By Michelle Tay

No one should have to buy a €400 (S$835) pair of luxury shoes only to finish up with smelly feet, says Mr Mario Moretti Polegato, the founder and president of Italian shoe brand Geox.

The Straits Times got a whiff of Mr Polegato's business philosophy when he was in town yesterday to attend the Forbes Global CEO Conference.

A "breathable shoe" technology and mid-range prices are what has helped his company maintain growth of more than 20 per cent each year, he said.

Indeed, nobody likes smelly feet.

Geox, founded in 1995 based on a patented technology, is Italy's top-selling shoe brand, racking up sales of eight million pairs a year. It was also Italy's fastest-growing fashion company last year. With year-on-year growth of 25.8 per cent, it beat well-known Italian luxury labels such as Tod's and Prada. Even No. 2 Dolce & Gabbana grew by a significantly less 19.9 per cent.

Geox has met with similar success in Singapore since it opened its first store here in 2005. Sales quadrupled after the first year of operations alone and turnover this year so far stands at €1.28 million. It has six stores now, and plans to have 10 by 2010.
"The key to our success is our technology, because the shoe business is very flat," said Mr Polegato, 56.

In an interview with The Straits Times in 2006, he explained how patenting his technology might have been a life-saver: "People think first about fashion, food and la dolce vita (the sweet life) when they think of Italy. But they forget that the Italians invented pizza and espresso, and still we're not rich. Instead, the people behind Pizza Hut and Starbucks are."

That is why Geox invests 3 per cent of its annual turnover - €770.2 million last year - in research and development. Each of Geox's patents is valid for 20 years.

The brand's mid-range prices also put it in good stead as more people can afford to buy its products, said Mr Polegato, whose vision is to grow his budding apparel division so that shoes and clothes each contributes half of turnover.

Currently, shoes - ranging from semi-casual to leather loafers to fashionable boots for men, women and children - contribute 93 per cent to turnover. Apparel makes up 7 per cent while his latest venture, sports shoes, has yet to take off.

His foray into apparel - so far just casual jackets - has proven his "holey" technology is not just good for the feet.

Geox's jackets have a special lining that reduces perspiration by 40 per cent as compared to a normal jacket, he said.

Last year, Geox sold 1.5 million pieces in Italy alone. It will launch the line in Singapore in the first half of next year, with a price range of $250 to $300.

Asked what other new technologies are in store, and Mr Polegato looks almost overwhelmed: "We are present in 11,000 multi-brand stores in 68 countries. Thirteen years ago, Geox started from zero. In 2007, we sold 21 million pairs of shoes all over the world in 2007."

"This is enough."

This article was first published in The Straits Times on September 10, 2008.