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Skechers 1 Overview History

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Skechers 1 Overview History Overview Skechers U.S.A., Inc., is a worldwide designer, developer, marketer, and distributor of casual, active, and dress style footwear. The company’s products are designed to appeal to active, fashion-conscious consumers at affordable prices. History Robert Greenberg founded Skechers U.S.A in 1992 immediately following his forced departure from L.A. Gear. To kick things off, Skechers started with the primary market focus on men, specifically in relation to the production of an innovative, stylish street shoe. Little headway was made during 1992 and 1993 because the Skechers CEO, Robert Greenberg, had started to own and market various brands like Cross Colours, as well as Karl Kani, taking his focus away from the Skechers brand. In 1993, the first boom for Skechers came with the ‘Chrome Dome’, a unisex, grunge style boot. These boots, worn with the trendy ripped jeans established the 1993 style norm and branded Skechers as a trendy company. This move put Skechers on the retail map, as they were soon carried by Foley and Nordstrom. By 1995, the Skechers brand had established clout, which could be credited to the CEO Robert Greenberg, and his son Michael, who carried the title of Skechers President. May of 1995 marked the first big innovative push when Skechers signed agreements to produce casual clothing for boys and men for Genova Incorporated and Signal/ American. Starting in 1997, Skechers began selling to Southeast Asia and Eastern Europe, the origin of their already established manufacturing plants. Surprisingly, within a year the overseas sales made up 15% of the Company sales. Only six years into the company, Skechers had 2,200 accounts … [and] had also opened more than 30 of its own stores. (Skechers History 2000). By April, Skechers was making power moves, putting itself in direct competition with Reebok and Nike. Skechers rented out the previously Nike housed, 54,000 square foot space at the World Congress Center of Atlanta. This was a trade show space, and it proved suc- cessful in the breakthrough, 2 million dollar buy that helped Skechers establish itself as an athletic footwear powerhouse. By September, the company was offered its own space with the Macy’s central New York Location, while many other brands fought for attention. Then, Skechers filed two copyright complaints against Candies and Payless Shoe Source for infringement of a feature of the Skechers Shape-Ups. In summary, Skech- ers in 1998, chose to focus on quality control of existing accounts and new product line development into ‘womanswear’, rather than open new accounts. With these existing lines, a new women’s line, as well as a children’s’ line, they collectively de- veloped 300 styles by the close of the year. Skechers 1 Here comes a year of change, the year of 1999. Skechers pushed out a campaign titles, “Skechers hooks you up from head to toe”. They teamed up with sprint and Motorola for free promotional items for anyone buying the Skechers brand in the Nordstrom store. 1999 is the same year that Skechers went public, starting with sev- en million shares at $11 each. At the turn of the century, Skechers signed an e-com- merce agreement with America Online, as well as opened 3 retail stores in 3 heavily populated places: New York, Tennessee, and Florida. One year later in 2001, the company entered the UK market, opening up possibilities for growth in London, Paris, and Germany. This was also the year of the first concept store, which came together in Texas. First Canadian retail store opened in 2002. The company expanded its European market substantially, and the launched a new product line called Skechers Work, aimed at blue collar workers in the service and utility industry. Another newly pro- duced line was Skechers Active, a line of casual sneakers for women. In 2003, Skechers entered into several agreements to license Skechers products. The first agreement was with Paul Davril for the SKX USA men’s and women’s casual sportswear. This year also benchmarked the first International Licensing through Mit- sui & Co for SKX branded men’s, women’s and children’s apparel in Japan. Last but not least, Skechers completed an agreement with Federal Jeans for the line, “some- thing’ Else”- a product line in the Skechers branded junior sportswear apparel in US and Canada. In 2004, Skechers signed an agreement with United Legwear for kids’ socks in US and Canada, with all the design, distribution and marketing done by United. Between 2005-2010, Skechers signed many licensing agreements that further increased mar- ket share internationally. However, in 2011, the Footwear powerhouse filed a lawsuit against Sears Holding Corporation for infringing on three product lines sold at Sears and KMart and Online under different product names. 