Shoe Companies To Avoid Overseas Ban Need To Fight "Combined Boxing"

A few days ago, the Ministry of economic development and trade of Russia, in conjunction with the Ministry of finance, industry and energy, stopped approval of foreign auto enterprises to set up assembly plants in Russia.

Lev Yisi Kopf, deputy director of the Ministry of investment and policy of the Ministry of economic development and trade, explained that the company had signed a motor vehicle protocol before that date and could still sign relevant agreements after the entry into force of the order.

Unfortunately, Chinese auto companies such as Geely, the Great Wall, ZTE, BAIC and others that want to build a car assembly plant in Russia have not reached an agreement with the Russian authorities before this date, thus being banned from the door of "industrial assembly".

In recent years, with the acceleration of globalization, the concept of "the world is flat" has gradually become popular among the Chinese people, and the pace of Chinese enterprises to expand overseas markets is gradually accelerating.

However, such a ban on investment and factory building is self-evident. A series of Chinese products, such as dumping, green barriers, technical standards and so on, are also endless.

However, Chinese enterprises can hardly afford to be self belittling.

If you want to open up overseas markets, you need to straighten out your position first.

"Self conceited" and so-called "King's hegemony" will only cause enterprises to encounter wave after wave of blocking in overseas markets.

It is the best policy to establish common interests with peers from overseas markets.

Galanz's strategy of targeting overseas markets is worth learning from the fact that the Chinese household appliance industry is known as "price butcher".

In the eyes of the general public, Galanz's journey overseas is bound to be a high price cutting edge, all the way to get rid of it, killing overseas colleagues, and finally attacking the city, pulling the banner of national brand across the western countries.

The reality is that the dumping behavior of electrical products has always been the focus of attention of all countries in the world, and this desire has been reduced to a castle in the air.

Therefore, in order to avoid the possibility of blocking the dumping, Galanz has made some trade-offs, "pick up the tail", "do not eat alone", and finally chose the way of sharing interests to ask for directions.

Galanz has adopted a strategy of both beating and pulling for its overseas competitors.

Through cooperation with several foreign brands, Galanz has introduced several pipelines to control the total export volume below 50% of the total output, and the remaining capacity is used to provide OEM (OEM) for other international brands.

In this way, Galanz is immune from the doom of the gun, so that competitors can always share 30% of the market share, instead of one step ahead of the rest of the world.

Interest sharing is not only applicable to the development of overseas product markets, but also to overseas mergers and acquisitions.

In recent years, Chinese companies have been able to acquire overseas companies, but few have succeeded.

Most of the M & A intentions are blocked by industrial security and anti monopoly provisions in the countries where the target countries are being held. The cost of paying them is also considerable.

The failure of these enterprises is of course great, but perhaps the biggest failure is to make concessions without sacrificing temporary interests for long-term development.

By contrast, the famous American private equity fund, Carlyle Group, has made full concession in the merger and acquisition of Xugong Group, and is fully patient. Eventually, although it did not achieve absolute control, it made the first place in China at least, and fully demonstrated its sincerity.

Striving for the right to speak, and making rules for the protection of interests sharing, although it can break a market, but after all, it is a temporary solution. If Chinese enterprises want to circumvent the overseas ban, they still need to actively strive for a series of discourse rights, such as technical standards, and participate in the formulation process of the rules of the game, so as to protect their business interests.

In March 2007, China's MP3 manufacturers encountered the largest scale of attack in Germany.

In the same month, 19 German customs officers searched the Chinese manufacturers who participated in CeBIT, and seized some MP3 players, digital cameras, GPS and other products suspected of infringing the MPEG-2 audio patent of Italy Sisvel company.

Fortunately, after the German Customs returned the seized products, although it caused a reputation loss to Chinese manufacturers, it was much more generous than the Spanish shoe burning incident in Spain a few years ago.

Of course, the lack of technical standard discourse power is still the weakness of Chinese enterprises to open up overseas markets.

It is worth noting that the case of Kangnai shoe industry, a forerunner of technology right in China a few years ago, is still worth reviewing.

In order to avoid repeating the repeal of the shoe burning incident, Kangnai shoe industry decided that instead of being passively limited by the technical threshold of international trade, it is better to take the initiative to attack, go deep into the "tiger's Den", and try to enter into the international standard of technology, and fight for the right to speak of the international standard.

