Shoe Enterprise Hengda Development History: Why 860 Yuan To Change More Than A Hundred Million?

25 years ago, a sewing machine, a dozen employees, 860 yuan,

After 30 years of reform and opening up, China has been the first batch of private enterprises to eat crabs.

Their footprints, every sweat, record the initiation, development and quest of private enterprises.

Looking back to the 25 years' road, Wang Jiwan, chairman of Hengda Group, has a deep feeling: "a history of handing" reproduces the three stages of the development of China's private enterprises, from the stage of product operation to the operation of brand to capital operation.

In this historical evolution, we also record the course of the first generation of entrepreneurs in reform and opening up.

Wang Ji Wan: why 25 years 860 yuan to change more than a hundred million?

Recently, the office of Wang Jiwan, chairman of Hengda Group, is shining brightly. On his big desk, Hengda operates the "Hengda Hui Valley" operation report.

Facing the new blueprint of Hengda, Wang Jiwan told us about the ups and downs of his entrepreneurship. Under the great background of 30 years of reform and opening up, a generation of private entrepreneurs' historical picture of entrepreneurship and innovation is slowly spreading to us.

Product management period: quality is life.

"The opportunity that the time gives everyone is equal, and the chance is half the battle" - Wang Jiwan.

In 1978 and the third Plenary Session of the 11th CPC Central Committee, Deng Xiaoping put forward a breakthrough in "taking public ownership as the main body and developing a variety of economic components", and the private economy rose under the tide of liberating and developing the productive forces.

The state began to allow the development of individual economy (individual industrial and commercial households), and those who employ more than 7 people are called private enterprises.

Be the first to eat crab.

In 1984, new China ushered in the first wave of business going to sea after its establishment.

For young people in coastal open cities, this year may be a turbulent and exciting year. "Let's go to sea" is becoming popular language.

The coincidence of history is that this year, Wang Jiwan began to make leather shoes in family workshops.

At that time, however, he was a contract worker of the Jimo agriculture and Animal Husbandry Bureau.

In the planned economy of the 80s of last century, it was necessary to become a contract worker. Wang Jiwan's work was quite good at that time.

A year later, in 1985, Wang Jiwan resigned from the contract system and concentrated on the leather shoes business.

Looking back at the decision of the year, Wang Jiwan said that it was a risky but wise decision.

He did not listen to his family's opinions. He was keenly aware that with the gradual liberalization of the economy, the market has huge demand.

The concern of the family: the worthless value of a stable and decent contract work job? Can the shoe factory do it? For him, there is only one answer: I must be able to do it! Wang Jiwan said, I did feel the pulse of history vaguely, although I was a farmer's son, but from high school to joining the army, I strongly felt the great changes in the economic policy of the party and the country, and I believe this is the opportunity!

In 1984, it became the starting year of Hengda.

A sewing machine is the most modern equipment of hada. More than 10 workers are all the employees of Henry Da, and 860 yuan is the capital of hada.

The boss wants to work in person. Until now, Wang Jiwan still laughs and says that he will follow the two processes of spiking shoes and cutting shoes. In summer, he sleeps only 4 hours a day, and he sleeps every night for 365 days a year. The product is in short supply. {page_break}

At the beginning of the reform and opening up, under the planned economy condition, the market was stagnated, the circulation channel was single, the supply was still scarce, and many important commodities were rationed by the planned coupon ticket. At this time, the development of the private economy played a beneficial supplementary role for the state-owned economy.

The huge demand of the market has laid a good foundation for the development of Hengda Group.

Does time create heroes or heroes create the situation?

In 1988, due to the excessive inflation and price increase, which affected the stability of the market, a number of large panic buying appeared in one year, resulting in the expansion of the shortage of commodities.

After entering the fourth quarter, there was a convergence in the market.

In 1988, it became the first turning point in the development of Hengda Group.

This year, Wang Jiwan boldly decided: to abandon the production of spring and summer products, and to produce winter shoes for a whole year. He has experienced 4 years of shoe making experience, and he is keen to predict that by the end of the year it will be a selling period for winter shoes.

He made a loan of 100 thousand yuan and invested all the cost of the shoe factory.

