MCD2040 Week 4 Dr Martens PDF

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British boot company Dr Martens has come under fire from workers and customers over their decision to move production from England to China. Dr Martens are famous mostly due to their iconic boot design, that was created by German army doctor Klaus Martens, who designed the air -cushioned sole to help relieve his back pain. The simple design, the workwear connection, the characteristic yellow stitching and streamlined shape made it popular with musicians in the 70s, and later in the 90s who simply called them “Docs”. The brand is now sold in 63 countries, with its biggest markets in the UK, US, Asia and Europe. It was struggling in 2001 when Docs went out of fashion and production was moved from the UK to China and Thailand. Unions and workers were outraged by the decision to focus on costs and profits instead of looking after their loyal staff and customers.

A spokesman for the company said the decision was made because it was far cheaper to produce footwear in China. It plans to cease all production in the UK, but will continue to employ a number of office and design staff. The company stated: "We regret very much the loss of jobs resulting from these proposed closures but we will make every effort to help staff find alternative employment. We will also work closely with the local authorities and other agencies.” Paul Gates, Union Leader said: "It may be cheaper in China, but this is an issue of added value and quality. It does not matter if the boots are cheap if nobody is going to buy them (because of their poorer quality)." He said that as well as affecting about 700 workers in Northampshire, the decision will have a flow -on effect on local suppliers.

Starting in 1901, the family shoe making business slowly grew in the middle of England, Wollaston Northamptonshire. They were at the heart of the English shoe industry and earned a solid reputation as producers of sturdy, durable footwear.

Sales declined so rapidly that almost all of their English factories had to be closed to save the business. Then in 2003 the revival of the brand began with high fashion designers from around the world re-interpreting and customising the classic boot. However, with only 2% of shoes now manufactured in England and all other production in Asia customers believe there has been a serious decline in quality.

This perceived decline in quality provides an opportunity for Dr Martens competitors to steal customers and market share. One business that has benefited is a brand called Solovair. Its shoes are strikingly similar to Dr Martens, and they are all made in England. The company made Dr Martens shoes under licence for 35 years. “We’ve been around since 1881 in Northamptonshire, and in 2006 were bought out by a local person who saved the company and kept all 60 employees in their jobs. We ’re still very small compared with Dr Martens, but we’re growing fast.” Dr Martens customers have accused the bootmaker of sacrificing quality by offshoring production and chasing profits. Dr Martens has been a symbol of British working -class subculture. The company’s shift to China, factory closures in Northamptonshire, Leicestershire and Somerset, seem symbolic of what has happened to the British economy since then. Customer complaints can be found all over social media such as Twitter, Facebook and Instagram. “I bought the limited edition Lazy Oaf X boots for $400, two out of the three boots we ordered have broken! I have previous pairs of Dr Martens which have lasted me five-plus years so I know I haven’t ‘worn them out’.” “I purchased cherry red shoes and within eight months the sole was coming away from the shoe. Sadly Dr M’s workmanship and quality is not as good as it once was.” “Dr Martens production standards have dropped. The previous pair had a moulded insole that could be removed from the boot and fitted perfectly right into the toe of the boot. The replacement pair has a glued -in flat-foam insole which leaves a gap between it and the inside of the boot. ” “As any Dr Martens aficionado knows, the quality plummeted when they moved most production out of the UK. I have two otherwise identical pairs of Dr Martens boots – one UK made, one Chinese-made – and while the UK-made ones are among the most comfortable footwear I own, the Chinese-made ones are made of nasty, rigid, thinner leather … in this case the manufacturer apparently sacrificed quality for profit, and its customers are paying the price in bunions and blisters.” “The stitching came apart on my slip -on boots. Take a brand, hand it over to new owners, who then slash costs and pump brand image.”

But Dr Martens’ chief executive, rejects the allegations. “While we produce around 11m pairs of shoes a year and have a very low rate of defects (0.5% of our total), we accept and acknowledge that we don ’t get it right all the time. In these cases we work very hard to understand what happened and learn from it.” Critics of the new owners have not forgotten the huge cuts to jobs and operating costs made to try and the business off five or six years later for a quick profit. Indeed, one English politician said it was a “national scandal that the casino capitalists are allowed to treat British workers and some of our biggest companies as nothing more than pawns in a game of get rich quick”.

MCD2040: Managing People & Organisations

Sources: https://www.theguardian.com/commentisfree/2013/oct/25/dr -martens-style-corporate-buyout-permira-boots http://news.bbc.co.uk/2/hi/uk_news/england/2356519.stm https://www.theguardian.com/money/2019/nov/30/are -things-going-wrong-with-the-uk-beloved -dr-martens-brand...