Transition of Havaianas to an In-House Distribution Model

Havaianas had established itself as a globally recognised lifestyle brand.

Havaianas logo

From the founders’ track record. This project was delivered before Trackveo was established and is one of our biggest successes. It reflects the experience our founders now bring to every Trackveo client.

Background

Havaianas had established itself as a globally recognised lifestyle brand. In EMEA, however, the company relied on a third-party distributor model, which limited its control over sales strategy, operational efficiency, and brand positioning. To accelerate growth, strengthen margins, and ensure alignment with global brand strategy, the decision was taken to transition from a distributor-led model to a fully in-house distribution model.

Objective

The objective was to establish a robust in-house operation capable of managing the entire value chain—from forecasting and production planning through order intake and IT systems—while adapting to the unique challenges of a highly seasonal product category.

Key Challenges

  • Seasonality: Flip-flops are a peak summer product, requiring accurate forecasting to avoid both excess stock and lost sales opportunities.
  • Operational Set-Up: Building logistics, supply chain, and IT capabilities from the ground up to support EMEA markets.
  • Transition Risks: Ensuring business continuity during the shift from distributor to in-house model.
  • Scalability: Developing systems and processes that could sustain rapid growth across multiple countries.

Actions Taken

Operational Framework

Designed and implemented end-to-end operational processes, including order intake, sales planning, logistics, and after-sales support.

Forecasting & Production Planning

Developed a seasonal production and forecasting model tailored to the volatility of demand in the flip-flop market. This enabled better alignment between Brazil-based production and EMEA seasonal peaks.

IT Systems Implementation

Deployed integrated IT systems to manage sales orders, forecasting, and inventory, ensuring visibility across the supply chain.

Sales & Distribution Transition

Established an internal distribution hub to serve EMEA markets, ensuring on-time deliveries and improved customer service.

Cross-Functional Integration

Coordinated between sales, marketing, and supply chain teams to align inventory flows with market activation plans.

Outcomes

Improved MarginsBy removing distributor mark-ups, Havaianas achieved healthier financial performance in EMEA.
Enhanced Forecast AccuracySeasonal forecasting reduced both stockouts and overstocks, optimising working capital.
Operational ControlGreater control over sales channels, pricing, and brand positioning in key markets.
Scalable Platform for GrowthThe in-house model laid the foundation for sustained growth, brand expansion, and stronger relationships with key retailers.

Conclusion

The transition from distributor-led to in-house distribution was a critical turning point for Havaianas in EMEA. By setting up robust operations, forecasting models, and IT systems, the brand gained the agility and control needed to thrive in a seasonal, fast-moving consumer goods environment—positioning itself for long-term success in the region.