Wenzhou Shoe Enterprises Under The Change Of Thinking

Wenzhou seems to have a unique soil that is suitable for the sprouting of wealth. However, these wealth buildup never gave up the pursuit of capital.

Private enterprises in Wenzhou are quietly embarking on a revolution of thinking, or every Wenzhou enterprise group that they think has developed well will now consider a problem: how Wenzhou enterprises should grasp the capital and the main line of internationalization to become bigger and stronger, instead of relying on themselves or relying on private capital as before.

At the end of 11 in 2007, sponsored by the Ministry of Commerce of China, the "500 world private enterprises dialogue" hosted by the Wenzhou municipal government opened the curtain for this "revolution of thinking" and became an opportunity for Wenzhou's private enterprises to cooperate with the world's top 500.

At that time, the idea must be: how can Wenzhou pform from the industrial economy to the capital economy? How can Wenzhou enterprises make use of the cooperation with the world's top 500 and the power of capital to achieve the second rise?

If we say that the first two sessions of the forum are to establish a dialogue platform for "private enterprises and the world's top 500", and the 2007 meeting is the declaration of Wenzhou enterprises on capital market and international market March.

Wenzhou enterprises have not been short of money, for example.

A well-known Wenzhou business executive told reporters that he could mobilize 500 million yuan in two hours of cash, which is not from the bank's funds; "we do not want new investors to share our profits."

This is also the language they often refuse to send to investors.

There are many famous enterprises in Wenzhou and large enterprises. Of course, their credit is enough to allocate temporary funds in Wenzhou.

They are confident: No, they will not feel the pressure easily.

So before the two International Conference on "private enterprise dialogue 500 world leaders" held in Wenzhou, it is difficult for us to see the scenes of many top Wenzhou enterprises' presidents.

In November 2006, the head of the Wenzhou chamber of Commerce told reporters in an interview with this reporter: "the Wenzhou government strongly supports and encourages enterprises to go public, but now these Wenzhou enterprises have indicated that if the government gives them funds to make up taxes, they will be listed, because these enterprises need to make up taxes before going public."

However, this situation began to change at the end of 2006.

The change comes from two events.

Their impact on Wenzhou businessmen is no less than that of deepwater bombs.

Two bombs, two well-known enterprises in Wenzhou: one is the low-voltage electrical and power pmission and distribution industry mainly based on CHINT group and Delhi group, one is AOKANG, BELLE shoes, red dragonfly, Kangnai and other footwear industries.

The participants in these two industries have been safe all along. They are competitors and are friends in private.

But the two incidents broke the calm of the lake and disrupted the competition pattern of the two leading industries.

Together, by the end of 2006, with the approval of the Ministry of Commerce, the Wenzhou enterprise Delhi group has established a new joint venture with the global 500 strong enterprise, France Schneider electric group, Wenzhou Deli Electric Appliance Co., Ltd.

This is the largest and most thorough joint venture in Wenzhou so far: both sides hold 50% shares, and the company's output value will reach 2 billion 260 million yuan in the future.

The key is that the new company will devotes itself to the production and sales of low voltage electrical products. In order to seize the Chinese market, it will extend its special business mode to other countries through the unique relationship with Schneider electric.

The cooperation between the two sides is significant. On the surface, Delhi and Schneider join hands in the low voltage electricity market in China. In fact, their cooperation has completely broken the existing rules and development path of the market, so that Nan Cunhui, President of CHINT group, who has always been in the "big boss", can't sleep.

He gradually felt the power of capital.

Previously, in the domestic low-voltage electrical and power pmission and distribution market, CHINT group and deli group have been holding hands. Schneider group has repeatedly thrown out olive branches to CHINT group, but has been rejected by Nan Cunhui.

This time, the cooperation between Schneider and Delhi group is a big blow for Nan Cunhui.

The main reason for the attack is that the low voltage electrical industry, which was originally not profitable, began to develop unpredictably because of the Schneider group's accession.

On the one hand, in order to ensure the safety of bank credit funds, the bank reduces the credit line and scale of the industry; on the other hand, the cooperation between Schneider and Delhi will greatly strengthen the brand and cost control, and the sales network, so that the strength of the opponent will be enhanced.

Soon afterwards, we saw that Nan Cunhui's hands with General Electric of the world's top 500 enterprises were tightly held together.

They also set up a joint venture company.

But this is only a move of Nan Cun Hui's combined boxing, and then he began to plan to go public.

A wave is not yet smooth.

Another incident made Wenzhou boil again.

In May 23, 2007, the BELLE footwear industry in Wenzhou was listed on NASDAQ. When Deng Yao, chairman of BELLE shoe industry and a congratulating party from various parties, exchanged cups and chips, Wang Zhentao, President of AOKANG Footwear Group in Wenzhou, was hard to "sleep".

He is well aware of the impact of BELLE shoe listing on the industry. "Since the advent of BELLE shoe industry, I have not had a stable sleep."

Indeed, after the listing of BELLE shoe industry, under the cooperation of capital, the market of BELLE shoes has reached 103 billion yuan after being acquired by Jiangsu.

At present, the total sales volume of footwear industry in Wenzhou is about 400000000000 yuan, and there are 4 enterprises in BELLE shoes industry, but in Wenzhou, there are more than 200 enterprises in such a market.

Wang Zhentao said to the listing of BELLE shoe industry: "in May 23rd, after the listing of BELLE shoes, every shoe company in Wenzhou touches a lot, because we know that the shoe industry will shuffle again.

