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Somnio to adopt distribution model in Europe
Shoe brand Somnio will adopt a distribution model after closing its European operation; leaves door open for return
Somnio Shoes will adopt a distribution model in Europe after closing its European operation.
Somnio Europe AG was closed after struggling with ‘insurmountable production and delivery issues’. In the UK, its first delivery of 220 pairs of shoes was due to go into four retail partners at the start January with a further delivery of 160 pairs scheduled for March.
Danny Orr, former global product manager at Somnio, said due to production issues in the Far East out of its control, the first shipment did not arrive until mid-March.
Orr is now working as managing director of Somnio Europe, which will remain in name although the business has closed. He said: “We had problems getting hold of shoes, which has forced us to re-evaluate our position and close our European business.
“We had sales guys in the UK and across Europe. This meant we had costs, but weren’t able to sell anything. We weren’t even getting close to breaking even, which meant we couldn’t carry on.
“It made sense to cut our costs back and now we’re in talks with distributors to spread our coverage across Europe. Products will come from the US, where all the paperwork and administration will also be handled. We will be able to better manage costs that way, while distributors will be able to focus on their own markets.”
Orr added that the future may see Somnio Europe return as a business in its own right. Somnio's US operation is already working on improving its production practices in the Far East, and is working with two new factories.
This, Orr said, will hopefully be supported by an increase in sales volumes through its distribution network in Europe.
“The brand goes on, and it’s still a viable business. If all goes well, we’ll be able to come back and start selling direct into European markets again.”
