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    What Kind Of Innovation Does China Shoe Enterprises Need?

    2007/12/6 0:00:00 10304

    Innovate

    An enterprise must shine in a certain era. A product must be sold on the basis of customer demand.

    Almost every day people tell me: innovation, innovation, no innovation, death, innovation is death.

    Is innovation subversive?

    Is innovation negative?

    Is innovation a death?

    The competition environment is deteriorating, globalization is challenging and customers are becoming more rational. What kind of innovation do we need?

    In order to change the fate of cheap factories in the world, we must change the concept of innovation.

    In the past, in order to compete for the market, we were only limited to the innovation of product styles and colors.

    We are too good at following, not leading.

    So we innovate in the competitive strategy, but looking back, there is no way out for low price, though this is a very effective market strategy.

    So is the shoe industry in China.

    Our biggest challenge is innovation. Tens of thousands of shoe factories are innovating every day. The market is growing fast, but our innovation is not systematic. It is very irregular. Many processes and management are too arbitrary. When enterprises are low in profits, it is hard to invest a lot of money to really make the market and the industry permanent.

    An enterprise or an industry is hopeless and will not last long merely by the invention of one person or product, or limited to external and technological innovation.

    Innovation is a system that requires synergy in all aspects of products, technology, market, management, service and so on.

    Many Chinese enterprises are just lost in the overall situation.

    A global research data shows that only one item in four new product development projects can be successful, and nearly 50% of the resources used for development are wasted.

    In the real market, a lot of innovative ideas can not be put into action. The products entering the market are also facing high failure rate. Many enterprises are wasting valuable resources on failed products.

    In many cases, our eyes tend to focus on big innovations, partial innovations and amazing innovations, but often neglect systematic innovation.

    Hin's leather joint technology innovation this year, I figured it out: if the technology can be popularized throughout the country, according to the 1.5 square feet per pair of shoes and 9 billion pairs of leather shoes in the whole country, the annual savings of leather can reach 2 billion 290 million square feet (the average output of each cow is 40 square feet, which is equivalent to saving 57 million cows' skin production). According to the 25 yuan per square foot of leather, the annual savings can reach 57 billion 300 million yuan.

    The technology of Hengda has played a direct role in promoting the development of saving, ecological and civilized society and promoting the development of circular economy in leather industry.

    Innovation is not the creation of ivory tower, it is a system engineering that coincide with society. In the past 24 years, Hengda supports innovation with the whole system and process of internal and external enterprises, and promotes enterprises to move forward one after another by innovation.

    Innovation trap many of us lack of planning in strategy and management, focus only on short-term interests, investment can not focus, blind diversification, and lack of core technology hatching; in the organization and people, R & D is isolated, lack of talent, no good valuation of innovation value, and no quantifiable scientific indicators to evaluate R & D performance; in process and technology, lack of systematic process support, R & D efficiency is low and can not be sustained, and there is no technology that supports R & D process to ensure the value of innovation.

    All this, we are trapped in the trap of innovation.

    Hengda had failed and succeeded in the past. But what I think of every day is not the experience of success, but the value of innovation and how the company continues to grow.

    Why was it challenged in May 14th of this year, BELLE had frozen HK $4337 in HK IPO, and the first day of the market was HK $86.6, with a market value of nearly HK $50 billion and Gome worth more than HK $38 billion 600 million.

    BELLE's innovation and success in the capital market excited the manufacturing of Chinese traditional footwear.

    But does the rising popularity of shoe industry mean the overall upgrading of the industry?

    Does the industry pattern mean the subversion of capital innovation?

    Hengda is also deeply reflecting.

    To meet the impact of capital innovation on the traditional manufacturing industry, we must win the brand reputation and market efficiency of the world market, and pform from the traditional point of innovation to the innovation of surface and system. I think we must jump out of the predicament of being a follower, and we must break the line of innovation.

    Without a set of standardized market planning, lack of product portfolio management, and without improving investment decisions, our innovation will be blind and risk will be great.

    R & D is only a necessary condition for innovation. To complete the core technology, product reliability, safety, comfort and health, Hengda must stand on the market and take the role of the third party to see whether the whole innovation pipeline is smooth, and whether the system innovation supports the whole strategy of the enterprise.

    Innovation is not isolation, but synergy.

    It encourages collaboration and regularized and systematize it so as to achieve synergy within and outside the enterprise, thereby reducing the risk and cost of innovation.

    Hengda constantly obtains innovative enlightenment from customers, from the market and from peers, and quickly implements it.

    In particular, BELLE International's capital innovation has given strong inspiration to Hengda, which has opened up new thinking and vision for Hengda's sustainable development in the past 24 years.

    Innovation is appreciation and respect.

    Create an innovative culture to encourage creativity, promote Hengda team cooperation, and ensure the enhancement of innovation culture through reliable and applicable performance evaluation indicators.

    This is the biggest challenge for us to challenge ourselves.

    Respecting and appreciating the culture of collaborative innovation both inside and outside the enterprise has become the root of Hengda's future success.

    Innovation is an old topic, but it makes me constantly examine Hengda every day. In a new consumption era, in a capital market with market capitalization, in an era of soft power competition, in a time when a brand wins the lead, in a period of competition and challenge with uncertainty and crisis, how to grasp prosperity and manage prosperity, how to coordinate innovation and achieve innovation value is a real challenge in a prosperous period with risks and opportunities.

    Innovation is individual and synergistic. It is organized and national.

    I must deeply understand the value of Hengda from the challenge of innovation.

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