AOKANG: Start Again Or Not?

In addition to its old line, AOKANG broke into the real estate industry and biopharmaceutical industry by accumulating capital in the shoemaking industry. AOKANG Starting from the auction of a commercial street in Anhui in 2007, it has invested about 500 million yuan so far.

This in the outside world seems to "do not do business" investment, but has been relished to "feed the shoe industry".

Following last year's acquisition of Italy Wanli Wade Greater China brand ownership, AOKANG group has recently signed the Italy high-end brand GB's mainland China's proxy. After obtaining the GB mainland promotion agency, AOKANG already owns AOKANG, beautiful beauty, Kanglong, red Firebird and other brands, including 1500-3000 yuan, Wanli Wei and 3000-5000 yuan GB, which are positioned below 1500 yuan.

Obviously, the addition of GB complements AOKANG's product line, making it more complete and better covering the shoe market with different consumer demands. It is understood that while maintaining the first-line product AOKANG brand sales, AOKANG has also joined more than 50 national chain shoes city to expand the two or three line cities, and increase its Kanglong and red bird brand promotion efforts. Meanwhile, in order to operate the brand of Wanli and beautiful beauty, AOKANG set up a team to take charge of the two brands.

　　 "Helpless" again Entrepreneurship

In Wenzhou, the shoe industry had experienced the Spanish shoe burning incident due to a large number of cheap shoes hitting the EU market. Now, the development of the whole industry has been brought to the bottleneck by the "cheap shoes" that once earned money.

The Secretary General of Wenzhou shoe leather industry association said recently that at present, there are more than 100 shoe factories in Wenzhou, more than 100 of which are closed, and the number of shoe enterprises in Wenzhou will be reduced next year. In the wake of the new global financial crisis, shoe makers will have to adjust and upgrade, otherwise they will be easily eliminated.

As a leader in the industry, AOKANG also has its own helplessness. Fan Manru, general manager of AOKANG thousand stone manufacturing company, admitted in an interview that they were also faced with cost pressures, the monthly salary of workers rose to around 2500 yuan, the total cost increased by 20%, and shoes products only increased by 5%. She has been dug up several times by AOKANG boss from Yuyuan factory in Dongguan, and is stepping up the implementation of lean management.

"Overall orders increased by 13% this year, mainly from domestic sales. Export orders Slipping slightly. The 7-9 month is the peak period for the production of internal and external sales orders. If there is no profit margin of 5-7 percentage points, we will not consider it. There are 80% domestic orders supporting the overall production situation, which can be adjusted flexibly. " Fan Manru said.

There has never been a time to lie on the "hotbed" of foundry. Many AOKANG shoe companies such as AOKANG group rely more on the domestic market and develop step by step with difficulty. Wang Zhentao set up a small family workshop in 1988, which invested 30 thousand yuan. Now it has developed into AOKANG group, the largest private leather shoes manufacturer in China. At present, there are about 10 thousand manufacturing workers and salesmen. Wang Hailong, spokesman for AOKANG group, said that in recent years, the company's performance has basically maintained a 20% growth rate, and its revenue is expected to reach about 4 billion yuan this year. The number of workers continues to grow this year and is still hiring.

In order to alleviate the shortage of labor and reduce costs, AOKANG group began to "move east shoes westward" in 2003, and invested 1 billion yuan in Bishan, Chongqing to build the "West China shoe capital Industrial Park". At present, the labor cost of the two production lines in Bishan, Chongqing is about 20% lower than that in Wenzhou, and the workers are relatively stable.

"The main line of production in Chongqing is to produce the brand of Red Flamingo, and strengthen the channel layout in the western region. The red Firebird brand grows very fast in the western two or three line cities, and the sales volume in the first half of this year has increased by 50%." Wang Hailong said.

In addition, AOKANG group broke into the real estate and biopharmaceutical industry by accumulating capital in the shoemaking industry.

In fact, 7 years ago, AOKANG Group Limited began to make strategic adjustments, and the low profit of the traditional footwear industry was a reason for Wang Zhentao's adjustment. According to people familiar with the matter, in the current industry layout of AOKANG Group Limited, real estate, biopharmaceutical and shoe industry are running together in three big blocks.

As for why the final choice is biopharmaceutical and real estate, AOKANG Group Co., Ltd., as people say, this is the result of "trial". In fact, before biopharmaceutical, AOKANG Group Limited chose to do other industries, but Wang Zhentao did not want to elaborate on the experience. Finally, they found that biopharmaceutical and commercial real estate is a feasible way for AOKANG Group Co., Ltd.

Making shoes for shoes?

Unlike other Real Estate Company, AOKANG does not make real estate for real estate, but around AOKANG leather shoes.

On New Year's day in 2006, AOKANG Group Co., Ltd. opened its first commercial pedestrian street for 200 million years in Huanggang, Hubei. At that time, AOKANG Group Limited publicly stated that it would build hundreds of commercial pedestrian streets in the whole country in the past 5 years. The commercial pedestrian street of Quanjiao AOKANG Group Co., Ltd. is publicly invited to invest in Wenzhou, which is the third pedestrian street built by AOKANG Group Co., Ltd. According to the public information of AOKANG Group Co., the pedestrian street project is a modern multi-functional integrated brand commercial street which combines business activities, urban leisure, sightseeing tours and history and culture. After the completion of the commercial street, AOKANG Group Co., Ltd. will introduce Suning, KFC and other more than 100 domestic and foreign brands. {page_break}

And in these pedestrian street shops, AOKANG Group Co., Ltd. will focus on recommending the shoes of its brands, which is why AOKANG Group Co., Ltd. only makes commercial real estate. Today, these three businesses of AOKANG group are operated by professional professional managers, and Wang Zhentao himself has changed from industrialists to investors.