"In the late 80s of last century, the market changed slowly, and in winter of 1987, the demand for winter shoes was strong. I predict that the winter of 1988 will continue to flourishing."

Wang Jiwan said, "however, inventory products occupy funds, and warehouses are full of winter shoes produced all year round. Once the fire is on, the whole year's efforts will be destroyed once and for all, and I am worried about these risks."

In the winter of 1988, Wang Jiwan's foresight became a reality. In that winter, the weather was strangely cold. In addition, a few times of panic buying in the year, Hengda winter shoes were sold out. Wang Ji Wan laughed and said, "I wanted to keep a pair for myself."

With the booming sales of Hengda products, Hengda Group's predecessor "Hengda leather shoes factory" has won the reputation of the people.

Persisting in taking the public ownership as the main body and developing the economy with multiple ownerships together means a great emancipation of the whole nation for China. For the private economy, it means that the state has made a qualitative breakthrough in the development of the private economy in terms of ideology, theory, policy and law; for individuals, it means getting rid of poverty and moving towards the dual civilization of material and spiritual.

"Why is the wave of reform coming face to face, many people are indifferent?" recalling the decision of that year, Wang Jiwan told reporters that the worries of his family represented the fear of failure for most farmers. In cities, workers enjoyed iron rice bowls, stable incomes and safeguards, and made them unintentionally engage in individual economy.

And like him, the courage to be the first to eat crab, dare to jump out, is the first step of success! "

Brand management: culture is the soul

"Brand is like a Pyramid, products, channels, technology and so on constitute the cornerstone of Pyramid, and culture is the shining spire of Pyramid" - Wang Jiwan.

Brand, want to say love you is not easy!

In 1990s, with the deepening of reform and opening up, a large number of foreign-funded enterprises entered China. As Chinese enterprises are still in the stage of pursuing product quality, lacking modern brand awareness and brand building concept, many brands are merged or eaten up by foreign brands. The survival environment of Chinese brands has become unprecedentedly tense, and many national brands have disappeared in competition.

In 1993, the government amended and promulgated the Trademark Law of the People's Republic of China, thus establishing the trademark system in China and putting it on the right track, and the registration and management of the brand is improving day by day.

At the beginning of Hengda's development, Wang Jiwan consciously took a road of brand development.

In 1985, Hengda shoes were placed on the counter of the department store in Jimo. Wang Jiwan said that a pair of shoes sold in the free market, 10 yuan, entered the mall and sold for 15 yuan.

Wang Jiwan will enter the shoe box of each pair of shoes on the mall and play the words "Qingdao leather shoes". The "Qingdao brand" sales strategy has won the emotional sympathy of local consumers.

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However, the real understanding of the value of the brand, or the market to Wang Jiwan a vivid lesson.

Development in the late 80s and early 90, Wang Jiwan officially named the brand "Hengda", and successfully walked out of Qingdao and Shandong provinces, and began to sell to neighboring provinces such as Hebei and Henan.

It's time to register for Hon Da, but Wang Jiwan was in trouble with the index of industry and commerce.

What can I do? Maybe it's called "Bei Heng". When Wang Jiwan changed the brand that he had been running for years to "Bei Heng" shoes, he did not expect consumers' recognition of the brand and had such a big impact on sales: the same style shoes were sold at the department store counters, and the same quality, equal price, the word "Bei Heng" of one word lost the favor of consumers.

Wang Ji once felt the invisible power of the brand once.

After several rounds, Wang Jiwan repurchased the "Hengda" trademark at 300 thousand yuan. At that time, 300 thousand was a small fee. Many people said he was stupid, but he thought it was worth it. This made him always pay attention to brand effectiveness in the development path of Hengda.

Wang Jiwan, who has a brand name Hengda, has stepped up the publicity of the brand. Since 1995, Hengda has hired Wang Gang and Yue Sun as the spokesperson of the company and pioneered the publicity at CCTV. At that time Wang Gang was the first host to quit and advertise from CCTV. His celebrity sensationalism and magnetic voice made him a household name. In the mid and late 90s of last century, the annual advertising cost of Hengda was nearly about 20000000 yuan.

By the end of the 90s of last century, Hengda had developed into a large private enterprise with more than 6000 employees and processing workshops covering 13 cities in the whole province.

