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Geox owns a large factory in Timisoara

By: enjoyrui

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The International Herald Tribune, September 28, 2004.This production system reflects an articulated supply chain strategy, with sourcing and production decisions contingent on market segment, product type and cost or time constraints. Thus, production is not simply moved around the world according to labor cost dynamics. (http://www.christian-louboutin-sells.com/pumps-c-19.html)
Rather, flexibility, speed and quality related considerations drive the supply chain configuration and the sourcing decisions. For example, the shoe sole injection/molding process is usually concentrated in a few locations both for efficiency (it is highly automated, with economies of scale dominant) and confidentiality (know how protection) reasons6. The upper construction and sole bonding processes are, instead, more dispersed in smaller units.
In Romania, Geox owns a large factory in Timisoara, built in 1997, which today produces some 2.5 million pairs of shoes a year and employs over 1,000 people. The overall investment exceeded 10 million Euro and covers an area of about 25,000 square meters. Since 1997, the factory has gradually been enlarged and integrated with the creation of an internal shoe-sole molding and injection shop, and Italian suppliers have progressively moved in with ancillary plants around the structure to ensure rapid restocking. Around the plant, Geox has de facto developed a “mini footwear industrial district”, attracting various Italian suppliers (especially from Veneto and Marche), who have specialized in single stages of the manufacturing process, such as cutting or assembly. Current production is about 7,000 pairs a day, with quality levels matching Italian standards. Romanian production currently amounts to approximately one third of total volumes.
Differently from the construction of the upper, the shoe sole manufacturing process (especially for rubber soles) is capital intensive. Since the very beginning, Geox has adopted flexible automation technologies (developing and patenting the relevant ones) which have allowed to produce both increasingly larger volumes and a wide variety of soles with negligible switching and set up costs. 7Geox’s commitment to Romania has contributed to the local economy development. In recognition, Moretti Polegato has been even made an honorary Romanian consul.

Whereas another, smaller part of the production is sub-contracted, to other Romanian, Slovakian, Mexican and East Asian producers, the larger volumes (approximately 55% of Geox’s total volumes -100% of sport shoes) are produced in China, a country to which Geox is strongly committed, to the point that it has recently a) located part of R&D in China, b) signed long term manufacturing agreements in China, and c) started developing a proprietary retail network. Geox has recently teamed up with Aokang Group, a shoemaking compay in China based in Wenzhou City in east China's Zhejiang Province and the second largest company regarding international design, and production and sales of leather shoes around the world. Aokang Group is a private business established 15 years ago that currently produces more than 10 million pairs of leather shoes annually. (http://www.mbt-sells.com/mbt-changa-c-17.html)
It has more than 30 subsidiaries, over 2,000 franchise stores and sale outlets across China, and has opened agencies in Italy, Spain, the United States and Japan. As an agent of Geox, Aokang Group has manufactured some 0.5 million pairs of Geox leather shoes during 2004, a figure expected to ramp up to 1.5 million in 2005 and grow even further in the future. As part of the alliance, Geox has recently moved its Asian research and development center from Hong Kong to Dongguan of South China's Guangdong Province.

Article Source: http://depositarticles.com/

The alliance with Aokang Replica Christian Louboutin Shoes is based on a rigid license enforcement system and on continual investment in research and development to strengthen patents, MBT Boots making it hard for other Chinese producers to copy.

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