Eastern Art: China'S Largest Private Export Shoe Enterprise

Dongyi seems to be famous overnight in Wenzhou.

Chen Guorong and chairman of Dongyi Shoes Co., Ltd., when he talked about his previous views on Dongyi, he spoke of two things with deep feeling: in 1998, the annual sales volume of Dongyi exceeded 100 million yuan.

At that time, many relatives and friends smiled and asked him, "Guo Rong, I heard that your business is not too small. Why can't you see a pair of Dongyi shoes in the market?"

In 2002, when Dongyi was appraised by the State Administration for Industry and commerce as "China famous trademark", the employees of Dongyi shoes industry went out and heard the most words: "where is the eastern art coming out?"

Over the past ten years, the "Dongyi", which has been playing an important role in the footwear industry of China, is rarely known because it has taken a unique way of development -- putting the "stage" with its feet on the foreign market.

In the spring of 1992, a group of Dongyi "large" leather shoes were waiting to be processed.

At this time, the remote northeast border trade market in Suifenhe came to the news that Russian businessmen were in urgent need of such leather shoes.

Smart Chen Guorong seized this business opportunity and opened up the prelude to Dongyi's entry into the international market.

Prior to the eastern art, like most of the shoe companies in Wenzhou, Chen Guorong had similar experiences: in 1986, he hired a idle farmhouse to run a leather shoe factory, and his business became increasingly prosperous by the diligence and wisdom of his husband and wife.

In 1987, Hangzhou's Wulin gate square burned Wenzhou shoes, and Dongyi was once in a predicament.

With an indomitable resilience, Chen Guorong managed to survive the difficulties and introduced foreign capital in 1991 to form a joint stock company.

In 1992, Chen Guorong, who had been working hard to expand the domestic women's shoes market, made decisive decisions and changed the production of women's shoes to produce men's shoes.

This is a risky move.

This is another step of smart chess.

As the result of Chen Guorong's expectation, the quality of Dongyi leather shoes has been "fast footing" in Russia and is in short supply.

Reporter commented: "international marketing theory points out that the marketing activities of enterprises are generally looking for external breakthroughs when the domestic market is saturated.

Dongyi is not constrained by the general law, but rather seize the opportunity to "go straight to Russia", take the lead in opening up the international market and open up a new world.

To expand the global market, in 1998, at the turn of summer and autumn, the political situation in Russia was turbulent, and Russia's foreign trade was at a low ebb.

At this critical moment, Chen Guorong decided to go all the way and take the initiative.

Russia's market can not be released, and at the same time, it will use more stalls and exhibitions abroad to find new partners and pform single country exports into multinational exports.

Germany Dusseldorf international shoes exhibition is the most prestigious shoe leather exhibition in the world.

Chen Guorong saw business opportunities and participated in the exhibition in autumn.

Chen Guorong recalled that although the direct economic benefits of the initial exhibition were not large, it brought far-reaching influence to Dongyi.

At present, the trade volume of Dongyi in other countries outside Russia occupies 25% of the company's sales, and it covers more than 20 countries and regions in the world.

Reporter commented: from entering Russia to jumping out of Russia, Dongyi marketing strategy changed from time to time.

Facing the unfavorable situation, it is not just to hold on to the position, but actively adjusts the market's adaptability, and successfully realizes the strategic pformation from Russia to the world.

In May 2001, the Dongyi footwear industry submitted an application report to the Ministry of foreign trade and economic cooperation, calling for the establishment of a multi-national Oriental Art Company abroad.

Subsequently, the Dongyi Industrial Park of "China Shoes Capital", which covers an area of 168 Mu and has a total investment of 120 million yuan, will start construction.

In 2002, China formally joined the WTO.

At this point, the whole shoe industry exclaimed "wolf."

Chen Guorong, who has a unique vision, has analyzed the domestic and international situation of the footwear industry and drawn a totally different view: China's accession to the WTO is not a wolf, but Chinese shoes will go out like a tiger and shake the four sides.

In October 2003, on the high level forum for promoting the international competitiveness of footwear industry held in Wenzhou, Chen Guorong pointed out briefly that the comparative advantages of Wenzhou footwear industry are labor strength, industrial chain advantage, scale advantage and specialization advantage, which are concentrated on the price advantage.

As long as Chinese shoes enhance their own product design and development capabilities, adjust their marketing strategies, avoid international market risks, enhance the entry mode of the international market, and form a team attack, they will be able to brand and occupy the international market.

He also stressed that Chinese shoe enterprises and internationally renowned shoe enterprises could establish "Co opetition relations" to achieve a win-win situation.

Shortly afterwards, Chen Guorong proved his correctness with facts.

Peres, the largest footwear retailer in the United States, ordered the order to Dongyi.