2012 was the year Japanese business moved from 3rd party manufacturing to Ske- chers Japan. Playing with fire previously, Skechers settled domestic legal proceed- ings relating to advertising claims where there was false marketing in the form of promising a “toning-shoe” product. This was most notably a tank for the Shape-Ups. Also in 2012, Skechers signed marketing agreements with big names such as Mark Cuban, Joe Montana, and Tommy Lasorda for the global launch of a new line, Re- laxed Fit from Skechers Footwear. E-commerce sites went up in UK and Germany, while Skechers begun the unveiling 2 lines of low-top sneakers and boots. These were for two target markets, 20-34 year olds and juniors. (Juniors meaning children). 2013, Company announces multi-year partnership with the Houston Marathon Com- mittee, starting the process of Skechers performance division becoming the official footwear and apparel sponsor for the Chevron Houston Marathon. 2 Skechers 2014 was a massive year for Skechers. In May 2014, Skechers publicly spoke about an interest in the LA Clippers. By June, Skechers had filed a lawsuit against Reebok Inter- national for footwear infringing on Skechers GOwalk. One month later, in July 2014, the company filed a lawsuit against Fila USA for footwear infringing on the GOwalk product line. In the same month, Skechers announced the expansion of European distribution center in Belgium, adding a 25,000 square meter facility, making in the largest company operated facility in the region. In September, The footwear mogul filed a lawsuit against DB Shoe Company for infringement on Skechers GOwalk. In November 2014, Skechers opened the Mexico store, making it the 1000th store. In January of 2015, Skechers Performance became the Official footwear and apparel sponsor of the Chevron Houston Marathon, as well as making all of its Central Eastern Europe Distribution from 3rd party to Skechers CEE. Organizational Structure Skechers U.S.A. Inc. is run by founder and CEO, Robert Greenberg with his son and current president of the company, Michael Greenberg, by his side. Together, they are responsible for overseeing the responsibilities of the entire company. Under Robert and Michael Greenberg falls Skechers’ executive employees who take care of specific, day to day operations of the company (Skechers USA Inc. CI A.). Skechers has a Board of Directors whichw is made up of nine members, three of which are Greenbergs. With Greenberg’s five sons, his daughter, and a niece all working for the company, Skechers could be described as a family business that also happen to be an international compa- ny (Gillio, M. E.). Skechers U.S.A. Inc. has a wide reach. The company sells its footwear in department, specialty and independent stores, as well as through more than 1,100 Company-owned Skechers retail stores and online at skechers.com. Skechers’ accounts include Gen- esco Federated, the May Company, Dayton-Hudson, Dillard’s, Nordstrom, Woolworth Corporation, Foot Action, Macy’s and Finish Line. Among the over 1,000 Skechers stores operating in over 50 countries across 6 different continents, more than 500 loca- tions have opened through partnerships with experienced retailers (By The Numbers). Beyond the United States, Skechers’ products are available in more than 120 countries and territories through an international network of subsidiaries in Canada, Brazil, Chile, Japan, and 27 countries in Western and Central Eastern Europe, as well as through joint ventures in Asia and distributors around the world. Some of Skechers’ subsidiaries include Skecher International II, Skechers Sport LLC, Skechers By Mail Inc., Skech- ers U.S.A., Inc. I, Skechers USA France SAS, and many more (SUBSIDIARIES OF THE REGISTRANT). Skechers is headquartered in Manhattan Beach, California. It is traded on the New York Stock exchange under the the symbol SKX (Skechers USA, Inc.). Skechers continually seeks international franchisees that share their strategic philosophy and would like to open Skechers retail stores in up and coming markets. Skechers franchisees are sup- ported by Skechers as each location is backed by a $2 billion footwear companies’ marketing assets, merchandising know-how and operating efficiencies (Skechers USA, Inc.) Skechers 3 Skechers marquee stores, among Skechers’ global retail presence, are found in high profile, high traffic, high tourist locations. Their retail store formats include concept locations and outlet locations. Concept locations are destination centers for consum- ers that serve as a living catalogue for the latest trends. They focus on eye catching presentations. Outlet locations are found in major premium outlet centers. Outlet locations are known for style and value as well as their efficient, impactful self-serve layouts (By The Numbers). Goals and Mission The company’s mission statement is “to be the first choice of Skechers footwear by providing an exceptional and exciting customer experience for the entire fami- ly.” Along with their mission statement, their strategic intent is “to become the most successful footwear company worldwide, by operating a high-performing, custom- er-driven business that sets the standard in every market we serve.” Both of these statements hit a couple of common key points or ideas.
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