OEM King Wang Zhenqian: The Road To Entrepreneurship

He has three mansions in the Taipei Xinyi planning area; Terry Gou, the "foundry emperor", lives in his downstairs; he can lend us $five million in five minutes to the same industry! He was a descendant of wealthy businessmen in Anhui. When he fled to Taiwan in 1949, he was so poor that he didn't even have shoes. After fifty years, he became the biggest shoe factory in the world. How did he succeed?

Cheap money and Terry Gou's neighbors are rich in assets.

The famous mansion "Xinyi Fubang" in Xinyi planning area of Taipei is just one thousand and six hundred gardens (1 Ping 3.3 square meters). It is surrounded by trees and streams. It is like a tropical forest in the south. All the rich people in Taiwan want to stay in this dream castle.

Wang Zhenqian, who lives here, is Terry Gou, chairman of Hon Hai, who is worth up to fifty billion yuan (New Taiwan dollar, the same below). It is understood that Terry Gou owns four houses here, and the value of each house is over one hundred million yuan. In total, there are only forty-three households with "Xinyi Fubang". Wang Zhenqian has three households. Who is he? Why do he have such amazing financial resources?

To be a neighbor to the emperor of the OEM, Wang Zhenqian is naturally an unequal person. He is also a heavenly king who is strong enough to look up to others, but he is very low-key in peacetime.

Wang Zhenqian LED Hengfeng The group produces more than fifty million pairs of women's shoes annually in factories in the mainland and Vietnam. One of the five women's shoes in the United States is produced by Wang Zhenqian, the annual Miss America trial. The beauty pageants wear Hengfeng heels at the foot. Hengfeng's annual turnover is as high as more than 300000000 dollars. In a pair of five to ten dollars of women's shoes, regardless of sales volume or even number, Hengfeng is the world's first.

A 1.5 hour ride from mainland Guangzhou to Zengcheng, a famous litchi hometown, is a small town of eight hundred thousand people, averaging one hundred kilometers away from Shenzhen, Guangzhou and Hongkong. Due to convenient transportation, Guangzhou is known as the Golden Corridor, and Hengfeng group's largest Haifeng shoe factory set up factories here. The factory area is like a self-sufficient town. There are movie theaters, Cara OK and shopping centers. At the first glance, twenty factories come to the sky, and more than twenty thousand employees keep making shoes that sell women more beautiful day and night.

Wang Zhenqian, who is the king of women's shoes, can feel his strength around him. Full cash, he can not only buy three houses of "Xinyi Fubang" in one breath, but also decided to lend five million dollars to the biggest chain girl shoe store in five minutes eight years ago. Daphne helped the famous Taiwan business enterprise to get through the financial crisis. Even six years ago, former Citibank General Manager Chen Shengde turned to CITIC gold, and Wang Zhenqian was the first grade VIP deposit customer who had personally called to take care of it.

In the extreme poverty, the childe barefoot.

Wang Zhen Qian was born in a wealthy family, but fell to the bottom of the valley at the age of eight. Sixty-nine years ago, Wang Zhenqian was born in a wealthy merchant family in Dingyuan, Anhui. At that time, there were one thousand people in the family's security team. If we ride a horse, we will never be able to walk from morning till night. "Before the age of eight, I was dressed to eat and served, but after I was eight years old, I had no shoes, only bare feet." he recalled that during the civil war of the Kuomintang Communist Party, he fled with his aunt to Yilan, Taiwan, and lived in abject poverty.

The boy in Anhui did not like reading. He went to middle school from Yilan middle school to study in Jianzhong, but he only graduated after seven years. "Others are studying for eighteen hours, but I am eighteen hours' exercise!" he was a classmate in Yilan middle school, who was later known as Taiwan's "democratic Godfather", former president of the DPP, Lin Wei Hsiung, but later, two people's life went on a completely different path.

Wang Zhenqian, who did not like to read and was vigorous, was the merchant of Anhui's blood. Entrepreneurship The way. Originally in shoe factory as director of the factory, he had the first-line shoemaking experience, saw the shoe industry in Taiwan took off, started its own business in 1973, set up factories to start production of women's shoes.

In the competitive environment, in order to survive, he only slept five hours a day in the first seven years of his initial business, and worked hard with the workers. When he set up factories in the three and Taoyuan gardens, he used to hire rascal from other factories and drove a truck to the front door of the Wang Zhenqian factory. As long as he paid more than $fifty, the workers immediately jumped off the wall and walked with each other.

The key turning point is Payless's largest factory.

Before setting up a factory in Guangzhou in 1988, Wang Zhenqian's factory was just for the United States. Ladies' shoes The brand "excellent show" OEM small factory, then set up factories in Guangzhou, and for the largest chain store Payless in the United States for twenty years, is Hengfeng from a three or four hundred small factory transformed into the world's largest women's shoes factory.

