50 | 2011 Annual Report - Camargo Corrêa S.A.
Camargo Corrêa Group also operates in apparel, footwear, and accessories through Alpargatas S.A., which manages brands associated with innovation, design, technology, and communication: Havaianas, Dupé, Topper, Rainha, Mizuno, Timberland, and Sete Léguas.
The share price appreciation of over 15% and the 23% return on capital are unquestionable signs of Alpargatas’ success in 2011. These earnings stem from a consistent business strategy systematically carried out by a excellence-driven team that is grabbing the favorable opportunities of increased domestic consumption in Brazil.
Alpargatas’ strategy to be a manager of leading brands is to consolidate its leadership on the Brazilian footwear market, to expand internationally, and to increase the product offer, both in apparel and footwear. The company intends to go global in apparel and footwear, relying on a solid retail chain of its own.
To sustain this strategy, Alpargatas invests about 2% to 3% of its revenue every year in research, design, and development. It also invests significant amounts in point of sale materials and advertising campaigns to highlight the brands’ qualities.
Alpargatas has all elements required to fulfill its vision. It has 17.6 thousand skilled and motivated employees, and has established a history of success in development and management of brands and consolidated its internal processes. In 2011, the company conducted several structuring projects to sustain its pace of growth, including new logistical and industrial sourcing processes, a global management platform, and the Global Financial Planning (Prophyx). Moreover, it has a sound financial balance allowing to search for opportunities to acquire leading brands in Brazil and abroad.