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Basilio García, CEO of the Hergar Group, live on World Footwear

Apr 21, 2015
Basilio García, CEO of the Hergar Group, live on World Footwear
The Spain-based group owns two brands, Callaghan and Gorilla, and has been in business for almost 5 decades. Mr Basilio García is the son of the founder and current CEO of the group
The Hergar Group was created in 1968 by Basilio Garcia Perez-Aradros, an entrepreneur and great lover of shoes based on Arnedo-La Rioja. The Hergar Group set up as its own objective to create differentiated products, combining the most skilled artisan tradition and offering high consumer value.

With this philosophy the group has launched the brand Tanke in 1978, whose design was inspired by hunting boots made from high quality waterproof leather and sewn by hand. It was a commercial success because of its strength and durability.

The creation of the Callaghan brand in 1987 together with the acquisition in 1991 of children’s brand Gorilla,  would represent the turning point for the Group.

Continuing its strategy of differentiation through research and development of new technologies, the group launched in 2004 the internationally patented Callaghan Adaptaction technology that would mark a key milestone for the group. With the Callaghan Adaptaction "the shoe that conforms to the foot" the Group believes they have answered a concern for specialized footwear by creating a product with unique features in the market and providing comfort.

The Callaghan brand has experienced a tremendous growth in recent years, exporting a 30% of its production out of Spain, specially to China where the company has more than 30 stores open.

With two brands in its portflolio, Callaghan (adult) and Gorilla (children), and a Museum dedicated to footwear, the group with 47 years of existence is in the hands of the same family. We spoke to Mr Basilio García, the group's CEO and son of the founder, to learn more about the group, the performance in 2014 and the expectations forthe future.

You come from a family with long tradition in the footwear industry. Please tell us a bit about your background and your experience in the Hergar Group.
I started to work in the factory when I was very young, first during the summer and then full time. I started in the production area,  dealing with different sections.
I really got to know how the company works. Then I was promoted to positions of more responsibility and I am currently CEO. We are, as you say, a family business. Me, and my 3 siblings deal with the different areas of the company, and we have our father's help (The founder of the company).

In your view what balance can be done to Hergar’s activity in 2014?
The company started with very small growth expectations, but from the second trimester, we were surprised by a significant recovery in our markets both domestic and export.

What characterizes and distinguishes the group’s two brands, Callaghan and Gorila?

Differentiation from other brands. Callaghan is the union between technology and design for everyday use, offering a mixture that is unique. The worldwide patented technology called Adaptation " the shoe that adapts to your feet" is our greatest difference if compared with the other competitors.
Gorila is distinguished by the quality of the product, as its claim says these shoes are children-resistant. Both are values that our consumers value positively.

Callaghan exports 30% of its production. In which markets is the brand revealing a better performance? In your view what new markets reveal more potential for Callaghan shoes?
Italy is our main market by far. It is a very competitive and demanding market, but on the other hand, they value highly our work. In the USA, we are in the process of looking for a distributor. It is the country where the spirit of Callaghan fits best. In France we are starting with good prospects, then there are several emerging countries in which we are growing and Asia of course.

Can you briefly describe us some of the activities in the pipeline for the Hergar group?
We develop our own technologies, not just the shoes, but also the software tools of business management , the Internet and the shops that we have. Focusing on the product, produce it on our factory in Spain from the very beginning to the end, from the first sketches, design, choosing the best leathers, the sewing process, shaping, boxing…and distribution.

In your view, what will be the main challenges for the European and worldwide industries in the next 5 years?
Well, it's a very interesting question. The most important and difficult is to move from a model that is based on presenting the different collections and selling, to one that motivates the demand. That requires a very large integration and the fact that all the people who represent this industry know that the king is the final consumer. We also have to learn to be more efficient, response more quickly to market and communicate to final consumer all values that our product has.

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