Kangnai Chairman Zheng Xiukang: If You Don'T Go, You Will Still Be That Long.

More brands, less quantity.

Jin Kesheng: what has your company been doing recently? What are you thinking about and doing?

Zheng Xiukang (hereinafter referred to as Zheng): I think that in the face of crisis, we must keep a cool head and identify ourselves as the right thing. We must stick to it.

Especially in coping with the financial crisis, the pressure will gradually ease as long as we concentrate on the main business.

At present, the homogenization of the whole footwear industry in Wenzhou is very serious. Many enterprises only pursue quantity, but there are not many high-end products in quality and technology.

In this regard, I put forward the idea of "more than three or less" in 2004 for my colleagues: more famous brands, less quantity, more integration, less friction, more ways and less complaints.

In this way, the shoe industry in Wenzhou will get better.

If we reduce the price of shoes and increase the output, the whole industry will go downhill.

This will create a vicious cycle of the entire footwear industry in Wenzhou.

Kim: look at this time, Wenzhou shoes should think about how to make the best.

Zheng: Yes, now Wenzhou enterprises should think about how to make their brands better rather than quantity.

If you do a lot of shoes, but often discount, customers will wait for your discount before buying.

To be frank, discount is a good way to promote sales, but the shoe industry in Wenzhou should consider not discount, but promote its own brand.

Because the ultimate factor determining customer purchase will be brand effect rather than commodity itself.

So, two years ago, we put forward "high-end manufacturing" and took the road of differentiation.

This is both the strong point and the strategic direction of Kangnai.

According to our analysis in 2006, there were about 50000000 pairs of shoes imported from foreign countries in China that year, and entered the high-end shopping malls in China.

"High-end manufacturing" is ready to play a catalytic role in the whole Chinese shoe industry.

Kim: what do you mean by "high-end manufacturing"?

Zheng: there are three meanings here.

First, we must constantly improve the technological content of the products so as to enhance the added value of the brand.

The bottleneck for our footwear industry in Wenzhou lies in the fact that the added value is too low, which will lead to the problem of homogenization and low price competition I mentioned earlier.

Two, on the basis of improving the added value of products, we should penetrate into the primary and high-end shopping malls as soon as possible.

Three, in recent years, there are truly several native Wenzhou brands entering the mainstream market of the international market.

Kim: some time ago, I met an entrepreneur who was originally an underwear industry. Later, he felt that the industry was too saturated, too many competitors, and turned to make a machine.

However, after entering the machinery industry, he has encountered new problems - unable to find the corresponding technical personnel.

What do you think of this contradiction?

Zheng: in 2005, I once ate in a Chinese restaurant in Rome, Italy.

The restaurant owner complained to me that there were 200 Chinese restaurants in Rome.

I said, if you can change the style of your own restaurant to make people do not have, as long as the attraction of one customer from 200 restaurants, no more than 200 customers?

Making China made to all parts of the world

Kim: what measures have you taken to resolve the impact of the financial crisis?

Zheng: since last October, we have launched the activities of "saving costs, reducing costs and improving efficiency". First, we have cut down some surplus production costs and used the money saved to upgrade raw materials, development and quality.

The two is to mobilize all staff to participate in the "six one" activities, that is, to save "one drop of water, one kilowatt hour, one point of oil, one inch skin, one size cloth, one penny".

In the 1-3 months of this year, the cost decreased by 8% over the same period last year.

Three, process reengineering to improve production efficiency.

In order to meet the demand of "multi variety and low volume" orders, we made bold innovations in the production department and formed a "quick response mobile force" to deal with the changing market. The production delivery time was more than 50% ahead of schedule.

The four is to strengthen terminal construction.

Enhance the profitability of single stores and regional markets.

Kim: if you order a pair of leather shoes, how soon can you make them?

Zheng: in the case of raw materials in place, the fastest 18 hours can be done, but it usually takes 3 days.

This has been fast in the domestic footwear industry, but Nike is now faster and can be made in 12 hours.

Kim: after 29 years of development, apart from leather shoes, what are the recent aspects of Kangnai?

Zheng: Kangnai wears "Kangnai" leather shoes, Kangnai leather products, Kangnai clothing, Kangnai underwear and so on. It has also done a little bit of other projects, but it is not our main business.

My main business is leather shoes.

Kim: what is the construction of Kangnai Industrial Park in usurusk, Russia?

Zheng: our initial goal is to invest 2 billion yuan there and plan to introduce 60 enterprises. After the construction is completed, the annual output value can reach 24 billion yuan.

Now, the first phase has been completed, and 110 thousand square meters of factory buildings have been built, and 13 enterprises have been introduced. Most of them are Wenzhou enterprises, and several of them are Fujian's.

