Italy Luxury Brand Geox Leveraging Technology To Walk The Chinese Market

In June 15th, Bernstein2009 issued a list of luxury enterprises that could be bought and sold. In June 15th, Bvlgari became the bag of the LVMH.

Geox, a shoe industry group from Italy, is also "on the list".

Mario Manity Polegato (MarioMorettiPolegato), a typical Italy name, is quite strange to most Chinese. However, the Geox shoe brand Geox (GEO:IM) has many fans in China.

Beginning in the two quarter of 2008 and working with BELLE International (01880.HK) and undertaking its distribution business in the Chinese market, Geox has already had more than 280 outlets in over 60 cities in China.

Mario's trip to China is aimed at introducing new product lines to distributors.

"We are willing to invest more in China because the potential of the Chinese market is huge."

Like many overseas brands going to China's consumption promotion banquet, there is no hesitation about the acceptance of Chinese consumers and the future of Chinese market.

Although slightly late, but with the help of BELLE's channel power, the development trend of Geox brand in China in the past two years is fully consistent with Mario's expectations.

Of course, as a typical businessman, he obviously will not be satisfied.

As the founder and group chairman of the Geox brand, from the end of the 80s, when he invented the "breathing sole", he led the group to Italy as the base. Now, there are over 10000 sales outlets in 103 countries, making Geox a brand of casual shoes with the first sales volume in Italy and second of global sales.

In 2010, Geox sold more than 850 million euros, occupying around 14% of the global casual footwear market, followed by the first British shoe maker Clarks.

At the same time, the personal wealth of the company has also risen.

In 2004, Geox was listed on the Italy stock exchange. Today, the company and its family hold 71% of the group's shares through holding company LIR.

In the 2011 Forbes rich list, he was ranked ninth in Italy and 512nd in the world in the form of $2 billion 300 million.

In fact, in recent 4% years, due to the impact of the financial crisis and the sharp rise in raw material prices, the sales volume of Geox in 2010 decreased by more than 60% compared with the peak value in 2008, while the share price fell by more than 60%.

But for this reason, he said: "the financial crisis and rising raw materials are the impact of the whole industry. If a problem exists for all companies, it will not be a problem."

Perhaps, it is precisely because of this optimism and perseverance in the bones that he has stepped into the shoe making industry from the red wine family and has achieved excellent results.

The inventor of the red wine family

Because Geox's sales network is all over the world, he has to travel through more than 30 countries every year, and check his business everywhere. But whenever he has the chance, he will try to stay in Italy's home, spend weekends with his family's old friends, taste Italy sausages, and bring a bottle of home brewed wine.

This leisurely mood has something to do with the origin of the boy.

As a matter of fact, his family began to run grape vineyards and breweries from his grandparents. Now there are seven breweries in the area, and three main brands produce more than 22 million bottles of wine annually.

Because of this, as the third generation of the family's successor, he had studied the specialty of liquor research during the University, and also got a degree in law. After graduation, he succeeded in inheriting his ancestral inheritance.

This also made him meet with the shoemaking industry in the future.

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In 1989, he went to the United States to promote family wine. After finishing his main trip, he decided to go hiking in the countryside nearby.

It never occurred to me that under the hot climate, the air tight rubber soled shoes made the feet steaming like a sauna.

In a hurry, he used a pocket knife to ventilate the sole of his shoe, which became the prototype of Geox's "breathable sole".

After returning to Italy, the Institute of joint research of the University of aerage combined with breathable membrane technology to ensure the permeability of shoes and prevent the flow of shoes into the water.

In the next three years, he had already obtained the patent of "breathable membrane", and he sold the technology to Nike, Adidas and other shoe tycoons.

Although he said that being a shoemaker was not his original intention, he was born in the most concentrated area of Italy's Northeast small and medium-sized enterprises, and the two generation was a successful businessman. This made his blood flow naturally with a stem gene. "Now that I don't care about my technology and do not trust my business mind, I can only do it myself".

In the view of the wave, all the subsequent things are at their best.

After testing the water with children's shoes, he improved the "breathable membrane" technology and began large-scale production of men's and women's casual shoes.

In 1995, he handed over his family business to his brother and set up Geox. He became a shoemaking man.

