AOKANG Takes Three Steps &Nbsp; From 10 To 10000.

"10, 100, 10000."

This is a set of business formulas that Wang Zhentao himself summed up. According to his logic, "if you make a product to earn 10 yuan, making a brand can earn 100 yuan, and capital operation will make 10000 yuan".

And he is trying to lead AOKANG along such a path.

Starting from the city of Wenzhou, taking a bus northbound, across the Oujiang River, after more than 1 hours of turbulence, you can reach a small village below Yongjia County, Wenzhou: thousands of stones.

This is the location of AOKANG group.

22 years ago, Wang Zhentao started from here, led by seven or eight workers with 30 thousand yuan in a scrape together. He founded AOKANG's predecessor, Yongjia Olin shoe factory.

Today, AOKANG has about 3000 terminal stores in China, with sales amounting to 4 billion -50 billion a year.

However, Wang Zhentao, who is "restless", is not satisfied with this. He has also stepped in to diversify and try financial investment in order to get higher returns in a faster way.

Multiple breakthrough: real estate, pharmaceuticals, footwear three Ma Qi drive

In the early morning of May 21st, Wang Zhentao appeared in International Wenzhou Hotel. On the card handed to reporters, the title of Wang Zhentao "chairman" was not only "Zhejiang AOKANG shoe Limited by Share Ltd", but also the Sino Ou Real Estate Group Co., Ltd., Hong Wah Biological Products Co., Ltd.

In AOKANG's current industry layout, the real estate, biopharmaceutical and footwear industries are neck and neck in three big blocks.

In fact, "7 years ago, AOKANG began to make strategic adjustments", while the low profit of the traditional footwear industry was a reason for Wang Zhentao's adjustment.

As for why the final choice is biopharmaceutical and real estate, in Wang Zhentao's words, this is the result of "trial".

In fact, before biopharmaceutical, AOKANG chose to do other industries, but Wang Zhentao did not want to elaborate on the experience. Finally, they found that biopharmaceutical and commercial real estate is a feasible way for AOKANG.

Arthur A Thomson, a famous American business strategist, puts forward that the success of enterprise diversification can be judged from two aspects: first, whether the new industry will form a competitive advantage with the original industry; and the two is whether the new industry will bring more financial profits.

Judging from this, is AOKANG's diversified portfolio "successful"?

Obviously, the cash flow from the shoe industry can also provide financial support for capital intensive real estate and biopharmaceuticals.

In this financial crisis, when AOKANG shoe industry is facing unprecedented economic cold winter, it is said that AOKANG's biological vaccine has been planned for mass production, which is also a new profit growth point outside the footwear industry.

Wang Zhentao, who likes to be independent, claims that he is also different from his real estate, "not to make real estate for real estate", but to carry out around AOKANG's leather shoes.

On New Year's day in 2006, AOKANG opened its first commercial pedestrian street for 200 million years in Huanggang, Hubei.

At that time, Wang Zhentao said publicly that he would build hundreds of commercial pedestrian streets throughout the country in 5 years.

In May 21st, Quanjiao AOKANG commercial pedestrian street was openly invited in Wenzhou, which is the third pedestrian street built by AOKANG.

According to AOKANG's public information, the pedestrian street project is a modern multi-functional integrated brand commercial street which combines business activities, urban leisure, sightseeing tours and history and culture.

After the completion of the commercial street, AOKANG will introduce Suning, KFC and other more than 100 domestic and foreign brands.

And in these pedestrian street shops, AOKANG will focus on recommending its brand shoes, which is why AOKANG only makes commercial real estate.

In Wang Zhentao's words, from the perspective of efficiency, real estate has become the most profitable business.

Today, AOKANG's three businesses are operated by professional professional managers, and Wang Zhentao himself has changed from industrialists to investors.

At present, Wang Zhentao is the chairman of these subsidiaries, but he only spend about 1/3 of his time on the work.

At the end of each year, AOKANG will make a budget of second years, and each subsidiary will submit its budget and obtain approval on the basis of its strategy.

"Larger investments must be reported to me, usually within the budget, and within their mandate, they have the final say," Wang said.

Main business promotion: enter "smile curve" upstream

Since 2001, AOKANG group has started multi brand operation. Besides the existing AOKANG brand, it has launched three brands: "Kanglong", "beautiful woman" and "red bird".

However, all the brands of AOKANG group are located in the middle and low end consumer groups, and the shops are mainly concentrated in the two or three line market.

"Going up" seems to be a major trend in shoe companies.

At the beginning of the year of the tiger, the Daphne international takeover of the footwear industry, which focused on the mass market, increased its brand in the high-end market from 2 to 6.

Also at the beginning of this year, red dragonfly was also the agent of the three high-end shoe brand in Europe.

