What Shoes Do You Wear?
In August 8, 2008, the opening day of the Beijing Olympic Games as the world's attention will be an unforgettable day in the world. On this unusual day, AOKANG group will also celebrate its 20 birthday.
20 years of vicissitudes, for all Chinese private enterprises, should be a very hard touchstone.
When a lot of AOKANG started at the same time, the same kind of enterprises that had once been powerful and powerful had long gone out of smoke, AOKANG not only resolutely stood upright, but also continued healthy development, which has been an extraordinary success.
As a result, many business elite cast their eyes on it. Many marketing experts looked for the secret of its success with magnifying glass. When we really approached AOKANG, we found that AOKANG's secret recipe is not mysterious. "Timely change and steady innovation" is the secret of AOKANG's winning today's applause; and the story behind these 8 words is enough for people to understand and ponder.
The production and marketing of the company are separated from others, and it is the "burning shoes incident" in Hangzhou's Wulin gate square, which affects thousands of people's hearts.
On that day, more than 5000 pairs of fake and shoddy shoes produced in Wenzhou from the "encirclement and suppression" campaign across the country were destroyed by a fire in public.
With the blaze of fire, "Wenzhou shoes" seem to be equivalent to fake and shoddy.
Then, a storm of "Wenzhou shoes" swept across the country. The shock wave of the "shoe burning incident" continued to expand.
Wang Zhentao had just quit his carpenter's career and sold leather shoes in Hubei with his hometown in Wenzhou. Of course, he could not escape this robbery: about 200000 yuan of genuine leather shoes were confiscated by the Wuhan business department and sold at a low price of 5 yuan.
Wang Zhentao recalled: "when I was buying goods in Wenzhou, I was paralyzed when I heard the news.
I just felt like I was boiling over, and I knew it would die. "
Not only Wang Zhentao, but almost all the bosses of shoe industry in Wenzhou were hit by the "encirclement and suppression" campaign, which has almost paralyzed the footwear industry in Wenzhou. "Because many people did not realize that there was any fault in the" cheap and inferior "shoes produced at the time, they just felt ungrateful. The government was clearly encouraging the development of enterprises.
They have lost the integrity of the market image, but also lost the confidence of re operation, fear that the tragedy will repeat itself.
Wang Zhentao recalls.
After that, it was commented that the "burning Wenzhou shoes" almost destroyed a typical "primitive ecology" economy in the Chinese economy in a chaotic and disorderly market.
Of course, Wang Zhentao's ambition has been destroyed. Is it like other Wenzhou villagers to abandon their shoes and engage in another "nomadic operation" or "where to fall and where to climb up" and continue to run the shoe industry?
Wang Zhentao, who refused to concede defeat, decided to stick to it.
He borrowed 30 thousand yuan, and founded the Olin shoe factory in Yongjia in Wenzhou in 1988.
The small factory with a production value of less than 100 thousand yuan can only be called a household shoe making workshop, and its whole family has only 1 shoemaking machines, 3 like-minded partners, and several local skilled shoemakers.
Wang Zhentao said: "the name of factory" Olin "takes the meaning of" Olympic Games ". It wants to find a spirit as a criterion for running factories, and also wants to build up the confidence and courage of self redevelopment.
No one at that time thought that this ordinary workshop would be the predecessor of AOKANG group, which was famous both at home and abroad in the future.
Then Wang Zhentao joined the Wenzhou sales force and traveled south and north to promote their products.
As the saying goes, the road knows the horse power, and the time sees the heart.
After many dealings, Olin's shoes and Wang Zhentao attracted many dealers.
Later, the dealer simply took the money and went to the sales point of Olin, and Wang Zhentao finally got a firm foothold in the market.
More and more sales of shoes were sold, but Wang Zhentao found that his profits had not been broken. When he came back, he found that his mode of operation was very unreasonable. This mode made him lose the network resources of the market, and eventually he could only be reduced to a cheap processing plant.
Wang Zhentao immediately made up his mind to change his tune.
