Forbes Survey Highlights New Regulation &Nbsp; Wuhan Garment Industry Rises "Son-In-Law Strength"

The story of "new and old alternation" in family businesses is always a story. If the successor is a son-in-law, the situation will be more subtle.

According to the statistics of Forbes magazine, 1268 of the 2272 listed companies in China are private listed companies, of which 460 are family businesses, accounting for 32.68% of the total number of private listed companies.

In the last 5 years, a total of 370 family businesses have entered the capital market, showing a blowout.

From the data, the total assets return of the listed family enterprises has reached 6.66%, which is obviously better than the return rate of 1.75% of the state-owned listed enterprises and the 2.82% of the listed non family enterprises.

According to statistics, among the leaders of these family enterprises, the "couple shop" is the most, followed by brotherhood, paternity and mother son relations.

But of the 460 listed family businesses, only 21 companies' founders have passed on to the next generation, accounting for only 4.57%.

It is worth mentioning that the power of "son-in-law" is rising, which seems to be a choice that entrepreneurs who have no children to face.

Looking around the family business in Wuhan, there are not many industries in the succession period.

Gan Dean, one of the first scholars to study family business in China, Dean of College of Arts and Sciences of Jianghan University and master tutor of Hubei Academy of Social Sciences, told the author: "the development cycle of family businesses is related to the overall strength of local private economy.

The family business in Wuhan has a short history, so there are not many enterprises entering the waiting period.

As a leader of traditional industries in Wuhan, I found that some Wuhan garment enterprises have begun to steer by "two generations of enterprises".

"The majority of successors are sons," said the head of the Wuhan clothing association. "But a few son-in-law have come to the fore and have become the real leaders of the enterprises."

"The Japanese family business has the preface of having the eldest son, the prodigal son and the foster son. If the eldest son does not use it, he would rather pass it to the foster son, mainly from the" law "; but the family business in China passes the position, and the daughter can not pass the son-in-law, the main consideration is blood factor.

But China's "son-in-law boss" is mostly in charge of the management rights, and the shares are also controlled by the daughter, which makes the son-in-law steering enterprises have more instability, Gan Dean said.

In their thirties, they have the background of studying abroad, and even have an enviable high paying job.

Now, they become "Wuhan son-in-law" and have a display.

"Phoenix man" settled in garment factory

Chen Fei, the current general manager of Wuhan he Rong Clothing Co., Ltd., is the father-in-law of Zhao Herong.

"To be a garment enterprise is still tiring than working in the world's top 500."

Chen Fei's student career has always been excellent.

He graduated from Shanghai International Studies University in 1999 and graduated from business administration in Saar State University in 2003. In 2004, he served as the world's largest chemical company, global marketing manager of Basf Company Ltd, Germany, with an annual salary of 500 thousand yuan.

It was also in 2003 that Chen Fei met Zhao Jing, the only daughter in the school of German, who was studying in Germany.

In 2005, Zhao Jing was asked to return to Wuhan to take over. Chen Fei also took the initiative to pfer to BASF Shanghai company.

"This choice is indeed very difficult."

Chen Fei told the author, "I remember very clearly that in 2005, I flew more than 50 times from Shanghai a year in Wuhan. Such a traditional clothing enterprise opened another world for me.

The company's foundation is good, and the market for this industry is also very large.

In 2006, Chen Fei married Zhao Jing, and Chen Fei came to Helon dress as assistant director of sales department.

Now Chen Fei, the manager of the general manager, is in charge of management. His wife is in charge of design and products.

Settled in Wuhan garment enterprises "

Son-in-law should make revolution.

At the beginning of 2007, he went to Bo Mei Jia as director of human resources, and Li Xiao started his "revolution".

"The biggest difference with mother-in-law is in dealing with the old employees."

Li Xiao told the author: "many old employees grow with the enterprises, but they can not accept new management concepts and methods.

The mother-in-law felt that they had no credit for their hard work, but I was more inclined to get rewards and penalties.

For this, there are many conflicts. "

In order to increase the profits of enterprises, Li Xiao proposed changing from distribution system to order system, from wholesale to retail.

But this proposal was again opposed by the mother-in-law.

"I was ready to leave."

Li Xiao said, "fortunately, after many rounds of confrontation, the family slowly began to understand our concept."

Chen Fei is asking his staff to write about the "day plan", which is in a stalemate with his father-in-law.

"What is lacking in family businesses is institutional construction."

Chen Fei said: "I learn from the practice of foreign enterprises. I ask employees to write today's work summary every day before leaving work, write tomorrow's work plan, and pay attention to workload and efficiency.

It is stipulated that anyone who arrives at 8:30 in the evening will be a minute late, even if the manager has to pay a fine of 100 yuan. "

Chen Fei's proposal was not understood by his father-in-law at first.

After many explanations, it gradually began to implement.

"There are more proposals that have been strangled in the cradle."

Chen Fei introduced, "once, I put forward the idea of doing self pilot in the province, and was rejected by my father-in-law, which made me very frustrated."

But elders also have the right time to gamble.

Chen Fei told the author: "we all like to make fashionable clothes. Our father-in-law does not think much of the market. Later, when ordering, we really encountered difficulties.

Being an enterprise makes me more mature, and I need to learn to adjust my mindset. "

How long can a business leader without a controlling stake last?

Although son-in-law has been growing rapidly in the 30% annual growth rate, the son-in-law CEOs have gone through several years of trial.

Li Xiao began to be in office in 2009, and his mother-in-law had been listening to politics for 2 years. Chen Fei began to take charge of the enterprise in this year and climbed to the general manager for 5 years.

Another embarrassing fact is that the father-in-law and mother-in-law still retain the title of "chairman" and highly control the ownership of the company.

"My current income is not as good as two months' wages in Germany."

Chen Fei said frankly, "I have no dividend and no equity.

When I first entered the enterprise, I said something about equity, and then I forgot it.

I will not mention it again. I will see more about money.

The only child will have fewer problems in property inheritance, and the distribution of property rights is not so complicated.

In 2009, I even took 2 million yuan of Shanghai old house demolition for enterprise development.

As long as I have a heart and soul with my wife, I will not do anything about property right.

Li Xiaoze told the author: "I have dividends now, shares are just as many as my wife, but the controlling stake is still in the hands of my mother-in-law."

How long can these business leaders who can not control the shareholding be able to work hard?

Chen Fei said, "now, to do well in business is the source of my sense of achievement.

Of course, a modern enterprise should have a clear stock right. We also want to develop to the capital market in the future, and this aspect will be improved step by step.