ECCO Shoes celebrated its 50 years anniversary in 2013. With a humble gesture, the Danish
shoemaker was established by the founder Mr. Karl Toosbuy in the rural Southern part of Denmark
dated back to 1963. At present, ECCO as a family-owned company, builds its worldwide presence in 90
markets across 5 continents. From ECCO’s annual report (2010-2014), the net revenue broke the record
consecutively in the last five years and achieved successful result of EUR1169157000 in 2014. The
company just spent the most glorious period in the past decade and ready for move on. Nevertheless,
ECCO is facing a wealth of challenges in the mid of the dynamics of global economy in terms of its
The factory opening in 1960s Denmark
The main reason of the selection of ECCO Shoes as the organization is its unique company set-up and the
newest 2020 strategy.
Shoe is a key component in the broadly speaking apparel and fashion industry. In a nutshell, everyone
needs shoes, the global footwear industry continues to see the positive result with roughly 2% growth
in 2014 (Ivan, 2014), but already step into a saturation stage without significant revolution recently.
Global markets share was controlled by 33% in the USA, women was accounting for 53% of the
china shoes wholesale market online segments in terms of sales last year (Zhou, 2018).
Apart from women, mens and kids cheap shoes, ECCO’s product range also incorporates accessories and shoe
care products. Overall the wholesale industry can be characterized by a high level of fragmentation and
diversification, standardized shoe and accessories business is produced in large volume, exclusive
cheap collection and high-end products are produced in low volumes. With few barriers to entry, many
competitors attempt to stake a claim in the multi-billion dollar industry (Sweeney, 2019).
In fact, ECCO identifies itself as a producer of shoe and leather goods (ECCO Linkedin, 2019). More
interestingly, ECCO is one of the few major shoe manufacturers in the world to own and manage every
step of the shoemaking process. Additionally, ECCO can be seen as a high street retailer from a
Key success factors for the industry:
Consumer demand: Consumer are looking into niche design and fast fashion trend nowadays,
differentiation and availability are listed on the top index regarding customer attractiveness and
retention, which requires a company to be innovative and technology-forward, as well as sustain itself
with sufficient capability and flexibility upon manufacturing, logistics and wholesale marketing.
Omni-channel: Connect online to offline and vice versa, what we called the new nature of the retail
will seamlessly integrates different touch points and fundamentally change business models across time
zone, territory and virtual reality.
Globalization: The home markets for European retailers are slowing down and becoming saturated.
For ECCO, its Asian performance particularly China showed double digit growth in the last few years
(Annual report, 2012-2016). However, sales figure in traditional markets like UK and Germany
performed a shrinking direction. Across Atlantic, USA overcame the recession since 2018, became the
pilot market and a good performer due to less complexity of culture and language.