News Flash

Do you want to know how the local footwear companies are fairing against local and Asian competition? Many of them from traditional footwear producing markets in Europe e.g. Italy, France and Spain have disappeared from the radar screen in the last 10-15 years, due to increased Asian, Brazilian and Indian competition and of course from the global economic meltdown of 2008’. Those that have survived have focused on specialized product market niches. Also, some have financed their purchases and labor expenses by collateralizing their property. They have achieved efficiencies and increased sales through vertical integration, adding capabilities, networking with competitors through the wave of internet based footwear platforms. In addition, there is a younger generation on the scene; some of whom have higher degrees of learning and broader experiences in other parts of the business world which provide a new look at the traditional business models of their forefathers.

A group of these companies have had the foresight to begin to invest in emerging markets by spreading their business over a larger base of the potential global markets. This has been very successful for many of the footwear companies, especially Spain and Italy. Due to these initiatives these companies have increased their product ranges and have begun production in different parts of the world, typically keeping the better quality products for the mid to high priced retail segments made in Europe. I can use the examples of the Asolo®, Scarpa® and Apepazza® from Moda Ruggi. These brands invested in markets outside of Europe early on and today have a balanced portfolio of business in many geographic territories. This balance allows them to build a stronger more stable business not depending upon one or two markets for more than 50% or their total business.

Going the other direction, American footwear brands such as Nike®, Timberland®, Sebago®, New Balance®, Alden®, Allen Edmonds® and Saucony® began making an imprint into Europe in the early 80’s and today have strong brand presences as we all know. The example of “How David can beat Goliath from Ken Proctor” is a perfect example how many of these brands competed with the European giants at that time. (shoebizness.com – 24.06.2010)

Being part of the Timberland entry into the market in the 80’s taught me about differentiation and how to market this successfully against powerful local competitors. My mentor and boss at the time, Stanley Kravetz said: “don’t ever forget what brought us here.”

Some European brands could learn a lot from this simple phrase, as many of them focus over and above on the horse (senior management) rather than the cart (leading edge unique product design), lose product identification and direction then all of a sudden forecasts are in excess of bookings and the brand’s growth begins to lose their consumer base.

Don’t give up! Italy was still the 5^th largest shoe imported into the US market in the first 8 months of 2010’ at 10.4M pairs. This was .06% of the total imported shoes.