On March 24th we will have the last seminar of the cycle “Internationalization experiences with success” with the presence of Basilio García, CEO of the Hergar Group, one of the most recognized firms of the shoe sector.

What Callaghan is?

Callaghan visites Global MBA International BusinessBasilio Garcia, together with his brothers, heads this family firm created by his father, Basilio García Pérez-Arados in 1968. This firm has developed brands such as Tanke in 1977 or Callaghan in 1987, and in 1991 they bought Gorila’s brand created in 1942.

This firm located in La Rioja has been able to adapt to the new business circumstances of the shoe sector. Having suffered, as many other firms, the negative impact of the economic crisis, it has faced it with a view in the international markets.

Callaghan and the international market

They have presence in all around the world, and as they explain in their website, they have more than 3000 sales points globally. Special attention deserves the expansion in China, where they have suffered from several difficulties but where they have 12 shops now, and Italy, a market in which apart from Spain they have a high presence. Next destinations are countries such as Morocco and Chile.

This situation has made possible that about the 30% of the sales come from foreign markets. In order to do so, they have used different entry modes. Own shops, sales in multi-brand stores, or the use of the online channel. Moreover, since 2014 they have started an expansion process via international franchises in order to increase their national presence and leverage their presence in emerging countries.

With about 140 employees, the Hergar group produces in Spain. Thanks to it the group can control the production and can give a fast response to the market needs minimizing the stocks. Nevertheless, some series are produced in other countries. All in all, they have an annual production of almost a million of pairs, 700.000 pairs corresponding to the Callaghan brand and 300.000 with Gorila.

During this seminar, Basilio Garcia will tell us this evolution and he will explain which factors are behind the decision of using international franchises to accelerate the international process of the firm.