ECCO is a Danish shoemaking and retailing company that was founded by Karl Toosbuy in Bredebro, Denmark in 1963. The company’s vision is to be the ‘most wanted brand within innovation and comfort footwear’ – which they intend to attain by constantly and courageously researching new paths, investing in employees, in core competencies of product development and production technology. While trends in the market with regards to fashion and elegance are deemed important, usability has been ECCO’s highest design priority.
By 2004, ECCO had its main markets in the US, Germany and Japan and worked constantly on creation of new markets with emphasis on regions like Asia, Central and Eastern Europe. The financial ownership was …show more content…
The Thai unit encompassed both tannery and assembling operations. This unit was a success story in terms of output, employee satisfaction and size. Employee turnover was low and the number increased progressively every year. Also, ECCO discovered that the Thais were good at observing minute details and exhibited high level of skill. Consequently, ECCO focussed production of golf and advanced trekking boots here.
Set up in 1998, the unit in Slovakia was mainly concerned with assembly and to a smaller degree, shoe uppers. In addition to providing lower cost labour, the unit had the advantage of being located close to the important markets of Poland and Russia. The facility would act as a backup to possible political upheavals in Asia and mitigate the uncertainties arising from unforeseen interruptions.
Although not established by 2004, production facilities had been finalized and planned to be set up in China. ECCO had chosen a site at Xiamen, just North of Guangdong which was supposedly a small yet vibrant community which showed promise and potential. Full scale units supported by an advanced tannery was what ECCO had planned for. The units would serve exports as well as cater to the local markets.
Why ECCO should start production in China: * China had recently gained entry into the WTO which allowed for 100% foreign ownership of operations. This was in keeping with their core focus of in-house