Havaianas: Freedom, fashion and the secret sauce for success

Havaianas elevated the humble flip-flop into a fashion statement and catapulted Alpargatas onto the global stage

For a company that has weathered many storms, they are nothing if not resilient. In the third quarter of 2021, Alpargatas revenues surpassed pre-pandemic levels and continue to grow. In a conversation on CEO Exchange with Gianfranco Casati, chief executive of Accenture Growth Markets, Funari shares that the company’s staying power is predicated on their robust ecosystem of partners, a strong company culture and team, governance and a “people first” mindset.

“Very early in the pandemic, we decided to focus on the health of our people and to play our role towards society to help us all overcome the sanitary and social impacts. So, very early in the game we made it very clear what are our priorities are, and we leaned in,” said Funari.

Finding a way to serve the interests of all stakeholders including shareholders, employees and communities is a challenge for all businesses.

“Striking the right balance in thinking holistically about choices and their implications across the ecosystem, and finding that sweet spot between short and long term is a proven way to be successful,” reflects Casati.

Secret sauce

With their flip-flops gracing the feet of Hollywood celebrities to royalty to favela denizens, what is Alpargatas’ secret sauce?

Funari reveals it starts with an iconic product, continual investment in the brand, innovation and building deep relationships with customers and partners.

Next, availability: intersecting with shoppers whenever and wherever they venture to buy – or even think of buying – footwear. With more than 300,000 points of sale in Brazil and across the world in every retail format, “presence” is a critical success factor.

And the third ingredient?

“Coolness,” grins Funari. “When you put Havaianas on your feet, you enter into the summer experience. You become much more authentic. You get this deep sense of freedom. Being a fashion item and accessible is a very rare combination in our industry.”

Sustainability is the future

With consumers becoming increasingly conscious about their purchasing decisions, Alpargatas embeds sustainability as part of their business strategy. They already offer products with recycled materials and have implemented circularity solutions worldwide.

Late 2021, Alpargatas bought a major stake in San Francisco-based Rothy’s, a direct-to-consumer company whose shoes are favoured by the Duchess of Sussex, Meghan Markle. Rothy’s footwear and bags are made from 100 per cent recycled plastic bottles and post-consumer recycled materials.

Combining Rothy’s digital and sustainable pedigree with Alpargatas’ iconic products and geographical reach, Funari envisions building a powerhouse of brands that are desirable, purpose-driven and hyper connected.

“We are a vertically integrated business. From our supply chain, manufacturing, our strategic partners that help us drive transformations to our go-to-market. Franchisees, wholesalers, distributors, retailers, our own stores and the communities and our collaborators. That's one of our core strengths that makes us very resilient, that makes us believe that this is a business to last another 100 years,” Funari predicts.