• Geox entered the Chinese market in 2003 by a partnership with Aokang
which was responsible for distributing Geox's products in the country.
• In 2008 Geox chose Belle as its new distributor and again last year by
announcing its partnership with Riqing Enterprise.
• Geox’s chairman and founder Polegato said those were the moves the
company had to make in order to adhere to its development strategy at
• Geox has set up a direct-operated company, being responsible for opening
direct-operated stores in Beijing, Shanghai and Tianjing.
• 36 direct-operated stores in China and it plans to open a flagship store in
Tmall.com, the business-to-consumer platform within China's largest
online retailer Taobao.
The fabric market is
supported by the
per capita totaled
There are more
more than 700
still mostly unknown in
the Western world.
disparity from sex•Textile products are
selective abortion and
sold to virtually all
Chinese regions and
the whole world.
the One-child policy.
•China's textile industry
more and more is
•Aging of population
due to one child policy. developing machines
that are locally made
and/or assembled, and
the country's bank
system is willing to
support those types of
•the textile industry in
China is taking care of
subjects such as
and quality, and they
are starting to raise
issues such as "go
Why not in China?
• China’s economy has continued to grow by double-digit rates over the last
couple of years however China is in no way a uniform and homogenous
market socially and economically
• Uneven rates of economic growth
• Economic and social differences between different provinces
• Foreign companies should think carefully about which geographical
location offers the best vantage point to target the broader China market.
Zheijiang province is the most suitable for apparel and textile industries.
Geox in India
• Geox has signed an agreement with G & B
Footcorp, based in New Delhi, which has to
open at least five stores in India by the end of
the fiscal year.
• the goal of the next three years is the presence
with twenty stores.
• To be immediately in the major cities.
• India is a supplier of components for footwear,
for a total of 8% of its employment.
The biggest democracy in
Based on English
Separate personal law
codes apply to Muslims,
Christians, and Hindus.
Stable political situation .
• Disinvestment was
carried out in case of
many public sector
• Policy towards foreign
Well developed tax
India Govt makes some
Act to freely do business
reduced the number
licensing to six.
The GDP $4.716
trillion (2012 est.).
Continuous growth in
per capita income
•The population has
increasing for the
costs for firms who
are committed to
•3G technology starts.
•India is the second
most populous nation
in the world with an
population of over
•big market in mobile
Geox in Russia
•In Russia,in recent years it has grown very well-being, opening up interesting
areas for Italian firms, able to grasp all the opportunities available
•Dmitry Sevyan, Russian entrepreneur - he entered into a contract for exclusive
GEOX products distribution in Russia in 2005 .opened more than 60 GEOX
outlets in Russia, not only in Moscow and Leningrad, but also in Siberia, where
today there are many shopping centers in European style
•Geox has imposed targeted products, obtained thanks to the careful work of
technicians and engineers who work in the Office Research that has been able to
adapt the characteristics of the products to the needs of the Russians, offering a
waterproof shoe not only in the highest part to walk without getting wet in the
snow or on ice
•Geox offered Sevyan another distribution contract in 2009 with worse terms.
Their cooperation then ceased and Sevyan offered to provide the outlets to Geox
S.p.A. in exchange for compensating his costs.
• Also In 2009, the Russian market has suffered the negative effects of the crisis,
registering a decline consumption: Italian exports to this market have decreased,
although "Made in Italy" maintain a quality far superior to that of the local
productions: this competitive advantage Italian companies could still work very
hard to translate into an advantage economically.
Financial bailout (+)
3G technology (+)
purchasing power –
Blade Servers (++)
Falling GDP growth
Fall in industrial
Decrease in raw
material costs (+)
Highest number of
High literacy rate.
Skilled people in
Why invest in Russia?
1)Dynamic Economic Growth - Since 2000 to 2010, Russia’s GDP growth has
averaged 5.3% per year, including the 7.8% fall in 2009
Russia economic growth potential is based on growing labor force (140 million
citizen and growing) and labor efficiency , Total Factor Productivity and Capital
2) One of the Largest Consumer Markets + with rising disposable incomes +
expanding middle class (+ the status symbol that attached to Italian products in
eyes of Russian people) = high local profit maintain.
3)World-Renowned Human Capital - Russia offers access to a skilled and welleducated human resource pool, letting companies recruit where they work.
