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Koutons scouts for partners in Middle East to form JV

Posted by footwearglobal on June 30, 2008, Monday

Posted 30 Jun, 2008,

Source :

Article in ET on 29 Jun, 2008,

NEW DELHI: Apparel chain Koutons Retail is scouting for partners to form a joint venture as it looks to expand in the Middle East with about 25 outlets in the region by 2009.

The company has earmarked Rs 40 crore for rolling out the stores, the first of which would come in Dubai this year. Koutons Retail is also gearing up to diversify its business with plans to launch a range of footwear collections for men and kids by October this year, besides increasing number of outlets in the domestic market.

“We are in discussion with three companies in the Middle East for rolling out our stores there. We are looking forward to establish joint ventures in the region, where we will keep the majority stake,” Koutons Retail India Ltd Chairman DSP Kohli said.

The designing, branding and production would be done by Koutons, while the local partner would be responsible for supply chain management and logistics, he added.

Without divulging the possible partners’ name, Kohli said: “We are planning to set up about 25 outlets by the end of next year in the region and it can entail an investment up to Rs 40 crore. The first store will be opened in Dubai this year.”

The stores would target the requirements of Indians living in the Middle East countries, he said. Besides Dubai, the company is also looking at other cities with considerable Indian population, like Abu Dhabi, Sharjah and Doha. It would also expand its footprint to Qatar and Iran, Kohli said.

The company would enter the Chinese market by the end of this year, besides plans to enter in the European market, he added.

The Gurgaon-based firm has also planned to launch its footwear range for men and kids by October in the current year. “We will come out with our footwear range for men and kids by October this year as part of our strategy to offer complete range of wardrobe and accessories to the customers under one roof,” Kohli said.

The apparel manufacturing company would source footwears from China as well as from the domestic market, he added. The company is planning to increase the number of its retail outlets to 1,800 by the end of current fiscal from the present 1,280.

“Our growth this year will mainly be driven by our expansion in the ladies and kids wear segment under Le Femme and Junior brand names,” he added.

Out of the current 1,280 stores, over 691 stores are exclusive shops, while the balance are Charlie Outlaw stores. Koutons Retail is targeting an over 50 per cent jump in its revenue in the current fiscal to Rs 1,250 crore from Rs 793 crore in 2007-08.

When asked if the spiralling inflation and the surge in cotton prices would lead to any hike in the prices of its products, Kohli said, “Right now we have enough stock, but if the rising prices do not cool down by next year, we might think of raising the prices of our various products then.”

The company had raised about Rs 100 crore through initial public offering (IPO) last year.

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When the shoe fits the pocket

Posted by footwearglobal on June 29, 2008, Sunday

No woman who buys Jimmy Choo or Prada is buying comfort or taking care of the arches of her feet. Often, she is actually buying discomfort, given how high the heels can be. Admittedly, there are shoemakers-Manolo Blahnik and Christian Louboutin, for instance? Read

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When the shoe fits the pocket

Wear shoes that are even slightly tight, and you will be unable to stand. Try running in shoes that are not meant for that purpose, and your feet will hurt for weeks

Pursuits | Vir Sanghvi Posted: Fri, Jun 27 2008

After all my sneering about women and handbags in previous editions of this column, I now have to try and defend the male of the species. I’ve always found it extraordinary that women are prepared to pay as much for a handbag as the rest of us would pay for a small car. It isn’t that the bag itself is particularly expensive to make. Markups of 800% or more are routine. But clever marketers have persuaded women that an ‘it’ bag or a limited edition handbag are so desirable that the prices should bear no relation to the cost of manufacture.

