Rothy's Explained

Rothy's
Logo Upright:1.1
Type:Limited Company
Industry:Retail
Foundation:San Francisco, California, U.S.
Location City:San Francisco
Location Country:California, U.S.
Locations:16
Area Served:United States, China
Key People:Stephen Hawthornthwaite (CEO)
Products:Footwear, Handbags
Num Employees:1000

Rothy's is an American direct-to-consumer company which designs and sells shoes and accessories. Rothy's was initially founded in 2012 and launched in 2016 by Stephen Hawthornthwaite and Roth Martin as a women's shoe company in San Francisco. It has since expanded with handbags and a men's line.[1] [2]

Rothy's uses thread made from plastic bottles to knit its items,[3] [4] and 3D knits its shoes and handbags to shape, cutting waste.[5] In March 2021, Rothy’s launched a shoe recycling program, achieving LEED certification at its factory and reaching carbon neutrality.[6] As of 2024, over 179 million bottles have been repurposed to make their products.[7] Additionally, Rothy’s has recycled over 20,000 pairs of shoes.[8]

In December 2021, Rothy’s was valued at $1 billion when Alpargatas, the Brazilian owner of Havaianas, took a 49.9% stake in the company.[9]

History

The company began in 2012 with Stephen Hawthornthwaite, an investment banker, and Roth Martin, a creative and gallerist. Their goal was to create a stylish and comfortable women's flat shoe from single-use plastic, reducing the excess that occurs with a traditional shoemaking process.[10] There was a significant delay between the founding of the company and the launch due to the complexity of making the product. Their idea of making shoes from sustainable materials was inspired by companies like Patagonia.[11]

Rothy's launched in September 2016, offering its first two styles directly from its website.[12] In January 2017, Rothy's opened its own factory in Guangzhou, China, which today spans .[13] [14] [15] By 2018, the brand had sold a million pairs, generating $140 million in revenue. In 2019, it surpassed 1.4 million customers, a 105% increase from the previous year. In March 2020, the brand began selling handbags[16] made with plastic and expanded to a men's category in 2021.[2] The company has entered the children's market,[17] launching a children's version of its loafer silhouette and slip-on sneakers.[18] [19] featuring both solids and unisex prints.[20]

Rothy's investors include Goldman Sachs and Lightspeed Venture Partners, who have invested $35 million and $5 million respectively,[21] and $2 million in convertible notes from Finn Capital Partners, M13 and Grace Beauty Capital.[22] In December 2021, Alpargatas, the Brazilian owner of Havaianas, invested $200 million in cash, followed by a purchase of $275 million of shares, acquiring a 49.9% stake in the company and resulting in a valuation of $1 billion.

As of September 2022, the company had resolved litigation against Birdies, Steve Madden, OESH Shoes and Giesswein.[23] [24] In January 2024, Jenny Ming, former cofounder and President of Old Navy, was appointed CEO, helming Rothy's all female leadership team.[25] [26]

Production

Rothy's products are made from recycled plastic water bottles and post-consumer recycled materials.[27] During the manufacturing process, the water bottles are hot washed and sterilized. Chips of plastic are melted down into pellets, stretched into fibers, and given air treatment until they entwine. The uppers are knit and then sewn to the sole by hand, paired with recycled foam and rubber soles.

Retail

As of January 2024, Rothy's operates 20 stores with a footprint in 19 countries [28] and has stores in cities such as San Francisco, Washington, D.C., Boston, New York City, Los Angeles, Atlanta, Chicago, Scottsdale, Austin, Seattle, and Minneapolis.[29] In May 2024, Rothy's launched on Amazon Fashion store.[30]

Reception

Some critics have praised the shoes for their sustainability, aesthetic, and comfort.[31] Kavita Varma-White of Today described Rothy's as the "perfect travel shoe".[32] According to Business of Fashion, Rothy's range caters to women looking for an alternative to sneakers or ballet shoes. Celebrity fans include Katie Holmes, Reese Witherspoon, Kerry Washington, and Meghan Markle.[33] [34] [35]

Time magazine named Rothy's one of the Most Influential Companies of 2021.[36] The company's men's driving loafer has been recognized as a Time 2021 Best Invention,[37] and its RS01 sneaker was named Men's Health Most Innovative Shoe.[38] Rothy’s was included in Fast Companys list of "The 10 most innovative style companies of 2020".[39] Rothy’s has also been recognized as a Best Place to Work by Inc. magazine.[40]

