Strong Analysis Of Wenzhou Shoe Enterprises' Success

The rapid development of Wenzhou's economic model has become one of the examples of Chinese enterprises learning.

A pillar of Wenzhou's industrial structure is the shoe industry.

Therefore, it is of great significance for us to study the development of Wenzhou shoe industry and study the factors of its success.

From the fire of Wulin gate in 1980 to the fire of Wenzhou shoes to today, Wenzhou shoe industry experienced the pursuit of quantity - the pursuit of quality - the pursuit of the three stages of the brand.

Today, Wenzhou has gathered a large number of Chinese famous brands, such as Kangnai, red dragonfly, Australian, AOKANG, Yi Kang, Jill, Lu Lushun, Dongyi and giant one.

Among the 415 entrepreneurs who have been awarded "dermal signs" by the State Light Industry Bureau and the China Leather Industry Association, there are 40% enterprises in Wenzhou.

There are eight main reasons for the success of shoe enterprises in Wenzhou: 1., the rapid development of China's footwear market.

Data show that in recent ten years, China's shoe market has developed at a speed of 800%.

In marketing, increasing the annual market by more than 10% is regarded as the fast growing period of the product life cycle.

The growing market demand is characterized by constant incremental demand and special attention to the basic physical properties or use value of commodities.

The market is constantly expanding.

Corresponding to this kind of market, enterprises should seize the opportunity to quickly carry out enclosure movement, that is, to establish their own distribution network.

The main feature of enterprise marketing strategy is rapid attack.

The rapid growth of market demand is the best time for enterprises to develop.

The most important thing for a successful company is to have such recognition ability, to identify the trend of market development, to meet the needs and grasp the needs.

An important criterion for testing whether the enterprise is successful is whether it is synchronized with the growth rate of the industry.

Take the famous enterprise Red Dragonfly for example, its eight years development process and the total sales volume have increased by nearly a hundred times. It is clear that this historical opportunity has been successfully grasped.

2. super strong ability to imitate.

The sensitization of the market includes two aspects.

One is sensitive, the two is contingency.

The two are indispensable.

Market acumen includes two aspects. One is to grasp the macro environment as a whole, to see the future further than others and to identify the trend of demand.

First, it refers to the assurance of product mix and style, fashion trend and the specific product mix in the specific business circle in the micro field.

Wenzhou shoe enterprises also have strong capabilities in this regard.

In those days, Wenzhou shoe enterprises boldly set up their own brand banner, cultural promotion, courageous to go abroad, and participate in the competition of world shoe trade. Today, cooperation with foreign enterprises and building a network is a witness from the macro perspective.

In the micro field, Wenzhou shoe enterprises are pursuing rapid response.

A famous Wenzhou shoe company boss said a famous saying: "one day to see the sample, three days out of the sample, a week out of the product.

"It is the full portrayal of the ability of Wenzhou shoe enterprises to be sensitive.

The objective effect of this rapid response is faster than other domestic shoe companies to gain market share.

On the other hand, with a comprehensive view of the history of economic development, efficient imitation ability plays a very important role.

Generally speaking, the shortcut of the growth of enterprises in small and medium sized enterprises or post developing countries is imitation.

We all know that the rise of Japan, Korea and other countries is also benefited from "imitation".

Japan's economic news reported that in terms of imitation ability, the United States is the number one in the world, Japan is the second in number, and China is the third.

In China, the imitation ability of Wenzhou enterprises is definitely ranked number one.

The development of Wenzhou's enterprises is just in the early stage of China's economic development. The protection and management of intellectual property rights still have no standardized background and the way of imitation.

As long as there are two samples, clever Wenzhou shoe enterprises can create.

3. broad connection terminal distribution network.

Shoe companies in Wenzhou attach great importance to establishing their own distribution system.

This way of thinking is related to the lack of local resources in Wenzhou, and we must go out to find business opportunities.

And the process of personal growth will bring the experience color to this mode.

Leaders such as red dragonflies and AOKANG are all salesmen. Therefore, they are more important than Kangnai, who is a shoe maker.

Therefore, Wenzhou footwear enterprises represented by red dragonflies and AOKANG have attached great importance to their own distribution outlets from the very beginning.

Different from other industries, the Red Dragonfly (AOKANG) adopted the mode of agent + direct shop at the very beginning.

Important stores are self - employed, unimportant, uncertain areas to agents.

An agent is not strong enough to put two agents.

This distribution layout takes care of both speed and position.

Therefore, in just eight years, red dragonflies, AOKANG, Kangnai, and then followed by RI Tai, Yi Kang, Lu Lushun and so on all set up their own thousands of chain terminals in the whole country.

Its speed is completely consistent with the characteristics of the shoe market growth period.

Just as chairman Qian Jinbo said, "don't let business hesitate in the process of decision making."

4. hard working, solidarity and cooperation, relying on the team spirit of geo culture.

The distribution network of Wenzhou shoe enterprises is the core part of the core competitiveness of Wenzhou shoe enterprises.

And the core part of the solid degree is supported by the geographical and cultural characteristics of Wenzhou people.

Due to the influence of marine culture, Wenzhou's spirit of hard work and solidarity and cooperation is the first place in China and has become the envy of the Chinese people.

