Interview with Mario Moretti Polegato, CEO, Geox Group
Publicado el 30 abr 2014
“we still continue to patent the innovations we make in our technology”
Mario Moretti Polegato. The idea came about at the end of the 1980s, during a trip I made one summer to the Nevada desert and more specifically to Reno, where I was staying in order to promote Villa Sandi, a wine that my family owns, at a wine fair.
The heat started to affect me immediately, especially my feet.
That was when I had the idea of perforating the soles of my tennis shoes to create a kind of ventilation. After I had been back in Italy for a while, I tried to find some shoes that would keep my feet dry even when it was hot, and I noticed there was nothing on the market that matched what I was looking for.
At this point I decided to find a solution myself, and I discovered there was a membrane in existence that was known to be breathable. It’s actually made up of millions of micropores whose diameter is greater than that of a molecule of steam but smaller than a molecule of water. The membrane enables sweat to escape without letting water in. After I made this discovery, I decided to attach the membrane to a sole that I had perforated. I had made a breathable sole, and I patented it.
Once the patent was granted, I refined the new sole to make it durable. As I had no intention of actually producing any shoes, I tried to sell the patent to the major brands on the global market, but I was astonished to find that none of them believed in the technology. So I decided to start my own business, Geox.
Leaders League. What stages do you have to go through to transform an idea into a global business?
M.M.P. Initially there were five people in the company. Together we launched our first ranges, which were aimed specifically at children.
The enthusiastic reception we got drove us to design a collection of men’s shoes and then a collection for women. We were successful, therefore, but we were a long way from achieving the goal of being one of the global leaders. To achieve that, we invested consistently in production and distribution, so that we now have a multi-brand distribution network with over 10000 outlets and a network of nearly 1300 single-brand stores. We also invest consistently in communications in the 105 countries where Geox now sells.
Leaders League. What role does intellectual property play in the group’s innovation policy?
M.M.P. Intellectual property has played a fundamental role in Geox’s success, because our patents have enabled us to market a unique product that nobody can copy. Today we still continue to patent the innovations we make in our technology, to make sure we remain unique in the market.
On average, we invest 2% of our annual revenues in research and development and we have a team of 15 engineers working in the laboratories at our Italian headquarters.
Leaders League. In recent years, the economic crisis has affected funding for innovation. Is it still possible to innovate in Europe in the current climate?
M.M.P. The crisis and the austerity policies that came with it have dealt a serious blow to research funding, especially public sector funding. In my view, this is a mistake: in a period of crisis, and in the face of global competition, Europe needs more than ever to invest in innovation in the same way that China and the US do. The same applies in the private sector too, in every field. There’s no doubt that the crisis poses risks and threats that should not be underestimated, but it also offers a wealth of opportunities.
A lot of the global economy is in good shape and even Europe seems to be showing the first signs of a recovery. Only those who can innovate will be in a position to reap the rewards.
Leaders League. The Geox group is present in 105 countries. Which markets does the group’s international strategy now focus on?
M.M.P. At the moment, Geox makes almost 80% of its revenues in Europe, so we have started a huge international expansion program aimed especially at Asia and Russia. Our Asia program is the best reflection of our strategy in this area. As recently as the end of 2012, we were operating in China, Hong Kong and Macao via an exclusive distributor who was selling our products through 300 outlets. We have terminated this partnership to take control of our development there ourselves. To do this, we have established a new subsidiary in Shanghai and we are expanding our Asian headquarters in Hong Kong.
Since January 2013, we have been operating directly in Beijing, Tianjin, Shanghai, Hong Kong and Macao and via a new partner in other regions of the country. In figures, that means we have gone from zero outlets at the end of 2012 to nearly 160 today, and our business plan aims for over 450 stores by the end of 2016.