Innovation Spurs Sandal Manufacturing

Transforming a company’s mindset, from producing a basic product to the manufacturing of higher added value products, is no easy feat and involves a change in the mindset of everyone in the organization, says Josemaria Covarrubias, CEO of Grupo Industrial Viniteck. “The change in mindset does not happen overnight. It entails confronting the ideology from everyone on the team, from the design and development team to the people operating the machines.”

Viniteck, a Mexican company founded in 1952 that specializes in the design and production of rubber and plastic footwear solutions, has been working for 10 years on the design and manufacture of its own value-added brands to reach new market segments. “We have been developing our own brands for several years but have fallen short of reaching the middle and upper-middle markets. By 2020, however, we will launch four new brands to cater to this segment,” says Covarrubias.

The company has developed three business pillars that Covarrubias says have been key for the growth of the business: mass market, private label and development of own-brands. “Our largest business is mass market, in which we manufacture products for supermarkets, department and sports stores.” Though Covarrubias says that the company has strived to find a balance in its overall operation, mass market sales provide stability in terms of manufacturing. “Given that we sell seasonal products, throughout the year we experience ups and downs in our production. Mass market clients provide us with a degree of stability.”

The second pillar to which Covarrubias refers is private label, which entails requirements from different brands for manufacturing and even licensing for commercialization processes. “Private label is the second step we have taken within the professionalization we have strived for within the company.” Still, Covarrubias says that it is not the company’s preferred road. “It entails significant work and generation of added value for other brands.”

Instead, Viniteck has worked to develop added value products among its own brands. “This is our most strategic pillar. We want the added value we generate to reach our final consumer through our own brands,” says Covarrubias. “Though we have been focusing on developing our own brands for several years, we usually focused our production to a middle-low market segment. Which is why the shift we are making is very relevant.”

To make the shift successfully and follow market trends, Covarrubias says the company has worked heavily on innovation. “At first glance, sandals are very easy products. However, there is more to them,” he says. For Viniteck, there are key areas in which Covarrubias says the company pays close attention: state-of-the-art equipment, development of new products and use of innovative materials. “When I took over the company, around 95 percent of the products that we manufactured were basic products of a single color with no model variation,” says Covarrubias. However, in 2018 alone, Viniteck developed over 2,200 new models. “We have an in-house design team and we also work with other design companies. This allows us to develop over 22,000 SKUs.”

Given that Viniteck’s main product sourcing is rubber and plastic, Covarrubias says the company is forced to innovate in the products it uses. “Since our product is based on the use of polymers, we have to explore new compounds that are more durable and softer to the touch,” explains Covarrubias. As part of the product innovation that comes from compounds, Viniteck develops new formulations for soles and straps, which lead to the development of new products. “We are in the process of developing a polymer without PVC and thermoplastics. We want to innovate in the foundation of our product, which is materials.”

Environmental considerations are another factor. “Regardless of the fact that taking care of the environment is in our DNA, we work with several companies and brands that are pushing us toward the development of sustainable products,” says Covarrubias. Its efforts include the development of PVC-free materials, the use of biodegradable polymers and new formulations that use 100 percent recycled materials.

With commercialization operations not only in Mexico but also in North, Central and South America, Covarrubias says the company is in the process of developing strategic alliances with business partners in Spain, France, Italy and the UK. “Today, 85 percent of our production is for national consumption, but we hope that by 2025, 50 percent of our production will be sold abroad.” The company has already developed agreements with two of the most recognized sandal brands in the world and by 2020 it expects to supply the largest shoe company in the US.