Geox plans 350 China stores with Hong Kong partner
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Italian shoemaker Geox has signed a distribution agreement with Hong Kong listed Pou Sheng International to set up 350 stores in Mainland China by 2020.
The two companies will target China’s rising middle class – 109 million newly affluent, quality-conscious and brand-happy Chinese consumers.
Geox is one of the leading brands worldwide in the lifestyle footwear market, listed on the Milan stock exchange and Pou Sheng is one of the leading retailers in China in the lifestyle and sportswear market, retailing brands such as Converse, Rockport and Keds with 4586 retail outlets and another 2691 sub-distributors across China.
The Geox agreement includes the exclusive distribution of Geox adult collections in China and the opening of 350 new stores in the first five years – including mono brand stores and shops-in-shops in high end footwear specialist retailers, shopping malls and department stores.
Mario Moretti Polegato, chairman and founder of Geox, said the strategic agreement is aimed at “developing properly our brand distribution in China where, in our directly operated stores in Shanghai and Beijing, Geox has already demonstrated to have strong potential”.
“I believe the partnership with Pou Sheng is extremely relevant as it merges the Geox mission of improving everyday life of our endorsers, through our breathable innovations, with a partner whose enlightened mission is providing services and products that promote high quality of living and healthy lives and whose goal is to be the customer’s number one choice and the brand’s best partner in China through the strongest and most innovative multichannel retail network”.
Geox CEO Giorgio Presca describes China’s emerging middle class as “definitely the best thing” that could have happened to his company.
“On one hand, the rise of the middle class will boost the economy. On the other, it is the perfect thing for brands like us.”
Geox is already expecting same-store sales growth in China of 17 per cent or more this year – its highest growth rate globally. But China still comprises just two per cent of its total sales.
Questions & Answers
Q.What is the primary goal of Geox's new distribution agreement in Mainland China?
What is the primary goal of Geox's new distribution agreement in Mainland China?
The agreement aims to establish 350 Geox stores across Mainland China by 2020. This expansion will include both mono-brand stores and shops-in-shops within high-end footwear retailers, shopping malls, and department stores.
Q.Which specific consumer group are Geox and Pou Sheng International targeting in China?
Which specific consumer group are Geox and Pou Sheng International targeting in China?
The partnership is targeting China's rising middle class. This demographic, identified as 109 million newly affluent consumers, is described as quality-conscious and keen on established brands like Geox.
Q.How significant is China's current contribution to Geox's total global sales?
How significant is China's current contribution to Geox's total global sales?
Despite high growth expectations in China, the country currently accounts for only two per cent of Geox's total global sales. The company anticipates same-store sales growth of at least 17 per cent there this year.
Q.Which types of Geox products will be exclusively distributed through this new agreement?
Which types of Geox products will be exclusively distributed through this new agreement?
The agreement specifically covers the exclusive distribution of Geox's adult collections within China. This will be managed through the new network of 350 stores and various retail formats.
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