Wan Bang Shoe Industry: Firmly Grasp Adidas'S Order

Another cold winter came quietly. This is more worrying than the beginning of the year's freeze disaster. The Guangdong shoe industry, which accounts for 40% of the total export of China's footwear, suffered an unprecedented "cold winter" and thousands of export shoe enterprises were eliminated from the United States subprime mortgage crisis, the appreciation of the RMB, the rising labor cost, the rising of the raw material price and the adjustment of the export tax rebate and processing trade.

Statistics from Guangzhou customs statistics show that in the first half of 2008, the export enterprises of footwear products in Guangdong province fell from 5811 in the same period last year to 3924 in the first half of this year. Among them, the decline of footwear export enterprises in the Pearl River Delta was even more obvious, from 5043 in the same period last year to 2617 in the first half of this year, a decrease of 2426, with a drop of 48.1%. In the first half of this year, Guangdong exported 1 billion 630 million pairs of footwear products, down 15.8% from the same period last year.

However, Guangdong Wan Bang Shoes Co., Ltd. is not worried. It firmly grasped the order of Adidas customers. Because Adidas did not spanfer orders, Wan Bang still maintained 1 million 100 thousand ~120 million pairs of shoes per month, although its profits were less than in previous years. But it is hard to maintain normal operation as usual in the industry reshuffle process. Guo Weiwen, a spokesman for WAN bang, used the word "lucky" to describe his own business in an interview with the first financial daily.

    12年把雞蛋放在一個籃子里

"Even if we have good products, good management and sales, if there is no excellent customer service, enterprises will not create excellent performance, and customer service will soon become the main theme of Chinese enterprises." David Vermando, a global customer service manager who introduced customer relationship management system to Nike and other enterprises, when he met with hundreds of enterprises in Guangzhou in August 15th, suggested that "made in China" should have a sense of enhancing customer service level.

Wan Bang has set up factories in Guangzhou since 1991. "Adidas has other cooperative processing plants in the world as well as China, but it does not affect the order of Wan. We have a strong competitive edge in terms of production quality, management and customer cooperation." On the secret of keeping out cold, Guo Weiwen said to our reporter.

Under the influence of the US subprime mortgage crisis and RMB appreciation, some overseas small and medium buyers have reduced the order and lowered the order price. Many factories in China are unable to take orders at low cost when the cost is rising rapidly. In contrast, Nike and Adidas global brands are not only stable on orders, but also make room for processing factories to make certain profit margins for factories to digest costs.

With the increasing popularity of the world and the increasing number of shoe factories in the world, Adidas's requirements for suppliers are becoming stricter and stricter. It is not easy for Chinese shoe factories to win Adidas's orders in the face of intensified competition. Wan Bang took the lead. In 1992, Wan Bang met with Adidas to Guangdong to find shoes processing factories for more than a year. The two sides agreed on each other's conditions and soon reached cooperation. At that time, in addition to Adidas, Wan Bang also OEM for other customers. In 1996, with the rapid expansion of business, Wan bang made a bold adjustment in strategy, and gave up other customers only for the Adidas family. Putting all the eggs in one basket, Guo Weiwen admits that there is a risk, but concentrating on working with a strong customer, at the same time, he also grasped a good opportunity.

Over the past ten years, with the rapid expansion of Adidas's global business, the capacity of Wan Bang is growing steadily. Moreover, Adidas's advanced management system and business philosophy are also embedded in the world. There are permanent Adidas offices in Wan Bang's factory, and Adidas sends special personnel to check and supervise all the States from time to time in terms of quality and safety, production environment and staff's living standard.

"In the course of years of cooperation, we are growing rapidly, and we know what the other party needs and has the ability to cooperate." Guo Weiwen said, for example, because of the increase in international trade friction and the rapid rise in production costs, Adidas hopes that its Chinese suppliers should also have a global production layout to reduce operational risks, so that all of them have taken the step of setting up factories in India. The factory set up by Wan bang in India has been put into operation since the end of 2006. In less than two years, the capacity has expanded rapidly from the beginning of ten thousand or twenty thousand pairs to 100 thousand pairs per month, and now it has 300 thousand ~40 pairs per month. In the past two or three years, Adidas has kept stable orders for WAN Bang's Guangdong factory, and its orders for India factories are growing rapidly.