On 11 June 2006 GDS held the 8th GDS VIP Workshop at the 66th EXPO RIVA SCHUH event. A positive atmosphere prevailed throughout the discussions here which were attended by over 30 participants from trade, industry and the international trade press.

GDS VIP Workshop at EXPO RIVA SCHUH from 10 to 13 June 2006 in Riva del Garda

"Personal dialogue with the footwear sector is enormously important for GDS, especially at times where market structures are undergoing fundamental change,” said Kirstin Deutelmoser, Project Director of GDS, in her opening address to the workshop. She went on to explain that “it is as crucial as ever to be aware of the market players’ ever more differentiated requests, concepts and strategies. This helps us to forecast changes more precisely and to incorporate them into the GDS concept in ways best suited to the industry.”

The consultancy “HFU Hermann Fuchslocher Unternehmensberatung GmbH”, Düsseldorf, outlined the key issues in the workshop on the basis of current, representative market research:

For the 2006/2007 Autumn/Winter season and the 2007 Spring/Summer season the focus is on consumers’ limited – and now increasingly volatile – clothing budgets. VAT increases, rising energy costs, insecure jobs, the health reform and further tax burdens affect not only German consumers and their spending behaviour. These developments are also reflected in trade and industry and their noticeably changing information-gathering and ordering behaviour. Some segments are seeing marked drops in pre-season orders while splitting and pacing orders is on the increase. The result is all-year round planning and, currently, a growing demand for re-orders in the sector.

Market research shows that trade fairs as integrative events are in as high demand as ever in view of mushrooming smaller, new exhibition events and changed dates. Despite all the debate international trade fairs, in particular, live up to this task of integration. The influence of GDS on the industry is indisputed here.

The industry then addressed the topic of prices and the premature “collapse of prices” along the retail chain. Heinzpeter Mandl, board member at Leder & Schuh AG, advocates stressing quality and value for money more strongly in spite of all costing and pricing problems. Experts across the board agreed that costs and pricing should be seen to relate to performance: they said that building sustainable consumer confidence had to be the top priority despite the current competitive climate.

On the topic of innovation, new brands and market access participants discussed some retailers’ reticence towards new labels as well as their unwillingness to stock them. Here more open-mindedness amongst retailers would be desirable.

Another key topic was current re-orders. According to Horst Mengedoht, General Manager of Mengedoht KG, and Andreas Oehme, board member at shoe retailer FW Boehmer KG, it is currently indisputable that operations must also focus more on current-season orders. They both felt that it was necessary to enhance players’ ability to respond quickly to new trends and unexpected weather conditions in order to meet market requirements.

"Vertical operations”, in particular, show traditional shoe retailers and footwear manufacturers how quick-response, exact timing and selective ordering can make or break a business. However, outlet centres which have become associated with “excess output” and consumers’ behavourial patterns should not be underestimated either.

Participants at Riva concluded that structural change will continue in trade and industry. Summing up workshop results Karl-Friedrich Eichholz, a founder of Expo Riva Schuh, said: “Be it as a traditional retailer and wholesaler, shop or online via the Internet – the all-important value for money principle should not suffer despite all the restructuring. Consumer confidence plays a key role here. And trade fairs, in particular, will again assume a far more obvious pilot role for added value in the future.”

Experts agreed that an international trade fair today has to provide not only all-important assured planning and market-driven segmentation of ranges but also offer innovative enhancement. GDS fulfils all of these requirements. The new dates of GDS now scheduled from 15 to 17 September 2006 and from Friday to Sunday means this fair slots perfectly into the international calender of events. At the forthcoming GDS its clear segmentation into three core areas - Modern (with Exclusivity/ Topstyle, International Selection, Kids, Wellness & Comfort) Young (Lifestyle & Sports, Young Fashion) and Global Sources – will be extended to include an area themed around progressive brands, the so-called ‚white cubes’.

As in the past, GDS will once again rise to the challenge of changing targets and requests, meeting them efficiently and embracing innovation in sync with the market - while at the same time conserving its “groundbreaking role” that is so important for and to the sector.

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