRAND TEACH-IN DR. DR.MARTENS MARTENSPLC PLC 14 SEPTEMBER 2023
Slide 2: What we'll cover today
WHAT WE’LL 2 COVER TODAY HOW WE INNOVATE 1 3 HOW WE HOW WE DRIVE GROW ICONS BRAND HEAT DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 1
Slide 3: Who you'll hear from today
WHO YOU’LL HEAR FROM TODAY ADAM MEEK DARREN MCKOY TUZE MEKIK MEG JOHNSON Chief Product Officer Creative Director Global Head of Chief Marketing Officer Sustainability DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 2
Slide 4: The DOCS strategy framework
THE DOCS STRATEGY FRAMEWORK Our DOCS strategy is about selling more pairs of boots, shoes and sandals, to more people, through our own DTC, in our 7 priority markets: UK | US | FRANCE | GERMANY | ITALY | JAPAN | CHINA Build brand equity Enable growth Acquire new Manage B2B and drive margin and unloc
Slide 5: DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN
DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 4
Slide 6: Meek, Chief Product Officer
MEEK CHIEF PRODUCT OFFICER
Slide 7: What I'll cover today
WHAT I’LL COVER TODAY 1 INTRODUCING OUR PRODUCT RANGE 2 HOW WE INNOVATE 3 HOW INNOVATION GROWS OUR ICONS DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 6
Slide 8: Evolution of product team
EVOLUTION OF PRODUCT TEAM SIGNIFICANT INVESTMENT IN PRODUCT TEAM Evolved team structure to support growing scale Investment in go-to market and insights function DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 7
Slide 9: Product architecture
PRODUCT ARCHITECTURE MAIN-LINE AMP ARCHIVE ORIGINALS FUSION CASUAL COLLABS & MADE IN 14XX ENGLAND 50% 38% 9% 3% Coming soon Sandals 9% FY23 Revenue DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 8 Originals includes Kids and Accessories
Slide 10: Growing boots and shoes and sandals
GROWING BOOTS AND SHOES AND SANDALS BALANCES PRODUCT PORTFOLIO ATTRACTS NEW CUSTOMERS BALANCES WEIGHTING BY SEASON INCREASES WEARING OCCASIONS GROWS CUSTOMER LOYALTY FY19-FY23 Revenue DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 9
Slide 11: All three product categories are highly profitable
ALL THREE PRODUCT CATEGORIES ARE HIGHLY PROFITABLE ALL THREE PRODUCT £169 £139 £109 CATEGORIES DELIVER C.80% DTC PRODUCT 100% 100% 100% GROSS MARGIN 1460 Boot 1461 Shoe Blaire Sandal DTC price Ex VAT Gross product margin DTC Price; Product gross margin exclude ecommerce outbound freight. DR. MARTENS
Slide 12: Highly consistent product best sellers globally
HIGHLY CONSISTENT PRODUCT BEST SELLERS GLOBALLY REGION 1 REGION 2 REGION 3 DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 11
Slide 13: Innovation
CONSES INNOVATION |
Slide 14: Consumer chosen and highly recognisable
1460 BOOT 1461 SHOE CONSUMER CHOSEN AND HIGHLY RECOGNISABLE 2976 CHELSEA BOOT JADON BOOT PLC PRODUCT DR. MARTENS DR. MARTENS PLC AND BRANDTEACH-IN PRODUCT TEACH-IN 13
Slide 15: Innovation lenses
INNOVATION LENSES REFRESH RENEW REVOLUTIONISE A new colour or material A new version of an existing White space design. Disrupt execution on a much-loved icon or franchise. A new the market, surprise the style. A new wardrobe piece, wearing occasion, a new consumer. Enter a new realm an incremental
Slide 16: Product examples
101 BOOT SUEDE KING NERD MARY JANE DM’S WINTERGRIP SHOE PEACH 1460 BOOT JADON BOOT JADON BOOT PARCHMENT HARDWARE COW PRINT DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 15
Slide 17: Product examples
CREWSON JESY BOOT BOOT ADRIAN LOAFER QUAD EVIEE SHOE 2976 CHELSEA JARRICK II BOOT BEX BOOT DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 16
Slide 18: DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN
DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 17
Slide 19: How we grow icons
HOW WE GROW ICONS 01 02 03 04 SEASONAL COLLABS MARKETING MARKETPLACE VARIATIONS MANAGEMENT DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 18
Slide 20: Case study: 1461 shoe
CASE STUDY: 1461 SHOE THEN - 1961... ...NOW DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 19
Slide 21: Strong growth
STRONG GROWTH CAGR 46% FY21-FY23 DTC pairs 1461 shoe DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 20
Slide 22: Seasonal variations