From brand management to management brand

Since the State Council promulgated the regulations on the pformation of operating mechanism of industrial enterprises by the whole people in July 1992, by 1996, the bankruptcy of state-owned enterprises reached a climax, a total of 6232, exceeding the sum of the past 9 years.

In 2000, Hengda ushered in a new challenge.

With the deepening of the reform of state-owned enterprises, 60%-70%'s state-operated cooperative market has undergone restructuring or bankruptcy. The original marketing network has been disintegrated, and the new marketing network has not yet been perfected. The development of enterprises has suddenly entered the bottleneck stage. Where will Hengda go? Wang Jiwan recalled that Hengda had met the crucial moment of life and death.

Under tremendous pressure, Wang Jiwan profoundly rethinks: at present, the production of leather shoes in China accounts for about 1/2 of the output of the world footwear industry. If domestic products are sold on foreign brands, each pair can sell 6 to 10 times more money. The gap between our famous brand and foreign shoe industry is not that the leather is not the production process, but the key is the gap between the brand culture and the comprehensive strength of the enterprise that supports the brand culture.

And the new Nike model - "building a factory without walls" has given Wang Jiwan a whole new way of thinking.

To meet the needs of the development of global brand economy, Hengda has introduced the modern management concept and operation mechanism of "brand strategy". Since 2000, Wang Jiwan has implemented the system engineering of "brand image upgrading and business process reengineering" in the company, and positioned it in 2003 as a "pitional year".

Since 2002, Hengda has begun to pform from the product marketing mode to the brand marketing mode. In marketing management, the group has successively implemented various forms of cooperation with enterprises in Guangzhou, Wenzhou, Chengdu and Quanzhou.

Without expanding the scale of production and a small amount of manpower and financial resources, the use of Hengda brand value to integrate social resources has doubled the output and profits of products, and achieved good social and economic benefits.

In terms of sales channels, Hengda brand as the leader, through self, cooperation, join and other forms of integration, expand marketing channels.

At present, there are more than 3000 stores and shops in the country. From the Yangcheng city in the south to Hefei in Central Plains and to the ice city in the north, you can see the shadow of Hengda brand everywhere.

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In the spring of 2003, Hengda Group moved its headquarters to the CBD center of Qingdao, known as the "leading spot of Fuzhou Road" at the southern end of Fuzhou Road, a street of private famous brand enterprises.

Since then, Hengda has pushed itself onto the forefront of the brand economy with the help of Qingdao's regional advantages.

"To be a healthy development enterprise and establish a modern enterprise system, in order to remain invincible in the market competition," Wang Ji said.

Internationalization under innovative thinking

In December 11, 2001, China formally became a member of the world trade organization. Multinational companies began to enter the field of monopoly or quasi monopoly. Financial investment increased greatly and the trend of sole proprietorship became more and more obvious.

At the same time, when the world famous brands entered the Chinese market, the Chinese national brands also stepped out of the pace of "going global", and the positive competition between international brands and domestic brands began.

Wang Jiwan said this: "not to die in the" made in China ", it is rising in the" Chinese brand "!" Hengda should be a brand with different brands! "Innovation is the vitality of Hengda brand evergreen.

Wang Jiwan said that in Hengda, innovation is a lasting motive force, ideas should be innovating, products should be innovating, and business operations should be innovating.

In innovation, Wang Jiwan felt deeply: "to meet the impact of the international market on the traditional manufacturing industry, to win the brand reputation and market efficiency of the world market, we must accomplish the pformation from the traditional little innovation to the innovation of surface and system, and jump out of the dilemma of being a follower, and we must break the line of innovation."

In this way, after years of efforts and improvement, at present, Hengda already has the system's innovation process and management.

"We have established systematic management from innovative strategies and management to organization and talent building to innovative processes and management, and the results are significant."

Wang Jiwan said.

At present, the technology center of Hengda has been identified as the "provincial technology center", and has set up "Hengda Technology Center of China leather and footwear industry research institute", "Qingdao Hengda Leather Research Institute", "China light industry special skills appraisal and training management station Qingdao substation", "Shandong health shoes Engineering Technology Research Institute" and so on. Every year, Hengda will invest 5.6% of its operating income in science and technology development; the industry group and national technical standard of Hengda Group have reached 21 items, and 251 patents have been declared and approved by the state, and every year, there are more than 5000 kinds of new products and new technology development, and more than 2600 varieties have been pformed into listed products.

