Welcome to Europe!
by luigi grosso
This is so exciting! Luigi Grosso contacted me at the end of the summer and once we were able to speak on the phone we realized that we both had the same vision for expanding shoebizness.com into Europe, Latin America and Asia. I could hardly believe my ears because this is something I have always had in mind. We have visitors from 80 countries around the world on a monthly basis, so it only makes sense right? : ) So today I would like to introduce you to Luigi. He is American, but has spent most of his life in Europe working in the footwear industry with some of the top names in the business. Currently he is based out of Germany and runs his brand management company, Euro Brand Managment. If you have questions for him I am sure he will be happy to hear from you! Lucky for me he came to NY a couple months ago and as we shared breakfast, I realized how exciting us meeting was. I say it often, but I will say it again…I never expected to meet as many awesome people as I have met since launching almost 2 years ago and Luigi is certianly one of those people. He will be bringing all of you a perspective into the European business and is working to find people who will share from other parts of the world as well. I appreciate his support and efforts so much and am so happy to work with him! Welcome Luigi!! May this be the first of many!! 
-Julia
Dove sono finiti i produttori?
Dónde los productores?
Europe
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 5th 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.
-Luigi
Euro Brand Management GmbH
Bavariafilmplatz 3
82031 Grunwald/Munich
Germany
Tel. +49.89.52032543
Fax. +49.89.52032545
Firma: Euro Brand Management GmbH
Geschäftsführer: Luigi Grosso
Registergericht München HRB 156455
edusch :
Great article Luigi, congratulations.
Brand management is the essence and for sure, companies should rely on the expertise of others to base their decisions. The market is volatile; production centers are moving around the globe and migrating where opportunities are. Happened with Europe, Brazil, India and now Southern Asia is experimenting the same exodus. Many companies are increasing production on other areas outside of South China and we can see a trend of that with large manufacturers.
However, as well put, the brand image and reference is the key. And there are no shoes like the European design shoes, especially Italian. Europe manufacturing will always be present, for sure.
Eduardo Schmidt