For happy feet: Gucci shoes for men can cost as much as a Louis Vuitton purse. Photograph: Harikrishna Katragadda / Mint / Gucci Showroom, The Oberoi, New Delhi

Many women have pointed out to me that such sneers could easily be directed at men as well. Sure, we don’t use handbags. But we do wear shoes. And unscrupulous marketers are able to extract such high premiums from vain men that we seem almost as foolish as the women who pay thousands of dollars for bags.
I have usually retorted, in defence of men, that shoes are a complicated business. A handbag started out as a convenience but soon became an adornment. Shoes, on the other hand, are essentials. You can’t really leave the house barefoot. And because we wear shoes for most of the day, it is important that they fit perfectly. Wear shoes that are even slightly tight, and you will be unable to stand. Try running in shoes that are not meant for that purpose, and your feet will hurt for weeks.
So, I have argued, there is no parallel between bags and shoes. When a woman pays $5,000 (around Rs210,000) for a designer handbag, she is buying a status symbol. When a man splashes out on a $500 pair of shoes, he is buying a lifetime of comfort and investing in the future of his feet.
Well, yes and no.
Take the arguments that I offer on behalf of men and their shoes and turn them around to defend women and their Jimmy Choos. Suddenly, you begin to realize quite how hollow they are. No woman who buys Jimmy Choo or Prada is buying comfort or taking care of the arches of her feet. Often, she is actually buying discomfort, given how high the heels can be. Admittedly, there are shoemakers — Manolo Blahnik and Christian Louboutin, for instance — who do pay attention to the balance of a ballet pump and ensure that their shoes remain light on the feet. But rarely do women buy their shoes for comfort alone. Even with Blahnik and Louboutin fans, the primary motivation is fashion and, perhaps, snob value.
Sadly, the same is true of men. I am as willing as the next guy to admire a nice pair of Gucci loafers or to marvel at Prada’s ability to set fashion trends in footwear. But even I do not believe that somebody who shells out hundreds of dollars for Prada or Gucci is terribly concerned about comfort. We buy the shoes because they look nice.
And when we have to explain to ourselves how we can justify buying shoes that are three or four times more expensive than ordinary high-street brands, we swallow deeply and argue that, of course, for Prada, Gucci and the like, one has to pay a little bit more.
So, are we so very different from the women who crowd the Louis Vuitton boutiques looking for the latest limited edition bags of each season?
Regrettably: No, we’re not.
Are we being duped? Should we refuse to buy into the great fashion footwear scam?
Well, that’s an individual decision. And I don’t think that any absolute rules apply. Nobody is going to rot in hell for eternity because they bought a pair of Prada shoes on impulse. We’re all entitled to our luxuries.
Speaking for myself, however, I find that I spend less and less money on shoes these days. This is not because shoes are unimportant. Quite the opposite in fact. It’s because they are too important a matter to be left to fashion.
A few years ago, I worked out that when it came to shoes, only three things mattered: the quality (leather and workmanship), the fit and the look. I found that with designer shoes, the look was always right but neither the quality nor the fit were necessarily what I was looking for. Often, the trendy brands would sacrifice a comfortable fit in the pursuit of a fashionable look. The leather was never bad. But rarely was it particularly special. And as for the workmanship, shorn of the marketing hype, designer shoes were essentially industrial goods, manufactured in huge factories in vast numbers.
So, I decided to work backwards. If I was looking for quality workmanship, where should I go? The obvious answer was to avoid the global labels with their mass production. I found a small Thai label called Ragazze which made fashionable shoes of high quality and still managed to sell them at one-fourth the price of the high-fashion labels.
Then, couple of years ago, I thought more about it. If the Thais could do it, then surely Indians could do it as well. Why didn’t I find somebody who would make my shoes for me by hand?
Fortunately, I rediscovered Joy, a label I remembered from my Bombay days. I’ve known Munna Jhaveri, its owner, for decades. Somehow, it never occurred to me to get him to make my shoes. But once I made that jump, it seemed entirely logical to put my feet in his hands.
So now, Munna makes all my shoes and sandals. They are made to my exact size (my feet are broader than average), I choose the leather, Munna and I work out the styles together, and Joy’s workmen produce world-class shoes in a fortnight to three weeks.
The best part? I wish I could say it came from the pleasure of encouraging traditional craftsmanship or of wearing shoes that fit as only custom-made footwear can.
Actually, the best part is the price. At a time when all the foreign labels are setting up shop in Mumbai and selling very ordinary, industrially manufactured shoes at upwards of Rs20,000 a pair, Munna makes me bespoke shoes at a fourth of their price.
That is one of the pleasures of living in India. You get world-class quality, without the hype and handmade to your requirements — at a very Indian price.
Write to Vir at pursuits@livemint.com

