Hengda: Building China'S Nike

Dan Cunli, general manager of Hengda Group, has an in-depth exchange with foreign businessmen.

The world's economic integration wave is unstoppable.

The rise of Eurasian continental bridgehead and the Qingdao Hengda Group Co., Ltd., which takes off on the coast of the Yellow Sea, is the product of Hengda brand leather shoes under the guidance of "China famous trademark" and "China's famous brand products". Under the guidance of the strategic goal of "building a hundred year enterprise and building a world brand", it is advancing to the world brand from Chinese famous brand.

Founded in 1984, Qingdao Hengda Group has been developing for 23 years.

Since 2000, the export volume of foreign trade has increased by an average of 40% per year, and the sales network has also expanded rapidly to more than 20 countries and regions in the world. It has established various forms of cooperation with the world's largest clothing brand NINEWEST (Nine West) and 500 world top 500 enterprises. It has become the leader in the international strategic shift of China's leather shoes industry from the world's shoemaking power to a shoemaking power.

Looking at the world and preparing for it, 2000 was an extraordinary year in the history of Hengda.

At the turn of the century, the pains at the turn of the century, the confusion at the turn of the century, and the longing at the turn of the century struck Wang Jiwan, chairman of the board.

This year, they took the first step towards internationalization of the Russian market.

Wang Ji Wan is the first generation of private entrepreneurs after China's reform and opening up. It started from the family workshop in 1984, and worked hard for 16 years.

Nationwide, a very high brand awareness and reputation were established; Hengda Group invested about 30000000 yuan, and the enterprise technology center established according to the national level technology center standard was also recognized as the city level technology center in Qingdao in 2000, and reached the industry leading level. At the same time, the introduction and implementation of the new management concepts such as the ISO9001 quality management system, ISO14001 environmental management system and 6S on-site management ensured the healthy and scientific operation of the enterprise, and made the Hengda Group develop rapidly into a large private enterprise group of the state, one of the largest shoemaking enterprises in China, and successively won the honor of "China ten real leather shoes king", "national inspection free product" and "national consumer satisfaction product", which laid a solid foundation for Hengda's internationalization road. By 2000, Hengda had built a branch factory in 6 provinces and cities nationwide, with more than 5000 employees, and its products sold well in more than 20 provinces and cities throughout the country.

It is an important reason for Hengda to remain vigilant in the tide of market economy.

The idea of the senior group of Hengda is shocked by the voice of WTO. Is this a great historical moment to satisfy the achievements in the domestic market, or to pay attention to the larger international market outside the country?

This problem directly determines the future direction and fate of Hengda Group.

In fact, before that, Hengda has hired Fabie, the famous designer of leather shoes in Italy, as the chief designer of the company. Through the introduction of talents, Hengda Group has already tasted the sweetness of international resources integration.

Therefore, in Wang Jiwan's mind, opening to the outside world has not only confined to technical cooperation with foreign investors, but rather how to make full use of WTO's historic opportunity to integrate with the global economy and complement each other and shorten the mileage of growth so as to create a world brand.

Like past Hengda's growth trajectory, Hengda has grasped the opportunity, grasped the direction correctly, and strides forward the firm step of international development in the face of great social pformation.

To integrate market resources and innovate international brands, China's footwear industry is still in the inferior position of "big manufacturing country and small brand country" in the international market.

In 2005, China produced about 7000000000 pairs of shoes, accounting for 53% of the world's total output, accounting for 60% of the total export volume of the world's footwear industry.

64.5% of us footwear imports come from China, and our exports to Europe are also stable at 400 million double and 1 billion US dollars. Even half of Italy's shoe sales are from China.

However, due to low R & D capability and weak brand influence, the export price of Chinese shoes is very low, which is only 5.5 US dollars per pair, not only lower than that of developed countries such as the United States, France and Italy, but also far lower than Vietnam (US $18).

The "made in China" mark has traveled all over the world, but the "world famous brand" of China's footwear industry is so far away.

This is a shame and shame for all Chinese shoemaking enterprises.

For this reason, the Hengda Group, the leader of China's shoemaking industry, has sent many people to inspect Italy, France and other shoe industry powers.

Italy's exquisite culture, Italy's classic footwear industry, gives Italy all brands a good commonality -- fashion and elegance, so that each brand has a natural taste.

Hengda Group absorbs the essence of the development of footwear industry in Italy. Combined with the present situation of China's footwear industry, it realizes profoundly that enterprises must become world brands if they want to remain invincible in fierce market competition. If China's footwear industry wants to move towards the world, it can only build a world brand through resource integration, so that a big shoemaking country can become a powerful shoe making power.

With the advantage of "3 + 3", that is, China's "labor advantage, domestic brand advantage and big market advantage", plus the advantage of "technology advantage, management advantage and capital advantage", the Hengda Group has reintegrated the international market resources, and has gone out of the internationalization road with Hengda characteristics in a flexible and changeable way.

Strengthen the independent brand, realize the internationalization of national brand and integrate the global economy, are forming the industrial chain, profit chain and resource integration chain with the world famous brand as the leader.

Today, with the branding of the global economy, the added value of products is determined by the reputation of the brand. The products of a country can be exported to a country or a region by trade alone, but the "going abroad" of pure trade is not "breaking the boundaries" in the brand sense.

