ecco & internationalisering - inspiring denmark brand top-5 producer of high quality leather to...
TRANSCRIPT
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ECCO &
INTERNATIONALISERING
Michael Hauge Sørensen, Group COO, ECCO Sko A/S
Ambassadør-arrangement – Hindsgavl Slot, 30. maj 2013
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Cornerstones in going global
Production Retail Branding
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First a quick look at
ECCO
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From humble beginnings...
• ECCO was founded in 1963 in Bredebro
• Karl Toosbuy and wife Birte produced ladies’
fashion shoes under the name “Venus”
• The comfortable footwear concept was
introduced in the late 1960ies
• The ECCO Group head office is still located in
Bredebro
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The world’s 2nd largest
producer of casual
footwear
The 4th largest golf
shoes brand
Top-5 producer of high
quality leather to luxury
brands
ECCO shoes are sold in
91 countries
...to a leading global footwear company
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ECCO BUSINESS BASICS 2012
• 19,500 employees of 50 nationalities
• 91 markets across 5 continents
• 20.2 million pairs of shoes sold worldwide in 2012
• Revenue at EUR 1,083 million (up 14% over 2011)
• Profit before tax at EUR 153 million (up 26% over 2011)
• Equity EUR 418 million – a solidity of 55.0%
5374 5041
6111
7089
8061
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2008 2009 2010 2011 2012
746
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631
904
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13,9%
9,1% 10,3% 12,7% 14,1%
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Profit before tax (PBT) PBT%
Net Revenue
Profit before tax and profit margin
Million DKK
Million DKK
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VISION
to be the best
shoe company in the World
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How we make shoes
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Scandinavian
design
• It all begins at ECCO’s Design Centre
in Tønder
• The essence of ECCO’s Scandinavian
design philosophy is “form follows
function”
- simplicity, functionality, timeless elegance, appreciation of materials
and craftsmanship
• The designs are always checked for
lightness, softness, flexibility, comfort
and fit
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Product Development
• Bridges designers’ creativity
with Production
• Shoemakers and engineers
convert ideas into
prototypes
• Providing the tanneries and
shoe factories with detailed
instructions on how to
produce materials and
shoes
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Making leather
• Producing leather since 1986
• The ECCO Leather Group: The Netherlands,
Indonesia, Thailand and China
• Over 33% production is sold to non-ECCO
companies
• One of the five largest producers of quality
hides (wet blue) in the world
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• The ECCO factories - the key to the
company’s success
• Factories combine the best of two worlds:
Hand craft and automation where possible
• The world leader in direct injection
technology
• Four shoe factories: Thailand, Indonesia,
Slovakia and China
Shoe production
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Cornerstones in going global
Production Retail Branding
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Production history 1/2
1963 1st April – Opening of A/S
Bredebro Skofabrik
1965 105 shoe factories in
Denmark produce a total 9.1
million pairs of shoes
1974 Production of uppers in Brazil
1978 Uppers from India, Yugoslavia
and Thailand
1979 Finished shoes from Brazil
1984 New factory in Portugal
1988 Licensed production in the
former Czechoslovakia
1991 Start up of production in
Indonesia
1993 ECCO Thailand established
Highlights from 1963 to 2013
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Production history 2/2
1997 Extension of tannery in Indonesia
Uppers from Poland
1998 New factory in Slovakia
2000 ECCO opens a tannery in Thailand
2001 Acquisition of a large tannery in
Dongen, the Netherlands
2005 ECCO opens shoe factory in
Xiamen, China
2008 Opening of tannery in Xiamen,
China
2009 Closure of large scale production in
Portugal
2011 The factory in Thailand is flooded
2012 Reopening of large scale
production in Portugal
Highlights from 1963 to 2013
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Shoe production
Leather production
Portugal
Slovakia Holland
China (Xiamen)
Thailand
Indonesia
PRODUCTION FOOTPRINT 2013
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From cow to consumer
Cow hides Tannery Leather Stitching upper Injecting sole
Finishing Warehouse Shipping Distribution
Packing Transport Retail Consumer
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The global journey of a shoe
Design
Retail
Product development
Cows
Tanning
Uppers
Soles
Shipping Everyday challenges: • A-Z manufacturing vs. closeness to market
• Cost focus vs. customer responsiveness
• Carbon footprint
• Global mindset
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Cornerstones in going global
Production Retail Branding
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15,000+ places to meet the consumer
AMERICAS
ASIA / PACIFIC
EUROPE, MIDDLE EAST & AFRICA
87 861 147
Points of sale
ECCO Branded stores Other selling points
2011 2012 2011 2012
EMEA 803 861 >7,000 >7,000
EAP 113 147 >1,800 >2,000
EAM 86 87 >4,800 >5,000
Total 1,002 1,095 >13,600 > 14,000
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One Vision, One Brand, One Concept
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Shoes 91,6%
Accessories 3,1%
Leather 4,8%
Misc. 0,5%
A pure player…
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1.000 EURO Historical development of revenue
42 years to reach a revenue of 4 billion DKK… … 7 years to double it!
ECCO doubled sales in 7 years
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ECCO employs almost 20,000 people worldwide...
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Top 10 markets Pursuing a healthy geographical diversification
USA
China
Russia
Germany
Sweden
Canada
Denmark
Netherlands
Norway
Hong Kong
2012
USA
Germany
UK
Sweden
Denmark
Netherlands
Russia
Norway
Canada
Finland
2002
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Where the shoes went Development in distribution of pairs sold
0%
10%
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30%
40%
50%
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70%
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90%
100%
Others Denmark Other Scandinavia Other Western Europe (incl KRM) Eastern Europe Americas Asia
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Cornerstones in going global
Production Retail Branding
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Developing the
ECCO Brand
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A broad product portfolio
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