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If kicks could talk, Geox\u2019s ultra-limited edition little number with a fierce dragon ready to leap forth before a bright red wall would without doubt roar with fire. <\/p>\n
At US$888, the Spherica EC4.1 LNY Collectible Edition designed by Hong Kong\u2019s The Flying Hawk Studio won\u2019t fit with many budgets \u2013 which is probably just as well given only 88 pairs were made. But to Geox, this is more than a shoe with a hand-drawn dragon, \u201csymbolising evolution, improvement, and abundance silhouetted against a shiny white fine-grain leather sneaker\u201d. The release is a milestone for a company on a mission to reposition itself, with Asia as a central future growth pillar. <\/p>\n
One recent night, key executives from Geox\u2019s Montebelluna, Italy, headquarters gathered in Hong Kong\u2019s contemporary Chinese eatery Madame Fu in the territory\u2019s Tai Kwun heritage compound, to celebrate the LNY collectible edition joined by influencers, Hong Kong-Canadian actress and former Miss Hong Kong Grace Chan, selected local fashion media \u2013 and Inside Retail<\/em>. At first, the obvious question was, \u2018Why so much fanfare over a shoe just 88 people would be able to buy (and at that price, most likely rarely wear)?\u2019 But it soon became evident, that the entire event was not about a shoe, but a message: We are serious about Asia and we want you to know it.<\/p>\n \u201cThis shoe is our first step towards gaining relevancy with the Asian consumer, especially younger consumers,\u201d explained Geox\u2019s Roberto Lobetti Bodoni, global chief marketing officer.<\/p>\n \u201cWe really want to communicate to local consumers that we are taking a different approach than we did in the past. This is all about how we can get more relevant for Asian women and men and let them know about what Geox is all about \u2013 the science, the fashion and the design.\u201d <\/p>\n Until now, said the founder and chairman Mario Moretti Polegato, Geox has designed all of its products in Italy: \u201cBut we thought maybe we adopt this approach in Asia.\u201d <\/p>\n Bodoni said Geox\u2019s core target demographic in Europe is 40 to 50, but in Asia, it is a decade younger at 30 to 40. <\/p>\n While Geox is already batting high scores in multiple Asian markets \u2013 more about that later \u2013 the company believes it is only really starting. A journey that began with product adaptation is now advancing into store design, staff training and the embrace of sales channels like influencers and social media platforms that not so long ago might have seemed unimaginable for a conservative, traditional Italian shoemaker. <\/p>\n \u201cWe are really strong in our core markets of Italy, France, Spain, Germany, and the UK,\u201d explained global CEO Livio Libralesso, who left the company on March 31. \u201cBut Asia Pacific is the fastest growing area in the world and it is clear that the customer is younger, more trendy and after the pandemic paying more attention to local style. For us, this is a challenge. We want to be international, so now we are investing more to match the Asian fit and the Asian style for these younger, trendier customers.\u201d<\/p>\n Not leaving anything to chance, Geox engaged two communities of local \u2018sneakerheads\u2019 to test the designs, providing feedback and helping shape the course of Geox\u2019s creative pitch. <\/p>\n \u201cWorldwide, many brands have been able to revamp their core markets by exploiting trends experienced in Hong Kong and in China, for example. So Asia Pacific is a way for us to raise the bar for the company,\u201d continued Libralesso.<\/p>\n The changes in Asia reflect the company\u2019s broader, global mission of repositioning itself from a premium footwear brand to a premium lifestyle brand \u2013 a process that includes changing its brand messaging \u2013 or communication as the Italian leadership team describes it. <\/p>\n \u201cLifestyle is not only about product. Product is the king, communication is the queen. So we must also raise the bar of our communication towards values.\u201d The message, he said, will not only be about the originality of Geox\u2019s shoes and designs, but the benefits of science and technology integrated into the design. <\/p>\n \u201cWe want to speak to people to engage with them and to become more relevant for them,\u201d added Libralesso.<\/p>\n When Polegato started Geox about 30 years ago in a small town near Venice, by his own admission he wasn’t interested in making shoes. \u201cBecause I was an inventor,\u201d he told Inside Retail<\/em> during an exclusive 40-minute interview. <\/p>\n Born in 1952 in Crocetta del Montello, the Italian province of Treviso, considered the home of the world\u2019s finest Prosecco, Polegato completed his studies as a winemaker before graduating in law. After that, he returned to the three-generation family wine business. For most of us, a life in the Italian countryside producing fine wines would probably have been more than satisfying, but Polegato had an itch for creativity. <\/p>\n In the 1970s, every Italian shoe that rolled off a factory line had a leather sole. Polegato thought shoes could be improved by building them on a breathable rubber sole that was longer-lasting, more comfortable and \u2013 most of all \u2013 waterproof. He spent two years researching, secured a patent and then offered to sell the technology to shoe manufacturers, starting with sports where his concept had the greatest application. No one was interested. <\/p>\n So in the 1990s, he launched Geox: Geo means Earth in Italian, and X is the symbol of \u201cadvanced technologies\u201d in a laboratory. <\/p>\n \u201cWe started in a garage with five people and step by step today our organisation has grown to work directly or indirectly with 30,000 employees. Geox is selling shoes in 120 countries. We have 750 Geox stores plus many multiple brand stores and we became the largest Italian shoe company with international distribution.\u201d<\/p>\n Perhaps even more satisfying to Polegato is how globally, 95 per cent of the population now wear shoes with rubber soles \u2013 just 5 per cent leather. <\/p>\n Then Geox progressed to use foam between the sole and the inner. \u201cWe are the future,\u201d beamed Polegato. \u201cThis is the real important fact to \u2026 understand Geox. We are unique.