Therefore, the research center (SATRA) has entered Kangnai's vision.

This is a global footwear certification body established in the UK in 1919. It represents the highest level of footwear certification in the world. SATRA can also ensure that following the latest legislation such as European health and safety, environmental services, etc., it can help countries set up a series of certification systems such as ISO and SA (including SA8000 standard). It is an important source of laws related to technical barriers to trade. When importing countries set up technical barriers, SATRA is an important object for its legislative investigation to obtain legal content.

After hard and unremitting efforts, in September 5, 2004, at the forum of "Kangnai crack the new barriers to international trade barriers" held in the Great Hall of the people of Beijing, Kangnai Group signed a technical service cooperation agreement with SATRA, invested 10 million yuan to set up footwear research and development center in China, and developed the latest footwear technology, technology and environmental protection standards in the world, thus becoming one of the "game rules" makers of international trade.

In this regard, some senior officials and scholars have also given considerable affirmation.

The officials of the Ministry of Commerce and the Fair Trade Bureau believe that Kangnai's passive initiative has played an exemplary role in breaking the technical ban on the domestic industry; the Secretary General of the Boao forum for Asia and the chief expert of China's accession to the WTO, Mr. Long Yongtu, stressed the three "new" in evaluating Kangnai's new thinking: first, new initiatives and initiative in line with international standards; two, new scientific nature, a scientific attitude; three, new maneuverability and concrete measures and actions.

Integrating into local society, based on cultural integration, in order to achieve the goal of not eating alone and fighting for the right to grab words, Chinese enterprises will eventually gain long-term gains in overseas markets. They must also integrate themselves into the local society in a real sense and expand their overseas footprint with cultural integration.

The foregoing Chinese automobile companies were banned from the "industrial assembly" gate in Russia because the communication between these enterprises and local government departments was not in place, resulting in lack of cultural integration.

According to media reports, under the astounding tacit understanding, several multinational automobile companies signed the assembly car protocol with the Russian government before September 14th, but only avoided Chinese enterprises.

First in September 12th, the Fiat motor group announced an agreement with the Russian Sheffield automobile factory.

A few days later, General Motors signed an agreement with the Russian Ministry of economic affairs to plan a new factory near St Petersburg for $150 million.

In addition, as of September 15th, the investment agreement of MITSUBISHI motor and Hyundai Motor vehicle assembly plant in Russia was approved by the Russian Ministry of economic development and trade.

Ask the relevant employees of Chinese automobile enterprises, if they go further into their work, and even communicate with the local government and competitors, even if they notice the abnormal developments, they will not be trapped in the embarrassed situation of many enterprises.

Peter Drucker, a master of management, stressed: "the best company is not the amount of money you pay, but the reward you pay.

If you have the right employees, they will work hard to create a great company within their capabilities.

They will do their work efficiently, and they will not bow down because of their lack of pay, just as their breathing is not controlled. "

Therefore, the idea of cultural integration for Chinese enterprises to go abroad is based on the strategy of localized talents.

For a long time, Chinese enterprises have always had a distrust of local employees when they stepped overseas. As a result, most of the overseas management of Chinese enterprises were all yellow faces, so internal friction and fighting took place frequently.

Moreover, Chinese employees working abroad often face huge personal safety risks.

A series of risks, such as air crash, robbery, disease and so on, have increased the cost of overseas operation of Chinese enterprises. Some enterprises pay a considerable amount of insurance and litigation costs each year to shoulder such risks.

However, once the above problems are not solved in time and effectively, the brand reputation of enterprises will be greatly reduced. The expansion of enterprises overseas will inevitably be greatly affected, and ultimately the potential of Chinese enterprises will be blocked.

Of course, the cultural integration of Chinese enterprises overseas does not mean that overseas employees are "Westernized" and should not be limited to the symbolic meaning of "Westernization" of management.

Chinese enterprises should have the spirit of "global implementation and local thinking".

First, Chinese enterprises should understand the needs of local market in a spirit of humility, respect the habits of local market and local customs. Second, Chinese enterprises should select managers who are familiar with overseas affairs and are willing to communicate with local people and government to break through the "cost saving" thinking of employing local staff in developed areas and employing local staff in less developed areas.