The shoe maker of "playing technology"

16 years later, it is obvious that he is well suited to the role of his shoemaking.

Before the interview, the cameraman took a photo for him. He brought his own props - a "breathable" sole and a cross cut shoe, and reminded the cameraman, "don't forget to take the high-tech film in your shoes."

According to the introduction, this is a new technology developed by Geox, which can fit the breathable membrane and leather together, and achieve the full waterproof while the vamp keeps the air permeability.

"I like working with technical researchers, especially in the laboratory."

Polegato said.

Unlike most enterprises in the fashion industry, product design is the first element. Technology plays a very important role in the growth of Geox group.

A few years ago, when he interviewed an American reporter, he said, "Geox is a technology company first."

In fact, when the Geox brand was created, similar DNA was implanted.

The word "Geox" comes from Greek, where Geo means "land", while the unknown "X" symbolizes technological innovation.

At this time, Geox will invest 4% of its annual sales revenue to research and development departments, organize foot specialists, pediatricians, professional kinematical doctors and rubber technology experts to carry out a large number of related experiments, aiming at developing and providing shoes with healthy environment.

As a result, Geox has more than 50 patents in Italy and around the world, and the technology of "breathable sole" has been gradually pplanted from the original leisure shoes series to sports shoes and clothing.

In 2011, Geox signed a cooperation agreement with F1 Red Bull Racing team to provide competition shoes for the latter, and developed several new sports shoes series accordingly.

Of course, the comfort brought by technology can be one of the competitiveness of dislocation business, but it does not fully drive the expansion of Geox's annual average of 30% (before 2009).

Polegato's answer is: "while using technology, we combine the style of Italy and the design of Italy.

In the world, including China, the design of Italy is attractive to consumers. "

Obviously, in view of the eye, he has found a fairly good balance between Italian design style, technology and foot health concept.

And he himself was a fashion man. He wore a very special "black and white" frame glasses on the day of his exclusive interview with the new wealth, and was designed by himself as the other more than 30 glasses of his collection.

Leveraging the Chinese market {page_break}

"Chinese consumers and European and American consumers are equally concerned about technology and fashion."

Stepping on the "breathable soles" and proud of the design of Italy, the Geox entered the Chinese market three years ago and expanded rapidly with the channel power of BELLE group.

The Chinese market is undoubtedly another important piece in Geox's sphere of influence.

After stabilizing the position of the local casual shoes Market in Italy, he led Geox to power the international market in 2000 and occupied a place in New York's famous Madison Avenue in 2005.

In 2000, the overseas market contributed only 20% of its sales. By 2010, this proportion had exceeded 60%, and the contribution from other markets in Europe and the United States reached 13%.

Moreover, in the case of a slight decline in group sales in 2010, the income of other markets increased by 5%, especially in the second half of 2010, representing a year-on-year increase of 17%.

In spite of the fact that Chinese market data are not known, Polegato has already tasted the sweetness of the Chinese market from the speed of opening more than 280 stores in three.

BELLE's earnings report shows that the leisure brand of the international first-line brand has grown strongly in the Chinese market.

In the past two years, international brands have also increased the emphasis on the Chinese market and the penetration of the three tier cities, providing more support for distributors to open stores.

This may also explain why he has visited China frequently.

For the future planning of the Chinese market, he said nothing. "We want to turn Geox into China's popular brand, just like in the West and other countries in the world."

In order to achieve this goal, in addition to planning to open Geox outlets in mainland China in 2012, and gradually form a complementary situation between Geox Direct stores and BELLE operation stores, she also plans to introduce the clothing series to the Chinese market as soon as possible in the next quarter, and has discussed with BELLE international on this issue.

According to the long-term plan of the wave, the revenue of the garment product line will be raised from the current 15% to half of the shoes.

Whether it is fully tap the potential of the Chinese market or enhance the proportion of clothing products, polgel does not show much concern.

Perhaps, just like the pformation from winery to shoes production, everything seems to be a logical thing to him.

In the past, he found the common sense of "experience" from selling wine and selling shoes. Now, as the latest sponsor of F1 Red Bull team, he loves speed and likes to collect racing cars. "F1 is a challenge, and my life is also a challenge".