About the Company

Introduced in 1966, the K-Swiss Classic was the first all-leather tennis shoe. The K-Swiss Classic quickly gained worldwide acclaim and became a style statement both on and off the court. More than 50 years later, K-Swiss’ reimagined brand mission is to outfit and inspire the next generation of entrepreneurs. These young leaders are at the forefront of today’s culture, influencing and inspiring young people around the world.

  • Products used
    PriceBot
    Price Optimization
  • United States
  • Footwear

The Goal

K-Swiss had spent millions of dollars attempting to revitalize their brand in hopes of appealing to an audience that’s not just younger, but also more creative and entrepreneurial — however, this new strategic pivot wasn’t translating to e-commerce success. The company consistently missed gross revenue and profit margin targets since current pricing did not resonate with the new audience.

The Strategy

Tontine’s Price Optimization Experts, armed with data from hundreds of other footwear brands we’ve worked with, urged K-Swiss’ management team to expand their reach and audience beyond just “sneakerheads”. This meant questioning current assumptions and re-evaluating everything from a first-principles basis. Guided by Tontine’s experts, K-Swiss began testing out various price points and allowing the market to set the price, rather than being beholden to a small subset of their most fervent fans. Tontine’s experts also helped establish two separate pricing strategies: one for daily-wear, core products, and another distinct one for major, limited-edition collaborations (such as the tie-up with entrepreneur Gary Vaynerchuk and the movie Ghostbusters).

The Results

Within 60 days of working together, K-Swiss saw a dramatic 28% increase in revenue which translated to a more than 2,900% return on investment. With this new cash infusion, the company went on to ink more limited-edition deals, while continuing to run more than 22 price tests each month with Tontine.

28%
Revenue Lift
41%
Profit Margin Lift
22
Tests/Mo.

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Revenue Lift
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Profit Margin Lift
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