ACBC’s cofounders Gio Giacobbe and Edoardo Iannuzzi have been men on a mission since venturing into the footwear business in 2018. Their aim is to revolutionize the industry through sustainable innovation under the brand’s catchphrase “anything can be changed.”
In recent years and in the aftermath of the pandemic, the Italian shoe brand — known for its modular sneakers engineered with a zipper system that ties together the sole to several variants of the upper part — has pivoted and expanded its business scope, channeling its eco-mindset not only in the creation of innovative and sustainable shoe collections, but also consulting for fashion players willing to change the status quo and restructure their supply chain.
“We want to change 1 percent of the market, or 5.3 billion euros [worth of goods], because believing in sustainability means being convinced that everyone must approach it,” said Giacobbe, the company’s chief executive officer, in a phone interview. “The more companies we help, the more we change. Should ACBC’s innovation remain only within our own brand, we would be doing very little compared to what’s possible,” he offered.
The footwear firm took the industry by surprise in 2018 with the launch of the modular sneakers concept — generating hype and landing ACBC its first collaborations with Emporio Armani’s EA7 line and Moschino. The brand has since tied up with about 100 labels, some of which have dropped co-branded capsule collections including Chloé, Missoni, Diadora, MSGM, Garmont, and Alexander Smith, among others. In 2021 it became a B Corp company and a year earlier applied to become a Circular Science Company.
“I think sustainability is a topic we won’t be discussing anymore in 10 years, because everyone will have joined the conversation,” Giacobbe offered.
To be sure, ACBC said Tuesday it has linked with RTG Consulting Group on a strategic partnership to set up operations in Asia, providing the clients of the Singapore-, Shanghai- and Paris-based consultancy with eco-leaning advisory.
Giacobbe said the move reflects the central role played by Asia in fashion manufacturing and the continent’s openness to implement a sustainable transition geared at reducing carbon emissions. “There is legislation being implemented, in addition to the area being a hotbed for brands with a strong footprint in Asia which we have to trigger towards a [sustainable] transition,” he said. The executive has had experiences in the continent working at Dolce & Gabbana and Trussardi.
The supply chain overhaul is no easy task, he contended, but he believes Italy, home to about 62,000 small-and-medium-sized fashion enterprises, should be stepping on the gas, leveraging certifications and working to reduce their impact. “There is a gap the country should fill,” he said.
Although market surveys and research point to increased consciousness among younger consumers, Giacobbe believes that the transition shouldn’t be customer-triggered, but rather fueled by responsibility towards the planet.
“We shouldn’t be giving end consumers too much responsibility. Today we have European legislations, customers are generally more inclined to sustainability even if it’s not a purchase driver, plus it’s definitely a reputational topic,” Giacobbe opined.
Through ACBC’s consultancy operations, Giacobbe observes different brand inclinations towards the topic, with fashion companies generating over 1 billion euros in sales characterized by consciousness and resources to tackle sustainability across the board. For smaller players the eco-journey is often linked to products rather than processes.
In 2023 ACBC logged 15 million euros in sales, with earnings before interest, taxes, depreciation and amortization standing a 3.1 million euros, a 55 percent leap compared to a year earlier.
The three-pronged business model includes the consultancy representing 50 percent of the business and the Made in ACBC third party manufacturing, which represents 45 percent of revenues, in addition to the shoe brand’s operations generating 5 percent of sales. The latter unit is a hotbed for innovation, Giacobbe said, with seven flagship stores globally, two of which are directly operated in Italy, in addition to an e-commerce platform called The Green Sneaker Store.
The company has evolved from a start-up relying on capital increases, including Kickstarter crowdfunding, to a self-sufficient business over the past three years, Giacobbe said. The company has 30 stakeholders with minority interests in addition to Giacobbe and Iannuzzi.
The executive didn’t rule out listing the company in the future, although a date has yet to be solidified after plans for an initial public offering on the New York Stock Exchange in the first half of 2024 were halted. That decision was made, not only of because of current market conditions, but also due to Giacobbe’s vision for a public ACBC.
“I’d like to open stock holding to all stakeholders who have made and will make ACBC what it is,” he said.