\u201d<\/p>\n Many shoe brands globally are reporting declining sales as the cost-of-living crisis and inflation dent discretionary spending power. While Geox\u2019s sales soared 20 per cent in 2022, the company was not immune to last year\u2019s \u201cextremely challenging\u201d environment, slipping 2.2 per cent reflecting the cull of about 25 per cent of the brand\u2019s physical stores. (At constant exchange rates, they were up by 0.3 per cent).<\/p>\n The first Geox shoes to market three decades ago were designed for children. \u201cIt was impossible for us in the beginning to produce shoes for every category so we started with children because we thought that \u2026 if you have a child you pay attention to them and spend more money on them.\u201d Men’s shoes followed, with women the last category. <\/p>\n Fast forward to today and women account for about 60 per cent of Geox\u2019s sales, with the balance of men and children. Polegato said the company focuses on making shoes that mix technology and comfort. While other shoe firms might lead on design, he noticeably mentions Italian style as a third component. <\/p>\n Geox sees its key Asian growth markets as Greater China \u2013 where it is now seeing \u201crobust growth\u201d \u2013 then Korea \u2013 its strongest now \u2013 and its fastest-growing: Indonesia and India. <\/p>\n Korea has grown to account for more than 36 per cent of regional sales and prompted collaborations with locals to infuse an element of Korean-inspired design into its products. After an \u201cItalian hand\u201d designs the products, there is a Korean-infused design that starts from ready-to-wear and helps Geox add a level of premiumisation that it expects will resonate with customers all over Asia. Given the influence of K-culture in Asia, the company is experiencing a \u2018halo effect\u2019 in other markets. <\/p>\n In India, the company has different plans. \u201cWe’ve seen very sizeable growth over the past year in terms of freestanding store opening and results. India has the youngest global population and very savvy consumers, but a different ecosystem,\u201d said Fabio Terrin, managing director of Asia Pacific, who oversees the business\u2019s activities in China, Korea, Japan, India, Australia, and Southeast Asia. The second key step in Geox\u2019s transformation into a lifestyle brand is the revamp of its store design to make it more experiential and personal. <\/p>\n Free-standing stores are being progressively revamped, with early examples being at Kuala Lumpur\u2019s Pavilion, The Emporium in New Delhi, and stores in Seoul and Jakarta. <\/p>\n \u201cThe entire design of the stores is consumer-centric. Product surrounds the consumer, but it’s the consumer experience that counts and we are learning how to do this,\u201d said Terrin. Key to this in Asia was recognising the younger demographic: consumers in their 30s and 40s, white collar, looking for a point of difference, \u201cwhich is what we can give them because our unique proposition is we create stylish products with good technologies\u201d. <\/p>\n The new-generation stores feature a separate, more private area with what Libralesso described as an environment more cosy and with a home feeling where customers can try on shoes. <\/p>\n Geox wants customers to feel great and embraced by the brand, rather than pushed to purchase, Terrin explained. \u201cSo the willingness to try the product on in the store not only drives a better experience for the brand but as well, higher sales per ticket. At the same time, we reduced the number of SKUs by being very focused on what we want to communicate. This gives us a very straightforward choice for our customers. Lastly, we brought a different level of service and training across the entire Asia Pacific. So we are retraining people, our number one asset in making this happen.\u201d<\/p>\n In concert with the revamped store design, the company is ensuring it embraces an omnichannel approach to its business. <\/p>\n Omnichannel \u2013 the \u201cperfect merger with digital\u201d \u2013 is now of ultimate importance to Geox, said Libralesso, who added that opening digital stores on marketplace platforms has recovered turnover lost during the cull of physical stores. <\/p>\n \u201cWe believe that the brick-and-mortar directly operated stores are really an asset, because \u2013 to give an example \u2013 80 per cent of the brick-and-mortar sales are made digitally. People entering the stores buy online,\u201d added Bodoni.<\/p>\n Marketplaces like Amazon, Zalando and Russia\u2019s Wildberries are important because success in digital channels depends on traffic. \u201cSo either you pay for performance marketing because the organic growth of the organic traffic is really less than 50 per cent of total sales or you exploit the traffic of someone else. So part of our business plan here is to grow the marketplaces because in the marketplace, you own the strategy and consequently you can set the price. The world is really changing. Omnichannel is the only strategy for brands.\u201d<\/p>\n An investment in digital performance marketing is driving traffic into stores, with Geox having seen a significant increase in customers starting their journey online and then converting to brick-and-mortar stores. \u201cIt is clear there is a merging between digital and brick and mortar, so we are really pleased that all the investment within the past four years is now really delivering results,\u201d said Libralesso.<\/p>\n \u201cWe think this is a perfect match between global players, our merchandising strategy, our product strategy and the perfect merger between digital and brick-and-mortar. You can enter the store, buy online and you can enter online, click to reserve, or click and collect, take returns to a store \u2013 so we are fully omnichannel.\u201d<\/p>\n Moving forward, he concluded, the company is thinking about the next phase of omnichannel growth \u201cbecause continuous improvement is essential in a world that is changing really fast\u201d. <\/p>\n The post Italy\u2019s Geox is reinventing itself \u2013 and Asia is its new core appeared first on Inside Retail Australia.<\/p>\nInventor turned founder turned chairman<\/h3>\n
Asia\u2019s burgeoning growth potential<\/h3>\n
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