How Does AOKANG Go From "10" To "10000" (2)

Main business promotion:

March into the "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 VALLEVERDE, the first shoe brand in Italy, 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 spanformation 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 spanform 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 (1987), 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 made Wang Zhentao deeply understand the necessity of listing. He once publicly said, " footwear industry The era of integration has arrived. Only by making use of the capital operation of the listing society can enterprises grow stronger and stronger 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 public market". Shoemaking The two subsidiaries of biopharmaceuticals are "on the way to the market".

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

At that time, AOKANG Wenzhou's Shenyang group, France Group, ocean glasses, Yaohua electrical group and other 8 private enterprises, formed a Sino Swiss consortium, Wang Zhentao 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