geox in france best in france case study 13th december 2005 by christian brands and robert relph

Geox in FranceBest in France Case Study

13th December 2005 By Christian Brands and Robert Relph

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Executive Overview

• Company Overview• Products• Clients• Why did Geox come to France?• French Values• Constraints in France• Key Benefits of doing business in France• How to adapt to France• Essential Advice• Credits

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Geox Overview

• Founded in 1990, entering France in 1997• Footwear retailer in 68 countries.• Patented technology delivers comfort and

health benefits.• Net revenues 2004: €340.1M , EBIT €72.6M,

mostly generated outside Italy.• Leading footwear brand in Italy and 4th in

the world (Source: Shoeintelligence)

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Products

• Product manufactured in Eastern Europe, Asia and South America– Geox Plants (20% of production)– Outsourced operations (80% of production)

– Not made in developed countries due to labour costs

– Materials bought in Italy

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Kids

Women

Men

Clients

• In France balanced customer make-up

• 322 stores selling Geox exclusively worldwide

• Target Customer: Medium-High Income and well educated

• Customer profile in France is similar to other countries

• Expectations of comfort and quality

French Client Make-up

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Why did Geox come to France?

• Part of international expansion plan• Association with fashion• 2 companies

– Geox Retail France– Geox France Sarl.

• Great consumer potential• Sees France solely as a sales country

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French Values

• Established a sales team in France to understand the ‘French culture’

• Integrated people into the country to gain a greater market understanding

• Only hired people who are convinced of Geox’s values– Staff Training

• Geox feel this integration approach has been successful

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Constraints in France

• HR Costs comparable to those of other European countries

• No particular organizational structure costs

• Some language and infrastructure (network) costs– Size of the country makes effective distribution difficult

• Geox was aware of the French culture before starting business activities

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Key Benefits

• Great Consumer potential– Very positive feedback from current consumers

– Mono brand & franchise expansion• Very high rate of productivity per employee

• Government assistance: Italian side• Image benefit: Being present in Paris• General Impression: Very satisfied with the French market

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Adapting to France

• People Management system:– Recruitment: French employees– Compensation: base salary plus commission based on percentage of sales

– Workforce planning: no current expansion – Motivation: Convince employees of the Geox culture

– Training done through schemes & material developed in the head office

• Infrastructure issues• Not a step-change: same currency & similar culture

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Geox’s Essential Advice

• Not specifically for France, however:– Need significant up front investment– Need good people, particularly good sales people

– Need to communicate benefits to the customer

– Inevitable: understanding the culture

These were simple but key factors

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With thanks to

• Eros Scattolin, International Communications ManagerGEOX S.p.A. Via Feltrina Centro 16, 31030 Biadene di Montebelluna (TV) - Italia. eros.scattolin@geox.com+39 0423 282541

• Luciano Santel, Chief Financial Officer GEOX S.p.A. Via Feltrina Centro 16, 31030 Biadene di Montebelluna (TV) - Italia. luciano.santel@geox.com

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Bibliography

• www.geox.biz• Amadeus Company Database• Geox 2004 Company report• Interviews with Geox Executives• Dickey, C. (2005) Your Sole Provider, Newsweek, 01/10/2005, Vol. 145, Issue 2, p60-60.

• Anonymous (2004) The Ferrari of footwear, Economist, 03/13/2004, Vol. 370, Issue 8366, p65.

• Hoppough, S (2004) Flat-Footed, Forbes, 11/29/2004, Vol. 174, Issue 11, p82-84

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Additional Information

• For questionnaire and transcription see supplementary documents

• Team Details:Robert RelphWychwood, Rectory Meadow, Litcham, Norfolk PE32 2NR, United Kingdomr.relph@lancs.ac.uk

Christian BrandsRoggenweg 1850933 CologneGermany christianbrands@hotmail.com

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End

Thank you very much for your attention!