199. Isabel Soriano, President of International at Wolverine Worldwide: Simplify to Amplify: How...

Hi Daniel, hi Christina. Nice to be here. Very happy to be here today with you.

Difficult to say. I think early autumn, but sometimes some days the end of the summer. But yes, at least still enjoying good days in London, a little bit of remaining sun through the gray clouds, I guess.

Yeah, that part. I mean, the long career, yes, you are right, more than 20 years. So I will say that I have dedicated a big part of my career to focus on the consumer and building brands in the international markets. And how did I get into this? It's interesting because my most sincere answer is because someone saw more potential in me than even what I saw in myself and gave me the opportunity to start a new career. This was more than 20 years ago. The person that hired me was David Carmon, and the company was Nike. I had an interview with Nike for a strategic account manager position, and I came from a totally different sector, which was the construction sector. I was a commercial director in this area. So imagine, David saw my skills and potential to move to Nike, positioning me to manage the key accounts. And this despite having a totally different experience in another industry. So it gave me a unique opportunity that opened a new world for me in terms of brand building and in terms of the sportswear sector. From here, I expanded my career across different roles, responsibilities, companies, countries. But the learning here that has come with me through my career is that I believe one of my strengths has been to build high-performance multicultural teams. And it has always been very present for me that it's not about every person perfectly matching the role, but the potential of the individual, the behaviors, the skills. Being very conscious that it was the first one that it was for me, I mean, to receive this opportunity. I love this.

Yes, so as you mentioned, today I am part of the executive team of Wolverine as the President of International. So my career for the last 25 years has been in multinational companies like Nike, Timberland, VF, and Wolverine companies, but especially focusing on the sportswear, lifestyle, and activewear categories, and working and managing with brands such as Nike, Timberland, Kipling, Merrell, Saucony, Cat, and Sweaty Betty. So I started in Spain and then managing different roles in commercial areas. Then I had the opportunity to move to Timberland as Country Manager of Spain and Portugal. I think this was the first role that provided me with a more general approach about brand building, P&L management, and marketplace approach. Then from there, I moved to a global role to manage Timberland distributors worldwide, which provided me with a focus on one channel but with a broader scope in terms of the regions because I was managing the EMEA region, Middle East, Africa, Latin America, and Asia Pacific. So it was my first time to have this international scope. Then the next move came from VF when they offered me to move to Latin America and manage certain brands of VF in Latin America. After that, I decided to move to Wolverine again, managing one region as EMEA with the Wolverine company. And four years later, because of the experience with Wolverine but also the experience that I had previously in other companies in the international business, then it was when I was promoted to the President of International. So when I think about my career, I believe there has been a consistent approach across strong brands in the international business with a high level of flexibility from my side because I have lived in five different countries around the world. And the driver for me during my career, and it will be my advice to provide here, was to take projects that I thought were a new challenge for me where I could see my personal and professional growth, being outside of my natural area of comfort. And many times understanding that I needed to have a mid- to long-term view to provide the real value behind it. So that has been my summary.

It is a great question because I think it was the right experience at the right time for what came later. And I will explain in some minutes. But first, let me say that I am a Spanish woman married to an Argentinian guy, so as you can imagine, Argentina is present every day at home. So I have a very natural connection with Argentina and the rest of Latin America. So for me, in that part, it was easy. But when I was working at VF and I was at that stage working in Switzerland, I received the opportunity to move to Latin America and manage brands Timberland and Kipling for this region. I thought it was a great opportunity for me, matched perfectly personally, and then we decided to move to Argentina. Later on, VF moved the office from Argentina to Chile, so I lived in both countries. What Latin America brought to me was to embrace change in environments with a high level of volatility and establish business models that provide you with the right level of flexibility. As an example, I remember the first year making plans for brands in Brazil that were impossible to accomplish given the effects of deterioration, the valuation of the currency of more than 40% in the first year there. And you realize that you need to build the capabilities that provide you with the right level of flexibility to adapt to the changes, such as local sources of production, diversification of the model, different channels, different countries, and to have a very entrepreneurial approach and scenario planning to adapt to the change. So if I had explained this before COVID-19, it would probably sound like a very specific issue of this region of Latin America. Now after COVID, if you think about that, I'm sure that we all understand that this is not very different from what we have faced globally after the pandemic. So we have had to learn to embrace change and a higher level of volatility and uncertainty globally, and the need for a strong strategic approach and scenario planning when going through that. And that was my learning in Latin America that I think was perfect for not only this experience there but what came later.

