AOKANG Internationalization: Bumpy Road For Ten Years

"Polygamy" has not been tolerated for many years, but it is an exception for AOKANG group. In keeping with GEOX's engagement, he fell in love with VALLEVERDE at first sight. The two sides held a grand engagement ceremony at the Shanghai International Convention Center in January 8th. By the ceremony, Wang Zhentao, chairman of AOKANG group, wanted to tell everyone that AOKANG's internationalization started a new start, which is different from the brand image store strategy at the initial stage of internationalization. It is more different from the medium term ship borrowing strategy. After 10 years of exploration, AOKANG's route is more direct now. AOKANG's hope is: from cooperation to holding to the world shoe king. The store was frustrated in 1998, AOKANG 10th anniversary, Wang Zhentao participated in the international leather shoes exhibition held in Las Vegas, USA. At this exhibition, Wang Zhentao found that most of the stands were occupied by Italy leather shoes, and did not see the shadow of Chinese leather shoes at all. Wang Zhentao began to realize the difference between Chinese leather shoes and Italy footwear industry. So AOKANG introduced the production line from Italy and Taiwan with huge sums of money, and set up shoe design and information center in Verona, Italy. At the same time, it invited Italy famous designers to design shoes for AOKANG shoes, thus truly opening the international journey. In January 2002, in accordance with the practice of "first distributing and then branding", AOKANG opened its own store in New York, and set up the international trade department in May that year to make an organizational guarantee for overseas sales and exclusive stores. Since then, stores have been opened in Italy, Indonesia, Jakarta and other countries and regions, but unfortunately, most of these stores have closed down. Later, most people think that the high cost of franchised stores is the main reason for failure. However, Kang Rongping, a researcher at the Institute of world economics and politics of the Chinese Academy of Social Sciences, believes that the overseas stores of AOKANG group mainly rely on their own strength to operate and are not familiar with the local situation and have not truly realized localization. Kang Rongping also stressed that the lack of an innovative way of internationalization is the main reason for failure. At that time, the internationalization of Wenzhou footwear enterprises mostly took overseas orders, sold OEM products for overseas brands, and set up sales organizations to sell products. AOKANG's internationalization was not so early. As a latecomer, AOKANG also followed the internationalization of most enterprises. As a matter of fact, the traditional Chinese shoe enterprises have been uneven on the road of internationalization. No matter what happened to the previous Russian shoe deduction events, Rome or Spain, or the high anti-dumping duties levied by the European Union which are still being implemented, all the Chinese shoe companies have to think about the new internationalization road. Wang Zhentao succeeded in borrowing GEOX until 2003. In a timely manner, Kang Rongping withdrew from foreign stores. For this withdrawal, Kang Rongping's evaluation was a very wise strategic retreat. Because this year, Wang Zhentao found a truly international route of his own, and was praised as the two-way way of "third modes of Sino foreign cooperation". In February 14, 2003, on the Western Valentine's day, AOKANG married the first foreign wife, GEOX of Italy. More than a year ago, President GEOX visited the Chinese and neighboring countries for business visits and sought Asian partners until AOKANG was discovered. For AOKANG, who has failed to enhance its brand image from a foreign store, it is undoubtedly a new hope. In this contractual marriage, the products sold by GEOX to Asia and Europe and the United States are produced and aided by AOKANG. The sales network resources of both sides are shared, and the management of key links such as production, design and sales is carried out jointly by the two sides. According to the contract, in September of that year, AOKANG opened the first store for GEOX in Huaihailu Road, Shanghai, and then developed more than 100 outlets in Hangzhou, Ningbo and Wenzhou. The GEOX breathing shoes for its foundry were also successfully produced in Wenzhou, and successfully launched in July 2004 and sold to Asia and even the rest of the world. Since then, AOKANG has set up an Asian production base for GEOX, which has not only been an international brand foundry for Peres, but also a large footwear Industrial Industrial Park, which is mainly for the international market, which integrates R & D, production and marketing. At that time, it was called "the introduction of wolves into the room", and later it has become "dancing with Wolves". While processing global market products for GEOX and participating in the design and development of its products sold in Asian markets, foreign subsidiaries have been established in Italy, Spain, the United States and Japan with the help of GEOX's sales channels. Wang Zhentao also never denied his advantages from GEOX. "Our brand image, management and technology level have been greatly improved through cooperation." As of 2006, AOKANG group has three production bases and more than 30 world-class production lines, with annual output of over ten million pairs of leather shoes. There are more than 30 provincial-level branches, more than 2000 chain stores and more than 800 stores in the country. Three shoe design centers were set up in Wenzhou, Guangzhou and Milan, and more than 3000 new varieties were developed each year. Remarriage of the "new Shanghai" has special significance for AOKANG. The first shop with GEOX is in Shanghai. Now it is new to marry another person, but it doesn't forget GEOX. In addition to maintaining the "marriage" relationship, Wang Zhentao also highly praised GEOX: "today's cooperation is based on the success of cooperation with GEOX." It is also a cooperation, but the start of this cooperation is much higher. The "covenant" stipulates that AOKANG group obtains the management rights of Wanli Wade global brand, and its global brand marketing is all run by AOKANG. Besides designing, its production and sales are independently responsible by AOKANG. And Wanli Wei side, only to provide product R & D resources, provide technical and legal support, and will assist AOKANG group in its Italy headquarters to set up product research and development center, and provide venues, equipment and production resources, development results shared by both sides. Wang Zhentao has always been confident in his productive ability, but in designing and leather shoes culture, he has to rely on Italy's famous brands, which has been proved in previous cooperation with GEOX. In the marriage between AOKANG and Wanli Wade, AOKANG not only won the sales channels of Wanli wade in the world's more than 2300 chain image stores, but more importantly, it might eventually win the whole wanwade brand. Wang Zhentao said without any disguised words: "we hope to start from the early cooperation, to finally hold 51%, and truly enter the European market." As a result, AOKANG has spared no effort in quantity and marketing methods. Wang Zhentao promised that in 2008 alone, there will be at least 130 stores in Wanli market in China. In fact, this is not the ultimate goal of Wang Zhentao. "In the next 5 to 10 years, some of the top footwear brands in Italy and Spain will be merged by Chinese shoe companies". More than once in public, Wang Zhentao said he wanted to buy more famous European shoe companies. Although the joy is overflowing with words, Wang Zhentao also cautiously said: "although now engaged, but it is still in the stage of love, really can not get married can not be concluded."