Huajian Shoes &Nbsp; The Future Carrier Of Women'S Shoes.

I. The basic situation of enterprises

Annual production of medium and high grade

Founded in October 1992, Huajian shoes Group Co., Ltd. was founded jointly by Mr. Zhang Huarong, chairman and general manager of the company and Hongkong glory company.

Located in Guangdong, China

Through 20 years of arduous pioneering work, Zhang Huarong led Huajian group from a family workshop factory with only 80 people to the women's shoes kingdom with more than twenty thousand employees and 10 factories at present.

It is a diversified group company integrating research, design, production, processing, production, trade and network.

The company has developed more than 100 styles and more than 1000 styles of shoes, sandals, riding boots and casual shoes with different shoes and different genders. It is the main manufacturer of the famous American brand "resistant Wei", and has established long-term business partnership with many famous trading companies abroad such as pons, NINA, Bao Lun, Wan Baole and beautiful Asia. The company has won wide acclaim and market with the best quality, reasonable price and service.

In 2008, the footwear industry was affected by the cold current of the economy, and the orders were decreasing. Many shoe companies were forced to shut down in the process of upgrading and pformation.

In this silent campaign, Huajian group is particularly eye-catching. When it comes to the current order, Zhang Huarong seems to have plenty of money. "Orders will be full before the Spring Festival next year".

"Click the mouse, the more perfect the shoe shape on the computer screen, press the button, the precision controlled die press is able to press the upper on the shoe last."

This is a reporter's description of Huajian's image, which completely subverted the old impression of shoe factory in his mind.

"Development, pformation and upgrading" is the "six character truth" of Dongguan Huajian group.

Zhang Huarong, chairman and chief executive of the company, said that relying on the "six character truth", Huajian group was able to take advantage of wind and waves and develop from shoemaking workshop to a large Footwear Group with more than 10 subsidiaries and over 20 thousand employees today.

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Two, how did Huajian pform itself?

(1) the first pformation - the pformation of corporate capital (but failed).

In 1992, after several years of hard work, Zhang Huarong finally owned an enterprise with more than 200 employees and a capital of more than 1 million.

Moreover, Zhang Huarong, who is constantly upgrading in the footwear industry, has attracted many foreign investors' attention. A Taiwanese businessman named Ye Jianting found him and wanted to engage in Sino foreign joint ventures together.

In those days, the four word "Sino foreign joint venture" was a gold lettered signboard. How could we get away from it? Zhang Huarong bought a lot of machines from Ye Yan Ting's hands. The workers increased to 560 people, the factory buildings expanded to 5000 square meters, and took one word from the names of two people.

But this is not the case. The "Sino foreign joint venture" has no effect.

At last, there was no money and no order.

Zhang had been struggling for two years and was in a terrible mess.

He recalled that at that time, every day in the factory, every single item must be strictly controlled in terms of quality, price and delivery time before winning some business gradually.

(two) the second pformation: doing orders that others do not want to do.

In May 1996, after the ups and downs of Zhang Huarong went down to Dongguan, spent 1 million sets of houhoujie a shoe factory on the verge of collapse, the establishment of today's Huajian shoe industry Co., Ltd.

At that time, the footwear industry in Dongguan had gradually become a climate, and Taiwan businessmen were in the same position.

Sports shoes include Yuyuan, oasis and so on. Women's shoes are prosperous and so on. Thick streets are the world of Taiwanese businessmen. To break the existing pattern, it is far from easy to imagine.

Besides, Zhang Huarong used to do cloth shoes, but the factory under the factory was producing women's shoes.

Without management talent, there is no effective management mode and no stable orders. Zhang Huarong soon became heavily indebted. Once he felt "unable to go on" and even thought of spending money to escape to Russia.

Internal and external troubles force the important turning point on Zhang Huarong's commercial road.

At that time, foreign brands found Huajian, because the shoe industry refused to produce foundry products because they refused to accept the manufacturing price provided by foreign brands. They found through inspection that Huajian basically lost the ability to ask for price and its good quality.

So we want to cultivate new forces to contain Taiwanese businessmen.

