Kangnai Has Opened More Than 200 Stores Worldwide To Make China And Europe.

After the success of the Paris franchised store, Kangnai group entered Queens, the fashion center of the United States, facing the brutal competition.

The flagship store made profits in those years.

Subsequently, Kangnai moved towards Italy.

From 2001 to 2007, Kangnai opened more than 200 stores in more than 20 countries in the world, including the world's top landmarks such as New York, Milan, Venice, Barcelona and Berlin. China's Lead Toy incident caused a great stir, which is undoubtedly a warning for "made in China".

Bao Yujun, President of the China Private Enterprise Research Association, said that private enterprises have already gone out a lot. According to their investigation, nearly 100 thousand of the 504 000 private enterprises have already gone out to run factories.

In the face of so many private enterprises going out, Bao Yu sighed and sighed, "private enterprises should also have their own strategies to go out. Now many of our private enterprises have tactics, no strategies, and have yet to go abroad, and their brands are gone."

But not all "made in China" are "weak" OEM manufacturers, but also different from "made in China". Kangnai is one of them.

Unlike other companies that are busy making OEM, Kangnai opened its first store in France in 2001.

From then on, we started a different way of internationalization.

Direct attack on the international fashion capital shoemaking industry is China's traditional dominant industry.

In recent years, the average annual growth rate of China's footwear industry is 23%, much higher than the growth rate of GDP in China.

According to conservative estimates, at present, there are 2 shoe making enterprises in China, with 1 million 600 thousand employees, annual output exceeding 7 billion pairs, accounting for more than 60% of the world's total output, and exports account for more than 53% of the world's total.

As a heavyweight figure of Wenzhou Footwear Company, Zheng Xiukang, chairman of Kangnai group, has long known that "MADE IN CHINA" shoes account for 60% of the world's total output, but tens of millions of pairs of foreign brands entering China every year dominate the high-end market in China.

The difference between manufacturing and brand is obvious from the operation of world famous brand shoe and hat enterprises.

Take the top brand Hugo Boss, for example, its shirts cost up to $120 on the fifty-fourth Avenue in New York, but more than 60% of the profits are given to sales channels, 30% of them are branded, and the manufacturers get only 10%.

It has even happened that a brand in Italy has been sold from 50 dollars to a pair in China, and Kangnai shoes have posted their own trademarks and sold back to Beijing at the price of 3000 yuan per pair.

Zheng Xiukang and his team want to change this. "Late start Chinese enterprises can start from the following tour, but we must never stand in the lower reaches forever."

2001 is a crucial year for Kangnai.

At the time, OEM remained popular because of its low risk and steady profits.

But Kangnai did not listen to colleagues' dissuade, and insisted on opening the store with the hang of "KANGNAI" logo to the 19 district of Paris, France, which is a high-risk decision.

But Zheng Xiukang insisted that first-class enterprises must have their own brands and channels to get development opportunities.

As a result, the top 150 leather shoes sold at the highest price of $1 were sold out on the same day, and the local people exclaimed: such a good quality leather shoes are so cheap that they sell so much!

But in fact, 150 dollars can buy five pairs of ordinary Chinese shoes.

After the success of the Paris franchised store, Kangnai group entered Queens, the fashion center of the United States, facing the brutal competition.

By virtue of quality and design and cost advantages, and with a large number of advertising bombing, the flagship store made profits in those years.

Subsequently, Kangnai moved towards Italy.

From 2001 to 2007, Kangnai opened more than 200 stores in more than 20 countries in the world, including New York, Milan, Venice, Barcelona, Berlin and other top world landmarks.

When it comes to opening stores at the time, Zheng Xiukang told the first financial daily: "as early as 1999 and 2000, we went to the local survey, and I took many shoes to the local shopping malls. They felt that our shoes were not suitable for them to sell. The first was" made in China "and second they felt that our shoes were not yet near the local consumers.

Zheng Xiukang finally decided to open his own store. "When our store has opened for several years, our brand is recognized by local consumers, and local stores will let us in."

"Made in China" has a cost advantage, Zheng Xiukang said that Kangnai's position in China is high-end, but positioning overseas is intermediate.

"When we go abroad now, we want to set the price in the middle and high grade, and our competitiveness is relatively weak. So we are targeting at 50 to 70 euros in foreign countries, but the quality of this product in Europe should be able to sell 80 to 100 euros."

In addition, Zheng Xiukang said that Kangnai's success overseas is closely related to Kangnai's solid market research, closely related to the design and product positioning and quality of local consumers' tastes, as well as the large advertising campaign.

Before opening a store, Kangnai will spend a lot of money on local market research and advertising.

Zheng Xiukang thinks the price advantage is second.

