Wenzhou'S Private Sector In Shoemaking Is Competing For Capital Market.

Wenzhou, Zhejiang, known as "the capital of China's private enterprises", did not have a publicly listed private enterprise in 2003. With the development of domestic capital market, Wenzhou, as one of the most developed areas of China's private economy and one of the most active private capital, can be the two leap across the stock market to become a reflection of many Wenzhou private enterprises.

Since 2007, the private enterprises in Wenzhou have been surging in the market under the vigorous promotion of the government, and many brands in Wenzhou have changed their consciousness from "insulation" to "electrical conduction".

As of February 2010, there were 57 private enterprises worth hundreds of millions of dollars. They are queuing up to go public. Apart from the huge wealth effect, they want to get the business onto the international stage with the help of the listing, and ultimately achieve the everlasting success of the brand.

Under the impetus of the market tide, the private enterprises in Wenzhou are integrating into the operation of the capital market with a more open attitude.

Wenzhou has always been the first place for China's private economy.

However, between the listed cities surrounding the listed companies, it has become a heterogeneous group: as of February 2010, the listed companies in Wenzhou remained at 7.

Private enterprises in Wenzhou have long been regarded as the "insulator" of listing, and the enthusiasm of enterprises listing is not high.

Due to historical reasons, most enterprises in Wenzhou are engaged in light industry such as leather and clothing. The number of high-tech enterprises is relatively small, and the demand for funds is not too strong.

More importantly, Wenzhou's private capital is very strong, private financing channels have been very developed and convenient, large amounts of money can arrive in a very short time to solve the urgent needs of enterprises.

However, since the beginning of 2010, following the CHINT electric appliances, the voice of Wenzhou's big brands such as AOKANG, red dragonfly and people's appliances has been heard.

Why in the twinkling of an eye, these quiet years of brand competition for listing?

Since the global financial crisis, the capital market has seen explosive growth. Wenzhou enterprises, which are always sensitive to smell, seem to recognize the necessity of listing for long-term development of brands.

The most attractive part is that the capital market has a strong capital magnification effect.

After decades of development, the private enterprises in Wenzhou have gone to the stage of qualitative change. It is difficult to guarantee the rapid development of enterprises by relying solely on private lending funds.

Although Wenzhou's private capital market is well-developed, many enterprises in Wenzhou have reached a certain scale. If we want to further develop, we must consider widening the financing channels.

The outbreak of the world financial crisis has undoubtedly touched Wenzhou enterprises. The various factors brought about by the financial crisis have made Wenzhou's traditional manufacturing enterprises run down and their capital chains are tight. In order to find a way out, some enterprises expect to meet the current challenges through reorganization, integration or pformation and upgrading.

In fact, the enthusiasm of Listed Companies in Wenzhou is gradually rising, and the government's efforts to promote it are important.

In recent years, the Wenzhou municipal government has continuously introduced a number of incentive policies to stimulate the listing of enterprises.

As early as 2002, the Wenzhou municipal government set up a leading group for the listing of enterprises, and issued a notice on Forwarding Some Opinions on supporting the listing of enterprises. Subsequently, in 2004 and 2005, a number of documents were issued in succession to encourage qualified enterprises to go public and carry out multi-channel financing.

The positive promotion of the Wenzhou municipal government to the listing of enterprises has created a good atmosphere for the listing of private enterprises.

On the other hand, in January 21, 2010, CHINT electric listed on the Shanghai stock exchange, which played a leading role in many private enterprises in Wenzhou.

Today, in the eyes of businessmen in Wenzhou, listing has undoubtedly become one of the long-term strategies for brand development.

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CHINT electric technology and network marketing double advantages to stabilize the listing basis

26.51 yuan, with the sound of "Gong", in the Shanghai stock exchange hall, the opening price of Zhejiang CHINT electric Limited by Share Ltd (CHINT electric appliances) appeared on the electronic screen.

On the morning of January 21, 2010, CHINT electric was listed on the Shanghai stock exchange, becoming the first A share listed company in China with low-voltage electrical appliances as its main business. It is also the first private enterprise to enter the main board of Shanghai Stock Exchange in Wenzhou.

CHINT electric officially entered the capital market.

With the listing of CHINT electric, some Wenzhou entrepreneurs believe that the state of Wenzhou's current listed companies will produce new changes.

Founded in 1997, CHINT Electric is located in Yueqing, Wenzhou. It is mainly engaged in R & D, production and sales of five types of low-voltage electrical products, such as distribution appliances, terminal electrical appliances, control appliances, power and electrical appliances, electronic and electrical appliances. It is one of the most complete low-voltage electrical appliances suppliers in China, occupying about 10% of the domestic low-voltage electrical appliances market, and has been ranked first in China's low-voltage electrical industry for 6 consecutive years.

