How To Walk Wenzhou Shoes

Wenzhou AOKANG group is one of the biggest enterprises in the domestic footwear industry.

China's Zhejiang Wenzhou, Fujian Jinjiang, Guangdong Dongguan are all famous for shoemaking, but only Wenzhou has been awarded the "China Shoes Capital" by the China Light Industry Federation.

However, the domestic more than 20 thousand shoe-making enterprises compete fiercely and compete fiercely. In the international market, the export of Wenzhou shoes is also frequently encountered. In September 2004, the burning of Wenzhou shoes in Elche, a small town in eastern Spain, caused an economic loss of about 8 million yuan. In March 2005, the Russian tax police seized the about 80000000 yuan worth of Wenzhou shoes in the name of customs clearance.

Fierce competition in the domestic market, international market barriers, Wenzhou AOKANG group how to deal with internal and external attacks?

Wang Zhentao broke out the "combination boxing" to break through the market barriers: first, do well in internal skills, improve their own craft and management ability; second, internationalize thinking and internationalize talents, and let the enterprise brand go out; third, invest funds and build brands.

For a long time, Wenzhou shoes "traveled everywhere", but the impression is that Wenzhou shoes are fashionable in style, but the quality is not reliable.

In order to change its image, AOKANG group has gone 10 years to 15 years.

In recent years, Wenzhou shoes have reached the standards both at home and abroad.

In this process, AOKANG has introduced Italy's technology, capital, management and design concepts through cooperation to enhance the core competitiveness of the brand.

Wang Zhentao stressed that the slogan of AOKANG is not to be bigger and stronger, but to be stronger and better.

AOKANG group has launched several brands, locating at the middle end.

According to the statistics of the China Leather Association in the past two years, China did not make shoes for three years, and still had shoes to wear.

Under such circumstances, AOKANG has increased investment in the footwear industry and established 2600 acres of shoes in Western China in Chongqing. This is puzzling.

Wang Zhentao explained that the cost of shoemaking will increase in Wenzhou within ten years.

If AOKANG wants to maintain momentum, it must shift to the West and build a production base with a very low labor cost.

It is too late to build such a large scale production base in five years.

In the 60s, the manufacturing center of the world shoe industry stepped into the threshold of the world. In 60s, it moved to Japan and South Korea in Italy. In 80s, it lived in China's Taiwan and landed in mainland China after 90s.

The process of industrial pfer is actually a process of pursuing cost advantage, but this pfer also shows that cost advantage is not a long-term solution.

The shoe industry in China must go to the real world.

If you have your own sales network abroad, your profits will be higher because the added value of the brand is relatively high.

But if there is no direct sales in foreign countries, but for other brands to do OEM, then the profit will be very low, because most of the profits have been stripped of the brand.

Wang Zhentao said that more than 90% of shoemaking enterprises in China are now working for others, and have not really established their own brand and strong sales network in the world.

In the absence of brand to brand, there is no network to network between, it takes a while.

AOKANG has been working hard to enter the international market since 1998.

Wang Zhentao thought of a shortcut -- annexation.

If you can open a store with your own brand abroad, the cost advantage will be great.

He believes that the issue of Chinese brands is only a matter of time.

Wang Zhentao adopted progressive moves to enter the local market.

First, understand what people like, then change the brand through the store, then slowly change the product brand into one's own.

He believes that as long as the style matches the trend, it can be accepted to replace the Chinese brand, but it needs a process.

From the past to sample processing, back to the sale of listing, now AOKANG has established an Asian sales center, its own design, foreign recognition on production and exports, this is a major change.

In the gradual process, AOKANG gradually grasped the core technology, grasped the popularity of the market, and also had the initiative.

Wang Zhentao's gradual pace concealed mystery and accumulated thick and thin.

AOKANG works with GEOX Italy to process it.

In the processing stage, it is not mainly to earn processing fees, but to understand its market through processing, and to understand what is popular there, because generally speaking, the popularity of Italy is six months to a year ahead of China.

In addition, through processing, we will find out the different styles of each country, so that AOKANG will not take too many detours after going out.

Diversification, adventure or magic trick, since 2001, the sales of AOKANG group have increased by 30% every year. The scale of enterprises is bigger and bigger. Wang Zhentao's pressure is also increasing. He feels that he must develop new industries to make profits, so as to lighten the business risk of the future footwear industry.

After careful consideration, he chose a diversified investment in biopharmaceutical and real estate.

Last year, the State Drug Inspection Department opened to private capital, and Wang Zhentao began to set up this enterprise in Chengdu.

At present, it has entered a virtuous circle.

Of the eight products, two are the leading ones in China.

Another industry is property.

Others do residential real estate, Wang Zhentao makes commercial real estate, and builds pedestrian streets and shopping malls.

Wang Zhentao gave an example. If you build a pedestrian street, there are 300 facades.

AOKANG has so many brands that it can put the best place in this street and build a brand of shoe industry street.

It is good for the development of AOKANG brand, and also for the real estate to make money.

Wang Zhentao's role pformation is not limited to the above. In June 2004, 9 private entrepreneurs in Wenzhou, including Wang Zhentao, set up China's first regional limited, formally named "Consortium" - the Sino Swiss consortium.

Its goal is to create a comprehensive enterprise group integrating finance, industry and trade.

However, after the establishment of the Sino Swiss consortium, it seems that it has disappeared from people's sight.

In this regard, Wang Zhentao's argument is that China and Switzerland are high-profile, low-key work.

He hoped that China and Switzerland could set up the 9 enterprises and enter some monopolistic industries under the condition of state laws and regulations.

Wang Zhentao believes that AOKANG's big projects alone can not keep up with the risks.

Through 9 cooperation, on the one hand, we will solve the problem of capital strength, and on the other hand, we will not make mistakes in decision-making, because the mistakes made by the 9 decision-makers together should be fewer.

In addition, the 9 unions can achieve a complete separation of ownership from management and make enterprises stronger and bigger.