"Three Acts" In The Development Of Dongyi Footwear Industry

Dongyi shoes industry seems to be famous overnight.

Chen Guorong, chairman and general manager of the company, talked about this common view. He also felt deeply touched with reporters about two things: in 1998, when the company's annual sales exceeded 100 million yuan, many relatives and friends asked him with a smile. "Guo Rong, I heard that your business is not too small. Why can't you see a pair of Dongyi shoes in the market?"

Last year, when "Dongyi" was awarded the famous trademark in China, the most important thing for employees to go out was to hear the phrase "where is the eastern art".

In the past ten years, the "Dongyi", which has been playing an important role in the footwear industry of China, is unknown because she has gone through a unique way of development: to put her "stage" in foreign countries.

Act one

Curtain scene: in the spring of 1992, a number of "big" leather shoes were being processed.

At this time, the remote northeast border trade market in Suifenhe came to the news that Russian businessmen were in urgent need of such leather shoes.

Shrewd "Dongyi" seize business opportunities, thereby opening up the "Dongyi" to enter the international market prelude.

Prior to the "Eastern art", like most of the shoe industry in Wenzhou, there were similar experiences: in 1986, Chen Guorong hired a idle farmhouse to run a leather shoe factory, and the business and wisdom of the couple became increasingly prosperous.

In 1987, after experiencing the humiliation of "burning Wenzhou shoes" that was deeply engraved, the "Dongyi", which caused the fish to suffer, was once in a predicament.

With an indomitable resilience, Chen Guorong managed to survive the difficulties. He introduced foreign capital in 1991, set up a joint stock company, moved into a new factory and started a new journey.

In 1992, when that chance and rare opportunity came, Chen Guorong, who had been working hard to expand the domestic women's shoes market, made decisive decisions and changed the production of women's shoes to produce men's shoes, sold domestic products to foreign trade, and prepared to "attack" Russia in an all-round way.

This is a risky piece.

It is easy to imagine the risk of changing the production line of familiar women's shoes, giving up the carefully managed domestic market and escorting all the "treasures" to the Russian market which is not familiar with them.

This is a smart chessman.

At that time, Russia's light industrial products were very scarce. Once the market was opened, there would be unlimited business opportunities.

As a result, as expected by Chen Guorong, the quality of "Dongyi shoes" has been "fast footing" in Russia and is in short supply.

In 1995, when two Russian businessmen took the packaging boxes of Dongyi leather shoes and found the Dongyi factory's products, they knew that Dongyi shoes had already gained considerable popularity in Russia.

To this end, "Dongyi" abandonment domestic sales, doing all foreign trade, and extending the fronts of frontier trade from Heilongjiang to Xinjiang and expanding export channels.

With the help of the active border trade market, "Dongyi" successfully built the market on the vast land of Russia.

Voice over: the theory of international marketing points out that the marketing activities of enterprises usually find external breakthroughs under the condition of domestic market saturation. "Dongyi" is not constrained by the general law, but rather seize the opportunity and go straight to Russia.

The second act

Curtain scene: in the summer and autumn of 1998, the political situation in Russia was turbulent, which led to the economic crisis. The ruble exchange rate fell all the way, and fell to the lowest point in Russia's border trade and foreign trade.

To avoid the risks, Dongyi is ready to take Russia as its bridgehead and launch its own tentacles into the world.

The hustle and bustle of the past disappeared, and the border between China and Russia was cold and clear.

At this critical moment, the "Dongyi" fell into deep thought.

Is it a battlefield or a new world?

After careful and comprehensive analysis, "Eastern art" is ready to fight against each other.

The Russian market can not be put aside. On the basis of "camping", "Dongyi" is used as a "springboard" to sell products to the CIS countries in the West and take the opportunity to expand the influence of "Dongyi" in the surrounding areas of Russia.

At the same time, we should take the "bypass" approach, and use more overseas exhibitions and more exhibitors to find new partners to pform single country exports into multinational exports.

Dusseldorf, Germany, is the world famous leather capital, where large scale international leather exhibitions are held every year.

"Dongyi" took a look at its business opportunities. In the autumn, the group took part in the exhibition and took an important step from Russia to the international market.

Although the direct benefit of the initial exhibition is not large, its impact is far-reaching.

Capturing market information and understanding the trend of the development of the footwear industry in the world, through the "window" of exhibitors, the world has initially recognized "Eastern art".