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Footwear Exhibition in Pakistan

Posted by footwearglobal on June 29, 2008, Sunday

Footwear Exhibition in Pakistan

Source:

Complete Article link

Footwear exhibition

Date 28 June 08

Commerce Reporter

LAHORE: All is set for the opening of the Pakistan’s biggest footwear exhibition here at a local hotel from June 28 to 29.

Federal Minister for Commerce Chaudhry Ahmad Mukhtar will inaugurate the 10 th Pakistan International Exhibition.

The fair is organised on annual basis by Pakistan Footwear Manufacturers Association (PFMA) and sponsored by Trade Development Authority of Pakistan (TDAP). PFMA Chairman Nasir Anwer stated that many local and international firms are exhibiting their products.

As many as 70 top international buyers from Azerbaijan, Bangladesh, Canada, China, Germany, Greece, India, Italy, Kenya, Kuwait, Muscat, Malaysia, Poland, Saudi Arabia, Spain, UAE, UK, and Uzbekistan have confirmed their participation during the 2 days of the exhibition.

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FESI urges EU to reconsider decision on footwear imports from Vietnam

Posted by footwearglobal on June 29, 2008, Sunday

June 27, 2008 (Europe)

FESI – the Federation of the European Sporting Goods Industry is deeply concerned by the EU’s decision to abolish GSP preferences for Vietnamese footwear exports.

Complete Story

Source:

FESI urges EU to reconsider decision on footwear imports from Vietnam

FESI – the Federation of the European Sporting Goods Industry is deeply concerned by the EU’s decision to abolish GSP preferences for Vietnamese footwear exports.

“This decision is indefensible. It represents a kick in the teeth for both the Vietnamese footwear industry and the modern European footwear industry, which relies on Vietnam as a competitive source of supply.

We strongly urge EU Ministers to reconsider this move,” said FESI President Horst Widmann.

Removing preferential EU access will have a devastating effect on a key pillar of Vietnam’s economy at a time of severe economic turmoil.

It will only compound the damage caused by the 10% antidumping duties imposed on Vietnamese leather shoes two years ago, which have led to a 23% drop in exports of leather shoes to the EU.

Paradoxically, it is this artificial decline which led the EU to conclude that the Vietnamese economy is now less dependent on footwear exports, thereby justifying the abolition of GSP preferences.

“Vietnam is getting a double punishment,” Widmann said. “Removing preferences after imposing anti-dumping duties is irresponsible. Graduation in this case is not a success story, but a disaster.”

FESI is also disappointed about the distinct lack of transparency surrounding the factual basis for the EC’s decision to remove the preferences.

It is particularly concerned by the European Commission’s failure to disclose how it arrived at the import figures supporting its proposal.

Vietnam, the second most important EU source for footwear following China, is one of the poorest countries in the world, and footwear exports continue to represent one of its key revenue earners.

The Federation of the European Sporting Goods Industry

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Footwear chain ties up with Europe brand

Posted by footwearglobal on June 29, 2008, Sunday

In Published: Saturday, 28 June, 2008

SHOE Mart, a leading chain of footwear stores from the Landmark Gulf Group, has announced a joint venture with Kurt Geiger, Europe’s largest luxury shoe specialist.