Innovative technology extends brand concept

Since its entry into the market in 2000, CHINT has been on the road for 10 years.

In the long 10 years, enterprises have been striving to consolidate the market and innovative technology research and development, and strive to further expand the international market with the support of cost and backwardness advantages, so as to speed up the pace of listing enterprises and achieve brand upgrading.

As the leading enterprise in the world's fastest growing and large scale low voltage electrical appliance market, CHINT Electric has always regarded technological innovation as an important driving force for further development.

CHINT electric successfully developed an internationally advanced NM8 series plastic case circuit breaker, and developed NA8 series intelligent universal circuit breaker with complete independent intellectual property rights and advanced international level.

The series of circuit breakers have many patents, and their performances are comparable to those of foreign first-class products. They are the main products of CHINT group's low-voltage electrical products entering the high-end market.

NA8-1600, 3200 and 6300 have completed CCC certification.

The NA8 series intelligent universal circuit breakers have the advantages of short circuit breaking capacity, beautiful appearance, modular structure, complete accessories and complete specifications.

At the same time, it has the characteristics of large capacity and miniaturization, saving space and cost.

The product applies the design concept of moulded shell, and the contact system is completely enclosed in the insulated compartment, and the upper and lower incoming lines can be used.

With the patented technology, the structure of the interrupter chamber and the capacity of the rated short-circuit breaking capacity have been significantly improved. The zero arc arcing is completely realized and the external environment is minimal. Intelligent controller is adopted to perfect the protection characteristics, which can realize overload long delay, short circuit short delay, ultra short circuit instantaneous action, single-phase grounding or residual current protection (instantaneous or delayed action two), that is, four protection functions.

CHINT Electric has also established a basic technology research and development system and a complete product verification system with the production, teaching and research integration of the leading universities and research institutes in China, and the research and analysis of simulation technology. It has established a laboratory verification room that can cut the flow capacity to meet the test requirements of AC 400V and 150kA. It has a first-rate physical and chemical analysis laboratory and a simulated road pportation test system for stacking and packing products, as well as impact and vibration. It has equipped the 6 most advanced international harmful elements analysis equipment.

In recent years, CHINT electric appliance and stock holding company has obtained many patents and patent application rights through independent research and development, import and digestion, and product upgrading.

Technological innovation is a great driving force for brand development and advancement. In the process of patent research and development, CHINT Electric brand rooted in advanced technology, increased market competitive advantage, and also played an important role in promoting the listing of enterprises as soon as possible.

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Marketing network promotes competitive advantage

Brand with market recognition is one of the core advantages of participating in the industry competition. For CHINT electric, technological innovation, marketing network and brand awareness are the most prominent competitive advantages.

The establishment of brand is not a day's work. It needs long-term development and maintenance.

In the past more than 10 years, the company has focused on the development of low voltage electrical apparatus industry, and has developed and established a perfect marketing network.

At present, the sales of CHINT appliances mainly use the dealer mode.

Because low voltage electrical appliances are characterized by large quantity and wide variety, distributor mode is widely adopted by low voltage electrical appliance enterprises.

This mode helps enterprises to expand sales channels and expand market share by means of distributors, especially to achieve effective penetration of small and medium-sized cities, which is conducive to saving capital investment and reducing investment risks, and distributors are limited by companies only in product sales.

Through strict authorization and unified guidance, the company realizes the management of distributors, and gradually establishes a cooperative and orderly marketing network with regional offices as the core, distributors as platforms and distributors (two level distributors) as supplement.

At present, in the domestic market, the provincial level and industrial cities are the focus, the city level city is the main body, the county level city is the three level marketing network of the radiation point, and there are 12 regional offices and 2000 distributors at all levels, covering all parts of the country, and fully infiltrating customers in various fields. More than 300 core dealers have completed the operation upgrade, set up an e-commerce platform, docking the SAP/R3 system, and have complete market development, financial operation, technical support, and marketing service system.

By 2010, it is expected that the coverage of distributors in the county level and above market will reach 95%, and the average annual sales capacity of distributors will reach 40 million yuan / household.

In the next few years, CHINT electric intends to introduce direct sales to major customers in various industries, especially the main power supply, machinery matching, and major customers such as steel, metallurgy, petrochemical, appliance and real estate. It will further expand the company's market sales.