SEASONAL VARIATIONS ICE SOLE MADE IN ENGLAND DEADSTOCK SUEDE VEGAN VIRGINIA PEACH DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 21
Slide 23: Collabs
COLLABS WACKO MARIA NATIONAL GALLERY SUPREME BT21 FRAGMENT DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 22
Slide 24: Marketing
MARKETING G DRAGON IN SUPREME Getty images DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 23
Slide 25: Marketplace management
MARKETPLACE MANAGEMENT MULTI-BRAND PREMIUM TREND-LED CONTEMPORARY SPECIALITY RETAILERS RETAILERS (IGNITE) BOUTIQUES AND (YELLOW STITCH) CONCEPT STORES (AMP) END. 1461 SHOE PEACH 1461 SHOE PEBBLE 1461 SHOE WACKO GRAIN MARIA COLLAB UK Wholesale example DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 24
Slide 26: Price architecture: 1461 shoe
PRICE ARCHITECTURE: 1461 SHOE €299 €259 BEX A COLD €249 BEX MIE WALL* DEADSTOCK €239 MIE €299 QUAD €159 PLEASURES NUBUCK BEX €229 CARRARA OUR €219 LEGACY LEATHER SUEDE BLACK HAIR ON SMOOTH €209 QUAD €199 OXFORD SUEDE €189 €179 €159 Prices include sales tax DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN
Slide 27: Case study: Mules
CASE STUDY: MULES THEN - 1996... ...NOW DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 26
Slide 28: Exceptional growth on a small base
EXCEPTIONAL GROWTH ON A SMALL BASE CAGR 327% FY21-FY23 DTC Pairs DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 27
Slide 29: Seasonal variations
SEASONAL VARIATIONS ISHAM MULE JORGE II MULE JORGE II MULE SANDY TAN BRANDO RUST JORGE II MULE PARCHMENT JORGE MULE MIE JORGE MULE MIE HAIR ON CARLSON MULE SAND DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 28
Slide 30: Collabs
COLLABS JORGE MULE X PLEASURES KOJEY RADICAL DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 29
Slide 31: Marketing
MARKETING DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 30
Slide 32: Innovation at the core of Dr. Martens
INNOVATION AT THE CORE OF DR. MARTENS 2 SIGNIFICANT GROWTH 1 3 HEADROOM FOR ALL THREE PROFITABLE CATEGORIES PROVEN APPROACH GLOBALLY TO GROWING ICONS CONSISTENT AND GROWING BESTSELLERS BEYOND THE ICONS DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 31
Slide 33: McKoy, Creative Director
MCKOY CREATIVE DIRECTOR
Slide 34: In driving brand heat
Ce OF COLLABORATION ‘§ ag AEE * a ' %«
Slide 35: Our 1st collaboration born out of a true partnership
1st of April 1960. The 1460 boot had arrived. Our 1st collaboration born out of a true partnership. It’s this mentality that is ingrained in our Heritage and Culture. DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 34
Slide 36: 6+ decades we have stood at the forefront of
6+ DECADES WE HAVE STOOD AT THE FOREFRONT OF DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 35
Slide 37: Why? The role of collaborations
WHY? THE ROLE OF COLLABORATIONS WITHIN DR. MARTENS DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 36
Slide 38: Those at the forefront of youth culture
THOSE AT THE FOREFRONT OF YOUTH CULTURE... ...BECAUSE THEY INFLUENCE THE REST Innovators Early adopters Early majority Late majority Laggards DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 37
Slide 39: Cascading collab: icons to innovation
CASCADING COLLAB MAIN-LINE ICONS TO INNOVATION DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 38
Slide 40: To ignite the global streets
TO IGNITE THE GLOBAL STREETS DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 39
Slide 41: Journey so far and consumer connectivity
JOURNEY SO FAR: We’ve worked with some of the most influential brands on the planet; creating global brand equity & a shared legacy. & CONSUMER CONNECTIVITY DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 40
Slide 42: Adopted by global artists
ADOPTED BY GLOBAL Tyler the Creator in Henderscheme Lil Wayne performs in MJ Daisy Olivia Rodrigo at Glastonbury Ty Dolla $ign in Neighborhood Getty images DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 41
Slide 43: Like no other
LIKE NO OTHER *TYLER THE CREATOR ‘IGOR TOUR’ *BLUR TOUR *GIGI HADID & OFF WHITE *STRATEGIC CUSTOM PRODUCTS DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 42
Slide 44: How?