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Published: Saturday, 28 June, 2008, 01:00 AM Doha Time

SHOE Mart, a leading chain of footwear stores from the Landmark Gulf Group, has announced a joint venture with Kurt Geiger, Europe’s largest luxury shoe specialist.
The deal is expected to open 30 Kurt Geiger stores across the Gulf region within the next five years, with the first store in Qatar already open in Landmark Mall.
Shoe Mart’s alliance with Kurt Geiger will add a new dimension to its current portfolio by bringing the latest designer shoes to the region. This is the first time Kurt Geiger has ventured into franchising.
The Kurt Geiger stores will offer a range of own label collections for men and women reflecting the design and identity of Kurt Geiger’s UK freestanding stores.
“From our perspective, Kurt Geiger’s entry in the Middle East represents a significant shift in the region’s market dynamics as customers of luxury shoes now have the option of choosing one of their favourites,” Shoe Mart CEO Manu Jeswani said.
Kurt Geiger’s director of change, Andrew Lee, stated that the company sees the Gulf Region as a natural progression in the international growth of its business.

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Payless Shoesource Parent Settles Trademark Lawsuit

Posted by footwearglobal on June 29, 2008, Sunday

Source: 

Published: June 28, 2008

Collective Brands, which operates the Payless ShoeSource and Stride-Rite shoe store chains, has agreed to pay a footwear rival, K-Swiss, $30 million to settle litigation claiming trademark infringement.

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Collective Brands agrees to settlement

K-Swiss to receive $30 million over trademark claims

Printed in The Capital-Journal By Michael Hooper
Published Saturday, June 28, 2008

Collective Brands, Inc., owner of Payless ShoeSource and Stride Rite, has agreed to pay $30 million to K-Swiss to resolve claims K-Swiss had against Payless regarding trademark issues, Collective Brands announced Friday.

Under the parties’ settlement agreement neither company admits liability to the other, however, Payless has agreed to pay K-Swiss $30 million on account of K-Swiss’ claims for compensatory damages.

Collective Brands anticipates that some portion of the $30 million settlement payment will be covered by insurance, but the precise amount isn’t determinable at this time.

K-Swiss has given Payless and its affiliates a full release of all known or unknown claims with respect to any shoe advertised, marketed, or sold by Payless or its affiliates up to June 24, including claims that were or could have been brought in the pending action. As a result of this settlement, Collective Brands will record a charge in the quarter ending Aug. 2 in the amount of $30 million not including consideration of any related insurance recovery or additional legal and other expenses.

Under the settlement agreement, Payless has agreed to refrain from making, advertising, promoting or selling footwear confusingly similar to that sold by K-Swiss, including footwear that bears K-Swiss’ trademark or trade dress. K-Swiss, a shoe retailer based in Westlake Village, Calif., uses a five-stripe logo on its athletic footwear. The company’s Web site says it has been making leather tennis shoes since 1966.

Under the settlement agreement, Payless will have until Dec. 31 to sell any existing inventory of shoes whose sale would be precluded under the terms of the settlement agreement.

The announcement follows a May 5 jury verdict of $304 million against Payless for trademark infringement of Adidas’ three-stripe logo. Collective Brands is fighting the judgment, but earlier this month set aside $30 million for the lawsuit.

Michael Hooper can be reached at michael.hooper@cjonline.com

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Sneaker Companies Target Toddler Market

Posted by footwearglobal on June 29, 2008, Sunday

Source: the post chroncile

An article in the Post Chronicle claims Sneaker companies targeting toddler market

Published: Jun 18, 2008

Athletic shoe companies are targeting very young pre-athletes as a ready supply of U.S. customers with fast-growing feet, industry analysts said.

New Balance Athletic Shoe Inc. is gearing up for a marketing blitz aimed at infants and toddlers expected to yield revenues of $10 million by 2010, The Boston Globe reported Wednesday.

The company has television celebrities Elmo, Cookie Monster and Oscar the Grouch to help push its new Sesame Street collection, which debuts next month, the newspaper said.

Reebok International has already turned to the Incredible Hulk and Iron Man to boost sales to youngsters, the Globe reported.

Shoe companies are targeting the very young to help establish customer loyalty and make up for flagging sales in sneakers for teens, a cornerstone of the market.

