Presented By Group 1: Aditi Priyam Akshata Shakagaye Bharath ND Akanksha Mahtta UmaShanker Aravapalli Anshul Jain Govardhan Reddy

GEOX

was founded by Mario Moretti Polegato. Mission Breathing Technology Vision Strive to change the world, innovate beyond the imagination of clients He was convinced that his idea for a breathing shoe had immense potential. Two key features the perforated sole had to possess : It should 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.

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.

Three key groups: Technical production: Notech ; Handles production activities EU 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

KEY OBJECTIVES: Maintain high quality standards Improve flexibility and time to market Increase productivity Reduce cost Looks and trends
Cooperation agreement with Aokang Group (third party producer) for being the production bases for GEOX, for brand promotion, sales network construction 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

INNOVATION
Breathable shoes:
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 Apparels:
After continuous efforts in R&D they brought apparels with breathing technology.

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).

Major Players operating with different product segments- 2007

Casual Wear
Clarks Shoes-21.1% Geox 13.5% Other Big Players: ECCO- 13.3%, Birkenstock Hush Puppies Rock port.

Formal Wear
Ferragamo

Sports
Nike Adidas Brown Shoe Fila Timberland

C&J Clark Ltd : Largest Shoe manufacturer in UK and was started in 1828 as a sheepskin 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 strong brand name due to its strong pedigree.

Sports wear

NIKE
A US based company. Foremost seller of athletic footwear and athletic apparel in the world. Market Share 33.27% 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. Also entered in license agreements

ADIDAS
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.Adidas For Football, running 2.Reebok For Fitness, Training 3.Taylor Made - For Golf Products 4.Rockport US based manufacturer of Leather Footwear 5.CCM Hockey Equipment manufacturer

OTHERS

Market share
New Balance 6.55 % Puma 5.94% Converse 4.35% ASICS 3.69% K-Swiss 2.29% Fila 1.79% Vans 1.66%

Footwear accounted for 90% of the sales of GEOX which was 1092.4 US $ million out of total sales of 1206.0 US $ million in 2008. 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% in 2008.The decreasing rate in 2008 was due to global recession, however the company fared well as compared to the competitors. 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 to increase its presence in markets. The free cash flow of 2008 was negative US$14.5 million, mainly due to increase in capital expenditure.