Hah Shan Footwear International Market "Catch Big Fish"

Going global is the dream of many enterprises.

For the vast majority of private enterprises, they are also faced with practical problems such as small scale and strength, low technology content and fierce competition in the domestic market.

How to go out of a pnational road for small enterprises? Wenzhou hahan shoes industry can be used as a sample of "small boat going to sea".

Takeover is a shortcut to Wenzhou, which is everywhere in shoemaking enterprises. Kazakhstan is far superior to AOKANG and Kangnai in the domestic market.

To be precise, the business of Kazakhstan is larger than that of China, and 80% of its profits come from overseas market. It is a small multinational company worthy of the name.

Wang Jianping, chairman of HA Shan shoe industry, said: "the HAZAN brand of Kazakhstan is a rookie in the international market."

The predecessor of HA Shan shoe industry is Wenzhou Hengfeng leather shoes factory, founded in 1991, when it was founded, it was only a manual workshop with 10 workers.

"Like many other enterprises, we only worked as OEM and ODM at the beginning, making hard work for foreign companies."

Wang Jianping said.

After the Asian financial turmoil in 1998, Wang Jianping found that many OEM customers suddenly stopped coming. So he decided to go abroad to find the market, first of all, he chose the Central Asian market.

Between 1998 and 1999, a pair of shoes, which cost about $4, could sell for more than 20 dollars, deducting the middle cost of 7 dollars, and 100% to 200% sales profits in Russia.

But for a long time, domestic shoe companies are pouring in, competing to reduce prices and selling, and profits are getting thinner.

From 2003 to 2004, China's footwear industry began to encounter anti-dumping crisis all over the world.

In order to get rid of this endless price war and homogenization competition and bypass anti-dumping, harshan chose the way to build overseas factories. At the same time, it purchased foreign brand shoes enterprises to start their own businesses: invest $2 million in the first phase of Nigeria, set up Kazakhstan (Nigeria) the Atlantic Industrial Co., Ltd., and produce Hami brand men's leather shoes locally. This is the first time for Chinese enterprises to invest in factories in Nigeria, and acquire 90% of the shares of the famous shoe making enterprise of Italy.

Wang Jianping felt that if he wanted to have a strong brand in the world, he could not build it himself. The only shortcut was takeover.

The economic and social benefits generated by this approach exceeded expectations.

The road to internationalization is still gaining lessons while accumulating successful experience.

In Wang Jianping's view, the biggest reason why Chinese enterprises are cold abroad is that they have not yet grasped the laws of participating in international market competition, and are not familiar with the rules of international game.

On the one hand, a large number of cheap products (below cost price) will impact the foreign market in disorder, causing a fatal blow to the local manufacturing and economic order.

Other countries are bound to adopt trade barriers, anti-dumping and even extreme actions.

On the other hand, domestic enterprises do not pay attention to the cultivation of brands, but are keen on killing each other to engage in price wars. While wasting domestic production resources, they also lose their market, profits and alliances in the international arena.

Moreover, in Wang Jianping's view, Chinese enterprises are not good at integrating into the local area, and are often divorced from the local reality and self closed for production and operation, which is unfavorable for the development of enterprises.

The overseas strategy of Kazakhstan mainly does three aspects: first, acquisition and borrowing.

In 2004, it started from the acquisition of Wilson, a famous shoe manufacturer in Italy. Through careful integration and grafting, "Qiao von Bi Si Qi" and "Wilson" were cultivated as recognized international brands and allowed them to be unimpeded in the European Union market and the US market.

The two is integration and win-win.

Efforts will be made to integrate and share the advantageous resources such as information, R & D, brand and technology of foreign famous enterprises with domestic enterprises, so that the overall competitiveness of Kazakhstan can be steadily upgraded.

The three is to integrate into the host country.

Kazakhstan, founded in Nigeria by Kazakhstan (Nigeria) in Nigeria, has solved nearly 1000 employment problems for the local people, and has trained more than 300 managerial and technical cadres in blacks.

Free to help local shoe manufacturers solve cold sticky technology, train hundreds of local suppliers and distributors, and pay nearly $8 million to local taxes, which make hakshan popular and respected in the local area, and become a model enterprise for friendly cooperation.

HAZAN shoes become the first choice of government civil servants and dominate the mainstream market in Africa.

We must lay stress on strategy and talent and understand rules. Wang Jianping called the current "going out" business as "water depth, wind rush, wave height and fish".

How can we catch large fish in this environment?

His experience is three points: strategy, talent and rules.

The strategy is to choose the overall planning of business and business in the area suitable for its own industry according to its existing strength, strengths, capabilities and potentials, and strive to find international design companies and internationally powerful foreign trade enterprises to establish property relations with famous international chain stores and large companies, and use their economic strength and sales network to directly penetrate products into the international retail market.

To emphasize talents is to break through the bottleneck of talents.

In order to meet the needs of talents who know both foreign languages and familiarity with the investment environment and business of host countries, we should vigorously recruit and gather talents, and make full use of existing talents.

Wang Jianping said: "enterprises should realize the localization of talents in large numbers, instead of bringing seven domestic mothers to go abroad to help you manage factories.

Besides, moral character is very important, not only for Chinese, but also for local employees.

At that time, I was under a few hands of a certain country, hiding the company's first hand delivery, collecting money in one hand, and putting it all into personal pockets, so staff morality is very important for the development of a company.

To understand rules is to familiarity with and use the rules of international game as soon as possible.

In the process of going out, the most basic and practical rule is to standardize management, pay special attention to human rights and security, and then legalize operation, including paying taxes according to the rules, sincere cooperation, mutual benefit and win-win, and financial openness, so as to achieve clear property rights and balance profits.

Wang Jianping said: "we must remember that walking in the international market, obeying the rules will be unimpeded and sunny. If we go against the rules, we will run around and the lawsuit will continue.

There is no way out for the bad habits of "lucky, relying on human relationships and backdoor".