AOKANG: Pluralism Breaks Through &Nbsp; Builds "Pyramid" Multiple Investment Pattern.

In April 8th, looking at the world's manufacturing development path, there is only one way for China to make the future: from labor-intensive to capital intensive and technology intensive.

The top of the Pyramid model is finance. Investment From product to brand And then to finance is the dream of most private entrepreneurs in Zhejiang.

The private entrepreneurs in Wenzhou mostly start from industry and look down on capital, but in the face of the new international economic situation, they must change their ideas. AOKANG "We are catching up on the way to the market," and the two subsidiaries of shoemaking and biopharmaceutical are catching up.

Pluralistic breakthrough

Constructing diversified investment mode of "Pyramid"

In AOKANG's current industry layout, the real estate, biopharmaceutical and shoe industry "three carriages" are neck and neck.

In fact, as early as 7 years ago, AOKANG began to carry out strategic adjustment. As to why the final choice is biopharmaceutical and real estate, this is the result of "trial" that we have constantly tested through practice.

Before biopharmaceutical, AOKANG also chose to do other industries. Finally, we found that biopharmaceutical and commercial real estate in AOKANG is a feasible way of multi investment.

The famous American enterprise strategist, Arthur A Thomson, 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.

Obviously, the ample cash flow from the shoe industry can provide financial support for capital intensive real estate and biopharmaceuticals. Similarly, in the past financial crisis, when the traditional manufacturing industry was facing an unprecedented economic cold winter, commercial real estate and biopharmaceuticals became a new profit growth point outside the footwear industry.

We are not doing real estate for real estate, but all around AOKANG's main business of leather shoes, the main industry supports sideline industry, sideline industry reproduces main business, and finally forms a healthy and healthy cash flow in the whole business chain.

Through years of exploration, AOKANG has basically built a diversified development mode of "Pyramid" with three levels of financial investment, biopharmaceutical and footwear manufacturing. Reviewing the past "11th Five-Year" is the most proudest thing for AOKANG.

It is also along this path that the growth of the world economy in the face of financial crisis, exchange rate fluctuations and rising manufacturing costs has made AOKANG still maintain a strong growth: in 2010, AOKANG completed the target set at the beginning of the year, and sales increased by more than 30% over the same period last year. Market share, profit and single store profitability have increased significantly. Its popularity and sales performance of Kanglong, Red Flamingo, beautiful beauty and Wanli Wade son also increased steadily.

Industry + Finance

Wrestling in capital blue ocean

If you make a product earn 10 yuan, make a brand can earn 100 yuan, capital operation can earn 10000 yuan. This is a set of business formulas that AOKANG summed up.

The "Pyramid" multi development model of AOKANG will be more stable and mature in 12th Five-Year.

Specifically, our main business is still shoes. But today, the idea and method of making shoes and making shoes before are completely different. Next, we focus on not doing addition, but learning to do subtraction. Knowing what can not be done is more important than knowing what to do. {page_break}

Walking up to the high end of the footwear industry chain is the direction for the development of footwear industry in the future. At the same time, we will consider outsourcing some of the shoe production business, gradually stripping the production business from the business entities, concentrating on product research and development and brand building. By increasing investment in product development and brand promotion, it is also the focus of AOKANG's "smile curve".

Three years ago, AOKANG started a small loan company. Its business has been very stable. This is also an attempt of AOKANG's "industry + finance" mode. Today, the decision is correct.

From products to brands to finance is the dream of most industrial entrepreneurs in Zhejiang. Almost everyone can make products and brands, but the financial industry is completely different, full of opportunities and challenges. When the enterprise develops to a certain stage, it must take the road of combining industrial capital with financial capital.

The only way out for China's manufacturing industry in the future is to shift from labor-intensive to capital intensive and technology intensive. Leverage the leverage of Finance and capital to pry the manufacturing industry to take off.

In the future, we will seek small loan companies to upgrade to village banks and have management rights; cooperate with commercial banks to launch portfolio loans. Financial industry is a sunrise industry, and it is also the most basic industry supporting the developed countries. Under the policy of the state supporting private investment, if the microfinance company reaches the scale of 10-20 billion, the profit will be considerable and the prospect is very broad.

At the same time, AOKANG is "catching up on the way to the market," and the two subsidiaries of shoemaking and biopharmaceutical are catching up. Our goal is that in the next five years, there will be three listed companies under AOKANG.