In the international market, at present, CHINT electric products have entered the developed countries and emerging markets, such as Europe and the United States, and their products are sold to more than 90 countries and regions. The expansion of the international network market will further enhance the profitability and brand awareness of the company in overseas markets.

From the concept to the operation of the wedding bird, the characteristics of "pure clothing brand" are discussed.

The difference between the wedding bird and other listed clothing companies is that the wedding bird has always been a "pure" clothing company. Its main business is clear. Apart from the Zhongnan real estate company owned by the group, there are not many sideline businesses, and the focus on clothing is the goal of making an international garment brand with Chinese characteristics.

The good news bird is committed to integrating the 5000 years of Chinese culture and ethnic elements with Chinese characteristics into the brand, trying to show the best to the world.

In 1996, Wu Zhize, chairman of the group, began to downplay the color of his family business and try to establish a corporate governance structure suited to the development needs.

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National culture creates brand connotation

Looking at the global garment industry, the biggest gap between domestic brands and international brands is neither product nor marketing, but culture.

The phrase "the more the nation is, the more the world" has been in the prominent position of the major media in recent years. Once again, the nationality has returned to the public view, but how to combine national character with the enterprise is a very important proposition.

"Creating an international brand with national characteristics" is an enterprise development strategy of the Phoenix bird. After several years of exploration, it has strengthened the competitive strategy of enhancing the competitive advantage with national characteristics and integrating the national characteristics with the international popularity.

At present, the good news birds draw the essence from the Chinese mainstream Confucianism, will uphold the noble, elegant, refined product style, the visual system, application system, communication system diagram, sound and language strictly unified, create brand culture unique, product style distinct brand new image, in the enterprise publicity brochures, product design are easy to find the imprint of Chinese national elements.

A few years ago, the good news bird chose to take the ancient Ming and Ming Yuan Dunhuang as the breakthrough point, and held the Dunhuang wedding bird 2005 "Tian Li Li Xiang" brand concept conference.

On the basis of international expression, this large-scale conference has highlighted the charm of Oriental culture.

In 2007, the news birds started to explore the large-scale promotion activities of the mother river.

By exploring the source of the Yellow River, feeling the folk art, the cultural relics and the masterpiece of the thousand hammers and hundreds of carving, which have been brilliant on the coast of the Yellow River, we look for the old folk artists, excavate the stories and legends behind the art, publicize the development concept of inheriting traditional culture, harmonious development between man and nature, and apply this traditional national concept to the design of brand clothing.

In order to further highlight the core competitiveness of the brand, good news birds use the national brand "storytelling", in the product design, organize a series of Chinese elements every year, use the Chinese knot or dragon, 2009 is the end of a small dragon shirt, the use of Chinese elements is widely recognized.

In addition, the Chinese knot is made into a button, red and red, representing happiness and auspiciousness.

On the elbow of the suit, the buttons are designed as a bow, while in the store furnishings, the Chinese classical style cloisonne and Chinese knots are decorated.

The good news birds insist on men's formal dress products. In the steady development of western style clothing products, they adapt to the development trend of casual dress, appropriately increase the proportion of leisure products, change to the comprehensive clothing brand, give the brand national cultural connotation, and further deepen the brand image.

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De familial pformation operation mode

In August 16, 2007, the news birds successfully opened the door of capital and listed on the SME Board of the Shenzhen stock exchange.

Following the successful listing of Fujian seven wolves in 2004, it is the second private clothing company listed in Shenzhen.

The news bird has also become the first public offering of stock in Wenzhou and the first private footwear enterprise listed on the main board in China.

After the news birds were listed, the group completely completed the pformation from family businesses to public companies.

Listing is an innovative capital management mode and system. The implementation of diversified and internationalized business can promote the optimization and upgrading of industries.

The clothing industry should respond to the challenges of globalization with a global vision and concept, and promote the two leap of the garment industry.

Wu Zhize, chairman of the news bird group, believes that family businesses are more suitable for the early stage of enterprise development, with high management efficiency and low cost of communication and trust.

With the expansion of company scale, the drawbacks of family businesses are gradually emerging. For example, imperfect governance structure, imperfect organizational mechanism, and difficult internal management can not attract talents to join.

Once the listing is turned into a public company, the external supervision force can be introduced, the corporate governance structure should be perfected, the organizational mechanism should be straightened out, and the internal management should be strictly controlled.

It can also be said that the change of corporate governance structure is the biggest demand of private enterprises reporting birds.

In order to seek listing, in 2001, news bird set up a joint stock company.

In the same year, the news bird group completed the shareholding system reform.