HOW? PRODUCT INTENT + STORY TELLING + COMMUNITY = IMPACT DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 43
Slide 45: Creative lenses
CREATIVE LENSES STYLE ART MUSIC STREET & THE INTERSECTIONS OF PROGRESSIVE YOUTH CULTURE DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 44
Slide 46: Strategic partner selection
STRATEGIC PARTNER SELECTION “WITH MY EYES TURNED TO THE PAST, I WALK BACKWARDS INTO THE FUTURE” Yohji Yamamoto WE PARTNER FOR THE LONG TERM, WITH CULTURE BRANDS THAT EMBODY OUR VALUES & SPIRIT DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 45
Slide 47: The Pulse
THE PULSE: CONNECTING WITH FUTURE CREATORS, DISRUPTORS, & CULTURAL INNOVATORS. THE NEXT REBELS. SLAWN, BRIT AWARD ARTIST 23 & MOTHERLAND SAB, SINGER FROM PRETTY SICK DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 46
Slide 48: So far
SO FAR CONTINUING TO PUSH BOUNDARIES WITH GLOBAL LEADING INDUSTRY PARTNERS NEW & OLD DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 47
Slide 49: Mekik, Global Head of Sustainability
MEKIK GLOBAL HEAD OF SUSTAINABILITY
Slide 50: Sustainability strategy
SUSTAINABILITY STRATEGY PLANET PRODUCT PEOPLE REDUCING OUR IMPACT MOVING TOWARDS A REGENERATIVE SUPPORTING OUR EMPLOYEES, THE ON THE PLANET AND CIRCULAR PRODUCT LIFECYCLE WORKERS IN OUR SUPPLY CHAIN AND WIDER COMMUNITIES Climate Materials Net-zero target to be validated by 100% of footwear made from
Slide 51: Current materials: leather and PVC
CURRENT MATERIALS: LEATHER AND PVC LEATHER PVC By-product of the food industry Industry leading leather traceability OUR COMMITMENTS Highly durable materials • Sustainable alternative to OUR COMMITMENTS outsoles by 2035 • 100% leather traceability by 2024 • Remove fossil-based chemicals • 100% upper
Slide 52: Current materials: other materials and packaging
CURRENT MATERIALS: OTHER MATERIALS AND PACKAGING OUR COMMITMENTS • 100% of footwear made from sustainable materials by 2040 • 100% packaging from recycled or other sustainably sourced materials by 2028 WHAT WE’VE DONE • 100% recycled polyester in standard heel loops • 20% recycled polyester in stand
Slide 53: Looking to the future
LOOKING TO THE FUTURE GEN PHOENIX BIO-BASED BIO PVC PARTNERSHIP UPPERS DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 52
Slide 54: Resale
RESALE Second hand Dr. Martens market is already significant Depop UK trial was highly successful Launch of USA trial in 2024, via our Dr. Martens Rewair website DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 53
Slide 55: Repair
REPAIR Demand from consumers for a repair service We will launch a UK authorised repair trial with a dedicated partner in the coming months This will enable Dr. Martens to have quality oversight DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 54
Slide 56: Johnson, Chief Marketing Officer
JOHNSON CHIEF MARKETING OFFICER
Slide 57: Our consumers
OUR CONSUMERS A DIVERSE CONSUMER BASE DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 56
Slide 58: Broad & democratic appeal
BROAD & DEMOCRATIC APPEAL Gender Age Female Male Other / prefer not to say 16 - 24 25 - 44 45 - 64 Source: Brand Health Study, April ‘23, L24M Purchasers; Global data DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 57
Slide 59: Strong loyalty across footwear brands
STRONG LOYALTY ACROSS FOOTWEAR BRANDS Source: Brand Health Study; Apr’23; Last 24 month purchasers; global data DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 58 Brand Sentiment ‘Overall how do you feel about each of these brands?’
