Wang Zhentao Predicted Shoe Industry In Winter Five Years Ago

In April 29, 2003, at an internal meeting of AOKANG group, President Wang Zhentao made a speech entitled "not far off in winter".

It should be said that for the world leather shoes industry, the annual large shoe exhibition held in Milan, Italy and Madrid, Spain is a truly international large-scale professional shoe exhibition.

The annual sales show is a barometer of the growth of the world footwear industry.

At the end of March, we took part in these two shoes exhibitions, which were originally expected to be US $about 10000000, but in fact only 23 million US dollars.

The reason for this is that I thought it was affected by the Iraq war because almost no customers in the US and Middle East countries came.

In March 29th, during the talks with Mr. Milton Kotler, we talked about this issue.

Mr. Kotler believes that the impact of the Iraq war is short-lived. The most fundamental reason is the decline of the whole European market and the degradation of the whole market.

In fact, we know that Europe is not the only one, and the whole world economy, including the United States, is generally slowing down.

In recent years, especially since 2002, as the international leather shoes brands have entered China in succession, the homogenization of domestic products is becoming more and more serious, and the sales channels are becoming more and more patterned. The competition between the domestic shoe brands is fierce, and the two season of summer and winter has begun to shorten. The overall situation of China's footwear industry is becoming more and more serious, and the sales volume of the major shoe brands is not very good.

In particular, some small and medium-sized brands, in 2002, has suffered a certain sales pressure.

Since 2003, a pestilence of atypical pneumonia has rapidly infected China's economy.

If we only look at the statistics in January and February this year, our economy has not been significantly affected by the "pneumonia" incident.

However, since entering March, the impact of the epidemic has gradually emerged.

Atypical pneumonia has not only increased people's heavy psychological burden, but also has an important impact on China's tourism and aviation industry, and has spread to restaurants, retailers and other service industries.

As leather shoes enterprises, due to the impact of the environment, we are also facing new challenges.

The market is merciless.

I feel that for the brand enterprises like AOKANG, the shoe industry's winter is no longer far away.

I often recall the days when I ran into the market.

At that time, our factories were very small, and every day we worked on thin ice and trembled to do business. Every day we were afraid of being eaten by others. So we dare not have the slightest slack, not afraid to bear hardships, dare to rush ahead and dare to do what others dare not do, so we grabbed a bowl of rice in the market and survived because of competition.

Our business is slightly larger today, but big ships are not necessarily good enough to resist storms.

The market is so large that the cake is so large that I can't eat what I eat and face up to our new competitors. Only when we remain vigilant at all times and maintain a momentum of daring and daring, can we survive longer.

As we all know, leather shoes business is not easy to do.

Over the past few years, the cost of our production has not declined. On the contrary, in order to improve the quality, the cost of some materials has increased. However, the price of the market is still so high, and the added value of the brand is not high. Our profit margins have become increasingly limited.

Under such circumstances, from the end of last year to the beginning of this year, we have increased the wages of the staff by 20% to 30%, and the pieceworkers of the production department have also set up the minimum wage. At the same time, we have invested about 30000000 yuan to build a three-star small living area to improve the living conditions of the employees.

Recently, I received letters from some people inside the company, most of whom complained about their jobs and salaries.

Some complaints are normal, but I hope that such complaints do not affect your work.

Most of the time, we should look at the problem more comprehensively. We should consider from the big place, and think more about the environment in which the enterprise is situated, and take into account the overall situation of the enterprise.

The good welfare benefits of employees should be supported by good enterprise benefits. The money of enterprises is made from the market. If wages rise alone, but the profits of enterprises do not rise, then we are eating old books, while old ones are not long enough to eat.

You can think about it. If AOKANG is bankrupt one day, what will you think of it as an employee?

Will it be good?

A man has no worries.

On the surface, the manufacturing industry is booming and the shoe market is still sunny.

But from a macro perspective, we can't relax.

The growth rate of enterprises has slowed down obviously. This is a reality that most enterprises in the industry have to face.

Especially after China's accession to the WTO, the international famous brands are eyeing the Chinese market. The cheap labor cost in the mainland has laid the foundation for the high value-added brand value of pnational corporations.

As a AOKANG, we do not want to be a world famous brand OEM processing plant. We must produce our own world famous brand.

This slogan has been shouting for many years, but who has ever wondered how hard the road behind it is?

From the popularity and reputation of the brand, the construction and management of distribution channels, and the technological level and regional needs of our products, there are too many classes to be filled.

Looking back at home, because of the serious homogenization of products, the overproduction of similar products, the lack of special products, and the internal friction of price war, all of these have increased the difficulty of our brand building.

Some time ago, I heard that the color TV set was sold on catties in the market. I think if we go on like this, leather shoes will also be sold on catties.

For this market situation, Mr. Milton Kotler from the United States last time in AOKANG said unequivocally: according to the current statistics of the United States, the production sector accounted for only 15% of the profits, the brand accounted for 35%, and the distribution accounted for 50%. At present, most Chinese enterprises only managed production, actually only earned 15% of the profits, and 85% of the profits were waiting for you to earn.

I quite agree with Mr. Kotler that AOKANG may earn a little bit more than domestic enterprises. We may have earned a bit of profits from brand and distribution, but that is only a little bit more.

I remember a secretary in Enshi, Hubei, who bought a pair of Kanglong shoes at the beginning of the year, and said, "I wear shoes in Italy on foot. It is the same as Kanglong shoes, but the price is ten times that of Kanglong."

I was not happy to hear that, but some were ashamed.

If we go on like this, when the international brand army is in a tight corner, when the added value of the product is pferred to the R & D, sales and brand of the core technology, when all our enterprises become OEM factories of the multinational companies, how many pieces of processing fees can we earn?

A leaf falls and knows the autumn.

Winter is not far away from us.

In 1988, AOKANG started in the severe winter of Wenzhou's footwear industry, and experienced severe cold and intense heat.

Behind the challenge is opportunity. When winter is drawing near, we must be vigilant and unite and go out. It will be another spring.