The principle of Hengda brand to the world is to respect its own national brand, integrate international resources, and focus on the development of independent international brands.

In November 7, 2001, China was formally admitted as a member of WTO. This undoubtedly encouraged and supported the Hengda, who has just embarked on an international journey.

On the basis of summarizing the successful experience of Russia's trade, they carried out a study on the localization of the international market, aiming at implementing different product structures in different regions, adopting the global market strategy of "expanding north and expanding eastward", successfully expanding the market layout to the European market. At the same time, actively attacking the Japanese market known for its demanding quality and entering the high-end markets such as Ginza, Tokyo and Vietnam, and taking the market of Japan and Korea as the bridgehead, landing in the Americas market.

In just a few years, Hengda rapidly expanded its market around the creation of its own international brand.

Among them, "two-way access" is a great way for Hengda's internationalization strategy.

In the modern international market, the mature sales channel of brand is regarded as an important part of brand capital.

After entering the international market, Hengda found that today's international market has developed from the competitive era to the era of competition and cooperation, that is, in competition, complementing the advantages of competitors and achieving win-win results.

After 23 years of development, Hengda Group, the "ten real leather shoes king of China", has formed a multi-layer three-dimensional marketing network across the country.

In cooperation with internationally renowned enterprises, Hengda discovered that while many Chinese enterprises are exploring the international path, many large international enterprises are also exploring the way to enter the Chinese market. So a bold idea of "two-way borrowing and taking the opportunity to lay eggs" came into being.

Up to now, branches, offices and trade relations have been established in more than 20 countries and regions such as Japan, the United States, France and Italy. Independent international brands account for 80% of their total exports.

The rapid rise of the independent international brand of the Hengda Group has attracted the attention of many top 500 enterprises in the world.

The multinational groups such as the American Roma, Germany's British Koran, Japan's MITSUBISHI and SamSung of Korea have established strategic cooperative relations with Hengda. The delegation of the British and French governments and the Latin American parliamentary delegation inspected the Hengda Group and invited Hengda to invest and cooperate.

In view of the successful international brand operation performance of Hengda, Hengda Group was recognized by the provincial government as "Shandong export famous brand enterprise" in March 2006.

From the pformation from OEM to ODM, we have had a history of making OEM and OEM for foreign enterprises in the way of internationalization of domestic enterprises.

Practice has proved that the international trade solely relying on labor cost advantages will eventually make Chinese national enterprises become a processing machine for foreign brands.

With its own R & D level and management capability, the Hengda Group has entered the international market, announcing the principle of internationalization development, that is, to cooperate with world-class enterprises only.

What Hengda chose is another innovative way of OEM -- ODM.

ODM, also known as "Lai" design, is the use of its own research and development capabilities to independently design the needs of international customers and ultimately meet customer needs.

The essential difference between OEM and ODM is that the design process is added in the process of single processing, and the product is reasonably priced according to the independent design, thereby enhancing the added value of the product, mastering the initiative of pricing, and improving the price from purely mechanical processing to creative production.

The implementation of brand strategy and international capital operation, with the increasing popularity of Hengda brand in the international market, Hengda began to fully implement the brand strategy through international capital operation.

China, as an important part of the international market, has become the target of big shoe companies in the world.

In 2002, the French international brand group invited the invitation of China Hengda brand.

Based on the global brand management strategy, Hengda accepted it successfully, and succeeded in participating in the French international brand group through the evaluation of the brand value of the international professional organization.

France international brand group is a large multinational enterprise facing the global market and specializing in research and development, design and operation of clothing brand. It is known as the "incubator" of international brand.

By joining the French international brand group, the Hengda Group has successfully created the two international brands of "Adi Lina" and "power foot", making it sell well in the world's high-end market.

The internationalization road promotes Hengda's continuous innovation and development. The Hengda Group has rapidly introduced the world's advanced management processes and management experience through cooperation with international brands, enhanced the ability of enterprises to introduce, digest, absorb and innovate, shorten the distance from the top international enterprises, and set up a good platform for enterprises to undertake advanced business philosophy and play the international market.

In 2005, Hengda successfully cooperated with the world's largest clothing shoes brand Nine West, and its brand holder, Jones group, is an international leading clothing and footwear design, development and marketing integrated operation company.

Jones group asked Hengda to implement comprehensive information management and control, directly connect with the management process and platform of Jones group. In order to ensure the smooth docking, Jones group also trained the management process and technology of Hengda Group, and implemented phased factory inspection until the management of Liu Chengquan was smooth, thus accelerating the development of Hengda Group to modern enterprises.

Cooperation has promoted the construction of independent innovation system.

In cooperation with international brands, Hengda accelerated the docking with the world's advanced R & D process, and rapidly enhanced the enterprise's innovation ability.

In 2005, Hengda Technology Center was identified as the "provincial technology center". In 2006, Hengda established the first municipal Leather Research Institute of Shandong province.

At present, Hengda has 26 national patents, 150 products have won the provincial and national technology awards, and the company's technology center has been involved in the formulation of 16 industry and national technical standards. Each year, 5000 new products have been trial produced, and each year they have been pformed into 16 varieties of listed products.

Shortly before the new product appraisal meeting in Qingdao, Hengda Group passed 28 new products at once.