Hengda is developing steadily towards building a competitive enterprise with independent intellectual property rights, well-known brands and international competitiveness.

Planted phoenix tree, attracting Phoenix.

Hengda's continuous innovation and rising brand advantage have attracted the focus of the brand industry at home and abroad.

In 2002, the French international brand group threw an olive branch to Hengda. Hengda successfully passed the brand valuation of international professional bodies, successfully co operated with the French international brand group, and acted as the two international brand of "Adi Lina" and "power foot", and realized the international operation of R & D and sales integration.

In 2005, NINEWEST, the world's largest clothing shoes brand, entered into cooperation with Hengda, which belongs to the US Jones multinational group. Its subsidiaries are located in 42 countries and regions, occupying only 26% of the high-end market share in the US.

After the cooperation, Jones group trained Hengda's management process and technological capability to connect Hengda directly to the management process and platform of Jones group.

Not only that, the world's first class companies such as "American" "Monte", "Germany," "MITSUBISHI", "Japan" and "Samsung" have all favored Hengda, and have established strategic cooperative relations with Hengda. The British and French government delegations and the Latin American delegation have inspected Hengda and invited Hengda to invest and cooperate.

Up to now, Hengda has established branches, offices and trade cooperation relations in more than 20 countries and regions of France, Italy, the United States, Japan and the Middle East, and its independent international brands account for 80% of its total exports, so that the company has stepped out of the road of relying on high technology and brand to participate in market competition.

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Capital operation period: brand is the leader

"Manufacturing made in China for global manufacturing today, China's manufacturing needs a global vision, based on the integration of global resources, integration of all forces, and strive to create quality and content in China is the fundamental way out."

-- Wang Jiwan

From industrial operation to capital operation is the only way for the development of private enterprises.

Li Yining, a famous economist, said that the family businesses all over the world changed themselves through listing and shareholding system and embarked on the path of modern corporate system. China will not be an exception.

The market economy requires the best combination of resources and factors, and capital is one of the most active elements in the market. Through the comprehensive operation and mobilization of capital, the production factors can be optimally allocated and the asset structure adjusted dynamically, so that it can complement each other with product operation and realize the purpose of promoting asset appreciation and maximizing profits.

New chapter of Hui Valley

In March 16th this year, Hengda Group put forward a new idea of development: "from the traditional manufacturing industry to the knowledge-based and innovative" economy.

Wang Jiwan said that for a long time, he focused on the development of footwear industry. He believed that China's shoe making industry had accumulated an advantage in the production and manufacture of the industrial chain, but it was still not developed at the front-end of the industrial chain such as brand management, technological innovation and new talent cultivation. With the rapid development of China's economy, the cost advantage of our country is gradually losing with the rise of labor force. China's footwear industry urgently needs industrial upgrading and structural adjustment. Under this background, Hengda puts forward a new development mode of Hengda Hui Valley.

He is proud to tell reporters that Hengda Hui Valley is based on Hengda international digital science and Technology Industrial Park as the carrier, footwear industry as the foundation, creative industry and software industry as the core, and service economy as the leading industry alliance. It is expected that by 2010, the planning and construction of Hengda International Digital science and Technology Industrial Park will be completed, and the construction of six centers, such as technology research and development center, creative design center, virtual operation research center, software development center, capital operation center and personnel training center, will be completed. At that time, the group will realize the pformation from traditional manufacturing to knowledge innovation.

"Hui Valley is a new type of economic development mode, integrating the production factors such as digital, software, hardware and talents, which can change the way of Hengda's growth." the flames of Wang Jiwan's eyes are on the rise again. "Hengda Hui Valley is different from Shanghai Hui Valley. The latter is a public welfare science and technology service organization jointly established by Shanghai science and Technology Commission, Xuhui District people's government and Shanghai Jiao Tong University. Hengda Hui Valley is the leading exploration of Hengda Group's development mode for China's footwear industry."