Sales for the under three-year old crowd have risen 34 percent to $1.35 billion in 2007, research firm NPD Group said. Some, however, object to marketing that targets preschoolers.

Pulling young children into the ‘must have’ shoe market is one more way to turn tykes into hyper-consumers, creating an entirely new generation of overspenders, said Lisa Wise, executive director of the Center for a New American Dream. (c) UPI

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Nike 6.0 Launches Mashup Campaign

Posted by footwearglobal on June 29, 2008, Sunday

News Brief

Source: MediaPost’s Marketing Daily

Wednesday, Jun 25, 2008 5:00 AM ET

Nike 6.0, the action sports division of Nike, Inc. is the latest advertiser to set up a branded community on Loop’d Network. Members of the Nike 6.0 community can create profiles, share photos of themselves in the midst of skating, biking or surfing, and compete for commercial sponsorships. They can also interact with all of the other communities within San Diego, Calif.-based Loop’d Network, including the Monster Army and the PacSun Team.

As part of the launch, Nike 6.0 has rolled out a mash-up campaign, allowing Loop’d members to mix and match their favorite videos, sports clips, photos and Nike-supplied content. The mash-ups, powered by Mixercast, can be ported to member profiles on other social networks like MySpace and Facebook.

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Hot footwear trend this season is cutout sandals

Posted by footwearglobal on June 29, 2008, Sunday

Source: Newsweek.com

Article : “Holes in the sides of her shoes” in Newsweek (7-14 July 08) claims that cutout sandals are the Fashion for the season

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Fashion: Holes In The Sides Of Her Shoes

From the catwalk to the red carpet, the hot footwear trend this season is cutout sandals. Evolved from their trendy ankle-boot ancestors, they offer a sexy spin on booties for warm weather. Oscar de la Renta has snipped straight to the point with the befittingly named Cut-Out Bootie, which maintains the classic ankle-boot shape but exposes a triangle of skin just behind the toes (€489; neimanmarcus .com). Jimmy Choo has created the rebellious Anise Biker Leather Sandal, embellished with bold gems that will be sure to sparkle the next time you take your Ducati motorcycle out for a spin (€866; www.jimmychoo.com). For a softer look, the Manolo Blahnik Hande sandals come in black, gray or turquoise leather and feature triple straps and button closures (€632), while the whimsical red Bu sandals, with a provocative black-and-white striped heel, might have been Dorothy’s shoe of choice (€626; manolo blahnik.com). But stealing the spotlight is the metallic Christian Dior Extreme Cutout Sandal, which comes in either silver or gold-tone python finish. With stud detailing and a nearly 12cm-tall heel, this chic sandal shows just the right ratio of python to human skin, and holes that definitely don’t need filling (€531; dior.com).

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Schuh’s footing sure as profits soar

Posted by footwearglobal on June 29, 2008, Sunday


Saturday, 20th June 2008

SCHUH, the Livingston headquartered footwear retailer, is planning to open more stores in England and Ireland this year after record strong growth in earnings and sales.

The firm’s books filed at Companies House showed the company reaped the rewards from an up-market strategy that let it avoid the problems affecting many of its discount rivals.

In the year to March, Schuh prospered while retailers such as Dolcis failed to compete with supermarkets and discount clothes stores selling footwear.

The company, under the leadership of managing director, Colin Temple, posted 17 per cent growth in earnings before interest, depreciation and amortisation, to £11.7 million.

Its performance was boosted by the opening of four new stores, increasing the size of the Schuh organisation to 50 branches in the UK and Ireland. The firm grew sales 11 per cent to £118.5m.

Schuh has used eBay as an innovative way of moving stock in efforts to cope with customer jitters in the high street.

Gross profits showed 15.6 per cent of sales in the latest period, compared with 14.8 per cent in the preceding year.

Terry Racionzer, Schuh’s chairman said no-one had been immune from the pressures firms faced in a hard year selling specialist footwear.

“Reduced footfall on the one hand and the effect of widespread increases in the frequency and scope of price-led promotions continue to pose a significant challenge,” he said.

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