For listed companies, the continuous improvement of governance structure is the development strategy of enterprises, strengthen internal control, promote professional management, and create hundred years brand.

Successful listing and financing will lay a good foundation for the follow-up development of the news bird brand.

Timely birds use the funds raised by the listed companies to pform their "single sales mode" - franchising.

This mode is more suitable for the needs of brand growth. However, with the growth of news birds, franchising has gradually been unable to adapt to the company's continued development. The reason is that its control over sales channels is not strong enough, its response to market demand information is not fast enough, and the unified planning of brand image can not be fully implemented.

After listing in 2007, it gradually changed the channel of relying solely on franchising, and built chain marketing network with 100 million yuan, including the establishment of centralized management system and 6 direct flagship stores and 15 direct store landscape stores.

At present, the news birds choose 178 cities and shops in 500 cities, including 98 reporting birds shops and 80 St. Jie Luo stores. In some cities, they have direct outlets and joint stores through purchase or lease, and have opened stores in some cities.

In addition, the birds also raised funds to raise the production capacity of high-end suits and invest in the "brand design and R & D center technical pformation project".

The company that has been growing rapidly over the past decade is undergoing pformation, all of which depends on the support of the capital market.

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AOKANG diversified industrial layout paving the way for listing

Recently, the news of the listing of private enterprises in Wenzhou has frequently been reported in newspapers. Since the early, CHINT electric appliances located in Yueqing, Wenzhou were listed successfully. This move seems to have opened the floodgates for private enterprises in Wenzhou.

It is also a rising star, including the Hong Kong international brand and the Saturday shoe industry, which have the brand of 100 billion, and also listed on the Singapore Stock Exchange and Shenzhen Stock Exchange in 2003 and 2009.

But what is puzzling is why AOKANG has not been listed yet.

Acquisition of the first brand of Italy footwear industry

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

This is AOKANG's first acquisition of overseas brands.

In the 2009 "Pierre Cardan takeover battle", AOKANG, which had always been interested in international brands, was once considered a powerful contender. However, it failed to see its action. Now the answer is announced, aiming at Italy's Wanli Wade.

The predecessor of AOKANG group is Yongjia Olin shoe factory, founded in 1988. It is a national top 100 private enterprise with leather shoes as its main business and involved in commercial real estate, biological products, cross industry and cross regional development.

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.

It is understood that as early as January 2008, AOKANG and Wanli Wade signed the global strategic cooperation agreement, and acquired the brand management right of the Asia Pacific region for 10 years with a 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.

Wang Zhentao, President of AOKANG shoe industry, said that the use of licensed brands, agents to obtain ownership and independent operation are "natural".

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."

And "plan to invest 5 - 600 million yuan, in 3 years to become the most competitive high-end brands in China and the Asia Pacific, in more than 300 domestic high-end stores."

According to the introduction, "AOKANG will set up an international team to carry out packaging planning and variety development for Wanli Wade.

It is different from the existing low-grade private brands such as AOKANG, Kanglong, red Firebird and so on.

In May 18th, AOKANG launched the international high-end brand strategy.

AOKANG's series of actions will be a beneficial supplement to the high-end brand market. It can be predicted that the first brand of Italy's footwear industry will be a part of AOKANG's pre market preparation.

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Multiple breakthroughs in real estate pharmaceutical shoes

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 AOKANG's adjustment.

As for why the final choice of biopharmaceutical and real estate is AOKANG after years of development to explore the "test" results.

It is understood that before the biopharmaceutical, AOKANG also chose to do other industries. After trial, it was found that biopharmaceutical and commercial real estate is feasible for AOKANG.

From the current situation, AOKANG's diversified portfolio is feasible.

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

The past world financial crisis has made AOKANG shoe industry face unprecedented economic cold winter. It is understood that AOKANG's biological vaccine has been planned for mass production, which is also a new profit growth point beyond the footwear industry.

Similarly, AOKANG is not doing real estate for real estate, but 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.

In May 21, 2010, Quanjiao AOKANG commercial pedestrian street was openly invited to invest 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.

As early as 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."

At this point, AOKANG is accelerating the pace of listing, it is understood that AOKANG is "on the road to catch up", and the two subsidiaries of shoemaking and bio pharmaceuticals are "on the way to the market."

Undoubtedly, AOKANG's diversified industrial layout is beneficial to the listing of enterprises.

Listed companies are directly involved in capital market competition. Market risk requires that listed companies must have sufficient financial support.

And AOKANG will seek diversified industrial breakthroughs before listing, which will surely bring sufficient financial support to enterprises in the future.