Almost at the end of the distribution network of every shoe enterprise, we can see that the industrious and United Wenzhou people are quietly contributing.

Even if we occasionally join a non local college student, it is also a non mainstream, non backbone, which has no real impact on the whole team's geopolitical nature.

In order to ensure the purity and stability of the team, Wenzhou shoe enterprises have adopted anti-interference measures one after another.

5. enthusiasm for relationship marketing.

As a creature of the ocean, Wenzhou people have followed a tradition of hospitality and hospitality since ancient times.

We shared the fish. We didn't catch fish. We all starved together.

Even if you have nothing to eat, do not neglect your friends.

This kind of cultural characteristics plays an important role in Wenzhou's shoe industry's breaking through in the outside world.

This is the blessings of marine culture.

And this tradition of being rooted in Wenzhou has played a particularly effective role in tackling the ills of China's bureaucracy and planning system.

In the past ten years, China's bureaucracy and planning system are gradually disintegrating.

The regional development is very uneven. In China's inland, Western and northern regions, the process is very slow.

This gives an excellent opportunity for Wenzhou enterprises accustomed to market mechanism.

Therefore, it is the natural ability of Wenzhou shoe enterprises to make local officials and manage the mall managers under the big power camp system.

This instinct of relationship marketing enables Wenzhou enterprises to take root and sprout quickly and have a good social foundation.

This also constitutes a core competitiveness of Wenzhou enterprises.

6. low cost production resources.

The success of Wenzhou shoe enterprises is also related to Wenzhou's low cost production resources.

Footwear industry is a labor-intensive industry.

Therefore, labor cost is the key part of the cost structure of the industry.

In order to make money, Wenzhou people have the spirit of "not even life."

The hardships of Wenzhou people are the first in China.

This culture provides a spiritual foundation for the original accumulation of shoe enterprises in Wenzhou.

In the original stage of local shoe enterprises, Wenzhou shoe enterprises mainly use the locals who are not charging high prices. When Wenzhou's economy has developed to a certain stage, the labor force prices of local people have risen, and a large number of foreign workers have gone to Wenzhou and continue to provide abundant cheap labor for Wenzhou enterprises.

This makes Wenzhou shoe enterprises occupy a fairly strong cost advantage in participating in the competition pattern of the whole Chinese industry.

This is the age of price fixing.

7. flexible management mechanism and its low management cost.

Shoe manufacturers in Wenzhou are very flexible in management.

One person is many posts, one post and many people, as long as anyone goes.

Therefore, it may be a general manager who plays the role of the advertising department planner.

The deputy general manager of a group crosses one level to play the manager of a certain area.

All of them may be based on a principle: whoever goes and who will do so, how to save money.

As long as we can get things done, there is no relationship between them.

The management system of a company is subject to specific matters and can be adjusted by the operation of specific events.

The management system is unreasonable and unsmooth, and the lack of executive system is made up of the unity and cooperation of Wenzhou people and the culture of the outside world.

This mode of division of labor is compatible with the early stage of Wenzhou shoe enterprises and the scale of enterprises is not particularly large.

Managerial flexibility is also reflected in the distribution system.

The income distribution of employees is still a very vague way of individual workshop.

Most of the employees' income is distributed at the end of the year, and the amount depends largely on the manager's subjective feelings.

Similar to the boss's red envelope.

This method of distribution eliminates many management details, which is consistent with the fuzziness of management system.

In fact, it is impossible to establish a clear distribution mechanism in this situation.

It is precisely because of the highly flexible management mechanism that the management cost of Wenzhou shoe enterprises is usually very economic, which constitutes a key part of the core competitiveness of Wenzhou shoe enterprises.

8. the relative pressure of relatively closed country and regional economic imbalance is relatively low, and product category demand characteristics are consistent.

The important ten years for the development of shoe enterprises in Wenzhou are also the ten years of China's reform and opening up.

In the past ten years, although there are also foreign brand shoes entering the Chinese market, but because of the high tariffs and their high cost, they are not matched with the purchasing level of the vast majority of Chinese consumers. Therefore, they have been curling up in the market of high quality and high grade shoes for a long time, and the market scope and their limits are basically not conflicting with the target market group of Wenzhou shoe enterprises.

However, the regional economic development in China is very uneven. A large number of Western and northern areas are still in the wake of the planned system.

The footwear industry in southern Guangzhou has developed first, but most of them focus on the processing of orders from three to one, with no brand awareness and better days.

The local economy in Chengdu is still very backward, and the footwear industry is not yet known as the climate.

The shoe market of Quanzhou shoe industry is not yet mature, so there are only a few manufacturers who really participate in the market competition.

During this period, China's market needs most of the leather shoes of low price.

Because in traditional Chinese thinking, it is a symbol of wealth to wear cloth shoes and shoes, just like people who used to eat braised pork.

Therefore, leather shoes have been pushed out as the first demand for the wearing of shoes after the improvement of the material life of the vast majority of Chinese people.

Wenzhou shoes enterprises are best at making leather shoes.

Especially men's shoes.

Therefore, it has also made the success of Wenzhou leather shoes on the other hand.