AOKANG is no exception.

In May 18th, AOKANG signed an agreement with Wanli Wei, the first brand of Italy shoe industry, to acquire the ownership of the latter in Greater China and enter the middle and high-end market.

Wang Zhentao revealed that AOKANG plans to invest 5-6 billion million miles to the more than 300 high-end shopping malls in the country in the future.

This is just the beginning.

Youxian Yong, general manager of AOKANG wanwade business department, said publicly that AOKANG will continue to enrich the product line of high-end products in the future, and move towards shopping mall channels, and gradually get rid of the strategy that only focuses on middle and low end products.

Increasing investment in product research and development is also the focus of AOKANG's "smile curve".

Not long ago, AOKANG's "hi tech digital R & D base" was just unveiled, marking the pformation of AOKANG's R & D from 2D to 3D.

The so-called 3D, that is, through the introduction of advanced automation equipment and related software, the application of CAD/CAM integrated technology to pform the traditional footwear industry, from the very beginning of shoe last, shoes design to the later shoe cutting, and other links, all use digital operation, so that not only can standardize the process, but also can greatly shorten the cycle from design to market, reduce the number of users, save material costs, thereby indirectly reducing the cost of enterprises and enhancing competitiveness.

At the same time, AOKANG also outsourced a part of shoe production business. In Wang Zhentao's view, "compared to the brand, the production of AOKANG is not the most important thing."

And Wang Zhentao's talent in marketing has always been praised by the outside world.

In the Wenzhou business circle, Wang Zhentao was called "the king of ideas" and "the master of planning".

In 2009, AOKANG launched a "fruit marketing" strategy in its more than 3000 stores nationwide, selling shoes like fruit.

According to this strategy, AOKANG broke the practice of launching new models in the four seasons of the year. It will launch new products in eight quarters of the year, and new products will be available every one and a half months.

This not only can better meet the needs of consumers, but also help to reduce store inventory, but it also requires AOKANG to cooperate from all aspects of the supply chain to improve the operation efficiency of the supply chain.

With this strategy, AOKANG's overall sales increased by 20% in 2009.

Listing: two pairs of shoes and pharmaceuticals

Founded in 1988, AOKANG has been "20 times".

Almost the same period of time, Daphne, which was listed in Hongkong in 1995, has a market value of more than 11 billion 500 million Hong Kong dollars.

Founded in 1981, BELLE's famous brands gathered in 2007 and landed at the Hong Kong stock exchange. At present, its market value exceeds 75 billion 400 million Hong Kong dollars. It has become the carrier of the domestic footwear industry.

Even the rising stars, including the Hong Kong international brand with the brand of 100 billion, and the footwear industry on Saturday, have been listed on the Singapore Stock Exchange and Shenzhen Stock Exchange in 2003 and 2009.

Outsiders wonder why AOKANG is not listed.

Wang Zhentao blamed it on "ignorance of the capital market".

"We used to be industrial, and we didn't know much about the operation of the capital market. We thought we could sell a good price as long as we made the product well," Wang Zhentao now looks at. "This is actually wrong."

In 2007, the listing of peer BELLE enabled Wang Zhentao to deeply understand the necessity of listing. He once publicly stated that "the era of shoe integration has arrived, and only by making use of the capital operation of the listing society can enterprises grow and strengthen, so that they can continue to survive in the market."

Wang Zhentao, who is changing his mind, is speeding up the pace of AOKANG's listing. In his own words, AOKANG is "catching up on the way to the market," and the two subsidiaries of shoemaking and biopharmaceutical "are all on the way to the market."

In fact, as early as 2004, Wang was trying to capitalization.

At that time, AOKANG joined the 8 Shenyang group, the French group, the ocean glasses, the Yaohua electrical group and other private enterprises in Wenzhou, and formed a Sino Swiss consortium. Wang Zhentao served as vice chairman and spokesman.

Now, the Sino Swiss consortium is doing more real estate projects. "Many of Wenzhou's real estate projects are made by China and Switzerland", and its original intention is to "finance capital as a link to enter China's super large investment projects, such as national key projects, finance, infrastructure and so on."

"The original ideas and strategic goals of the Sino Swiss consortium were all very good, but they were not born at the right time," Wang Zhentao said. "Because many policies were not open to you at that time."

In fact, China Rui has also tried the equity investment project, and "has done two", but Wang Zhentao admits, "once thought about this, but this is not our profession". The team of China and Switzerland is "a real estate team".

Although many VC and PE want to win over Wang Zhentao as a contributor to LP, Wang Zhentao has never invested.

"Now the first thing is to run the company well and then go on the market, which is also in capital operation."

Wang Zhentao said.