A Taiwanese businessman who subcontracted to Payless shoes also pointed out that at that time, the main town of shoemaking in Taiwan was in the middle and southern parts of the country. Wang Zhenqian's shoe factories not only had fewer workers, but also had to purchase from the central and southern manufacturers, so they could only do small quantities of high priced shoes. However, because of their small size, when they set up factories in the mainland, Wang Zhenqian had no burden at all, and then they sold the whole plant to Payless.

Unlike the original Taiwan factory, there were already other orders, so we dare not give the whole capacity to Payless. Therefore, with the growth of Payless, Hengfeng has gradually become the largest female shoe foundry in the world. {page_break}

Wang Zhenqian does not deny this statement, but the choice of Payless is deliberate, not just chance. At that time, Wang Zhenqian thought that the production process of sneakers was simple, but the raw materials such as soles and shoes were controlled in the hands of big factories. The production of women's shoes is just the opposite. The process is more complicated than the sports shoes, but the raw materials are easy to obtain. The factory is not easy to be controlled by big factories, and has greater elasticity.

In order to focus on Payless's shoes foundry, Wang Zhenqian refused NIKE's OEM invitation for the two time and pushed WAL-MART's orders away.

Heavy feelings, heavy losses, but also in exchange for customer trust.

Under the changing system of American foundry, Hengfeng and Payless have been maintaining a strong OEM relationship in the past twenty years. This is related to Wang Zhenqian's personal style of being willing to eat small losses.

For Payless OEM, the profit of a pair of women's shoes is about two dollars. If shipped by sea, a pair of freight costs about 0.3 dollars, but air transportation needs two dollars. But Wang Zhenqian often works with Payless's demand for air cargo to the United States. He said that women's shoes are popular. WAL-MART can only sell a pair of shoes as long as Payless launches products a day earlier than Payless. It is precisely because of the understanding of the profits and losses of customers on the timeliness, Wang Zhenqian is willing to eat some losses, so that customers make money.

Wang Zhenqian has eaten the biggest loss, to calculate the Payless promotion in the millennium. In those days, Payless announced that as long as the baby born in the millennium was brought to the store by parents, a pair of children's shoes would be presented free of charge. At that time, the order profit was very low, a pair of less than a dollar, the number was more than one million pairs, while strictly demanding delivery within two months.

At that time, all executives recommended Wang Zhenqian not to take the order, otherwise they would suffer a great deal. But Wang Zhenqian thought that Payless had only looked for Hengfeng women's shoes for a long time, so in any case, it must help. In order to catch up with the time limit, these commemorative children's shoes were transported to the United States on the plane. Just because of this order, Wang Zhenqian lost five or six hundred thousand dollars.

When people lose money to do relations, others wait to see Wang Zhenqian being played by Americans, but the senior Payless also feels that his relationship is stronger and the relationship between the two sides is more stable. Relying on its close cooperation with the largest female shoe chain in the United States, Hengfeng has quietly become the world's largest women's footwear manufacturing group.

Wang Zhenqian's respect for customers is definitely not superficial, but genuine gratitude from the bottom of his heart. For big clients who are in trouble, Wang Zhenqian also helps, and will not turn a blind eye to anyone. Chen Wenyi, the chairman of new Hefeng company, a long-term supplier of Baocheng, Xing ang shoes and Hengfeng shoes materials, especially mentioned that there was a big trader who gave the order to Wang Zhenqian and later failed in business. Wang Zhenqian hired him to be an important position of the vice president of the company. Although the trader later came in three, he did not stay in Hengfeng. But in Chen Wenyi's eyes, Wang Zhenqian is the kind of person who eats people and has a fight.

Cost control of digital management after four decimal places

Lin Bingbin, chairman of the Taiwan SME Association, once complained publicly: the payment period of large enterprises is getting longer and longer. Now it has been dragged to nine months before shipment. But over the past thirty years, no matter in Taiwan, the small shoe factory with an annual revenue of about one million yuan, or a large shoe factory operating in the mainland, Vietnam, Indonesia and Russia for an annual revenue of more than 300000000 dollars, Wang Zhenqian has never been in arrears with suppliers' payment, and even the payment after the decimal point must be paid.

The four points after the decimal point must be paid, in addition to reflecting Wang Zhenqian's care for the supplier, it also reflects his ability to control the cost.

Wang Zhenqian once scolded his daughter, Wang Xiaoping, as the Japanese general manager, because Wang Xiaoping could not answer the exact number of shoes to be replenished. When Wang Xiaoping said, "there will be about more than 200 double!" Wang Zhenqian then asked, "how many two hundred?" he saw the importance of cost control.

When discussing costs in the company, Wang Zhenqian most convincing executives is that he can freely tell how much the cost of a pair of shoes is made. How much is the cost of making one hundred pairs? How much is the cost of making one thousand pairs, ten thousand pairs and one hundred thousand pairs? If it can not be done, will he ask whether there is a problem in the procurement link or is there a problem in the production process?

Because of the ability to control costs, let Wang Zhenqian dare to try all kinds of effective production mode.

