Wang Zhentao: Active Pformation Of Traditional Manufacturing Industry

One day in late April, the largest private shoe enterprises in China.

Half a month ago, despite winning the EU's dumping lawsuit for 5 years, chairman of AOKANG group

Prior to this, the European Union fell the anti-dumping duty hammer, seized the Chinese shoe enterprises to fly to Europe's orders, in the Chinese Ministry of Commerce and AOKANG and other shoe enterprises unremitting efforts, in April this year, the EU officially abolished 16.5% of China's leather shoes anti-dumping duties.

"This is only a phase of victory," Wang Zhentao told the first financial (micro-blog) daily. "If China's shoe manufacturers and Chinese manufacturing industry do not change their original export structure, they will not turn their output from the product to the brand export, and Chinese shoe companies may also face other litigation such as anti-monopoly."

For Wang Zhentao and his enterprises, from the development of world-class product matrix to global resource allocation, we should not only complete the upgrading of products and industries, but also optimize the overall structure, comprehensively improve the quality of industry and pform to a more competitive direction.

Upgrading of manufacturing industry

"The pressure of manufacturing is very large, especially for small and medium-sized enterprises."

Wang Zhentao analysis, on the one hand, the costing of raw material costs, labor shortages and labor costs coexist; on the other hand, the cost of financing is rising, and the market competition costs are also rising.

Take shoe enterprises as an example, many shoe enterprises are overwhelmed by pressure. A large number of small and medium-sized shoe enterprises in Dongguan and Wenzhou, which are the two largest footwear industry bases in China, have been closed down. Taking Wenzhou as an example, the number of shoe enterprises has dropped from more than 10 thousand to more than 1800, and the rate of elimination is very high.

Wang Zhentao said that in addition to internal pressure, for export oriented enterprises, the international macroeconomic situation is also not optimistic: RMB may further appreciate, and international trade frictions become more frequent. On the other hand, some countries in Europe and the United States have not yet fully recovered from the financial crisis, and their consumption power has not reached the pre crisis level, which has caused pressure on export enterprises.

"It is only a challenge and an opportunity. China's manufacturing industry should also make some pformation and upgrading. It can also consider capitalizing on this opportunity and acquiring some brands."

Wang Zhentao said.

This is also the opportunity for many Chinese enterprises seeking international market to reinvent the world market order. In May 2010, AOKANG shoe Limited by Share Ltd bought the VALLEVERDE, the world's first shoe brand in Italy, in the Greater China region.

He said there will be a series of plans to cooperate with international brands in the future.

"There is no sunset industry, only sunset enterprises."

Wang Zhentao believes that China's manufacturing must enhance the technology content and enhance the added value of products, which is also the best way to deal with foreign anti-dumping litigation.

In recent years, AOKANG has invested hundreds of millions of yuan in technological innovation and R & D.

Last year, AOKANG invested 60 million yuan to establish a high-tech digital R & D base. By introducing advanced automation equipment and related software to pform the traditional shoe making industry, it not only standardized the process, managed it pparently, but also simplified the process, reduced the number of people employed, reduced the labor intensity of workers, greatly shortened the cycle of products from design to market, and indirectly reduced the cost of enterprises.

Green development is the biggest highlight of the 12th Five-Year plan. It is also the direction of manufacturing industry changing from labor-intensive to resource-saving and environment-friendly.

"Energy conservation and emission reduction and the development of green economy are the basis for long-term interests of enterprises and society."

Wang Zhentao said that at present, AOKANG is not only developing and pforming itself, but also the largest private shoe making enterprise in China. In December 2010, it established the first China footwear cooperation alliance with more than 50 chain shoe cities nationwide. "Through the combination of strong and powerful forces, the pformation of Chinese shoe enterprises has been promoted". This is AOKANG's lead in the establishment of footwear cooperation alliance.

Transition to high value-added industries

In addition to the pformation and upgrading of the traditional main footwear industry itself, Wang Zhentao is also considering the whole group expanding the industry with additional value.

Be vigilant in times of peace.

More and more traditional manufacturing industries are constantly resolving the pressure of economic environment on enterprises by implementing multi brand and diversification strategies.

While ensuring the continuous innovation and upgrading of the main business, AOKANG has also vigorously developed biological products and other industries.

"In the future, AOKANG will make efforts in two directions, one is consumer goods, the other is health products."

Wang Zhentao said.

Unlike many manufacturing industries forced to pform, AOKANG has long been concerned about the biopharmaceutical industry.

As early as 2003, AOKANG set up Kang Huasheng (micro-blog) products Co., Ltd. in Chengdu, Sichuan, mainly producing rabies vaccine, epidemic cerebrospinal meningitis vaccine and other products.

The annual production of rabies vaccine can reach 10 million people, and the epidemic cerebrospinal meningitis vaccine has nearly 20 million people.

"Biomedicine will be the second industry besides the shoe making industry in AOKANG, and will also become a new engine to promote AOKANG's rapid growth."

Wang Zhentao told reporters that these biopharmaceutical products have been mass produced and have been listed.

From shoemaking to unrelated pharmaceutical industry, this is a big pition span.

"Biopharmaceuticals are the future direction of the pharmaceutical industry."

Wang Zhentao said that the strategic pformation must have a span. The traditional shoe making industry is a labor-intensive industry. The decreasing labor force input and land cost pressure in coastal areas will be an unavoidable problem for shoemaking enterprises for a long time.

After completing certain capital accumulation, we should look for opportunities in capital intensive and technology intensive industries.

"The output of a biopharmaceutical employee is equal to the output of 100 employees of a shoemaking enterprise, and the profit rate is much higher than that of the traditional footwear industry."

In order to turn around, Wang Zhentao invested hundreds of millions of dollars.

The reason why he can invest heavily and hide for 7 years is the high capital investment, high profit margin and high technology threshold of the industry.

Wang Zhentao, who already has a lot of money, says that money is no longer a driving force for his continued value creation. For him, the motive force lies in the social responsibilities and life values of entrepreneurs.

Even in the 5 year anti-dumping process, the huge litigation costs and the long time cost made most of the more than 1200 enterprises affected at that time remain silent.

Wang Zhentao said, "we are not going to be in the limelight. We want to do this for the whole industry."

As an entrepreneur, apart from being responsible for his own business, he still has a responsibility for the industry and the society.

Wang Zhentao may not be the richest entrepreneur, but his foundation is the largest non-public fund in the country.

"The measure of the value of an enterprise and an entrepreneur is not how large the scale is, how much wealth is, but how much contribution has been made to society, and whether there is any sense of responsibility."

Wang Zhentao said.

He even tried another way of preaching. His other identity was a writer of business management books. In a few books he published, he went deep into the way of doing business bigger and stronger and the values of entrepreneurs.

"I hope that more and more SMEs who are eager to grow and really grow will be inspired and helped."