2. Understanding the governance of fashion production in the footwear industry From a firm centred approach to the analysis of the innovation system of the footwear production

3. Footwear Manufacturing Technological Development and Research New Materials Machinery and Equipment Industries Footwear components Labour Market Industrial Policies Colours and shape committees Schools of fashion and Design Fashion Trends Offices Designers/ Stylists Fashion Media Fashion Subsystem Manufacturing Subsystem Distribution networks and logistics Consumption Markets - Retailing networks Consumption Subsystem Social and cultural context Footwear Fashion Fairs Gatekeepers Footwear-Fashion Innovation System: Three main Subsystems and dominant connections: (What influences what in terms of fashion production?)

4. ECCOs Design Centre FUTURA (Denmark) Local and European fashion Atmosphere Fashion sources ECCO Group - Industrial Organisation HQ - Denmark Components : ECCO Leather Research Development Centre (The Netherlands) Independent suppliers (Co-operation Agreements) Machinery Equipment: ECCOs R&D activities Independent suppliers Strong Associations Industrial strategy based upon Brand/ Product concept OOther Subcontracting Indonesia ECCOs factory (Tasks) Footwear production Thailand ECCOs factory Portugal ECCOs factory Slovakia ECCOs factory Multi-plant corporation Part-process spatial structure of production Retailing ECCO retailing network Big Retailers Small Retailers

5. Footwear Manufacturing Vertical Integration ( part process spatial structure ) New Materials Labour Market Industrial Policies Colours and shape committees Schools of fashion and Design Fashion Trends Offices Designers/ Stylists Fashion Media Fashion Subsystem Manufacturing Subsystem Consumption Markets - Retailing networks Social and cultural context Footwear Fashion Fairs Technological Development and Research Footwear components Distribution networks and logistics Machinery and Equipment Industries Own resources - very strong control Own resources - strong control Partnership Consumption Subsystem ECCO Group: Position within the footwear fashion innovation system (In which axes does the firm exercise any sort of control?) Machinery-Equipment Fairs

6. AEROSOLES Design Centre (Italy - Florence) Italian fashion Atmosphere Fashion sources AEROSOLES PORTUGAL Group - Industrial Organisation HQ - Northern Portugal Components : Joint Venture with an Italian company (soles) Independent suppliers Machinery Equipment: AEROSOLES R&D activities Independent suppliers Industrial strategy based upon Brand (license) / Product concept Ukraine (Subcontracting) Footwear production Poland (Subcontracting) Portugal ( AEROSOLES Grp. factories ) Portugal (Subcontracting) Multi-plant corporation Strong national and international subcontracting links Retailing AEROSOLES retailing network Big Retailers - exclusive contracts (UK, Germany) Vietnam (Subcontracting)

7. Footwear Manufacturing Subcontracting (part process spatial structure New Materials Labour Market Industrial Policies Colours and shape committees Schools of fashion and Design Fashion Trends Offices Designers/ Stylists Fashion Media Fashion Subsystem Manufacturing Subsystem Consumption Markets - Retailing networks Social and cultural context Footwear Fashion Fairs Technological Development and Research Footwear components Distribution networks and logistics Machinery and Equipment Industries Own resources - strong control Own resources - medium control Partnership Consumption Subsystem AEROSOLES PORTUGAL Group: Position within the footwear fashion innovation system (In which axes does the firm exercise any sort of control?) Machinery-Equipment Fairs

8. Very small in-house department Dependent and imitative strategies of creativity Fashion sources CAMPOR - Industrial Organisation HQ - Northern Portugal Components : Very dependent from independent suppliers Machinery Equipment: AEROSOLES R&D activities Independent suppliers Industrial strategy based upon Brand (license) / Product concept Footwear production Portugal (Campor f actory ) Portugal (Subcontracting single tasks) single-plant enterprise regional subcontracting links Retailing national independent small and medium size retailers European small and medium size retailers network

9. Footwear Manufacturing In-house production and subcontracting (single establishment) New Materials Labour Market Industrial Policies Colours and shape committees Schools of fashion and Design Fashion Trends Offices Designers/ Stylists Fashion Media Fashion Subsystem Manufacturing Subsystem Consumption Markets - Retailing networks Consumption Subsystem Social and cultural context Footwear Fashion Fairs Technological Development and Research Footwear components Distribution networks and logistics Machinery and Equipment Industries CAMPOR: Position within the footwear fashion innovation system (In which axes does the firm exercise any sort of control?) Own resources - weak control Machinery-Equipment Fairs

