ECCO & INTERNATIONALISERING

Transcription

1 ECCO & INTERNATIONALISERING Michael Hauge Sørensen, Group COO, ECCO Sko A/S Ambassadør-arrangement Hindsgavl Slot, 30. maj 2013

2 Cornerstones in going global Production Retail Branding 2

3 First a quick look at ECCO

4 From humble beginnings... ECCO was founded in 1963 in Bredebro Karl Toosbuy and wife Birte produced ladies fashion shoes under the name Venus The comfortable footwear concept was introduced in the late 1960ies The ECCO Group head office is still located in Bredebro 4

5 ...to a leading global footwear company The world s 2 nd largest producer of casual footwear The 4 th largest golf shoes brand Top-5 producer of high quality leather to luxury brands ECCO shoes are sold in 91 countries 5

6 ECCO BUSINESS BASICS 2012 Million DKK Net Revenue 19,500 employees of 50 nationalities markets across 5 continents million pairs of shoes sold worldwide in 2012 Revenue at EUR 1,083 million (up 14% over 2011) Profit before tax at EUR 153 million (up 26% over 2011) Equity EUR 418 million a solidity of 55.0% Million DKK Profit before tax and profit margin ,9% 12,7% 14,1% 9,1% 10,3% Profit before tax (PBT) PBT% 6

7 VISION to be the best shoe company in the World 7

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9 How we make shoes 9

10 Scandinavian design It all begins at ECCO s Design Centre in Tønder The essence of ECCO s Scandinavian design philosophy is form follows function - simplicity, functionality, timeless elegance, appreciation of materials and craftsmanship The designs are always checked for lightness, softness, flexibility, comfort and fit 10

11 Product Development Bridges designers creativity with Production Shoemakers and engineers convert ideas into prototypes Providing the tanneries and shoe factories with detailed instructions on how to produce materials and shoes 11

12 Making leather Producing leather since 1986 The ECCO Leather Group: The Netherlands, Indonesia, Thailand and China Over 33% production is sold to non-ecco companies One of the five largest producers of quality hides (wet blue) in the world 12

13 Shoe production The ECCO factories - the key to the company s success Factories combine the best of two worlds: Hand craft and automation where possible The world leader in direct injection technology Four shoe factories: Thailand, Indonesia, Slovakia and China 13

14 Cornerstones in going global Production Retail Branding 14

15 Production history 1/2 Highlights from 1963 to st April Opening of A/S Bredebro Skofabrik shoe factories in Denmark produce a total 9.1 million pairs of shoes 1974 Production of uppers in Brazil 1978 Uppers from India, Yugoslavia and Thailand 1979 Finished shoes from Brazil 1984 New factory in Portugal 1988 Licensed production in the former Czechoslovakia 1991 Start up of production in Indonesia 1993 ECCO Thailand established 15

16 Production history 2/2 Highlights from 1963 to Extension of tannery in Indonesia Uppers from Poland 1998 New factory in Slovakia 2000 ECCO opens a tannery in Thailand 2001 Acquisition of a large tannery in Dongen, the Netherlands 2005 ECCO opens shoe factory in Xiamen, China 2008 Opening of tannery in Xiamen, China 2009 Closure of large scale production in Portugal 2011 The factory in Thailand is flooded 2012 Reopening of large scale production in Portugal 16

17 PRODUCTION FOOTPRINT 2013 Holland Slovakia Portugal China (Xiamen) Thailand Shoe production Leather production Indonesia 17

18 From cow to consumer Cow hides Tannery Leather Stitching upper Injecting sole Finishing Warehouse Shipping Distribution Packing Transport Retail Consumer 18

19 The global journey of a shoe Design Retail Product development Uppers Tanning Soles Everyday challenges: A-Z manufacturing vs. closeness to market Cost focus vs. customer responsiveness Carbon footprint Global mindset Shipping Cows 19

20 Cornerstones in going global Production Retail Branding 20

21 15,000+ places to meet the consumer EUROPE, MIDDLE EAST & AFRICA AMERICAS ASIA / PACIFIC 147 Points of sale ECCO Branded stores Other selling points EMEA >7,000 >7,000 EAP >1,800 >2,000 EAM >4,800 >5,000 Total 1,002 1,095 >13,600 > 14,000 21

22 22 One Vision, One Brand, One Concept

23 A pure player Shoes 91,6% Misc. 0,5% Accessories 3,1% Leather 4,8% 23

24 ECCO doubled sales in 7 years EURO Historical development of revenue years to reach a revenue of 4 billion DKK 7 years to double it! 24

25 ECCO employs almost 20,000 people worldwide

26 Top 10 markets Pursuing a healthy geographical diversification USA Germany UK Sweden Denmark Netherlands Russia Norway Canada Finland USA China Russia Germany Sweden Canada Denmark Netherlands Norway Hong Kong 26

27 Where the shoes went Development in distribution of pairs sold 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Others Denmark Other Scandinavia Other Western Europe (incl KRM) Eastern Europe Americas Asia 27

28 Cornerstones in going global Production Retail Branding 28

29 Developing the ECCO Brand

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36 A broad product portfolio 36

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