Mario Moretti Polegato, the inventor of Geox - currently some of the world's most fashionable shoes known as "the breathing shoes" - has announced his intention to establish his brand of shoes on the Romanian market, despite the high price at which this product sells.
"Romania is a strategic point for our company and I do not believe that things will change after the country joins the European Union," Polegato told Ziarul Financiar.
Since 2000, Geox has invested 35 million dollars (30 million euros) in its production facility in Timisoara, the largest facility it owns, with a surface area of 30,000 square metres and 1,850 employees.
The first step the company took to strengthen the brand's presence on the Romanian market was the opening in Bucharest's Plaza Romania of its first store. This is one of the 300 stores owned by the company, franchised by Otter Distribution.
Filip Schwarz, the manager of Otter Distribution, said that Geox would have five stores in Romania by 2007.
"We aim to sell 10-15,000 pairs of Geox shoes this year, compared to the around 8,000 last year. We are aiming for an increase to 50,000 shoes for the following years," said Schwarz.
The price of a pair of Geox shoes in Romania ranges between 80 and 100 euros, which is about 20% lower than on the Italian market, Schwarz added.
"It has been easier for us to introduce this type of footwear on men's footwear market. Until this year, convenience has not been important for women. Starting this year, ratios are changing. Women have also started appreciating comfort," he explained.
"From experience, I strongly believe that this brand will gain its place in Romania, since this market lacks a high quality medium-to-high product with a coherent distribution and marketing policy - based on the idea of convenience and Italian design and the idea that this brand can be found today, as well as in 2007 and 2008".
Otter Distribution also sells the Otter, Ara, Traco and Pass brands on the domestic market
A typical Romanian customer buying Geox shoes will have a monthly income of more than 300 euros. This segment of buyers is expanding, believes Schwarz.
Internationally, Geox is ranked fourth after Clark's, Timberland and Ecco.
Geox's business has grown quickly over only ten years from five to five thousand employees spread over 68 countries. The company's sales increased from 180 million euros in 2002 to 254 million euros in 2003.
claudia.covaci@zf.ro
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