ECCO &
INTERNATIONALISERING
Michael Hauge Sørensen, Group COO, ECCO Sko A/S
Ambassadør-arrangement – Hindsgavl Slot, 30. maj 2013
Cornerstones in going global
Production
2
Retail
Branding
First a quick look at
ECCO
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
...to a leading global footwear company
The world’s 2nd largest
producer of casual
footwear
The 4th largest golf
shoes brand
Top-5 producer of high
quality leather to luxury
brands
ECCO shoes are sold in
91 countries
5
ECCO BUSINESS BASICS 2012
Net Revenue
Million DKK
9000
8061
8000
• 19,500 employees of 50 nationalities
7089
7000
6000
6111
5374
5041
5000
• 91 markets across 5 continents
4000
• 20.2 million pairs of shoes sold
worldwide in 2012
2000
3000
1000
0
2008
• Revenue at EUR 1,083 million (up 14%
over 2011)
• Profit before tax at EUR 153 million (up
26% over 2011)
2010
1000
800
2012
1140
1200
904
746
631
600
460
13,9%
200
9,1%
10,3%
2009
2010
12,7%
14,1%
2011
2012
0
2008
Profit before tax (PBT)
6
2011
Profit before tax and profit margin
Million DKK
400
• Equity EUR 418 million – a solidity of
55.0%
2009
PBT%
VISION
to be the best
shoe company
in the World
7
How we make shoes
9
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
Product Development
11
•
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
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
Shoe production
13
•
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
Cornerstones in going global
Production
14
Retail
Branding
Production history 1/2
Highlights from 1963 to 2013
1963
1965
1974
1978
1979
1984
1988
1991
1993
15
1st April – Opening of A/S
Bredebro Skofabrik
105 shoe factories in
Denmark produce a total 9.1
million pairs of shoes
Production of uppers in Brazil
Uppers from India, Yugoslavia
and Thailand
Finished shoes from Brazil
New factory in Portugal
Licensed production in the
former Czechoslovakia
Start up of production in
Indonesia
ECCO Thailand established
Production history 2/2
Highlights from 1963 to 2013
1997
1998
2000
2001
2005
2008
2009
2011
2012
16
Extension of tannery in Indonesia
Uppers from Poland
New factory in Slovakia
ECCO opens a tannery in Thailand
Acquisition of a large tannery in
Dongen, the Netherlands
ECCO opens shoe factory in
Xiamen, China
Opening of tannery in Xiamen,
China
Closure of large scale production in
Portugal
The factory in Thailand is flooded
Reopening of large scale
production in Portugal
PRODUCTION FOOTPRINT 2013
Holland
Slovakia
Portugal
China (Xiamen)
Thailand
Shoe production
Leather production
17
Indonesia
From cow to consumer
Cow hides
Finishing
Packing
18
Tannery
Leather
Stitching upper
Warehouse
Shipping
Distribution
Transport
Retail
Consumer
Injecting sole
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
19
Shipping
Cows
Cornerstones in going global
Production
20
Retail
Branding
15,000+ places to meet the consumer
EUROPE, MIDDLE
EAST & AFRICA
AMERICAS
861
87
ASIA / PACIFIC
147
Points of sale
21
ECCO Branded stores
Other selling points
2011
2012
2011
2012
EMEA
803
861
>7,000
>7,000
EAP
113
147
>1,800
>2,000
EAM
86
87
>4,800
>5,000
Total
1,002
1,095
>13,600
> 14,000
One Vision, One Brand, One Concept
22
A pure player…
Shoes 91,6%
Accessories 3,1%
Leather 4,8%
Misc. 0,5%
23
ECCO doubled sales in 7 years
1.000 EURO
Historical development of revenue
1.200.000
1.000.000
800.000
600.000
400.000
200.000
-
42 years to reach a revenue of 4 billion DKK…
24
… 7 years to double it!
25
2012
20000
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
ECCO employs almost 20,000 people worldwide...
19.426
15000
10000
5000
1898
0
Top 10 markets
Pursuing a healthy geographical diversification
2012
2002
26
USA
USA
Germany
China
UK
Russia
Sweden
Germany
Denmark
Sweden
Netherlands
Canada
Russia
Denmark
Norway
Netherlands
Canada
Norway
Finland
Hong Kong
Where the shoes went
Development in distribution of pairs sold
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Others
27
Denmark
Other Scandinavia
Other Western Europe (incl KRM)
Eastern Europe
Americas
Asia
Cornerstones in going global
Production
28
Retail
Branding
Developing the
ECCO Brand
30
31
33
34
A broad product portfolio
36