At present, Kangnai group plans to open 1000 stores in overseas by 2010.

At present, the actual overseas sales of Kangnai account for 8% of the company's total sales, and Kangnai hopes that this figure will be 35% by 2015.

Zheng Laili, deputy general manager of Kangnai, revealed that the company plans to acquire locally mature brands in Italy and Spain in the next three years to achieve Kangnai's rapid growth in Europe.

From the technical integration to the participation in the standard setting, Wenzhou's shoe making industry has been in existence for a long time, but Wenzhou's shoes have been in great distress.

Hangzhou Wulin door burning Wenzhou shoes, Spain burn Wenzhou shoes, Russia withhold Wenzhou shoes, which are left in the minds of Wenzhou shoe business memories.

There are many reasons for tragedy, and the direct fuse is the lack of quality and brand.

Long Yongtu commented on the internationalization of Kangnai, saying that the core issue of internationalization is how to achieve its international standards such as quality standards, safety, environmental protection and so on. At the very beginning, Kangnai grasped the core issue, so its internationalization path was higher than that of ordinary private enterprises.

In 1980s, Kangnai was the first Chinese shoe industry to introduce world-class shoemaking line. In 90s, Kangnai's top managers went to Italy learning experience gathered by shoemaking masters. In order to improve the quality, Kangnai made a total of three large-scale technological pformation, with a total investment of more than 150 million yuan.

In recent years, technical barriers that frequently plagued Chinese enterprises have seriously affected the survival and development of many enterprises.

At present, there are three kinds of methods for Chinese enterprises to crack down on international trade barriers. One is to bypass, that is, the standard of importing countries can not cover their products. Although this move can surprise the winner, it is always in a passive position. Two, it is an active response, that is, through international litigation or lobbying, it tries to let importing countries give up technical barriers, and three is to break through barriers to conform to the standards of importing countries.

And Kangnai has found the fourth path, which is the initiative to join the world's top level of footwear certification level SATRA, to participate in international standards formulation.

SATRA is an international member organization, representing the highest level of footwear certification in the world. Adidas, Nike, Reebok and other international giants use or refer to SATRA standards.

In 2001, Kangnai joined the SATRA, and then invested 10 million yuan under the SATRA technology service to establish a footwear laboratory conforming to the international certification standard, and participated in the formulation of a number of national footwear standards, thus becoming very few Chinese enterprises with "standard setting power".

In addition, by working with SATRA, Kangnai can make use of its huge human foot database to develop the most suitable leather shoes for all parts of the world.

For example, European feet are adults, and are best suited to wear leather shoes with big leather bottoms. But the size of the Asian body is small and the soles that are more suitable are lightweight and wear-resistant.

By holding SATRA, Kangnai not only mastered the most advanced footwear technology in Europe and America, but also successfully avoided the technical barriers to trade.

From the brand output to the capital export, Zheng Laili said that Kangnai's internationalization has gone through three steps: first, the output of the product and then the brand output, and now it is the capital export.

And Russia's usurusk investment and construction of economic and trade cooperation zone is the third step.

The wusurusk economic and trade cooperation zone covers an area of 2 million 280 thousand square meters, with a floor area of 1 million 630 thousand square meters, with abundant local resources, but the utilization rate is not high.

Kangnai group and Dongning Jixin Group Co invested, with a total investment of more than 2 billion yuan.

According to Zhong Puming, general manager of Kangnai group, "the cooperation zone is located in the two major industries of light industry and electronics. One reason is that Russia has a huge market share, including CIS countries. Another reason is that Russia exports these products with little resistance and low tariffs."

A preliminary estimate of the capacity of the 60 enterprises to reach 30 million pairs of leather shoes, 10 million garments and 600 thousand sets of furniture will be achieved after the entry of the enterprises. The annual sales volume is 24 billion 800 million yuan, the profit is 3 billion 200 million yuan, and the tax is 1 billion 460 million yuan. The export volume of domestic trade is 2 billion 600 million dollars, and the employment of 6000 persons is solved.

In the future, "made in China", including Kangnai, will become local manufacturing.

A simple calculation can illustrate the benefits of this move to the enterprise: the export duty of a pair of semi finished leather shoes is only 5%, while the finished products' shoes tariff is as high as 15%. If it goes to Russia with "grey customs clearance", it will be more than 3 months from Wenzhou to St Petersburg, and may face the possibility of being forced to be pulled by the tax police. However, if the enterprise assembles semi finished shoes in the wusulinke Park in Russia, it can play the "MADE IN RUSSIA", not only can it be sold safely in Russia, but also can be sold to the main markets of the European Union, not only does it need to worry about such problems as "anti-dumping", but also reduces the tariff cost by at least 70%.

The first financial daily