How to be more successful for Geox?

To be more competitive in golf and sports shoes market and to earn more profits, Geox should pay attention to such points:
1)to establish a more focused brand image in sports shoes industry
2)to be more innovative and unique in technical area
3)to cost down

Exhibit 3 shows that although the net sales in first half 2009 was more than in 2008, the net income decreased obviously. The reason is increasing general and administrative expenses. To make more profitable, Geox should take some actions to cut down cost. For example, to save the labor cost further, Geox can relocate its shoes manufacturing operations in less expensive Asian countries such as the west of mainland China.

Let customers recogonize Geox is the important thing. Only customers know this brand, Geox could sell more products.Through this way, Geox could get more customers recogonize. There is a good cycle.

In order to finish the vision: ‘to become the world’s biggest shoemaker’, I recommend the solutions as below for Geox:
Firstly, focus on product’s ventilation features to keep its technology advantage. For Geox shoes, breathe technology is its unique selling point. Going on working with universities to researching, patenting and implementing new technologies are helpful for its further development. Concerning the Geox apparel, since we can only see four to five categories when surfing on its website, maybe Geox can learn from Zara’s continuous product line updates marketing method, hire some fashion designers; leverage both the innovative technology and fashion design advantage of Italians to attract more potential customers.
Secondly, satisfy different customer needs and cultivate customer loyalty is crucial for Geox. With the development of economic,people especially the one who born after 1980s attach more importance to personalization, it is wise that Geox develop a customize-your-own shoes platform , ask the youngsters to design their own shoes, and Geox help them turn the picture to reality.By doing so, Geox’s innovative, fashion image will curve into people’s brains.
What is more, since there are less DOS and shops for Geox to do business development, it is a good time for Geox to focus on its online business, with the reduction of decoration and rental fee, this method can help Geox to increase its profit margin.
At the same time, Geox can invite a superstar as its partner to promote its products, especially in the emerging market such as China and India. Echo had already invited a model MS Xiong Dai Lin as its production representative, and this strategy really helped to increase its market share by a large margin.

Although GEOX has got great success, but we can see that they are only success in casual shoes market and Europen market. If GEOX really want to be the number one of the market, it should:
Deepen multiple-brand strategy:develop or acquire some more brands focus on different market
Develop American market: should increase shops quickly. It can increase the numbers from 55 of 2009 to 550 shops in next 3 years. Comparing with 322 shops in Italy, 550 is a reasonable number.

Sports footwear market is quite essential for GEOX to be the leaders in the shoe industry.

The company can divefsify the product line to running shoes,swimming suits,basketball shoes, soccer shoes and so on.

In China and India, PRCICE VERSUSE QUALITY RATION is an important index for people to buy things. GEOX might as well lower its product price or explore the mid-end market, which will benefit it in the Chinese and Indian market.

No offense to GEOX and its fans. But personally, the goal of GEOX to be the No.1 shoemaker in the world is kind of ambitious concerning the the domination of Nike and Adidas in sports footwear section which is a much bigger market than casual footwear market.

It is always easy to say that GEOX should do this and do that, but even GEOX diversify its product range in sports footwear, what possibly good could happen to GEOX, when it is facing the competition from sportswear giant Nike, Adidas.

I was not aware of the acquisition of Diadora before until this course. And I think it might be timing to reposition this brand as a sports/fashion/lifestyle brand, competing with Puma, Fila, Kappa, because in this segment, the target consumers, who are young, avant-garde, extravagent, tend to be very flexbile and accept new offerings. The thing is to figure out the right direction to build up the reputation for Diadora. It is not an easy job, but there is chance.

Multi-brand strategy is a trend, even Nike and Adidas are doing this. For GEOX, to cover as more consumers as possible, with the current situation that GEOX brand is focusing on more mature consumers from 30-50, maily for guys at the time being, and Diadora targets at much younger ones from 18-35, boys and girls. So my idea is to create a new Female casual wear brand, offering from boots, casual footwear, sandals, to apparels, because there is no such female brand between high-fashion and sportswear.

This is all my suggestion. It is a great feeling to share things with all of you pals. If you have any idea on that, I will be all ears!

tommywang-10GB-2010960210 wrote:No offense to GEOX and its fans. But personally, the goal of GEOX to be the No.1 shoemaker in the world is kind of ambitious concerning the the domination of Nike and Adidas in sports footwear section which is a much bigger market than casual footwear market.

It is always easy to say that GEOX should do this and do that, but even GEOX diversify its product range in sports footwear, what possibly good could happen to GEOX, when it is facing the competition from sportswear giant Nike, Adidas.

I was not aware of the acquisition of Diadora before until this course. And I think it might be timing to reposition this brand as a sports/fashion/lifestyle brand, competing with Puma, Fila, Kappa, because in this segment, the target consumers, who are young, avant-garde, extravagent, tend to be very flexbile and accept new offerings. The thing is to figure out the right direction to build up the reputation for Diadora. It is not an easy job, but there is chance.

Multi-brand strategy is a trend, even Nike and Adidas are doing this. For GEOX, to cover as more consumers as possible, with the current situation that GEOX brand is focusing on more mature consumers from 30-50, maily for guys at the time being, and Diadora targets at much younger ones from 18-35, boys and girls. So my idea is to create a new Female casual wear brand, offering from boots, casual footwear, sandals, to apparels, because there is no such female brand between high-fashion and sportswear.

This is all my suggestion. It is a great feeling to share things with all of you pals. If you have any idea on that, I will be all ears!

The goal is too ambitious. Most people just buy shoes for its brand. I don't think GEOX has enough resource to build a brand like Nike and Adidas.