Wang Hai: Pushing The Market Ahead Of The Reform And Winning The Market Ahead Of The Expansion

20 years ago (1988), 20 outstanding entrepreneurs in the country accepted the award of state leaders in Zhongnanhai. 20 years later, only 20 of the 20 entrepreneurs remained in the state-owned enterprises.

Wang Hai, a soldier born, is 67 years old and has been a leader for 35 years, of which 30 years of reform and opening up.

After 30 years of reform and opening up, he is both a practitioner and a witness.

In 1975, he was pferred to the ninth rubber plant of Qingdao, the predecessor of the double star group.

Over the past more than 30 years, the two stars under the control of Wang Hai have gone through the river with their stones and snowball as a whole. The total assets have increased from 8 million yuan to 6 billion yuan, and sales revenue has increased from less than 30 million yuan to about 10000000000 yuan; from a single shoe making industry, it has developed into a comprehensive manufacturing and processing industry group with shoes, tires, machinery, clothing, and thermal power five industries.

Drive into the market and Reform

Double star entered the market in 1983, it is a choice under helplessness.

At that time, China was in a state of shortage economy and planned economy. With more than 2000 workers, Qingdao rubber nine factory was still following the national plan, producing "release shoes" for decades. Raw materials were allocated by the state and the products were underwritten by the state.

But by the end of this year, the initial reform and opening up had brought about a vacuum between the planned economy and the market economy. The commercial sector refused the "big dumb" release shoes of the nine rubber factory.

The production plan is under the commercial sector, but they have not finished the production task. Wang Hai, who has just been appointed party secretary of Qingdao rubber nine factory, has been forced to take the first step of "self marketing" in the face of the 2 million pairs of relief shoes. It has sneaked out of the factory to sell its own shoes, and has become the first enterprise to enter the market in the same industry nationwide.

The anger of the business sector is not without reason - the company has ignored the "red tape" and made blatant irregularities.

But at that time, Wang Hai, in addition to selling the release shoes, allowed the enterprises to survive, and could not manage too much.

Under his leadership, the workers simply broke the market by carrying shoes boxes in the daytime. They sold them not only in Qingdao, but also in Yantai, Shijiazhuang, Nanjing and Lanzhou. After a year, 2 million pairs of shoes were sold out and the enterprises survived.

Wang Hai, who has been driven into the market, has since come to appreciate the charm of the market economy, and has begun to venture repeatedly into the forbidden area.

Repeatedly rushing into the "forbidden zone" boldly

At the time of 1984, the appointment of personnel and the "red tape" had the final say. At that time, there was no one in China that had the courage to employ the appointment system. The first two stars jumped out to break the chain of the old system and the old mechanism of the planned economy, breaking the status limit, and smashing the "old three iron" (iron rice bowl, iron wage, iron chair) and the "new three iron" (iron chain, iron railings, iron relations).

At that time, the establishment of the nine rubber plant was already seriously divorced from the actual needs of production and sales, and over 300 cadres were overstaffed.

Wang Hai really felt the disadvantages of the old management mode in his real work. At that time, the enterprises ate the state "big pot of rice", and the workers ate the "big pot of rice".

When Wang Hai announced the merger and cancellation of some institutions, the contradiction broke out. Someone asked Wang Hai: "do you have a policy basis?"

The armed forces and security departments of some senior leaders' relatives refused to implement the decision of the factory, and even complained to the Ministry of labor of the state, but Wang Hai did not give in. He decided to enter the sales department with a huge planning department. Wang Hai became the first person to break the iron rice bowl in China.

The whole contract system, the many drawbacks of the state-owned enterprises have been eradicated, the benefits are good, the wages have increased, and the enthusiasm of the employees of the enterprises is higher naturally. After that, the double star broke through the forbidden area with the counterparts in the government agencies, and until today, a new system of more than 40 managers and no workshop directors for the 28 departments and 60 thousand people of the government has been created.

In the game of market, Deng Xiaoping's theory of "development is the absolute principle" has given Wang Hai great inspiration. In the early 90s of last century, Wang Hai once again risked squatting in prison to carry out the reform of "market management".

Under the premise of preserving and increasing the value of state-owned assets, the two star companies were sold off, completing the pformation from "selling shoes to the company" to "selling shoes for themselves", and sending many duo stars to the production line of millionaires. At the same time, they explored a new way for maintaining and increasing the value of assets in the competitive field.

In recent years, he pplanted the method of "rural responsibility field" proposed by Deng Xiaoping to the factory, contracted the workshop equipment to the staff and workers, turned the enterprise's work post into the "responsibility field" of each worker, realized the staff management and reduced consumption, and the production efficiency of the whole group increased by more than 30%.

Advance expansion and win the market

After the reform, enterprises are developing very fast.

After 1992, the market economy system of China's reform and opening up was initially established, and the shortage economy was gradually over.

Because of the total number of shoe-making enterprises with a certain scale in China, the capacity has been seriously oversupplied, and 80% of the shoe making enterprises in the country have suffered losses. At that time, the double stars still made profits and developed into the largest shoemaking enterprise in the world.

Many colleagues said admiringly, or Wang Hai smart, ten years ago, low cost expansion, with the cost advantage.

In 1985, the Central Committee proposed that enterprises should take the road of "horizontal economic integration". Wang Hai, one year ago, joined the Huangdao rubber factory in horizontal economic cooperation, successfully pferred their old products to rural production, and obtained cheap factories and labor force.

Over the past year, Wang Hai has built 13 joint branch factories in the surrounding areas of Qingdao.

Now, horizontal economic union is actually a low cost expansion.

At the time, it was also a deviant act.

Some people say, "Wang Hai can't get along in the city"; others even refer to Wang Hai as "selling factory thief".

But Wang Hai, under pressure, has built two shoe cities in the Yimeng Mountain since the early 90s of last century.

Up to now, Binxing has invested more than a dozen production bases in remote mountainous areas such as Shandong and Henan, and has successfully expanded more than 100 thousand farmers, and the scale of assets has expanded rapidly.

In the late 90s of last century, the shoe market competition was more brutal.

The two stars have also chosen a new investment direction -- the same as the shoemaking industry.

In a few years, through the "snack big" (absorb the original rubber Nanhua tire company) to eat slowly (the acquisition of the original Hubei Dongfeng Tire Company), so that the two stars quickly formed Qingdao, Central Plains and Hubei Shiyan three tire production base, tire products reached 10 million sets of annual production capacity.

The development of tire industry has led to the development of its matching casting machinery and rubber machinery, making the strength of double star casting machine and rubber machinery industry among the best in the country.

At the end of the 2007 year, Wang Hai announced in a high-profile manner that the dual star listed companies stripped the shoemaking business, focused on developing tire and machinery business, and the two star famous industrial company, which was a listed company's shoe making business, expanded to become a compulsory footwear industry.

As an entrepreneur who takes the lead in "taking the lead in the world", Wang Hai has led the double star in the past 30 years of reform and opening up, creating a large number of "first" enterprises in the state-owned enterprises. It has strong repercussions in the industry and is hard to replicate: the first one to implement the famous brand strategy and the first to carry out diversified operation; the first one in the same industry to be listed on the stock market, the first to carry out the reform of the property right system; the first well-known trademark enterprise in the same industry; the first to break through the "minefield" and carry out the reform of the property right system; and the only one in the rubber industry of China who has four "Chinese famous brands" at the same time.

In the process of reform, Wang Hai continued to reform the enterprises and made good use of the essence of the theory of "seeking truth from facts" in China's reform and opening up. This is also the best answer to the "30 year riddle" of the two stars.