In 2003, the cooperation between Dongyi and Peres accelerated, and became the "target factory" through its 137 SA8000 standard certification and assessment.

With the help of Peres's sales network, Dongyi stride forward into the mainstream market of the United States. In those days, 1 million pairs of Dongyi shoes were sold to the United States.

After successfully opening up the US market, Dongyi extended its tentacles to the EU market.

In addition to a large number of well-known international enterprises in Europe continuously placing orders to Dongyi, the European Union's largest footwear retailer, Dai Shiman, even pferred the original order of high-grade shoes to Italy to Dongyi, breaking the myth that "Chinese shoe companies can not move Italy's high-end footwear market".

Reporter commented: "after China's accession to the WTO, most people saw the fierce competition between Chinese and foreign shoe companies. Chen Guorong jumped out of this mindset, saw the" Co opetition "relationship between them, and established a strategic partnership with a number of internationally renowned enterprises, achieving a win-win situation, successfully opening up new markets in Europe and the United States, and becoming the highlight of the internationalization of Chinese shoe enterprises.

It is expected to become the first shoe market to be listed on the market. In October 2004, the construction area reached 64 thousand square meters, and the modern Oriental Art Industrial Park, which integrates office, trade and life into one, was put into use.

A month after moving to the new industrial park, Dongyi met with the leader of the China Leather Association, Xu Yong.

Xu Yong said with emotion, "east art is in line with the international market. The new industrial park is quite large, representing the international level of shoe industry park. It is exciting to see."

In the view of Chen Guorong, the internationalization of Dongyi is not simply the introduction of several advanced production equipment, or the entry of products into the international market. The internationalization of Dongyi has rich connotations. It includes product development and design, the use of talents, the management concept of enterprises, and even the concept of employees, etc., and all of them must conform to the international standards.

In 2004, Dongyi ate "crab" again, and hired Dr. Li Luoyi, President of the lean manufacturing management company of America, to introduce lean production mode to make great changes to the traditional production mode. The three separate production sections of shoemaking, sewing machine and molding were joined together and became a "one-stop" production mode, which greatly shortened the production cycle.

In November 2004, the footwear export council of Wenzhou was formally established by 12 foreign trade footwear companies, including Dongyi and other foreign trade enterprises. We all voted for Chen Guorong as president.

The establishment of the committee was called pioneering by the leaders of the industry and the municipal government.

By the end of 2004, the Ministry of foreign affairs and the Federation of National Federation of industry and Commerce held the "seminar on diplomacy and economy". Chen Guo Rong, as guest of honor, delivered a speech entitled "warnings from Spain and Elche to Wenzhou shoes".

After the meeting, Li Zhaoxing, then Minister of foreign affairs, gave a cordial reception to Chen Guorong, and affirmed that Dongyi played an exemplary role in the implementation of the internationalization strategy, the success of going abroad and actively coping with the risks of the international market.

When entering the May 2005, the EU's anti-dumping against Chinese shoes did not happen again. Chen Guorong, who is the chairman of Wenzhou footwear export Committee and the chief executive of shoe enterprises, visited Spain and other European Union countries. He also talked with the chairman of the EU footwear association to discuss the solution to the shoe friction and seek the win-win road between China and Europe.

In 2006, the first public bonded warehouse in Wenzhou was established in Dongyi. In this year, Dongyi shoes industry output exceeded 1 billion yuan for the first time.

This year's eighth day of the lunar new year, Wang Jianman, Secretary of the municipal Party committee, has four leading bodies in the city. He has come to give a plaque to congratulate him.

At present, the Dongyi footwear industry is preparing to go public, aiming at establishing excellent modern enterprises, optimizing the ownership structure, optimizing the corporate governance structure and enterprise management system, and establishing a Dongyi development mode that conforms to the requirements of the modern enterprise system as well as the advantages of the private enterprise mechanism.

Industry experts believe that Dongyi is expected to become the earliest footwear manufacturer in Wenzhou.

Reporter commented: "dare to eat crabs", in the process of internationalization has rich connotations, is an important reason for the unique export of Dongyi footwear industry.

Chen Guorong and his energetic Dongyi shoes industry are playing an important role in the revival of the nation.

Chen Guorong's personal honor, Zhejiang labor model, the second outstanding socialist builder of Zhejiang Province, the third Zhejiang entrepreneur, the Zhejiang Province leather industry "business master", Wenzhou's ninth, tenth deputies to the people's Republic of China, the director of Wenzhou star's contribution to star factory manager, the "China Shoes Capital" meritorious entrepreneur, the executive director of the National Federation of industry and commerce, the vice president of Wenzhou industrial and Commercial Association, the chairman of the footwear export Committee of Wenzhou City, the president of Wenzhou Lucheng Footwear Association, and the senior shoemaking craftsman of Dongyi shoes industry Co., Ltd.