Seasoned fashion director Marina Larroudé and her husband, financier Ricardo Larroudé, co-founded the eponymous footwear brand Larroudé in 2020, during a challenging period when both were unemployed and investing their personal savings to kickstart the venture. Their ambition was clear from the outset: to create high-quality, accessible luxury footwear with full control over the entire production process. This vision has propelled their company from a modest five-person operation to an international business with over 500 employees, offices in New York, São Paulo, and Sapiranga, Brazil, and yearly revenues approaching nine figures in under five years.
Central to Larroudé’s impressive growth has been their commitment to vertical integration—a strategy wherein the company owns and controls every stage of the supply chain, from raw materials and manufacturing to logistics and distribution. This approach is a departure from traditional footwear brands that rely heavily on third-party factories and suppliers, often leading to compromised quality, slower production times, and increased costs. By owning their production facilities in Brazil, a region celebrated for its rich shoemaking heritage, Larroudé has secured tighter control over quality, pricing, and timing, while avoiding the high markups charged by intermediaries.
The transition to vertical integration was phased. Initially, Larroudé partnered with trusted manufacturers in Brazil to validate their design and market demand. Following this, they invested heavily in acquiring machinery, hiring skilled artisans, and consolidating sourcing, development, and logistics within one expansive 10,000 square meter factory in Sapiranga. This facility not only produces around 30,000 pairs of shoes a month with the potential capacity to reach a million annually but also embodies the brand’s ethical commitments: over 60% of the workforce are women, many in leadership roles, all employees receive health insurance, and the leather used is sourced from environmentally responsible tanneries certified by the Leather Working Group.
Larroudé’s innovative Direct-to-Demand (D2D) model dovetails with their vertically integrated supply chain. By producing only what is pre-ordered, Larroudé reduces waste and streamlines production while maintaining agility to respond rapidly to consumer preferences. This model has enabled Larroudé to shorten production cycles, improve inventory flexibility, and enhance profit margins. Moreover, the brand can launch new designs swiftly and test market response in real-time. Ricardo Larroudé highlighted in an industry podcast how this vertical integration enables the company to go from concept to product page in a single day—an exceptional turnaround speed in the fashion industry.
The company’s vertically integrated strategy has also shielded it from common industry pitfalls such as tariff hikes and global supply chain disruptions that have recently affected brands reliant on Asian imports. Manufacturing in Brazil and shipping directly to consumers allows Larroudé to avoid these extra costs and logistical hurdles, providing a competitive pricing advantage and operational stability.
Industry recognition for Larroudé has swiftly followed. The brand was named Brand of the Year at the Footwear News Achievement Awards and included in Fast Company’s Most Innovative Companies of 2024, a testament to its disruptive approach in the luxury footwear market. Annual production reportedly reaches 200,000 pairs with scope for significant expansion, underscoring Larroudé’s growing footprint.
Moreover, Larroudé is expanding beyond footwear into new verticals, including handbags and ready-to-wear items, while also investing in AI-driven inventory and global expansion strategies. Despite this rapid growth, the company remains privately owned and profitable, having eschewed external investment in favour of scaling at a deliberate and sustainable pace. Ricardo Larroudé has emphasized understanding unit economics and the importance of in-house production and marketing to maintain tight cost control without compromising quality or brand values.
Larroudé’s story illustrates how an integrated, ethical, and innovative approach can redefine luxury retail, offering consumers exceptional products made by skilled artisans under transparent and fair conditions, all while maintaining business resilience and growth. As other footwear brands face challenges from supply chain bottlenecks and tariff uncertainties, Larroudé’s vertically integrated and direct-to-consumer model provides a blueprint for sustainable success in a rapidly evolving market.
Source: Noah Wire Services
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