Alliance, the owners, the rich, the group operations we make.

The first is the industry's first "alliance and co ownership" mode: Hengfeng group has produced one hundred million pairs of shoes every year before and after two, except for sixty million pairs of factories, and the other forty million pairs are produced by other joint factories. Wang Zhenqian's shareholding companies ranged from five to nine per cent, allowing them to take orders in the name of Hengfeng. Hengfeng controls their product quality through the general management office, but does not interfere with the personnel and operation of the joint factory. All the independent lords worked together and rushed the group's shoe production to one hundred million pairs in three or four years.

Moreover, through the joint factory, Wang Zhenqian can also do some inconvenient orders, such as Payless's orders against WAL-MART.

However, with the rising price of international raw materials, Wang Zhenqian's investment cooperative factories or suppliers are increasingly unable to meet Wang Zhenqian's requirements in cost control. In the end, Hengfeng can only produce raw materials or semi-finished products purchased by itself, producing one-stop production, and moving the factory from Guangzhou to Zengcheng in the suburbs. At the same time, he also cut off cooperation with the cooperation plant.

In the past four years, lack of employment has become the biggest business difficulty for Taiwanese businessmen. Wang Zhenqian, who has been holding water to get to the upper reaches of the river, has been planning to set up factories in inland China and southern Vietnam as early as ten years ago.

In view of the idea that rural parents generally do not want the only child to leave home, Wang Zhenqian has come up with the production layout of "the stars and the moon": set up an assembly plant in the central city, and then set up more than 10 raw material factories and semi finished factories in the rural areas surrounding the central city, so that the workers in these factories can go to work nearby. In this way, the turnover rate of employees can be reduced, and companies do not have to spend money to build dormitories.

More than 10 years ago, he planned to wrap up a province in southern Vietnam and set up Hengfeng's shoemaking kingdom. At that time, almost all the executives opposed it, but he insisted on doing it. Now Vietnam's tea factory has become the most important factory outside HENGWEI. It is expected that three years later, the annual output will be increased to one hundred million pairs.

Like all foundries, Wang Zhenqian, who has worked for decades, wants to take the road of his own brand. But like all foundries, the road of brand is not easy.

More than eight years ago, Wang Xiaoping, who joined the brand pioneer of Hengfeng group, was faced with the difficulty of finding marketing talents. When she interviewed Miss Sofi employees, almost no one ever heard of Hengfeng's name. Therefore, if you want to employ senior executives from vice management, you must find someone through hunters.

After giving generosity, he decided to borrow money in less than five minutes.

Wang Zhenqian is also generous in helping the industry. Daphne lost its brand eight years ago and needed five million dollars to save the emergency. Otherwise, it had to go bankrupt. Then Daphne general manager Chen Xianmin Xiang Hengfeng executive general manager Song Jingwei asked for help. Song Jingwei suggested that he talk to Wang Zhenqian. Before that, Chen Xianmin met Wang Zhenqian only a few times and had no special friendship, but because he had no way to go, he had to rush to see Wang Zhenqian.

Chen Xianmin prepared thick piles of operational and financial information to visit Wang Zhenqian, and Chen Xianmin, on the other hand, explained the company's operating condition and observed the reaction of Wang in a nervous way. But he talked for less than five minutes, and Wang Zhenqian immediately agreed to borrow money. Chen Xianmin was stunned at that time, and could not believe his ears. He asked, "in case I don't come out, what should I do?" Wang thought, and did not want to reply, "then let's go!" Chen Xianmin went back to his shareholders with joy, and everyone did not believe what he said.

Senior executives with high salary and honesty are all paid tens of millions of {page_break} annually.

Wang Zhenqian is generous to his fellow generals. Song Jingwei drove a Mercedes Benz 55 yuan at a market price of five million yuan. Whenever someone asked him, "how did the boss treat you?" he always pointed to the car and said, "I drive better than the boss. How do you say the boss is to me?" in Hengfeng's executives, like Song Jingwei, nearly twenty people were called "Whampoa phase one", and their annual salaries were over ten million NT dollars. The dividend paid by the listed company is paid by investors, but the dividend from Hengfeng to the core executives is taken out of Wang Zhenqian's pocket.

Wang Zhenqian said he paid high salaries to key executives, that is, to pay high wages for honesty and not to give kickbacks to suppliers.

At the request of Wang Zhenqian, all Hengfeng purchasing executives have to pay their own meals when they eat with suppliers. As for non purchasers, they absolutely prohibit their dealings with suppliers.

For more than thirty years, Chen Xianmin is the only one who has money to repay. As for how much money Wang Zhenqian has borrowed, how much has not been returned, which is curious. When we asked him this question, "probably NT $seven billion," he said lightly. Seven billion this astronomical figure is shocking, but he doesn't care. In private, he often donate to the needy.

The more you lend, the more you give, the more you earn. Wang Zhenqian's life at sixty-nine is like a legend. Such a business is amazing. Maybe the world's first woman shoe king knows you.