In fact, Wang Zhentao has been selling leather shoes since 1986, and the company has two legs to walk.
At that time, the quality of leather shoes in Wenzhou was uneven, mainly in the middle and low grade, but only in the form of "stalls". It was difficult to enter the regular shopping malls.
Wang Zhentao analysts believe that merchants are mainly distrust of Wenzhou goods, afraid of taking risks and affecting their business reputation.
When Wang Zhentao returned to Wuhan with his own leather shoes and found the manager in his shopping mall, the manager still had doubts about the shoes of the "private enterprise".
Wang Zhentao suggested that he should sell his own rent on the renting counter and pay the rental fee ahead of time, so as not to let the shopping mall take risks.
After several persuasion, the manager promised to rent him 1.5 counters first.
After a month's trial, the sales volume of one of his counters is higher than that of the 10 counters in the mall.
In a month, Wang Zhentao personally stood at the counter to listen to customers' opinions on style, size, color and quality. He sent the information back to the factory and adjusted the production plan in 35 days.
In this way, Wang Zhentao boldly broke the original market system, extended the tentacles of the information directly to the market, and implemented the "vendor pool", which started the first shot of "attracting factories into stores".
As a result, the distribution of shops and counters in the large and medium sized stores in China has been the two leg of his marketing work. By the time AOKANG group was formed in 1995, Wang Zhentao's "two legs" had gone further, faster and more solid.
With the fierce competition in the market, consumers have put forward higher requirements for the style, service and brand awareness of the products.
In this way, AOKANG's marketing strategy of "vendor pool" and "multi-level distribution", especially because of the high cost of "multi-level distribution" and the difficulty of protecting the brand effect, have obviously failed to meet the requirements of the market.
Under such circumstances, Wang Zhentao, who has already been president of AOKANG group, has begun a new round of "reform".
He judged the situation and decided to open the first step of the domestic footwear industry, introducing the sales model of "McDonald's" franchise, and boldly introducing chain monopoly.
In January 1998, AOKANG decided to take the lead. The first chain store in China's leather shoes industry was officially unveiled in Houtun Town, Yongjia, Zhejiang. Since then, AOKANG's marketing has embarked on a new chain monopoly, and the group's development has been on the fast track.
So far, AOKANG group has established more than 30 provincial branches in the whole country, opened more than 2000 chain stores, and set up 5 foreign branches in Italy, Holland, Spain, Indonesia and other places, forming a network marketing pattern.
The success of AOKANG has attracted the attention of its peers. A chain of wind has sprang up in China's leather shoes market.
At present, all kinds of large and small brand shoes stores are everywhere in the country.
The marketing mode of this chain monopoly has played an important role in the rapid replication of the network and the promotion of the brand. Especially, the manufacturer has obtained two profits, both the product profit and the brand profit.
According to statistics from China Chain Store Association, as of June last year, there were 2100 chain stores nationwide, with a total number of shops of 32 thousand, with an annual sales volume of 230 billion yuan.
Chain operation is a magic weapon for the rapid expansion of an enterprise. It is an inevitable choice for an enterprise to push its products to a broader market after gaining a certain reputation.
AOKANG took the lead in the industry to choose such a road, and undoubtedly won the business opportunities first.
Since the beginning of the new century, the market competition has become increasingly fierce, and the market segmentation has become increasingly obvious. Many enterprises are gradually weakening their advantages in marketing.
With the continuous development of market situation in recent years, especially since 2002, as the international leather shoes brands have entered China in succession, the homogenization of products is getting more and more serious, and the sales channels are becoming more and more patterned. The full development, fierce competition and shortening of the two seasons of the winter shoe brands in the domestic shoe industry have led to the overall situation of the shoe industry in China is not optimistic. The sales volume of the major footwear industry brands is not very good, especially for some small and medium-sized brands, which suffered a "cold wave" attack in 2002.