4)Unique Geographic Position
Russia links Europe with Asia and also borders the North American continent,
offering the following advantages:
• Worldwide sea routes — Russia is bounded by three out of four world oceans
• Russia launches major Infrastructure Program for 2018:
The infrastructure program includes 11 airports, communal and transport
infrastructure necessary for FIFA World Cup, and electricity, IT and
• Russia’s geography facilitates building effective international and domestic
• Geographically diverse federal districts and regions offer distinct competitive
advantages and favorable investment-attraction policies.
5. Stable Political System :
Following a transition period, the Russian economy has achieved
macroeconomic and financial stability:
- World's 7th largest economy by purchasing power parity (2010)
Politically stable system:
- Long period of prudent economic and social policies
- Respectful and fair foreign relations policy
6.Extensive Government Support
- Public-private partnership programs
- Existing infrastructure, large investment and development programs
- New institutional instruments: Development Bank of Russia, Investment Fund
of Russia, Russian Special Economic Zones, Russian Venture Company,
7. Attractive Taxation System :With ongoing improvements, as well as a policy of
resolving contradictions and ambiguities in tax legislation in favor of the
taxpayer, the tax system is becoming increasingly oriented toward the investor.
The main labor force in russia is located outside the big cities such as
moskow and st. pitsburg.
Russia is amongst the countries with a great number of roads, but the state
roads there stands far behind than that in leading countries
Knowledge of distribution channels in Russia remains a big barrier, and
many times the biggest barrier, to success for investors who can't access
Language barriers often make having a Russian representative essential
Many of the inefficiencies in the government apparatus can be attributed to
high levels of corruption. Some argue that corruption has become engrained
in the country’s system of wealth creation and distribution
Russia’s economy relies heavily on its energy sector for economic growth,
with an extremely tight correlation between oil prices and the country’s GDP.
GEOX IN BRAZIL
• In 2006, Geox opened the first two stores in Brazil: in
Sao Paulo and in Alegre.
• Brazil ist considered one of the company´s best strategic
market for Geox, as 25% of the 2011´s sales has been
made in Sao Paulo.
• Geox operated a huge outsoruce, basing most of its
manufacturing activity abroad, expecially in Brazil, in
Vietnam and in China.
• From a brazilian point of view, Geox is considered a very
positive brand. Indeed, it was chosen to wear the most
prestigious World Champions: the Golden Shoes are the
special boots (in limited edition) which Sebastian Vettel
wore in the Sao Paulo GP. Those boots contained a very
high level of technology innovation, being the first
transpiring driving shoes.
• political stability
Infrastructure development program
one of the more
in Latin America.
• the fifth largest population
in the world.
• regional economic
• high crime rate
GDP of US $2.47
trillion in 2011
• one of the more
for investments in
various sectors such
as energy, automotive,
retail, and construction.
• the ninth largest
economy on the
Parity (PPP) grid.
• natural resources
• the fastest-growing
economy in Latin
• the largest number of
sectors open for Foreign
Direct Investment (FDI).
• strong work force
• Brazil will host two huge
sport events, such as the
World Cup in 2014 and
the Olympic Games 2016
• Government funds the
majority of scientific
• the largest IT industry in
POSITIVE FACTS ABOUT
• Brazilian economy is the most developed in South
America and the 5th in the world. It has been growing
enormously throughout the last years.
• It has the most successful industrail district for the
mocassini´s production in the world.
• Brazil is the 5th most populated State in the world
(201 million habitants).
• 90% of the population lives in urban areas, which
are located near the cost. This allows an easy
access to the city industries through the many ports.
• Its geographical position allows good connections
with other south-american States.
DISADVANTAGES OF OUTSOURCING
• High taxes and regulatory costs. There is not a
return in services from the government. Brazil
companies pay 29% more in taxes than the
Latin America average and 24% more than the
OECD countries average.
• Inadequate infrastructures and government
burocracy difficult access to loans, unclear
governmental policy-making, low quality in
• High cost of hiring and firing human resources.
• Brazil has several laws and legal protection on
privacy and copyright, but the enforcement is
not stringent. A lot has to be done for what
concerns the intellectual proprety protection.
• Geox already produces in China (Geox already
produces 100% outsourcing),
• Favourable geographic conditions,
• High qualified workers with low labour costs
compared to other BRIC countries,
• D&R activities useful for delocalized production,
• Raw materials available at low price
• No role of trade unions
• Economic policies towards the opening of the
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