"Where should the enterprise go?" Wang Jiwan said. "I think about this problem frequently in the development of Hengda. Obviously, if we want to maintain the evergreen of Hengda, we must enhance the core competitiveness of enterprises. We must enhance the sense of social responsibility of enterprises. This requires Hengda to establish a development strategy, become a learning innovation organization, use capital operation means to enhance competitiveness, construct an organizational structure suitable for competitive cultivation and maintenance, implement enterprise talents strategy, enhance competitiveness and create brand competitiveness. For these reasons, Hengda Hui Valley's plan is coming out. Its planning and operation will push forward the significant pformation of China's footwear industry in realizing the upgrading of intelligence industry."

Twenty-five, the development of Hengda road has witnessed the pformation of the state's policy toward the development of private enterprises. It has witnessed the development of private enterprises in China from weak to strong, from small to large, from product management to brand management, and ultimately to capital operation. It has witnessed the development of private enterprises from the township, to the city, to the whole country and to the world, and witnessed the growth of private economy and private enterprises.

"Next year, Hengda is going to be listed!" Wang Jiwan, chairman of Hengda Group, is burning two groups of flames. The flame has been burning for 25 years. It has developed a workshop with only one sewing machine, more than ten workers, and 860 yuan of capital to become a modern pnational group with a business income of 1 billion 320 million yuan, a sales network covering more than 3000 stores and stores in the whole country, and offices and trade cooperation relations in France, Italy, the United States, Japan and the Middle East in 2007.

"The vision of Hengda is" building a century old enterprise and building a century brand ".

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The flame in Wang Jiwan's eyes is burning with a prairie fire, and Hengda will enter the road of evergreen development.

Commentary:

Genetic code of longevity companies

The change of 30 years of reform and opening up reflects the rise and fall of honor and disgrace of different enterprises.

Most of the brothers that I co founded with me now are mostly gone, and few of the old private enterprises in Qingdao have come to this day.

What is the reason and social reflection? I am always reflecting on what kind of password the living enterprises have.

Longevity and sustainability are the common pursuit of every enterprise.

Businesses are like people.

The key to longevity is the health of oneself, and can constantly adapt to the changing market environment.

But different people and different enterprises have different standards of health. Some people think that health must have a sound management system; some people think that health needs to focus on the main business and avoid diversification; others believe that health is the establishment of a harmonious internal environment of enterprises.

In order to achieve long-term development, the only way to achieve "profit" is to figure out. In an open economic environment, the influence of market factors on the health of enterprises tends to be phased and diversified. The complete management system may not really achieve sustainable development. Those seemingly healthy enterprises are not in an instant.

The key to the healthy and longevity of an enterprise is to grasp the balance of interests in mind.

If enterprises want to exist and develop, they will make profits, but whether enterprises maximize their interests while promoting their own interests, is an important factor that affects the sustainable development of enterprises.

Whether an enterprise's development can conform to the general trend of society and integrate into the blood of social development, whether enterprises can bring benefits to society at the same time of realizing their own value and interests, and whether social value can be created as one of the criteria for measuring enterprise's health is very important.

What we are talking about is not only the economic level, but also the social, cultural and environmental aspects.

So far as the existence and development of an enterprise can promote social progress and really bring benefits and benefits to the wider public, its existence is more reasonable and its life will last for a long time.

It is an important chapter for us to reflect on the development and health of Chinese enterprises in the 30 years of reform and opening up.

We turn back to look at those enterprises that had sacrificed resources, environment and even low labor force, though they gained short-term benefits, but they were mostly short-lived.

In early 2008, under the pressure of the implementation of the new labor law and the continued appreciation of the renminbi, the flourishing Southern shoe enterprises went bankrupt and closed down. The OEM enterprises, which run solely on low-cost resources, were unable to adapt to the trend of China's economic development and violated the foundation of harmony and sustainability because of their lack of core competitiveness and long-term pursuit of short-term interests.

And the enterprises that grew up with reform and opening up, how to cherish the opportunities given by the times, how to recognize the responsibilities of society, how to keep pace with thin ice, to remain in awe, to keep physical examination and self reflection at all times, should become a good medicine for the longevity of enterprises.

To be a respectable enterprise, let the enterprise grow up healthily, only learn to give up self and integrate into the big self, let him understand the storm, the danger, and let him see spring, spring and autumn, the public is eternal, fearless is awesome.