We will all face greater pressure. "

He said the pressure and shuffle is obvious: from the perspective of single brand, AOKANG shoes industry is still the leading industry, but now it is not the era of single brand. After the listing of BELLE shoes, it has acquired more than 20 brands. However, there are no more than 20 brands in Wenzhou.

Wang Zhentao's worries finally took place shortly after the listing of BELLE shoes.

At the end of 11 2007, BELLE shoes acquired the shoes.

There is no direct pressure on AOKANG shoe manufacturers such as AOKANG, and BELLE shoes are mostly women's shoes. But most of Wenzhou's shoe manufacturers are men's shoes. But this time, BELLE's shoe industry has bought the assets of the Sunda group at the price of 1 billion 600 million yuan, which is the main market for the first tier cities, and the acquisition of the shoes industry dominated by the main women's shoes, which will produce a deep impact on the competitive pattern of the scattered footwear industry in China. In recent years, the footwear industry has penetrated its channel into two or three cities. Now, the acquisition of Sunda has made up for the weakness of the footwear industry, so as to raise the overall profit rapidly for the footwear industry, using its own channels and industrial chains and coverage. In itself, the BELLE shoe industry has nearly 3000 stores in more than 150 cities in the mainland, more than 1000 sports shoes chain stores, and ten overseas sales and marketing companies.

This move is a reshuffle for Wenzhou shoe makers.

The two major incidents in Wenzhou seem to be heartbreaking.

What's more, from the December 12th information, nearly a thousand companies in Guangdong shoe industry went bankrupt, and the shoe industry shuffle has begun. For the viewpoint of low cost and labor-intensive development for the core of the enterprise, it has come to the stage of pformation.

But these are still the tip of the iceberg. The ice surge is the most noteworthy question. How does China's private enterprises go next?

Where is the competitive advantage of Wenzhou?

Or, what is the future advantage of China's private enterprises?

Over the past 30 years of reform and opening up, most of the development models of private enterprises have been developed by labor intensive, resource intensive and extensive mode. But can this development mode become a weapon for Chinese private enterprises to enter the world market?

"Statistics show that the number of domestic private enterprises will increase by about 15 per year, but there are more than 10 private enterprises failing every year, and the life span of our 60% or more private enterprises is less than five years, which is related to the development mode of China's private economy."

Zhang Weijiong, President of CEIBS said.

He believes that the development of China's private economy to this level has begun to face the internationalization of the domestic market, and the internationalization of international competition. For example, the world's top 500 enterprises have come to China. Not only private enterprises are facing a lot of competition, but also every industry and every sector will have many enterprises competing.

Zhang Weijiong believes that from a global perspective, the competition among enterprises is also very fierce: the small businesses in the United States account for more than 70% of all enterprises. The total number of small and medium-sized enterprises in the United Kingdom, France and Japan accounts for over 99%. The development trend of SMEs in these countries is very good. We can see that among the top 500 enterprises in the world top 500 enterprises, there are no more than 20 years. For example, Google, they are gradually developing gradually. Why do these enterprises develop so well?

The answer is, of course, yes.

It is to make effective use of capital market and take the road of internationalization.

Let's first take a look at the industrial chain of the world's top 500 enterprises: low cost expansion - industry matching - international competition in the same industry - brand channel construction and operation - industrial chain improvement - management improvement - talent storage - international thinking - industry positioning - market influence - market planning - logistics management and other elements of the core value chain of enterprise development.

From the perspective of value chain, the private enterprises now have a very clear choice in the pition period, but there is a value chain that enterprises must do, that is, product development, product brand and market development, and project management of the whole process. They are always the highest in the value chain.

It can be found that the top 500 enterprises in the world are the highest value in product development, brand marketing and project management, and pay the same labor, but the value obtained is often several times that of Chinese enterprises.

However, many domestic enterprises tend to position their advantages on low labor costs.

It is undeniable that China is a manufacturing power, but the added value of simple product manufacturing is getting lower and lower.

Wenzhou business executives have realized this: This is a red sea for the development of enterprises. For example, there are cities and foreign enterprises with lower manufacturing costs than Wenzhou enterprises. Compared to the low manufacturing costs of Shanghai and Wenzhou, the relative costs of Sichuan and Xi'an are lower. In the aspect of low labor cost, some countries, such as Vietnam and India, have lower costs than Chinese enterprises, so the advantage of low cost is not sustainable.

Enterprises have a lot of relative advantages. The key point is to combine the advantages of enterprises with the market environment and the advantages of market demand.

Finding the best position in a market is the real advantage of an enterprise.

Generally speaking, enterprises have two variables in market expansion, one is the influence of the market, the other is the cost advantage of the enterprise.

Seize these two points and make them bigger and stronger.

In fact, the location of the assembly in foreign investment enterprises in China is still facing the foreign market. Is there such an opportunity for Chinese enterprises?

Yes.

The point is: every large enterprise has a lot of supporting enterprises around it. There are many opportunities for Chinese private enterprises to support these big enterprises.

So how do China's private enterprises choose the international market?

Or what kind of market strategy to enter the market, whether the target market is a sole proprietorship or joint venture, how to plan the capital budget, and how to organize and coordinate, all these issues need to be considered in the internationalization of Chinese enterprises.

There are four ways for China's private enterprises to enter the international market: the first is the focus of domestic resources and the market; this is called the local market competitors; the second is the use of domestic resources to the international market; this is called the pioneer of overseas markets; the third is the operation of domestic resources, which is called domestic resource users; the fourth is the global operation of overseas resources, which is called global operators.

International companies are often competitors of the global market. If we want to go from local operators to global markets, what should we do about our competitors?

First, I want to see where the target market is.

The screening of enterprise target market mainly considers three