Wang Zhentao: A New Road To The World Brand

On the afternoon of January 8th, Shanghai International Conference Center.

The largest private shoe making enterprise AOKANG group (hereinafter referred to as "AOKANG") and the famous brand VALLEVERDE of Italy (Wan Li Wade) held the "global strategic cooperation and 2008 new products conference", announcing the formal signing of the global strategic cooperation agreement.

According to the agreement reached between the two sides, AOKANG has won the "global brand management right" of VALLEVERDE (Wanli Wade).

The popular point is that AOKANG has acquired VALLEVERDE, the leading brand in Italy, sponsoring Ferrari RV racing and providing footwear products for the 2006 German World Cup champion Italy.

From the initial OEM (OEM) to the failure of overseas open stores, and then to the export suffered discrimination and anti-dumping, like many Chinese shoemaking enterprises, AOKANG's internationalization road is not smooth.

But in the global market changes, AOKANG is constantly reflecting, trying, and constantly adjusting its strategy.

"Internationalization is not just about selling a few pairs of shoes."

Wang Zhentao, President of AOKANG group, said so.

Now, it seems to be Wang Zhentao's answer to cooperate with international famous brands until they merge.

Wang Zhentao's international trip in 1998, when he attended the international leather shoes exhibition held in Las Vegas, USA, Wang Zhentao found that most of the booths were occupied by Italy leather shoes, but Chinese leather shoes were hard to find.

This scene gave him strong stimulation, and he began to realize the difference between China's leather shoes and the traditional old powerful Italy shoe industry.

At that time, the typical way of internationalization of shoemaking enterprises in Wenzhou was to undertake overseas orders, sell products for overseas brands OEM (OEM) and set up sales organizations. AOKANG also followed the first step of internationalization attempt: introducing huge sums of money from Italy and Taiwan into production lines, and setting up shoe design and Information Center in Italy Verona, while hiring famous designers from Italy to design shoes for AOKANG shoes.

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.

After that, they opened stores in Italy, Indonesia and other countries.

Unfortunately, most of these shops end up in closed doors.

In February 14, 2003, AOKANG adjusted its internationalization strategy and launched a partnership with GEOX, the first brand in Italy footwear industry and the world's fourth largest leisure footwear company, in sharing sales network resources.

According to the two sides' contract, GEOX's market promotion in China is fully responsible by AOKANG. The products and ancillary designs sold by GEOX to Asia and Europe and the United States are responsible for AOKANG. The two sides share the sales network resources, and the management of the main links in production, design and sales is carried out jointly by the two sides.

For AOKANG, who had failed to enhance its brand image from a foreign store, it was no doubt that it was a shot in the arm to be allowed to enter the 50000 sales network of the world's top brands in 55 countries.

Wang Zhentao also never denied the benefits from the cooperation with GEOX. "Our brand image, management and technology level have been greatly improved through cooperation."

He told the China Economic Weekly frankly.

In September 2003, AOKANG opened its first store for GEOX in Huaihailu Road, Shanghai, and then developed more than 100 sales 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.

While participating in the design and development of GEOX's marketing products in Asia, AOKANG has established foreign branches in Italy, Spain, the United States and Japan with the help of GEOX's sales channels, laying a good foundation for further overseas acquisitions.

And the cooperation between AOKANG and VALLEVERDE is further.

It is neither an OEM nor a brand, but a direct takeover of VALLEVERDE's global management rights.

VALLEVERDE is only responsible for providing product R & D resources, providing technical and legal support.

In addition, VALLEVERDE will help AOKANG set up a product research and Development Center at its Italy headquarters, and provide venues, equipment and production resources. The development results will be shared by both sides.

"The Chinese shoe industry is taking classes in the European market". Since 1980s, the focus of the world footwear industry has shifted from Europe and North America to the Far East.

With the gradual aging of society in Europe, the footwear industry is rapidly declining.

Take Spain, the shoemaking kingdom, for example, in 2004, there were 2 more than 200 enterprises and only one left in 2005.

The vast majority of enterprises are in the size of 10 people or around 30 people; the old shoe making kingdom of Italy is also similar, many of which are family businesses.

China has become the focus of the world's footwear industry pfer. At present, China is already the world's largest footwear producer, exporter and consumer country, occupying 68% of the world market.

According to the statistics of China Footwear Association in 2006, the number of employees in China's footwear industry reaches about 2200000, and several large shoe companies are over 10000.

However, outside public opinion, especially the western media, is still deeply rooted in the belief that the old shoe making Kingdom Italy's shoe making technology and footwear brand are synonymous with the world's most high-end shoes.

Against this background, the Chinese and western footwear industry is facing a new game situation.

How to make the world better understand Chinese products?

How to make "made in China" move towards the more high-end "China design" and "China create"?

It is probably one of the right answers to take the opportunity to replace and integrate the existing industrial manufacturing and marketing networks with a new path.

Wang Zhentao told China Economic Weekly that we should look at this issue from the perspective of "Co opetition". In the future, the largest market in the world, the Chinese market, with the internationally first-class production capacity and the largest marketing network system, will work together with international brands, and we can find a new way to the world brand.

In fact, the simple export of trade can not fundamentally change the position made in China.

On the contrary, the massive export of low prices brings about the pursuit of anti dumping and anti circumvention.

Some experts have pointed out that some traditional industries including footwear industry in Europe have shown a downward trend. This makes many Chinese enterprises seeking international market see the opportunity to re order the world market. The way of cooperation is either OEM or cross-border mergers and acquisitions.

Yan Feng, a professor at Shanghai Jiao Tong University, said in an interview with the media that "Europe, which has been occupying the high end of the industry, is in fact weak in competition. The Chinese shoe industry is taking classes in the European market."

Welcome to the "lion eating tiger" era, since last year, the Chinese footwear industry has taken a new step in the internationalization of branding.

In May 23, 2007, Belle International Holdings Ltd successfully listed on the Hongkong stock exchange, raising HK $about 8000000000, exceeding Gome group and becoming the largest mainland retail listed company in Hong Kong stock exchange.

Statistics show that BELLE group owns eight brands of shoes, such as BELLE, Teenmix, real beauty, Staccato and so on, and is also the largest distributor of Nike and Adidas in China.

In the year of listing, BELLE took 1 billion 600 million yuan to buy the group and then raised the fund raised by 1/4 to raise the market share of the domestic market and expand the market share of the two or three level, from high-grade to mid-range, from occupation to leisure, from fashion to sports.

The listing of BELLE means that the footwear industry has changed from industrial economy to capital economy, and has also stimulated the desire of other shoe brands in China to expand.

Especially for shoe enterprises in Wenzhou, the shock is not small.

Wang Zhentao told China Economic Weekly that AOKANG's listing is inevitable. It's time for AOKANG to go public.

In this era of pursuit of speed, we must consider the power of capital. Only in this way can we effectively integrate all kinds of resources and make enterprises bigger and stronger.

Wang Zhentao analysis said that now is not the age of "big fish eating small fish", "fast fish eating slow fish", but "lion eating tiger" era, we must begin to consider the two aspects of capital strength, industrial operation and capital operation.

He predicted that with the listing of the domestic shoe brands, the market structure of the footwear industry in Wenzhou will also face fundamental changes. China's shoe-making enterprises will join hands in the world competition.

Just as he successfully negotiated with AOKANG, he sent messages to AOKANG group members in his usual way: "dear comrades, if you and I each have a pear and we exchange with each other, then you and I still have one pear.

But if you have an idea, I also have an idea that we exchange ideas with each other, so each of us has two thoughts.

By absorbing the wisdom of others, you can change from one head to more. "