Ricardo Leite’s 40-year manufacturing resume speaks volumes—literally. It spans extensive experience in design, development, and technology in factories in Asia, Africa, South America, and Europe. Positions have included setting up CAD systems for leading factories, serving as Senior Director for factories producing more than 40 million pairs annually, and heading up product development for Paramount Asia, which involved moving 60 percent of Nine West Group’s total production to Asia from Brazil over the course of 1999. In 2001, the second-generation shoe industry exec became vice president of sourcing for Scala, establishing its operations in China that included moving all production within a year for brands such as BCBG and Skechers. From 2003-2005, Leite served as Stride Rite’s vice president of sourcing and development that involved moving production from Brazil to China. In 2004, he launched his own company, Rival Shoe Design, that has since grown into a full-service company of more than 250 employees, a factory in Ethiopia, and a client roster that includes Donna Karen, Dolce Vita, Kurt Geiger, Steve Madden, Sam Edelman, and Geox. Long resume short: the guy knows how and where to get shoes made.
That leads to Leite’s latest stop: the Dominican Republic. He couldn’t be more bullish on why this factory acquisition will pay major dividends for Rival Shoe Design’s customers. “Not only is the DR strategically located near the U.S. market, ensuring swift shipping times of just four to eight days to the East Coast, but it also boasts duty-free access to both the U.S. and EU markets, giving us a competitive advantage in terms of cost and market expansion,” he says.
As for this particular factory, located in Puerto Plata, on the country’s northern coast, Leite describes it as a “blank canvas with minimal historical baggage.” (The original owners ran into some tough luck amid fallout from the pandemic.) Thus, the 40,000-square-foot facility is relatively new, having been in operation for only 10 months. Secondly, there is plenty of room for expansion. “We’re set to build more production facilities as demand grows,” Leite says, “We can have a new building up and running as fast as eight to 10 months.”
All in all, it’s a fresh start for the factory led by Rival Shoe Design’s team. “This blank canvas grants the flexibility needed to establish the desired culture and introduce a distinctive product focus,” Leite says, adding that the DR has a long shoemaking history with leading companies (includes Timberland, Allen Edmonds, and Rocky Brands) and possesses an experienced workforce. In fact, the country ranks close to a top 10 exporter of footwear to the U.S.
That said, Leite’s plans to revolutionize how footwear is manufactured in the DR. It entails a shift towards producing casual and athletic footwear—categories traditionally dominated by Asian production. Think Strobel cup sole and cement constructions. “By leveraging our established network in Asia, we aim to introduce innovative materials, technology, and construction techniques that aren’t commonly utilized in the DR, thereby elevating the quality and diversity of footwear offerings in the region,” he explains, adding, “Our goal isn’t to replace Asian production, rather to offer a risk-minimizing opportunity for premium brands heavily reliant on Asia. By introducing innovative footwear constructions and a modern manufacturing techniques not currently found in Caribbean production, we’re set to make a bold statement in the industry.”
Speed and Security
The fact is sourcing in Asia has drawbacks and, increasingly of late, risks. The long lead times, high minimums, and rising shipping costs are well-documented. The political uncertainty represents an added level of risk that is causing companies to seek alternatives. Production has shifted to Vietnam, Cambodia, Indonesia, and other Pacific Basin locations. But that doesn’t solve the region’s aforementioned drawbacks. Hence, Leite’s move to the DR, because the sourcing veteran believes it’s what the industry needs now. For example, if the DR factory has planning, he says first orders can be delivered in 100 days and, after that, deliveries can be made in four weeks.
“Lead times (from Asia) have actually extended, requiring higher inventory investments, while premium brands are increasingly prioritizing shorter lead times,” Leite says. “Our approach will meet these demands and provide a competitive edge by streamlining production processes, fostering closer collaborations, enhancing flexibility in sourcing, and aligning with the evolving needs of top-tier sports brands.”
It helps that Rival Shoe Design’s experienced team will hit the ground running in the DR and get the factory up to speed quickly. They possess a wealth of expertise and talent, according to Leite. “We have a proven track record of collaborating with top brands (includes making private label for Nordstrom and DSW) in the U.S. and European markets,” he says. “Our team excels in delivering timely and precise development solutions, fully comprehending the demands and intricacies of servicing these competitive markets. This collective experience, coupled with our commitment to excellence, positions us as a trusted partner capable of meeting and exceeding the expectations of our clients.”
Ownership Advantages
Owning the DR factory is key to meeting and exceeding Leite’s lofty expectations. It provides greater control over such factors as delivery times, quality, and flexibility. “As owner, I can shape the organization according to my own principles of service, ultimately enhancing customer satisfaction and business success,” he says. “Owning a factory also allows me to establish a strong company culture focused on teamwork and customer service, while also allowing the flexibility to continue operating as an agent for select products.” For example, the team can leverage global sourcing capabilities to offer premium brands the option to incorporate proprietary materials and technologies into products manufactured in the DR. This dual approach ensures versatility and innovation in meeting the diverse needs of our clients, he says.
After decades spent sourcing around the globe, Leite has learned a thing or two. Success boils down to striking the right balance and managing risks effectively. “It requires building solid relationships and identifying opportunities ahead of the competition,” he says, adding, “I’ve consistently been among the first to explore new markets for production, anticipating trade challenges, and proactively assist factories in improving their standards. That’s enabled us to provide customers with the right products, quality, and pricing, ensuring the best outcomes for all parties involved.”
As one might guess, 40 years adds up to a lot of industry connections. Since Leite announced the factory acquisition last month—first in an open letter on his LinkedIn page—the response has been strongly favorable. The focus on casual and athletic styles is of particular interest, not to mention the aforementioned advantages that sourcing in the DR presents. “The interest level in exploring new sourcing countries and regions is notably high, underscoring our industry’s enthusiasm for diversifying and expanding their supply chain networks,” he says, noting that the goal for this year is to optimize factory operations to operate at maximum capacity, ensuring efficient production processes and timely delivery of high-quality products to valued customers. That begins with assembling a skilled and experienced team of workers dedicated to upholding Rival Shoe Design’s commitment to excellence and customer satisfaction.
Looking three years out, Leite says the goal is to be a respected industry leader renowned for its steadfast dedication to delivering outstanding service and superior quality. That requires establishing trust and confidence throughout the organization. The hard work has just begun. “Through a relentless focus on customer satisfaction and operational excellence, we’re committed to strengthening our reputation and cultivating enduring partnerships within the market,” he says. “I eagerly anticipate celebrating successes and milestones that reflect our unwavering commitment to achieving high customer satisfaction by making quality shoes that are delivered on time.” •