Slide 60: Our product
OUR PRODUCT DURABLE TIMELESS VERSATILE PLC PRODUCT DR. MARTENS DR. MARTENS PLCAND BRANDTEACH-IN PRODUCT TEACH-IN 59 59
Slide 61: Versatile: worn for multiple occasions
VERSATILE: WORN FOR MULTIPLE OCCASIONS I WEAR MY DR. MARTENS FOR … … ALL THE TIME Source: Third party consumer survey on the footwear market. DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 60 Note: Data from August 2020 - analysis refers to L24M purchasers unless otherwise stated; refers to UK market un
Slide 62: DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN
DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 61
Slide 63: Differentiated brand positioning
DIFFERENTIATED BRAND POSITIONING Source: Brand Health Study, April ‘23, L24M Purchasers; global data DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 62
Slide 64: Value for money across footwear brands
VALUE FOR MONEY ACROSS FOOTWEAR BRANDS Price perception Value for money Source: Brand Health Study, April ‘23; Last 24 month purchasers; global data DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 63
Slide 65: Dr. Martens means something (quote)
“DR. MARTENS MEANS SOMETHING. THE CORE OF THEIR APPEAL LIES IN THEIR EXTRAORDINARY HERITAGE AND DEEP ASSOCIATION WITH YOUTH CULTURE. THIS IS NOT THE SORT OF ASSOCIATION THAT COMES FROM ADVERTISING AND MARKETING PLOYS, BUT A GENUINE CONNECTION, BORN OUT OF EACH ERA ADOPTING THE BOOTS AS THEIR OWN.” W
Slide 66: Modern marketing engine
MODERN MARKETING ENGINE SKILLS & CAPABILITIES Bringing in world class talent to help drive world class brand building. STRATEGY & STRUCTURE We have zeroed in on a few top priorities that will ignite the next phase of Dr. Martens growth. PROCESSES & TOOLS From a new go-to-market process to improved s
Slide 67: Global big bets
GLOBAL BIG BETS DR. MARTENS DR.PLC PRODUCT MARTENS PLCAND PRODUCT BRAND TEACH-IN 66
Slide 68: DR. MARTENS DR. PLC MARTENS
DR. MARTENS DR.PLC PRODUCT MARTENS PLCAND PRODUCT BRAND TEACH-IN 67
Slide 69: Summary
SUMMARY
Slide 70: A summary of what we've covered today
A SUMMARY OF WHAT WE’VE COVERED TODAY 2 STRONG BRAND LOYALTY 1PRODUCT ANCHORED 3 INNOVATING FOR IN ICONS FUTURE GROWTH DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 69
Slide 71: Any questions?
ANY QUESTIONS? DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 14 SEPTEMBER 2023 70 DR. MARTENS PLC PRODUCT TEACH-IN
Slide 72: Investor relations contact details
INVESTOR RELATIONS CONTACT DETAILS BETH CALLUM Senior Investor Relations Analyst Beth.Callum@drmartens.com Phone: +44 20 3995 2644 BETHANY BARNES Director of Investor Relations Bethany.Barnes@drmartens.com Mobile: +44 7825 187465 DR. MARTENS PLC PRODUCT AND BRAND TEACH-IN 71