10. 1) Very small in-house department; 2) Link to an Italian Design Office (contract); 3) Partnership with a Portuguese Designer Fashion sources EVEREST - Industrial Organisation HQ - Northern Portugal Components : Very dependent from independent suppliers (mainly Italian suppliers) (Commercial contracts) Machinery Equipment: Dependent from Independent suppliers (Italy / England) (Commercial contracts) Industrial strategy based upon Quality of the product /comfort Footwear production Portugal (Everest f actory ) single-plant enterprise Retailing independent footwear shops (Portugal) French medium size retailers network using private labels Very dependent from outside firm creativity

11. Footwear Manufacturing In-house production (no subcontracting) (single establishment) New Materials Labour Market Industrial Policies Colours and shape committees Schools of fashion and Design Fashion Trends Offices Designers/ Stylists Fashion Media Fashion Subsystem Manufacturing Subsystem Consumption Markets - Retailing networks Social and cultural context Footwear Fashion Fairs Technological Development and Research Footwear components Distribution networks and logistics Machinery and Equipment Industries EVEREST: Position within the footwear fashion innovation system (In which axes does the firm exercise any sort of control?) Own resources - weak control Consumptio n Subsystem Machinery-Equipment Fairs

12. Italian Stylist Fashion sources J. SAMPAIO & IRMÃOS - Industrial Organisation HQ - Northern Portugal Components : Dependent from independent suppliers (Soles - Italian suppliers; Leather - Italian and Spanish suppliers) (Commercial contracts) Machinery Equipment: Dependent from Independent (Commercial contracts) Industrial strategy based upon Flexible system of production Footwear production Portugal (J. Sampaio f actory ) single-plant enterprise Retailing (instability in the set k of clients) own brands but also very dependent from producing to other brands (private labels of small and medium size retailers) Big retailers Portugal (Subcontracting - heavily dependent) Copy from others manufacturers (Imitative strategy ) +

13. Footwear Manufacturing In-house production and heavily dependent from subcontracting New Materials Labour Market Industrial Policies Colours and shape committees Schools of fashion and design Fashion Trends Offices Designers/ Stylists Fashion Media Fashion Subsystem Manufacturing Subsystem Consumption Markets - Retailing networks J. SAMPAIO & IRMÃOS: Position within the footwear fashion innovation system (In which axes does the firm exercise any sort of control?) Social and cultural context Footwear Fashion Fairs Technological Development and Research Footwear components Distribution networks and logistics Machinery and Equipment Industries Machinery-Equipment Fairs Own resources - weak control Consumption Subsystem

14. Strong capacity of innovation and creativity Fashion sources CALZEUS - Industrial Organisation HQ - Northern Portugal Components : Dependent from independent suppliers (mainly Italian suppliers) (Commercial contracts) Machinery Equipment: Own R&D development Dependent from Independent (Commercial contracts) Industrial strategy based upon design, branding, produt concept Footwear production (based on small batch production) Portugal (Calzeus f actory ) single-plant enterprise Retailing own retailing network (and franchisees), mostly in prime locations multi-brand retailers network of exclusive distributors Portugal (Outsourced) Strong partnerships with independent Designers (Japan, England)

15. Footwear Manufacturing (Based on a very effective flexible system of production) New Materials Labour Market Industrial Policies Colours and shape committees Schools of fashion and Design Fashion Trends Offices Designers/ Stylists Fashion Media Fashion Subsystem Manufacturing Subsystem Consumption Markets - Retailing networks Social and cultural context Footwear Fashion Fairs Technological Development and Research Footwear components Distribution networks and logistics Machinery and Equipment Industries Consumption Subsystem CALZEUS: Position within the footwear fashion innovation system (In which axes does the firm exercise any sort of control?) Machinery-Equipment Fairs Own resources - very strong control Own resources - strong control Own resources - medium control

16. Footwear manufacturing Knowledge Governance in the footwear industry The fashion case Partnership associations (strong networking) Cost saving associations (weak networking) price, capacity to answer orders timely and according to technological requirements Local - very often Low wage countries Unskilled/ordinary tasks Asymmetric relations of power (industrial, knowledge, technology) Capacity of innovate and development assistance Non-local (inter-regional/national) highly developed regions Strategic phases/processes of production (More) balanced relations of power (industrial, knowledge, technology) In-house abilities (competence, development, creativity) Retailing networks domination Branding