Zhang Huarong finally came to "lucky straw".

After being rejected by Taiwanese businessmen, an internationally famous shoe manufacturer in Brazil turned over an order of about 300000 pairs to him.

"The support of this brand has not solved the problem economically, but has solved the problem in the image.

I heard they gave us orders, and all the suppliers supported us because we felt that we had a future. "

Zhang Huarong, who has fallen to the bottom for three times, is unwilling to lose his chance. He insists on making the best quality shoes at the lowest price, which is catering to the tastes of foreign brands.

Zhang Huarong has been following the wind since then.

By 1999, Huajian had become famous in the footwear industry of Dongguan, and by 2002, four shoe factories, a PU sole plant and a shoe material factory were successively established.

(three) the Third Transformation -- independent research and development, that is, core technology + independent brand + shipping by sea.

If the first two times are not real pformation, then the third must be a pformation.

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Do you create your own brand or go out by sea?

Still playing with his shoes, the difference is that Zhang Huarong's feet have stepped out of the manufacturing industry.

What he has done is exactly a specimen of "the third industry for the second industry".

If Huajian is in the industry pfer is hit by the fortune, then in independent research and development and independent brand, Huajian is completely out of consciousness.

Zhang Huarong was not willing to make wedding clothes for others, but was brewing a new revolution.

In 2001, he spent huge sums of money to set up R & D centers in Dongguan headquarters.

In a single building, more than 2000 employees are engaged in research and development.

In addition, he recruited nearly 30 professional designers from Italy, Brazil, Spain and other countries.

With independent research and development, Zhang Huarong made a natural step forward.

This is the independent brand.

Zhang Huarong and movie star Jackie Chan have introduced the brand "Jackie Chan" together, and have introduced "Alan Delong" from abroad, and bought the famous brand of women's shoes, "Carver", which created the COLCO.'s idea. Zhang Huarong has tried it.

But how did it work? "In the process, we invested nearly 50 million.

But the benefits are not very good. Now we have more than 200 stores, and we are still losing money. "

Zhang Huarong admitted that he had lost a lot of money in the past two years, and his own brand was obviously not as easy as it was theoretically.

Zhang Huarong no longer shops.

He plans to "ship to sea" - cooperate with some good service brands, create shoes with good design, good quality and fast delivery, and help them grow in 3 years, then share shares with these service brands and implement stock market listing.

"We are confident that our strongest strength is R & D, manufacturing and fast supply. We use our own decades of production experience to cooperate with their advanced commercial operations, and then share cooperation, which is a combination of common interests."

At the same time, Zhang Huarong plans to spend nearly 1 billion to build a "world shoe industry (Asia) headquarters base" in Houjie.

The shoe base, which covers an area of 180 thousand square meters, will be an aircraft carrier that the Dongguan shoe industry has emerged.

The headquarters base will set up a "one courtyard, two platforms, ten centers" soft and hard platform, covering the whole chain of shoemaking industry.

Among them, the "one hospital" is the Dongguan international footwear research institute. The "two platform" is the world footwear development forum and the footwear industry science and technology innovation platform. The "ten center" refers to the international shoe trade center, the international shoe display and procurement center, the international leather shoe material trading center, the international shoe machine hardware accessories trading center, the international shoe brand incubator center, the international shoe industry R & D design center, the new material and new technology promotion and distribution center, the international shoe industry talent exchange training center, the international shoe logistics storage and distribution center and the international business service supporting center.

With the gradual deepening of pformation, Zhang Huarong firmly believes that Huajian group will become more and more stable.

"In the next ten years, Huajian's output value will reach 15 billion yuan, of which the independent brand will account for 70%."

Now, "how to diversify risks" has become the topic of Zhang Huarong's daily thinking. He even started picking orders to limit the purchase orders of single customers to 30% of Huajian's total capacity.

"The current crisis has prompted us to focus more on developing the domestic market and creating our own brand". Zhang Huarong still believes that he will develop first, find opportunities to upgrade, and then break through the pformation of business philosophy. "Tap the potential, we may stand on the new starting point of the footwear industry."

Zhang Huarong said.