Yeah, but I think change is part of what we live every day, and we need to embrace that in a natural way. And I believe that regions like Europe that we consider more stable and have a clear path, we live with that in a natural way now. So all the learnings there are a good way to apply.

Exactly.

Another great question. I believe that in this case, you need to simplify to amplify and understand the consumer behavior and the trends for your brand and the sector where you operate. So if you combine both thoughts, it is easier to establish the marketplace approach where every channel has an important role to play towards the consumer. And the importance of this channel may vary depending on the level of connection with your consumer, on the maturity, on the penetration in the market. So I think the different channels do not create complexity if you have a clear view about the way to reach your consumer with a long-term view, thinking that the channels transform themselves as enablers to connect with the consumer in the most appropriate way. We have a very strong distributors business in Wolverine that are longstanding partners that are doing a fabulous work in these markets, while we also have our own business model in other markets where Wolverine invests in a more direct way and is also creating very strong connections with the consumer. So putting the consumer in the center and considering these channels as an enabler to connect with the consumer, I think is the key.

Yeah, I think in my case, I cannot separate the company I chose from the stage that I am in as a person with my family and with my professional career. So everything goes together. So Wolverine brought me too many positive things from different angles. From a company perspective, it's the strong portfolio of brands that operate in the activewear sector and the intrinsically purpose of Wolverine as a company that is a positive one, that is the well-being, that is making better every day. I really like that. But also the scale of the company, because it's a perfect combination between a multinational approach but also a more entrepreneurial approach when referring to the regions. And if you think about my experience in Latin America and what has been my career, it is important for me to find this balance between multinational but entrepreneurial approach. From a project perspective, these brands continue having a huge opportunity globally. When we talk about Merrell, Saucony, expanding the European or international business is a clear project that also fulfills my expectations, that is a very positive one. So in my career path, it was also an important factor of the decision. And the combination of this is when I moved to Wolverine at that stage, I was at VF managing the Latin American business for some of the brands as I mentioned before. And my next step in VF was probably to move to another region like Asia Pacific, that's what we were discussing internally. VF is a big company, and I was also at an age where it was going to be more difficult for me to achieve certain roles of responsibilities at the executive level. So Wolverine provided me with this opportunity that matched perfectly from a professional career, from a personal career, from the stage I mean where I am. And linking with my previous comments, I think it's very important for me also the level of influence that you can have in the company where you work and the involvement you feel, that you have your space and you have this level of influence. So I love the sector, I love the brands, I love the potential of the company, the project of expanding the international business. And then also from an internal career path, it was the perfect opportunity. And I'm being very open here because there is the perfect match also in different moments, and that's how I see also the different stages that I have taken in my career.