As a result, "Dongyi" went abroad to participate in the exhibition.

Las Vegas, Italy, Milan, Paris and Cape Town in South Africa left behind the footprints of "Eastern art".

Last year, "Dongyi" had to attend various kinds of shoes exhibitions almost every month.

Frequent exhibitors bring rich rewards.

Then, businessmen from Jordan, Norway, Japan, Korea, the United States and Canada came to the factory to sign contracts and open up a green channel to the world.

At present, the trade volume of "Dongyi" in other countries outside Russia accounts for 25% of the total sales volume, which has been spread over more than 20 countries and regions in the world. International trade has changed from "spark" to "prairie fire".

Voice over: from entering Russia to jumping out of Russia, the marketing strategy of "Dongyi" changed from time to time.

Facing the unfavorable situation, it is not just to hold on to the position, but to actively adjust the market adaptability, and finally realize the strategic pformation from Russia to the world.

Its successful experience once again confirms "only weak enterprises, no weak market".

The third act

Curtain opening scene: in May 2001, "Dongyi" submitted an application report to the Ministry of foreign trade and economic cooperation, calling for the establishment of a multi-national Oriental Art Company abroad. At the same time, the "China Shoes Capital" Dongyi Industrial Park, which covers an area of 168 Mu and has a total investment of 120 million yuan, is about to start construction.

In the face of "accession to the WTO", the "east art" extension market and post construction position are planning the grand plan of "the two pioneering work".

The "East Arts" that goes to the world stage can be step-by-step and take the lead step by step.

In the early 90s of the last century, "Dongyi" exported to Russia mainly depended on the domestic agents of two border trading centers in Heilongjiang and Xinjiang.

This is the most elementary form of "Dongyi" entering the international market and the best form of opening up the international market at the lowest cost.

Trade agents reduce the friction between products entering the international market, and also divide huge profits.

During this period, a businessman in Northeast Suifenhe who was doing border trade business secretly told Chen Guorong: "in order to safeguard the interests of both sides, Dongyi's leather shoes can't be told to anyone. How much is the production of Dongyi company?"

This made the "Dongyi people" realize that long-term indirect export is not conducive to the rapid growth of enterprises.

But at that time, it was an inevitable choice.

In 1996, Dongyi finally gained the right of self export.

Since then, the marketing mode of "Dongyi" has entered the stage of direct product export.

In 1997, the company opened a border trade office in Urumqi to strengthen direct contact with Russian businessmen.

In 1999, the establishment of offices and stores in Russia made the form of direct exports more abundant.

Similarly, "Dongyi" has entered a flexible and diversified way into other countries.

In the United Arab Emirates, "Dongyi" adopted the form of exclusive stores, and used it as a window to open the Middle East market.

For Japan, the United States, France and other countries, because exports need quotas, indirect exports and direct exports should be combined.

These approaches, taking into account the reality of enterprises and following the principles of the market, have finally realized the low cost expansion of the market, which is very suitable for the "East Arts" that goes global.

Last year, the "Dongyi" self operated export amounted to US $13 million, and its export volume reached US $about 20000000 for the whole year.

This year, the company introduced computer network management technology and set up a shoe research and design center covering the whole world.

Enterprises have strong strength in capital, technology, management and so on. They choose to establish pnational corporations, take the means of capital export directly to participate in international competition, and achieve direct dialogues between enterprises and the ultimate consumers, so that the international marketing of enterprises will go to a higher level.

Voice over: from trade agents, self export, pnational direct selling to the construction of multinational companies, "Dongyi", in choosing the way of entering the international market, can not only start from the reality of enterprises, but also lose no time to upgrade the way, so that we can do everything within our means, step by step, and achieve the goal of maximizing the market with the lowest investment. Our practical and innovative approaches are commendable.

In the interview with Dongyi, Chen Guorong was preparing to visit the United States.

He believes that after China's accession to the WTO, the United States should be the most important export destination for Wenzhou shoes.

The reason is very simple. "There are more than 100 nationalities in the United States. The consumption of footwear is large and the market potential is huge."

In this regard, "Dongyi" set up a "North American shoe design group", the purpose of his visit is to collect information and find suitable shoes.

"Joining the WTO" is a calm and confident attitude towards the "Dongyi people" who have been fighting for years in the international market.

The establishment of a multinational company, the development of e-commerce and the construction of a global integrated marketing network, "Dongyi" has opened a new prelude to a leisurely dialogue with the future market.