Shoe Sales With Soul

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It was one of those classic moments of entrepreneurial inspiration.

Two years ago, Monica Gonzales was shopping for shoes for her 2-year-old daughter when nothing fit quite right. So Gonzalez realized she just as well should make them herself.

The thought wasn’t completely out of left field: Her great-grandfather from Mexico was a shoe maker, and her sister, Ann Marie Smith, had always talked about how Smith’s job as a principal was good experience for running a business.

“I remember Monica called me one day and told me to pull over while driving,” said Smith, 43, who was then employed by the Hacienda-La Puente Unified School District. “She said we were too smart, talented, beautiful and hard working to work for someone else. I agreed, but had no idea she thought we should go into making shoes.”

Since that September afternoon, the two sisters have come a long way. The duo now run Aldabella Scarpa, a Covina-based designer and manufacturer of midpriced leather shoes and accessories, mostly for children.

In 2009, Aldabella Scarpa, which means “beautiful shoes” in Italian, has sold twice the number of shoes versus the entire previous year 270,000 in the last six months alone at 300 retailers worldwide from Los Angeles to Barbados to Kuwait.

The sisters opened their first boutique in downtown Covina in May, and recently got some publicity money can’t buy; photographers caught the daughter of “Desperate Housewives'” actress Marcia Cross wearing their Evangelina model, a flat and pink dress shoe.

But it may be the company’s unusual dedication to charity that has given it the biggest boost. In January, the sisters decided to donate 14 million pairs of their shoes to charity, a figure that reflects the 14 million children in the U.S. at or below poverty level, according to the U.S. Census Bureau.

For each pair sold, the company donates one to a charity designated by the seller. So far they have been able to donate 270,000 pairs, with thousands going to places in Los Angeles County such as school districts and hospitals, which distribute them. Though the company is only absorbing its material and production costs which amounts to just a fraction of the shoes’ retail price (generally about $40) it still cuts into the bottom line.

“It might not seem like the best business plan but we’re not doing this just to make money,” Smith said. “And, honestly, our sales have doubled since we started because I think people do want to patronize places that are more socially conscious.”

Gabby Contreras, owner of Buttons and Bows, a children’s clothing boutique in Brea, said that she’s sold more than 100 pairs of Aldabella’s shoes since opening the store 18 months ago.

“They are one of my best sellers and they are just darling shoes you don’t see at most stores,” Contreras said. “But what’s more is their approach to business; because they say it’s not just about the shoes, it’s also about giving back.”

The company’s models include shoes for girls, boys, infants and tween girls, as well as a few for adults, with 80 percent of the sales coming from girl shoes. Included among them are Converse-style tennis shoes designed by their 13-year-old niece, Monica Esparza, and Smith’s daughter, Jessica Smith, 10. The sneaker tops feature messages such as “I matter” and “I rock.”

“We want to empower kids and women and show they have a voice worth listening to,” said Gonzales, 39. “All the shoes I see at stores seemed like they were made for adults. These are made by kids for kids.”


Baby steps

Gonzales, who had been employed at a dental supply company, and Smith had confided in one another a few years ago that they wanted to spice up their professional lives but didn’t know how.

But after Gonzales’ phone call, the two stitched together $150,000 from savings and loans, and used credit cards to get started. Gonzales drew the designs out on paper, and Smith helped look for a low-cost manufacturer in China.

The two had planned to work out of their garages at their Covina houses and sell the shoes online, but when the first cargo container showed up, they realized they needed a warehouse. So they leased one.

The two got an eye-opener when they attended their first trade show in Las Vegas early last year where they brought their first collection of shoes and met boutique owners.

“We were sitting there like a fish in a fish bowl hoping to attract people,” Gonzales said. They attracted enough attention to kick start their wholesale business.

The duo’s parents work regularly alongside with them at their Covina headquarters, a muted, gray building in a business park. Their mother has even sewn a line of limited-edition dresses, suits and accessories sold exclusively in their boutique on Citrus Avenue in downtown Covina. The store plays off the company’s distinctive round shoe boxes pink-striped and black polka dotted with matching drapes and yellow walls.

“I guess we could have ended up in West L.A., but we wanted to stay true to our commitment to building something in our community,” said Smith, who nevertheless has plans to open more boutiques elsewhere.


Breaking in

The United States footwear industry consists of about 100 manufacturers that sell in 30,000 retail outlets, so breaking into the shoe business isn’t easy. However, Aldabella Scarpa has an advantage because the market for children’s footwear is less crowded than others, said Jason Collins, a Nashville, Tenn.-based footwear industry consultant.

And though Aldabella Scarpa’s growth in two years has been impressive, the company still has yet to reach the masses. Most shoes in the United States are sold in chains such as Wal-Mart and Payless ShoeSource.

“I think they are doing things smartly because they seem to be conservative about their growth and steadily building on their network of boutiques,” Collins said. “They seem to be focusing on the right product.”

The sisters would like to break into chain stores, but also they want to retain boutique sales and open more of their own stores. Gonzales said one of their strategies in retaining business is basically to get ’em while they’re young.

“Children’s feet grow so fast that if we can get a parent early on to buy our shoes, we have hope we can keep them coming back as their kids grow,” she said.


Aldabella Scarpa

Founded: 2007

Headquarters: Covina

Core Business: Designing and manufacturing shoes for children and tween girls

Employees: 8

Goal: To break into mass-market retailers, open more boutiques and sell 14 million pairs of shoes matched with a donation of 14 million pairs to charity

The Numbers: Annual retail sales have hit $1 million at 300 stores worldwide

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