Absolutely. I love the question because I said before, I think you need to work for a company with a clear purpose that fulfills also my expectations. And what is great is to have the opportunity to work also with this brand portfolio. So the key pillars, first of all, Wolverine's vision is to be global brand builders. That implies being consumer obsessed, product innovators, and demand creators. And then from all of our portfolio of brands, I will highlight probably Merrell, Saucony, and Sweaty Betty. I could talk about all of our brands, but just to focus on these three. The three of them are part of the activewear sector. We are also very strong in the workwear sector, but I think activewear is where I will focus. Saucony is one brand that is in the fastest growing categories, which is running. And you were mentioning before, Christina, about your view of the footwear sector. It's true, running is growing fast. And the purpose of the brand is meaningful for me because it's to energize people to move with confidence, supporting them in this journey to achieve their full authentic potential through running, innovation, heritage, community. Saucony is a brand with more than 120 years of heritage and history and has evolved to be an inclusive brand where everyone is welcome, and community is a big pillar of the brand. And I love that because I am not a runner from a professional perspective, but I feel part of this brand, and I feel that through Saucony, I can have key pillars like community. I'm feeling that it really helps me to be better. When referring to Merrell, we are also referring to the outdoor brand. Merrell is a trusted and welcoming brand that fuels the connection with people with the outdoors but also goes beyond that by connecting those around them for a better life. So the concept again is around well-being, the concept again is around inclusiveness. And you have some examples of Merrell creating spaces for women in terms of the outdoor spaces, in terms of the community where everyone is welcome. One of the things that we discover about women is that there are a big percentage of women that don't feel comfortable going alone in the outdoors, that don't feel comfortable with this type of sport. And by doing this, we are creating a sense of community and inclusiveness. And Sweaty Betty is a purpose-driven brand. I can tell you that every single member of the team that works in Sweaty Betty lives and breathes the purpose of the brand because it's a brand that is empowering women through fitness and beyond for over 25 years. So what we are combining is performance and style and high quality. But beyond that, what is happening is the empowerment of women, the inclusiveness, and the fact that the brand is going through the women in all the life stages. So we are not talking only about young women, we are also talking about the different stages of life in women, like the menopause, like when you are pregnant. So different stages where the brand is going across the life of women. So as you can see, it's different purposes, but all of them connected in terms of the life of our consumers and well-being.

That means that I manage the territories for some of the brands outside of the US and Canada. So that means that I am responsible for Europe, Middle East, Asia Pacific, and Latin America regions, and focusing on brands like Merrell, Saucony, Caterpillar, and also Sweaty Betty, which has been integrated. The brand president of Sweaty Betty is working closely with me to integrate Sweaty Betty as part of the international business, leveraging the best practices between Sweaty Betty and the international business. So what are the main responsibilities of my role? I will describe the first one as to establish the strategic approach for brand building and for the expansion of our brands in the international business, maximizing consumer connections, making sure that we increase our market share of our brands in top markets around the world, and leading via high-performance and multicultural teams. We have different market maturities for our brands, such as imagine China versus UK. You can imagine different consumer needs between Asia Pacific and Europe, or different business models such as the own market and the distributors business that we were mentioning. So the part of diversification of the business under the umbrella of this strategic approach is important, and that is part of my role. And a big part of the role also is to focus on the big initiatives that accelerate transformation and growth in the company. So I give you an example. International is also a center of transformation when we think about critical ideas and projects like the Key City initiative that we started executing in a meaningful way in London with Saucony this year. One key moment has been the sponsoring of Saucony of the 10k race in London. I don't know, Daniel, if you have had the opportunity to see that or if you like running, Christina. But what we are doing is now sponsoring in London this race because we also think it's an inclusive way. It's a race that many people can run. It's inclusive because even I can run it.

It happened in July this year, and it will happen again next year. The final date I don't have now, but it will be between July and August for sure. And the right theme here is we create this initiative about the Key City, but what we are doing is creating this playbook. And by creating the playbook, we can replicate that in other places in the world. And it's also driving the next steps of what it means for us creating these global hubs and capabilities that we need as a company to be closer to the consumer across the world. So it can be product design, it can be consumer insights, it can be content creation, but we need to be closer to the consumer across the world. So that is part of what we are doing in International. So finally, International is also a center of leveraging best practices. So a good example is how we are leveraging Sweaty Betty's different capabilities. If you think about the Wolverine brands, we are a footwear, more wholesale-driven organization. But we have a brand like Sweaty Betty that is women, that is apparel, and that is retail-driven. So how we are embedding and embracing this and how we are leveraging the learnings of Sweaty Betty across our organization, that is what we are doing with the international business and especially in Europe. So in summary, if I just say that with a few words, I think it plays an important role on the strategic approach and brand building of our brands in key regions and key markets across the world and being closer to the consumer. But also, International is a center of initiatives that transform and add value in the company.

