The brand giants GEOX "1 Shop 3" model impacts China's high-end footwear industry

Italian footwear giant Giox laid out in China for two years with sales of nearly 100 million yuan, an increase of up to 500%

Although it is now in a sensitive period between China and the EU in the trade field, on June 15th, at the “GEOX Marketing China 2nd Anniversary Media Meet” held in Shanghai, Polegato's mood remained good. Because GEOX has only been deployed in China for two years, sales have reached nearly 100 million yuan, an increase of up to 500%.

2 years to finish the road for nearly 20 years

At the June 15th meeting, Polegato said that he was very satisfied with his layout in the Chinese market. “GEOX is currently developing rapidly in the Chinese market. We are very satisfied with our Chinese partner Aokang.” Polegato set a high tone for GEOX China's two-year development.

Supporting this tone is a series of good data and market conditions. The data provided by Shanghai Dimm Footwear Co., Ltd., which is specifically responsible for GEOX's business operations in China, is that as of now, GEOX has 62 sales outlets in China with sales of nearly 100 million yuan, an increase of up to 500%.

This growth rate far exceeds the average global growth rate of GEOX. The latest data from the GEOX website shows that in 2001 GEOX’s revenue reached 1.5 billion euros, compared with 3.4 billion euros in 2004, an increase of 70% year-on-year.

According to relevant agency surveys, in the market of similar high-end casual footwear products in Shanghai, GEOX has the largest market share, sales first, and outlets expanding first. The statistics also show that GEOX ranks second in the high-end casual footwear market in China.

It is understood that the current high-end casual footwear market in China is the ECCO, GEOX and CLARKS tripod. CLARKS comes from the United Kingdom, ranking first in the world and has a hundred years of history; ECCO is from Denmark and the Chinese market is first. It is worth mentioning that ECCO and CLARKS have been developing in China for nearly 20 years.

In just two years, it was "sit one and watch one" and GEOX China's performance was naturally gratifying. "We have used two years to complete the level of other brands in the past 20 years," said Shanghai Dim.

Unique "1 Shop 3" Mode

"Compared with our competitors, we are conducting a terminal marketing revolution in China, and this revolution represents a trend," said a person from Shanghai Dim. The source also stated that GEOX China's success in these two years lies in the differentiation in access construction.

It is understood that currently in the Chinese market, the marketing channels adopted by many international brands are basically through high-end shopping malls. GEOX China's model is: walking on two legs --- chain stores flagship store + high-end shopping malls.

Experts in the industry pointed out that some foreign brands currently active in the high-end casual footwear market in China are mainly operated by Chinese agents, but either because the Chinese agent is only an individual or a relatively thin organization, obviously there is no strong GEOX and Aokang. Strong alliances are as powerful. "Different from other international brands, apart from high-end shopping malls, we also attach great importance to specialty stores and walk on two legs," said Shanghai Deme. In fact, taking into account the rapid growth of GEOX in the world, besides its uniqueness of “breathing” products, the differentiation of its “1 flagship store & 3 stores” marketing strategy in key markets is also an important factor.

However, this “walking on two legs” also emphasizes the importance of location. In addition to the mall’s requirement “the last location of the best mall in the market”, the store must also be a high starting point, generally requiring the best in the best cities. With a good location, Shanghai Huaihai Road has won the praise of Polegato's “Best Store in China”.

All kinds of signs indicate that taking the road of monopolizing the flagship is undoubtedly the development direction of international brands in China. Some experts pointed out that with the deepening of China's accession to the WTO, more international brands are rushing to China, their marketing will certainly change, the pursuit of a personalized, specialty store is a personalized expression.

From the initial development of a simple Chinese market brand agency relationship to the subsequent development of strategic cooperation in marketing, production and design. This is the track of cooperation between GEOX and Aokang in the past two years.