Transcript Geox - 2005
Geox in France Best in France Case Study 13th December 2005 By Christian Brands and Robert Relph 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 2 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) 3 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 4 Clients French Client Make-up • In France balanced customer makeup • 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 Men Kids Women 5 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 6 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 7 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 8 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 9 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 10 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 11 With thanks to • Eros Scattolin, International Communications Manager GEOX S.p.A. Via Feltrina Centro 16, 31030 Biadene di Montebelluna (TV) - Italia. [email protected] +39 0423 282541 • Luciano Santel, Chief Financial Officer GEOX S.p.A. Via Feltrina Centro 16, 31030 Biadene di Montebelluna (TV) - Italia. [email protected] 12 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 13 Additional Information • For questionnaire and transcription see supplementary documents • Team Details: Robert Relph Wychwood, Rectory Meadow, Litcham, Norfolk PE32 2NR, United Kingdom [email protected] Christian Brands Roggenweg 18 50933 Cologne Germany [email protected] 14 End Thank you very much for your attention! 15