Wu Shouzhong: Innovating Traditional Industries Through Technological Pformation And Cooperation

In September 16th, the 2007 Business Forum's best business model China Summit was held at the International Conference Center of Tsinghua Science and Technology Park, science and technology edifice.

The website of the financial world presented live pictures and live broadcast of the conference. The picture shows Chen Hong, chairman and CEO of the Hon investment group, and Wu Shouzhong, vice president of AOKANG Group Co., Ltd., the sixth award winner of the 2007 best business model.

Wu Shouzhong: Good afternoon, everyone.

First of all, I would like to make a note that our chairman and President himself attended today's summit and afternoon forum. He just wanted to go to Hangzhou.

First of all, I think it is a great pleasure to have the opportunity to participate in today's summit, and we have the opportunity to communicate with you, discuss and explore new business models for our future development, or innovative business models.

At present, under the new economic conditions, what are the prospects for the development of traditional industries?

This is a problem we are very concerned about in the current society.

Although the rise of new and high technology, the original comparative advantage of traditional industries has declined, but this does not mean that the traditional industries have lost the ability to rebuild, because China is vigorously developing new industries, and at the same time, it focuses on accelerating the upgrading and upgrading of traditional industries.

This is our theme today.

As we all know, as a shoemaking industry, it is one of the important traditional industries in China, and it is a traditional industry with relatively stable demand.

How many shoes did China make in 2006? 9 billion 500 million pairs accounted for 50% of the world's total production, so we should be glad to see that our shoe industry is facing greater challenges than it is at the same time.

Our AOKANG group is one of the leading enterprises in China's shoemaking industry. We are a national private enterprise which takes shoemaking as the main business, involving business, real estate, cross industry and cross regional development. Our AOKANG has more than 6 thousand functions in China. How many shoes did we make last year: 18 million 260 thousand pairs.

AOKANG originally called AOKANG to walk the Quartet, now called the dream is to come out.

Our company was founded in 1988. During the 19 years to now, from scratch, from small to large, we have been walking in front of the industry, made many innovations or breakthroughs, and constantly explored new ways to adapt to the development of AOKANG.

In August 8, 1987, the Hangzhou people burned five thousand pairs of fake leather shoes. Under this background, we were 10 people. We can imagine that it was very difficult. But we went from wholesale to shopping malls to stores. Until January 8, 1998, we launched the first shoe chain chain store in China. Now we have 3 or 4 thousand stores. There are more than 20 thousand spots in Wenzhou, which has led to the development of the whole industry.

For example, in 2001, in the case of AOKANG brand, we carried out multi brand management. We just talked about Kanglong brand casual shoes, 2002 and 2004 brands.

There was also a joint venture with a company in Italy in 2003.

Our position or vision is the Centennial AOKANG of global brand.

Second business products, we plan to build the one hundred strong AOKANG brand in the whole country in the next few years.

We use this alliance with more than 100 brands.

Make the market work again.

The third products are health products, the development of biological vaccines, hepatitis B, epidemic cerebrospinal meningitis, rabies, chicken pox and so on. So these three products, especially commercial real estate and biological products, can achieve the goal of stimulating the development of our footwear industry in turn.

This year, in June 18th, we launched three international modern companies, one is an American company, the other is a India company, and the other is a Hongkong bridgehead company, which indicates that AOKANG wants to internationalize.

In short, in recent years, we have developed rapidly and continuously and steadily, and become the leading enterprises in the industry. I believe that under the new conditions, we must explore and develop the new mode of traditional industries with a vision of development and innovative thinking.

According to the actual situation of AOKANG, I have three ideas or suggestions: first, we must rely on science and technology to innovate traditional industries.

Just now, Mr. Zhao also talked about it. Last year, Zhejiang University jointly developed the first volume in China to measure your feet and make your shoes.

At the September 4th China International Exhibition in Shanghai, we searched for 880 big feet in Shanghai. The men were over 45 yards, and the ladies were over 41 yards. As a result, we looked for them, and found the largest foot in 53 yards. Our General Wang said, if we can find 58 yards, the man will be made to order all our life.

The left foot is 40 yards, and the right foot is 41 yards. She never bought the right pair of shoes. We ordered more than 800 pairs of shoes for her. Like Yao Ming, we made them all the time.

This is also what we said five years ago, that is, AOKANG's future stores do not put leather shoes, put computers and measure feet.

So you have the opportunity to go to AOKANG to see the hundreds of thousands of bookings.

Making shoes is simple, but also innovative.

Second, we must rely on cooperation to promote our new business model.

So we have to cooperate with a company in Italy. Just like an associate professor of Shanghai Jiao Tong University, AOKANG has opened up third modes of strong cooperation between Chinese and foreign enterprises.

We are not only in the domestic brand, but also in our shoes, so we believe that the first thing is to choose what is not selected in China, advanced ideas, advanced management, advanced manufacturing and so on. China's shoes are in Europe, the world's shoes are not in Europe, in Italy.

We made AOKANG really stand on the shoulders of giants, making AOKANG a giant.

Third, I think we must rely on reform and pformation or promote our traditional industries.

Today, the Peking University longitudinal partner is here. Our reform has passed three times: in 1995, it meant breaking the family management, and 99% of the private enterprises in Wenzhou. Many enterprises implemented family management. AOKANG established a modern management enterprise system after 1995.

Now that we have reached the well-known trademarks in China, there are several companies that are older than Ao Kang, and now they are left behind.

The second reform was in 2002. When we worked with Peking University, we made our development strategy, our organizational structure, including other related key management systems, and made great changes in the upgrading of our enterprises.

This year, in September 13th, we signed a global strategic partnership with the world's largest information company. How did AOKANG go to the world?

Where is the target?

How to do it?

How to do it well?

We feel very critical. This is also organizational change or organizational innovation, and it is also innovation.

If your goal, no superstructure to guarantee, how to promote AOKANG to a new level, it is impossible.

My idea is that technology and cooperation, including change, make AOKANG a strong business in our private enterprises or shoemaking industry.

Thank you!