geox final

7/27/2019 GEOX Final

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Presented By Group 1:

Aditi Priyam

Akshata Shakagaye

Bharath ND

Akanksha Mahtta

UmaShanker Aravapalli

Anshul Jain

Govardhan Reddy


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GEOX was founded by Mario Moretti Polegato.

MissionBreathingTechnology

Vision Strive to change the world, innovate beyondthe imagination ofclients

He was convinced that his idea for a breathing shoe

had immense potential.

Two key features the perforated sole had to possess : Itshould breathe and it should be watertight.

By 2009, the company was conducting business in 68

countries through over 10,000 multi-brand POS and

about 997 single-brand Geox shops.


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1995: Geox started targeting children and later slowly

entered in to adult segment.

1999: By constant investments in R&D they brought

apparels with breathable technology.

2000: The Company expanded its operations into

international market.

2001: Patented a new technology for healthier feet: New

waterproof leather soles.

Dec, 2004: Geox was listed on the Milan stock

exchange, Italy.

2008: Geox expanded its product line to sports shoe

market.

April, 2009: Geox launched its new product Golf shoe

range.


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Three key groups:

Technical production: Notech ; Handles production activitiesEU trading companies: Manage shops, provided customers services,

coordinated sales network in EU markets

Non EU trading companies: Operated on licensing and distribution

agreements

THE PRODUCT

Target consumer: Children and then adult

Price: Medium to medium high

Product: Classic and Casual

Later company entered sports market with two lines : Running & gym and

then Golf

Extended breathability concept to apparel industry


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KEY OBJECTIVES:

Maintain high quality standardsImprove flexibility and time to market

Increase productivity

Reduce cost

Looks and trends

Cooperation agreement with Aokang Group (third party producer) for beingthe production bases for GEOX, for brand promotion, sales networkconstruction and marketing

NECESSARY MEASURES: Ensure technical skills, Meeting deadlines,

Maintain quality standards and Production activities

STRATEGY: Centered on product ventilation

10% turnover in promotion: Advertising campaigns and media


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INNOVATION

The success of Geox is based on a

revolutionary idea: shoes with a perforated

rubber sole in which a special waterproof and

breathable membrane is inserted, allowing feet

to breathe while protecting them, preventing

water from entering the shoe. It is an

innovative system protected by patent.

Breathable shoes:

Breathable Apparels:After continuous efforts in R&D they brought

apparels with breathing technology.


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GLOBAL MARKET SCENARIO

In 2007 the global production of footwear reached 16 billion pairs.

Leading Producers [Exporters]:

China 63% (10 Billion Pairs),Vietnam, Italy, Indonesia, Belgium,

Brazil, Thailand, Germany, Netherlands, India

Leading Consumers :

USA, China, India, Japan, Brazil, UK, France, Italy, Germany, Spain

Growth in population and urban affluence made Indian and China

markets more attractive. Adidas and Nike post 2008 Olympics

strengthened their presence in China. However, affordability

remained a significant influencing factor in these two countries. Footwear manufactures were targeting mainly on either customer

groups ( Male, Female, Children) or product type (Casual ware,

Formal wear, Sport).


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Casual Wear Formal Wear SportsClarks Shoes-21.1% Ferragamo NikeGeox 13.5% AdidasOther Big Players:ECCO- 13.3%, Birkenstock Brown ShoeHush Puppies FilaRock port. Timberland

C&J Clark Ltd :

Largest Shoe manufacturer in UK and was started in 1828 as asheepskin tannery.

The Groups most important product in UK was childrens shoes

especially school shoes. Despite operating in the highly competitive footwear market Clarks had

succeed in holding their market share this was attributed to its strongbrand name due to its strong pedigree.

Major Players operating with different product segments- 2007


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NIKE ADIDAS OTHERS

A US based company.

Foremost seller of athletic

footwear and athletic apparel

in the world. Market Share33.27%

Outsourced the production of

footwear. The major

manufacturers were in China,

Vietnam and Indonesia.

Positioned specifically for

Athletic use like running,

training, basketball, soccer,

baseball, golf, aquatic

activities etc.

Also sold sports apparel,

bags, accessories, socks. Alsoentered in license agreements

A German group Bought Reebok in 2005 and

became 2nd in the global market.

Market Share 25.07%Outsourced 95% of its

production. 74% manufacturers

were located in Asia

Five principle brands:

1.AdidasFor Football, running

2.Reebok

For Fitness, Training3.Taylor Made - For Golf

Products

4.RockportUS based

manufacturer of Leather

Footwear

5.CCM

Hockey Equipmentmanufacturer

Market share

New Balance6.55 %

Puma 5.94%

Converse4.35%

ASICS

3.69%K-Swiss2.29%

Fila1.79%

Vans1.66%

Sports wear


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Footwear accounted for 90% of the sales of GEOX which was1092.4 US $ million out of total sales of 1206.0 US $ million in2008.

Sales from apparel was about 10% of total sales. The sales from products has been continuously increasing

showing a growth rate of about 26% in 2007 and 16% in2008.The decreasing rate in 2008 was due to global recession,however the company fared well as compared to thecompetitors.

Europe was the major market of the company. As evident from the income statements, company spent 104.5

US $ million on opening and restructuring of shops mainly toincrease its presence in markets. The free cash flow of 2008 was negative US$14.5 million,

mainly due to increase in capital expenditure.


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geox final

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