Yeah, and let me add to that that Wolverine has lived in the last 18 months a complex situation. So for me, the key is to know where you want to go with a clear strategy, have constant and clear communication with the team, be very transparent, show your vulnerability. I think it's important to show that as a company and as a leader, and make the team feel part of this journey. So as an example, when referring to the final goal of Wolverine, I think to have a clear approach, what we did is to establish like three phases and then to share that with the team, saying we are going to go through this internally and externally with a clear communication where we saw what the phases are that we are going to go together. The first one was a stabilization phase because we needed to focus on the business, reduce inventory, and pay down the debt. So that was for the first six months in the last of 2023. In 2024, we have gone through what we call the transformational phase, and we said we have to redesign our way to operate, we have to redesign our organization. And it went with restructuring that we did in our organization. We expanded profitability, and we have added new capabilities around brand building, especially product innovation, demand creation, and driving the business. And now at the end of this year, we are pivoting towards the growth phase that implies investment in our brands, launch new and great product, and amazing brand storytelling. So I think it's very important to have a clear and strategic forward message and expectations with also a clear time horizon to achieve that and execute this. And one of the things that I have learned in this journey is the importance of the team. I think the level of resilience, commitment, and value that the team has added to this journey has been incredible and really worth seeing this during this journey. So I believe that at the end of all of this, what you really see is that the main asset that you have as a company is your team, is your people.

It's a great question again and a challenging one because the consumer is the core. If you are not close to the consumer, I believe it is not possible for the brands to succeed. So there are different areas that we have done to make sure that we are close to the consumer. The first one is the culture and mindset approach to be close to the markets, be a data-driven organization, be a sell-through organization instead of a sell-in. So selling product is not just the sell-through, the importance of being relevant in the market and work as one team. You were saying that, Christina, and I think this is critical. So we need to continue leveraging the consumer learnings and practices across our brands, and that is part of the culture mindset and the consumer focus as part of it. Also, we created from Wolverine a consumer center of excellence that we call internally 'The Collective'. And this collective, this consumer center, combines consumer insight, a trend team, and also in-house production and a studio place for content creation. So this center of excellence is across all of our brands, and it's a way to keep our brands and our organization well up to speed. And then the third one, I think, is to make sure that our brands are locally and globally relevant, maximizing the knowledge of the consumer in your top countries around the world. In other words, that you have established the right process and connections to nurture your brands and global teams with what you are learning from the consumer also in the top markets around the world. So for me, it's consumer focus on every step of the process and drive your organization towards the consumer.

Yeah, because if you link what I was mentioning before about our phases, even in this phase of the turnaround, we have invested in the consumer and we have created the center of excellence.

Absolutely agree. That's where I think in this situation, what is critical is showing where you are going while you are making changes that sometimes are not easy to digest as an organization because you need to cut in some places, but you need to invest where you believe that you need to go in the short but also in the mid- to long-term. So that's where I think at the end, we are not inventing the world. We are just saying we need to continue creating and building our brands, and that comes from amazing product, amazing storytelling, and driving the business. So that's what we need to do across our brands.

One is difficult. Let me say two or three. I would say be confident in who you are and be yourself in every step of the journey. So don't take shortcuts that may reward in the short time but it's not what you want in the long term. And I also will link this with be very curious, to have a constant learning about the life because it will imply to have a puzzle of pieces in your head, and one day the different pieces will match in a way that you probably don't expect now. And ask for help also when you need it. Don't be afraid of showing vulnerability. It's a word that I like to use because I really think that that makes you stronger.