In April 2003, in April 2003, in Dongguan, Guangdong, "the China Leather Industry Association footwear Specialized Committee annual conference and China footwear industry development forum" held in Dongguan, China, the president of the Hong Kong Group, Wang Zhentao, made a bold statement. He pointed out that only with innovation can the development of marketing mode be made, and only with changes can we make progress.
No matter which marketing mode, it has its own advantages and disadvantages.
Such as chain store, its advantages are brand image guarantee, quick return of funds, fast information feedback, but its shortcomings are single product, single brand and few selectivity. In addition, influenced by the concept and climate, stores in the north are not very suitable.
In view of the opportunities in China's leather market and the challenges brought about by the advent of the oversupply economy and the evolution of homogeneous competition, Wang Zhentao proposed that there should be a way out for future changes in the leather marketing mode, and only if there are characteristics can there be a selling point.
To win the shoe industry brand in today's and future shoe marketing market, it is necessary to meet the internal needs of consumers: improving the brand's high added value, providing convenience for purchase, keeping the freshness of products, and the equivalence of products and prices, all these become the primary factors to stimulate consumers' buying behavior. Therefore, it is very necessary to pform the channels, pull the terminal, rebuild the brand, and solve the three problems of "seeing, buying and buying".
Facing the new situation, we must adjust our marketing strategy in time.
At this point, brand extension seems to be a fashion.
In the process of brand extension, AOKANG chose to continue to expand in its familiar domain.
In August 9, 2001, AOKANG group held a news conference on the second brand Kanglong brand listing in Wenzhou. On the same day, Kanglong's first store of shoes was officially unveiled. The spokesperson for Kanglong leather shoes, Hongkong film star Felix Wong, was also officially unveiled in Wenzhou.
The newly launched Kanglong shoes products are mainly located in the series of popular tourism and leisure products. The main advantages lie in light and comfortable clothing, moderate price, fashionable style and high quality service.
International Wenzhou Hotel, February 27, 2002.
AOKANG group's third brand "beautiful beauty" high-end fashion shoes brand debut. The brand was designed by Mr. Manio, a famous designer in Italy, and most of its raw materials were imported from abroad.
At the same time, the launch of "beautiful ladies" also ended the history of Wenzhou's lack of high-end women's shoes.
In order to internationalize OEM, we should step by step, "internationalization must be done step by step, and we must not rush to success."
This is Wang Zhentao's experience now.
AOKANG has also made some detours in internationalization.
In the past few years, AOKANG has opened many stores in foreign countries, but opening shops is easy to make money.
Many of these overseas stores are located in areas where Chinese people are concentrated. They can not penetrate into the local mainstream market. They are regarded as low-grade products, and some even become goods stalls. In places where the locations are slightly better, the sales cost is not up to the cost but also because of the high cost.
In 2003, AOKANG decided to cooperate with GEOX, which is a new attempt for the internationalization of Wenzhou enterprises.
The two sides have reached an agreement: from production to sales, AOKANG is the sole agent of GEOX in China. It can also help AOKANG's products enter the international market with the help of GEOX's global sales network.
At present, there are more than 100 sales outlets in China, with sales of nearly 100 million yuan last year.
In addition to its own brand, it has become another brand that contributes to AOKANG's sales and profits.
Another achievement of Wang Zhentao is that, because of GEOX's OEM order to AOKANG, other foreign high-end brands are also following orders.
The cooperation between Wang Zhentao and GEOX has been evaluated as "introducing the wolf into the room and helping foreign capital to seize the Chinese market".
Looking back now, he thinks that the step taken at that time is right. "If I do not cooperate with it, it will cooperate with others, and that will become my competitor, not as good as I win with it."
To solve the problem of internationalization, we must first solve the problem of information construction. AOKANG group is strict with the standards of a modern large scale chain enterprise.
AOKANG is determined to make full use of the Internet, establish a smooth information channel, accelerate the speed of information dissemination, and adapt to the international trend.
As early as a few years ago, AOKANG has established its own enterprise website, customers can directly order through online mode; AOKANG also pioneered the use of UF U8- network distribution management software.
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