External links

Notes and References

  1. Web site: Parija Kavilanz . Rothy's has new idea for ocean plastic waste: handbags . 2022-04-26 . CNN.
  2. News: Smith . Ray A. . 19 May 2021 . Rothy's Goes Toe-to-Toe With Allbirds and Nike With its First-Ever Men's Shoes . Wall Street Journal . 26 April 2022 . 0099-9660.
  3. Web site: Chen . Connie . We tried Rothy's flats, the popular shoes made from recycled water bottles — here's what they were like to wear . 26 April 2022 . Insider.
  4. Web site: Women in New York City and San Francisco are obsessed with these comfortable flats made from recycled water bottles — here's what they feel like. Chen, Connie. 12 March 2019. Business Insider. 10 April 2019.
  5. Web site: How Sustainable Startup Rothy's Found Success Turning Recycled Water Bottles into Fashionable Footwear . 26 April 2022 . Fortune.
  6. Web site: Johns . Nikara . 23 March 2021 . Inside Rothy's Detailed Commitment to Reach Circular Production by 2023 . 26 April 2022 . Footwear News.
  7. Web site: Parmley, Suzanne. Rothy’s launches on Amazon . Retail Dive. 17 June 2024.
  8. Web site: Johns . Nikara . 12 April 2022 . Rothy's Recycles 20,000 Pairs of Shoes Through Pilot Recycling Program — What It Means for the Shoe Industry . 26 April 2022. Footwear News.
  9. News: Hirsch . Lauren . 20 December 2021 . Rothy's, the recycled-plastic footwear brand, gets a deal valuing it at $1 billion. . The New York Times . 26 April 2022 . 0362-4331.
  10. With an Eco-Friendly Sneaker, Rothy's Treads on New Ground . WIRED . 21 October 2018.
  11. How Two Shoe Outsiders Are Making Rothy's One of the Most Talked-About New Footwear Brands . . 25 March 2019 . 10 April 2019.
  12. Web site: Feldman . Amy . Next Billion-Dollar Startups: Rothy's Makes This Year's 'It' Shoe. But Can It Keep Growing Amid A Flood Of Copy Cats—And A Founder's Departure? . 16 April 2022 . Forbes.
  13. Web site: Rothy's in deal that values it at $1 billion . 26 April 2022 . Chain Store Age.
  14. Web site: The Evolution of Rothy's . WWD . 10 April 2018.
  15. Segran, Elizabeth . 26 July 2018 . Rothy's, the viral Silicon Valley shoe brand, is coming for your kids . Fast Company . 10 April 2019.
  16. Web site: Segran . Elizabeth . 10 March 2020 . Behind Rothy's signature flats and totes is a sophisticated—and profitable—direct-to-consumer manufacturing business . 26 April 2022 . Fast Company.
  17. Web site: Your Favorite Instagram Cult Flats Brand, Rothy's, Now Has Kids Shoes . Parents . 10 November 2018.
  18. Web site: Fernandez, Chantal . 4 February 2019 . How Shoes Became Venture Capital's Favourite Accessory . 10 April 2019 . Business of Fashion.
  19. No, shoes for kids don't have to be low-quality crap. Fast Company. 13 March 2019. 10 April 2019.
  20. Web site: Hubbard, Lauren . Meghan Markle's Favorite Shoe Brand, Rothy's, Just Launched a Line of Sneakers for Kids . Town & Country . 12 March 2019 . 10 April 2019.
  21. News: 17 December 2018 . Instagram-Popular Shoemaker Rothy's Expected to Post $140 Million in Revenue . Bloomberg.com . 26 April 2022.
  22. Web site: Rothy's just landed $35 million from Goldman Sachs to sell more of its popular ballet flats . 26 April 2022 . TechCrunch.
  23. Web site: Howard, Daphne. Rothy’s prevails in court as Birdies agrees to cease selling disputed shoe design . Retaildive.com. 2 July 2024.
  24. Web site: Dobrosielski . Chuck . 10 June 2021 . Birdies Responds to Rothy's $2M Patent Infringement Lawsuit . 26 April 2022 . Sourcing Journal.
  25. Web site: Jansen, Caroline. Rothy’s names new CEO. Retaildive.com. 10 January 2024. 2 July 2024.
  26. Web site: Rothy’s CEO Jenny Ming on Leading a Female Power Team and Mentoring Peers. Footwear News. 4 June 2024. 2 July 2024.
  27. Web site: Chen, Connie . 12 March 2019 . Women in New York City and San Francisco are obsessed with these comfortable flats made from recycled water bottles — here's what they feel like . 10 April 2019 . Business Insider.
  28. Web site: Blair, Adam. Rothy’s Names New CEO and President as Co-Founders Move Up. Retailtouchpoints.com. 10 January 2024. 2 July 2024.
  29. Web site: Stores . 26 April 2022 . Rothy's.
  30. Web site: Parmley, Suzanne. Rothy’s launches on Amazon. Retaildive.com. 24 May 2024. 2 July 2024.
  31. Yaeger, Lynn. The Most Environmentally Friendly Shoes on the Planet Also Happen to Be the Cutest. Vogue. 17 August 2016. 10 April 2019.
  32. Web site: Varma-White, Kavita. I've found the perfect travel shoe (and Meghan Markle wears the brand, too). Today. 18 October 2018. 10 April 2019.
  33. Web site: 5 October 2019 . Katie Holmes Has Found the Perfect Ballet Flat—And It's Sustainable, Too . 3 May 2022 . Vogue.
  34. Web site: Hilmantel . Robin . 16 October 2018 . OMG Meghan Markle Is A Fan Of Rothy's Just Like Me . 3 May 2022 . Women's Health.
  35. Web site: October 18 . Alex Warner. Meghan Markle's LBD and Classic Black Flats Are Both Still Available (and Surprisingly Affordable) . 3 May 2022 . People.
  36. TIME100 Most Influential Companies 2021: Rothy's . 3 May 2022 . Time.
  37. Rothy's Driving Loafer: The 100 Best Inventions of 2021 . 26 April 2022 . Time.
  38. Web site: Chong . Dale Arden . 22 October 2021 . The 2022 Men's Health Sneaker Awards . 26 April 2022 . Men's Health.
  39. Web site: Segran . Elizabeth . 10 March 2020 . Behind Rothy's signature flats and totes is a sophisticated—and profitable—direct-to-consumer manufacturing business . 3 May 2022 . Fast Company.
  40. Web site: Rothy's is on Inc.'s 2021 Best in Business . 3 May 2022 . Inc..

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