AOKANG Acquisition Of Wanli Wade Greater China Region Ownership

BELLE is playing an increasingly unique role in China's footwear industry, and is facing more and more challenges.

In May 18th, the largest private shoe making enterprise in Zhejiang, AOKANG shoe Limited by Share Ltd (AOKANG) and VALLEVERDE, the world's first shoe brand Italy footwear industry, signed an agreement in Shanghai to acquire the ownership of the latter in Greater China.

This is AOKANG's first overseas acquisition.

You Xianyong, general manager of AOKANG wanwade business division, told reporters in an exclusive interview that the acquisition of Wanli Wade was just the first step in AOKANG's high-end brand strategy.

Wang Zhentao, chairman of AOKANG, said that it is "natural" from the licensing and agency of the brand to the ownership and independent operation.

Wentiwade has intended to sell the company as a whole, but AOKANG, considering the imminent listing, is hard to digest, "temporarily as long as the Greater China's brand ownership."

The two sides of the paction did not disclose the delivery price of the rights, and Wang Zhentao, chairman of AOKANG shoe industry, only said "100 million yuan".

Youxian Yong used the number to describe the amount of purchase.

Founded in 1969, wanwade mainly produces "breathing type" functional shoes. It is Italy's "time-honored brand" shoemaking enterprise. It has more than 2300 stores in the world, and its ownership in Greater China involves mainland China, Taiwan and Hongkong.

AOKANG has been working with Wanli wade for a long time.

As early as January 2008, AOKANG and Wanli Wade signed the global strategic cooperation agreement to acquire the 10 year's brand management rights in the Asia Pacific region for us $22 million.

Wanwade provides product R & D resources, technology and legal support, and its brand marketing and product manufacturing in the Asia Pacific region are operated by AOKANG.

Subsequently, AOKANG implemented a series of innovations on Wanli Wei's brand positioning, marketing channels and product research and development.

Youxian Yong said AOKANG will set up an international team to carry out packaging planning and variety development for Wanli Wade.

"After all, the way of high-end brands is different from AOKANG's past operations. It needs new teams and needs to face new challenges."

In fact, AOKANG is only one part of Wenzhou's foreign takeover chain.

The Wenzhou consortium, which has many funds in hand, has a strong interest in collecting overseas documents.

It has been revealed that in June, a number of Wenzhou enterprises will go to Italy to participate in the international clothing brand cooperation and exchange meeting held in Marche, looking for the acquisition of "time-honored brand" or injection of shares into Italian company.

Marche is the headquarters of Armani, Ferre, D&G and so on. The manufacturing industry in this region enjoys a high reputation worldwide.

"At present, some traditional industries, including the footwear industry, have seen a downward trend in Europe. Especially after the outbreak of the financial crisis, many Italy and Spanish traditional shoe companies hope to cooperate or even be acquired, providing an opportunity for Chinese enterprises to copy the bottom."

Wang Zhentao said.

Youxian Yong said that AOKANG will get rid of the strategy of only focusing on medium and low end products in the future, and will continue to enrich the product line layout of high-end products to high-end brands and shopping mall main channels, while overseas acquisitions are one of the ways.

"We give ourselves three years, and we must make Wanli wade a competitive high-end brand in the Asia Pacific region at this time."

Wang Zhentao said that at present, AOKANG's listing work is also on the agenda.

"AOKANG plans to invest 500 million to 600 million yuan in the future, making wanwade stationed in more than 300 domestic high-end shopping malls."

Wang Zhentao said.

Youxian Yong's interpretation of this is that it is understood that AOKANG's existing brands include AOKANG, Kanglong, red Firebird and other four categories.

"In the future, the domestic urban consumer groups will be biased towards the consumer group at the price of 1000-2500 yuan, which is the reason why AOKANG is pushing the middle and high-end sectors."

BELLE, the dominant shoe manufacturer in China, is relying on the market channel to create high-end and high-end brand strategy, controlling the majority of women's shoes market share.

Youxian Yong claims that AOKANG's product line will be more clear, and high school low matching will enable consumers to have more competitive advantages after brand recognition.

In the competition to enter the main channel of shopping malls, AOKANG actually moved early.

In the two years of acting Wanli Wei, AOKANG has extended the brand to 200 shopping malls.

In August 2009, with the support of the Ministry of Commerce and the joint exhibition sponsored by the Wenzhou Municipal People's government and China general merchandise business association, AOKANG and Shanghai Bailian, France Auchan, Dalian big business and other five top shopping centers formed strategic alliances.

The five shopping malls will provide advice and green light for AOKANG's brand presence.