Last year, the output value of the park reached more than 100 million dollars.

Moreover, after last year's seizure of Wenzhou shoes in the market, the enterprises in the industrial park became more busy.

The park has been completed, which will facilitate the establishment of small and medium-sized enterprises in China and help them to register, customs clearance, labor export, and establish branches in Russia.

At present, attracting investment is not a problem.

The Ministry of commerce is very supportive of us. In the minutes of the last state council working conference, we pointed out that Kangnai and Haier projects were relatively successful in the 8 projects of overseas industrial parks.

Kim: does Kangnai set up its own factory there?

Zheng: No.

The purpose of establishing the park is to pfer the surplus production capacity of other domestic enterprises to the outside world, because the market in Russia is very large, and Chinese shoes have great space and room for development there.

This is also a request made by China Leather Association and Light Industry Federation to Kangnai. It is also our social responsibility.

A profitable shop abroad

We must grasp three factors.

Kim: as the first Chinese shoe making enterprise to open a shoe store in foreign countries, how is Kangnai's foreign stores doing now?

Zheng: Kangnai has opened more than 200 stores in more than 20 countries.

France has the largest number of stores in Paris, with more than 20 stores and shopping malls.

In the Kangnai flagship store in downtown Paris, 280 square meters are linked to international brands.

We have done Market Research and analysis. After Kangnai shoes have been tried on foreigners for several years, their trust and reputation have been improved.

Consumers originally bought shoes from other countries for 100 euros, and our Kangnai shoes were light, soft and fashionable, with a price of only 60-70 euros.

Therefore, sales of foreign brands will fall, and we will rise.

In the second half of last year, the French Kangnai market increased by 35% over the same period last year, and sales in the US, Europe and other foreign markets were two digit growth last year.

Kim: did you make money in foreign stores?

Zheng: of course.

Some people say that it will be a wrong guide to open stores abroad to lose money.

If you open a shop abroad, you will lose money. It depends on two points: first, the high technology content and high added value of your product; the two is the quality of your overseas outlets.

The exclusive store we choose is a medium high area.

Foreign consumers wear our Kangnai shoes and find that Kangnai leather shoes are not inferior to those of foreign mid-range brands.

So over the past few years, we have also established a good brand image in the eyes of foreign consumers, and the sales network has also expanded rapidly.

Kim: are there any tricks to make profitable stores abroad?

Zheng: we must seize three factors.

First, products should be suitable for foreign consumers, and the design must conform to the aesthetic standards of local consumers.

The two is to fit the feet of foreigners.

Three, the price should be moderate.

To do these things well, foreigners will look at our shoes.

Kim: now, what are your new ideas about opening stores and making international brands abroad?

Zheng: in 2001, I opened a shop abroad, not a show, nor a temporary impulse, but a long-term consideration.

I know that if we really want to improve the survival rate of enterprises and let Kangnai go longer and longer, we must break through the limited domestic market and go to the broad international market.

Moreover, Kangnai has always been famous for its high quality, high quality and good technology, which is the key to our expansion overseas.

For the creation of world brands, our enterprises have already made plans in strategy.

If this generation does not do well, let the children continue to do it.

Let's take a step forward and be closer to the world brand.

If you don't go, it's always that long.

Entrepreneurship is more difficult.

But I hope the waves will push ahead in the Yangtze River.

Kim: how do you guide and grasp the succession problem?

Zheng: I think there are three stages.

The first stage is to take them away. There is still a gap between their theory and practice. I will teach them how to do it first.

My daughter, Zheng Laili, has been back at for 10 years since her graduation from University, and her son, Zheng Laiyi, has been back from England for 6 years.

The second stage is from the second half of 2008, and I strive to help them in the last three or four years.

The third stage is the future to see how they do it.

I often tell my children that entrepreneurship is harder and business harder.

But I hope the waves will push the waves ahead of the Yangtze River.

Kim: why do you think it's more difficult for them to keep their business?

Zheng: I am like a wrestler, who has been playing slowly from 50 kilograms to 100 kilograms to 200 kilograms in recent decades. And they are like a wrestler who has never participated in a competition. Once they appear, they will fight against heavyweight rivals, so they will eat a lot of losses and even fall to others.

At present, my ability to fight with "300 Jin" enterprises, but still beat the world "500 Jin" enterprises.

This test requires our enterprises to continuously train their internal strength and win in the end.

In this crisis, I also provided more time and opportunities for my children to keep their eyes on the work in front of the enterprise, but to take a look around the country and around the world.

I think this is good for business development and for their own growth.