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Three, the Enlightenment of Huajian pformation

(1) making rational use of government policies

In the Apocalypse of Huajian, there is such a saying: "the government digs the potential for policy and enterprises".

And Huajian still takes the initiative to tap the potential of enterprises.

Therefore, in the eyes of many outsiders, Zhang Huarong has been "tossing" constantly.

The reason is that he can feel the benefits of this kind of "toss" and deeply understand the real crisis.

"What we are doing is laying the foundation for upgrading 35 years later.

In fact, upgrading can not solve the current difficulties, because upgrading means a lot of investment.

It is precisely because the pformation began 6 years ago that today's Huajian can remain stable.

(two) the positioning of enterprise products is accurate and in line with market tastes.

In 1996, Zhang Huarong led more than 80 Jiangxi people down to Dongguan to start their own business. At the very beginning, they focused on shoe making.

Soon, Huajian realized that making small profits from low-end products is not a permanent solution.

As a result, Huajian team painstakingly studied the technology and reform of enterprise management, relying on the determination of "making shoes well" and finally relying on exquisite technology, excellent quality and first-class service to win the favor of many famous international brands.

In 1996, Zhang Huarong led more than 80 Jiangxi people down to Dongguan to start their own business. At the very beginning, they focused on shoe making.

Soon, Huajian realized that making small profits from low-end products is not a permanent solution.

As a result, Huajian team painstakingly studied the technology and reform of enterprise management, relying on the determination of "making shoes well" and finally relying on exquisite technology, excellent quality and first-class service to win the favor of many famous international brands.

Over the past 10 years, Huajian group has opened several factories to manufacture high-end shoes for international famous brands, and the strength of enterprises is stronger and stronger.

When many small and medium-sized shoe factories are still looking at their customers' difficult face, Huajian has managed to choose customers directly.

Today, Huajian has developed into China's largest middle and high-end women's shoes export manufacturer with 42 production lines, an annual output of 15 million pairs, and an annual export earning of 220 million US dollars.

Since 2007, under the influence of domestic and foreign raw material prices, RMB appreciation and other domestic and international environment, labor intensive enterprises in the Pearl River Delta region, which are mainly engaged in processing trade, are facing difficulties in operation.

Nearly half of the Pearl River Delta's shoe export enterprises have been hit.

(three) profit from management

Huajian is also facing a dilemma of profit dilution.

Huajian once again sought a way out in the process of reform and innovation and internal tapping: to benefit from the refinement of production processes and the rationalization of process standards, so that profits increased by 2% to 3%; rationalization proposals were put forward to mobilize first-line operations and management staff to deal with problems encountered in the production process and save about 2000000 yuan.

Liu Xuefeng, the bottom of the company's shoe materials, introduced that through adjusting, merging, reorganizing and simplifying the unreasonable process, the whole production process time of the midsole was shortened from several hours to 45 minutes. By improving the way of discharging the employees, the per capita production capacity increased from the original 9.8 pairs to 13.8 pairs.

In addition to process management, the company adopts militarized management mode, has unique management culture, spiritual culture, etiquette culture and life culture; owns newspapers, training centers, service centers and entertainment centers; the company fully implements the ISO9001 international standard management system and 5S management, establishes the website of Huajian company, introduces the ERP system as a "strategic supplement", and implements the internal incentive mechanism based on the "profit center system" as the principle of distribution. In March 2003, the company began to implement a new "profit contract system", and the company took a new step on the road to legalization.

In March 2003, the original planning department, information department, human resources department and Logistics Department of the group were optimized to form a new administrative department, which made the organizational system and management system of the company gradually improve.

The company has always adhered to the business philosophy of "putting people first, growing together and sharing rationally"; adhering to the management principle of "quality first, customer first, excellence and sustainable operation"; following the spirit of enterprise "always forward, never stop, keep forging ahead and always go to the top"; carry forward the factory training of "dedication, loyalty, pragmatism and struggle"; adhere to the motto of "making mistakes in my hands" and strive for the grand goal of "surviving for the society and striving for the industry".

