Shoes Design and Distribution Company For Sale

Business description

Group of companies specialized in designing, producing and distributing a large range of footwear. Its commercial success relies on independent retail stores. It has an active customer portfolio of around 400-500 small clients distributed across all the Spanish geography and some European countries (Portugal, Malta, Greece, France and UK) as well as Morocco.
In Spain, most of their clients concentrate in the communities of Andalusia and Madrid. Export sales still represent a reduced part of the business, with few clients in the European markets, Portugal being the number one foreign market.
This group of companies offers a great potential of growth both in the national market (Catalonia, Basque Country, Asturias, etc.) and in the international
one. Almost all main suppliers are concentrated in China. Each new collection involves around twenty suppliers. The average gross benefit is established in
the 30%-40% range.
It has a highly competitive pricing policy in a market segment dominated by design footwear and high quality. In stores, the high end shoe models and
celebration shoes normally reach up to €30-€35, price which includes the store’s margin. Over the past years, it has obtained an average benefit of 40%.
In 2005 this group of companies undertook a strategic plan whose results are being seen at present with a spectacular increase both of sales and of benefits. The company’s seasonal portfolio includes around 470 models, structured in 8 different brands. The most important promotional actions have been made on TV, particularly on one of the national TV channels, Antena 3 which showed one of the ads of the company and on other local channels.
Product placement has also been done on popular TV series. Altogether, the advertising and marketing budget of the company supposed 4% of sales.
The commercial team of the company is composed by four people, a commercial manager and three sales reps. In addition to their own sales team, they have an extra 6 external sales reps for Spain looking for a better coverage of certain territories like Madrid, Galicia, Aragón, Catalonia and the Basque Country and another sales rep working in the Portuguese market. All sales reps have signed an agency contract that stipulates all conditions, objectives and payment terms.
The quality is a fundamental part of the corporative strategy: the company actually has the Quality Certificate ISO 9001 and the Environment Certificate
ISO 14001 granted by Bureau Veritas Human Resources policy follows the philosophy of the company: all employees work in a family atmosphere and are demanded a high implication.
Internal training is focused on the promotion of employees towards positions of greater responsibility.
The company has a custom-made ERP designed by one of the main companies on the Spanish market.
In summary, the company strengths are:
• New strategic approach in order to replace the company into a specific segment with smaller competitive intensity on the Spanish market.
• Family atmosphere and high implication of employees
• High optimization of processes and resources, especially in the stock management area.
• Modern and highly functional facilities.
• Own designing team.
• Know-How and experience in collaboration with Chinese manufacturers and suppliers.
• Custom-made ERP adjusted to the group’s needs that allows a tighter activity control.
• Located in one of most important footwear industry clusters in Spain, recognised at an international level.

Property information

Real Estate:

Real Property Included

Location:

Headquarters are located in the southeast of Spain (Alicante), where approximately half of all Spanish footwear production is concentrated, as well as the biggest footwear exporting firms in Europe.

Other information

Expansion potential:

• Expansion in the domestic and foreign markets alike, focusing the efforts on commercial
matters
• Increase sales network, planning required personnel and travels to make.
• Portfolio improvement, with more in-house designs.
• Product quality and service level improvement, with more time dedicated to activity controls.
• Europe as a long term target, after consolidating the Spanish market.
• Improve brand image by a more focused advertisement and communication effort.

Competition / Market:

• Entry of new competitors. • Industry crisis in Spain (even if this crisis has not affected the company due to its specific business model).

Support & training:

1 year full support

Reasons for selling:

Other business.

Related documents:

• 
• Financials

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