Schmid, a new beginning

The history of an Italian company with a German name that operates as an Italian partner in the world

The Schmid brand was officially founded in 1942 by Walter Schmid, a Swiss German who arrived in Italy to open a representative office of technical articles for the footwear industry. Reinforced sheets, sewing thread, buckles and buttons were soon joined by fabrics and materials designed specifically to construct uppers.

At the end of the 1980s, the company’s important clientele and good profits brought it to the attention of some financial investors.

The company was sold in the early nineties, but without the inspiring presence of the founder and in a market very different from the one that could be managed by the company’s resources, it began to decline. During this period, the company saw some equity transfers and a worsening of the financial crisis; the turnover and margins decreased significantly.

The turning point came in 2011 when the French fund, the leading shareholder at that time, entrusted the presidency to Paolo Ciccarelli (former Chief Financial Officer of the London Stock Exchange Group and Barclays), in agreement with the other shareholders. An expert in extraordinary operations, he initially dedicated himself to the financial issues and governance of the company.

Meanwhile, additional conditions came into existence and, with the agreement of the majority of shareholders, from December 2013, Paolo Ciccarelli organised and implemented a recovery plan for the company and transferred the ownership to a group of four shareholders who wanted to invest time, resources and expertise in the “new” company.

Today Schmid is owned by four shareholders, two of which, the President and General Manager, are directly involved in the company’s ordinary and strategic management.

Thanks to two years of intensive turnaround work, 2015 will see a Schmid that has been reorganised in corporate, production, commercial and organisational terms. This has led to the creation and realisation of brand development and marketing plans and diversification in sectors not traditionally belonging to the company’s core business, but that promise interesting growth in terms of sales and margins.

These plans are not only based on the absolute centrality of the customer/product/service factors, but also on a profound transformation of the corporate culture. In fact, the daily commitment also focuses on consolidating a different kind of mentality, where the emphasis is not so much on covering a role, but on the way in which employees perform their job and push others to do likewise.

From here comes a team that addresses the problems and identifies common solutions, with an open dialogue between the various functions within the company.

Customer service

Since the beginning of the new company, the focus is on the combination between product, service and quality, and on the ability to innovate and present, season after season, new and interesting proposals and products.

To better serve customers, Schmid has divided its customers into two main categories: big fashion houses, which do not need Schmid to create their collections, but require technical support and incentives to propose new products; and other manufacturers, which must be able to innovate their collections without necessarily investing in resources usually available only to big brand names.

To meet both of these requirements, Schmid collaborates with stylists and cool hunters who can provide guidelines along which the company’s product department can develop new proposals and

suggestions. Without neglecting the constant presence at major trade shows in Milan and Paris.

This new approach also extends to business communication. The 2015 Trend Book prepared by Schmid will be an “event” in the footwear industry, while the company completely revamped its

website (www.schmid.it) in 2014, making it available on tablets, computers and smartphones.

Today Schmid intends to become, by 2015, the most important converter company in the footwear industry. Its strategy will be based on delivering catalogue products within certain dates (in some cases, immediate) and on a high level of certified quality. To reach these objectives, the company has been using a special tool (the Management Resource Planning – MRP) which allows it to organise the entire purchasing process and make it more effective, efficient and transparent.

All within a newly redefined business context with operating functions (purchases, production and logistics, commercial and administrative) and staff functions dedicated to product innovation and communication.

Article from the Arpel magazine 202