In February 2003, the company presented Zhang's request for "integrity, tacit understanding, atmosphere, culture", which will guide Huajian's close 8000 colleagues to work together and create new heights.

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(four) build a complete industrial chain.

A few months ago, when Zhang Huarong's business was busy celebrating the 12th anniversary celebration, Dongguan's foreign trade oriented enterprises, which emerged in the OEM mode, were all in a state of "collapse".

Guangdong customs statistics show that in the first half of 2008, the footwear enterprises with export performance in the PRD decreased by 2426 compared with the same period in 2007, and nearly half of them were closed down.

According to the data of the Asian Footwear Association, after the financial crisis escalated in September last year, the purchase size of Asian shoe making industry reduced by 15% from October 2008 to January 2009.

According to this calculation, the number of footwear industry employees has decreased by 25%, and the output of shoe factories has accounted for about 30% of the total industry output.

For a time, the whole market was filled with gloom. The trend of market shrinkage was just a clue. There was no obvious sign of improvement. Huajian group was fumbling in the confusion.

"A few years ago, when other enterprises were satisfied with low-end foundries and earned processing costs, Huajian had done two things in time for safety: the integration of industrial chains and the multi polarization of production.

In difficult times, this is our advantage. "

Zhang Huarong said that this pformation enabled the company to rise at a cost of 12% and profit margins drop from 8% to 10% to 2% to 5%.

It is generally believed that the smaller the industrial division, the more professional and the higher the production efficiency, Huajian is doing the opposite thing. It is made of pure finished shoes and integrated into the footwear industry chain pformation. In 1999, Huajian two plant was put into operation, and three factories and four factories were gradually opened up thereafter, extending the industrial chain from shoe material to mold, making the last link and so on. 10 years of development, Huajian has firmly grasped the whole industrial chain from raw materials, accessories and moulds to production, finished products and sales.

Build a complete shoe industry chain.

At that time, many colleagues laughed at Huajian's "silly hat, injustice and money".

In this regard, Huajian is adhering to the concept of "ten years of shoemaker laying the foundation business" for sustainable development and a century old enterprise.

Facts have proved that self production of raw materials, accessories and moulds has laid a good quality foundation for the manufacture of high quality finished shoes. With the development and production capabilities of the middle bottom, PU bottom, rubber bottom and last, customers come in a rush. Instead of buying raw materials and accessories from outside, the profit chain becomes longer. In a difficult time, the enterprise's ability to resist risks is greatly enhanced.

The deputy general manager of Huajian group, Tu Huo Bao, calculated the accounts. Assuming that he made a pair of finished shoes with a price of 10 dollars, there was a profit of 6%, that is, 0.6 dollars; making a pair of 3 dollars outsole, had 8% profit, that is 0.24 dollars.

"If I only make the finished shoes and buy the bottoms from others, I will have only 0.6 dollars in profits. If I do it myself, then my profit will be 0.84 dollars."

In order to increase the value of products, Huajian group saves energy and improves labor efficiency, so as to cope with the cost problem.

For example, in the past, the surplus materials made by enterprises to make insoles were thrown away, and now they are brought back and used to make small broken flowers on shoes. Only such a small detail can save 300 thousand yuan a month.

After having tasted the sweetness of Huajian, we further deepened this integration and carried out the upgrading and pformation of the enterprise.

At present, Huajian has the largest shoe research and development center in China -- Warburg research and development center, which makes R & D funds of 3% every year, and cooperate with foreign institutions to set up the "100 yards standard" of women's shoes and set up the industry standard maker.

Huajian also invested 600 million yuan to build the world shoe industry (Asia) headquarters base, from the original sole processing of finished shoes to a comprehensive enterprise, which controls R & D, trade, manufacturing, logistics and distribution, and the headquarters base equals the complete industrial chain.

This industry chain can save 4% to 5% of the cost for Huajian every year.

Concluding remarks

Cherish the world and create the future together.

Facing the new century, new opportunities and new challenges, Huajian group company will continue to advance with the times and make persistent efforts to move towards the three dimensional, scale, collectivization and internationalization development path, and strive to turn Huajian group into an international shoe carrier.