Can China'S Shoe Enterprises Internationalization Path Go?

In that case, the pition pains caused by the EU anti-dumping litigation and the rising cost have led to the collapse of thousands of shoes in the Pearl River Delta. Here, after the successful listing of BELLE international and the full expansion of the field of shoemaking, the AOKANG Group signed a cooperation agreement with the first brand of Italy and firmly stride into the international line...

China's shoemaking enterprises are in a state of double hot weather, so that insiders can not understand and start thinking: can internationalization choose a new world brand?

Half of them are seawater and half flame. In 2007, thousands of shoe enterprises in the Pearl River Delta closed down in the throes of the pformation of processing trade.

Statistics from the Asian Footwear Association show that in the past year, more than 1000 of the five thousand or six thousand shoe factories in Guangdong have been closed.

The closing capacity of these enterprises accounts for 10%-15% of the footwear industry in Guangdong Province, involving 150 thousand -20 employees.

At present, the production scale of the global shoe industry is about 16 billion pairs.

In 2007, China's shoes accounted for 68% of the world's footwear production.

Statistics show that from 2001 to 2006, the number of shoe factories in China increased from two to more than 30000, most of which were small and medium-sized processing enterprises.

The growth of the number of orders is lagging behind the growth of production capacity, resulting in vicious competition and big price war.

At the same time, large-scale and low price exports not only defeated domestic small and medium shoe enterprises, but also brought "anti-dumping disaster" to Chinese shoe enterprises.

But not all Chinese shoe makers are unhappy.

In 2007, BELLE international, the largest shoe manufacturer in China, was successfully listed on the HKEx and became the largest mainland retail listed company in Hong Kong stock exchange.

Beijing Wenzhou group, a supplier of leather products for the 2008 Olympic Games in Wenzhou, has continued anti-dumping duties against the footwear industry of the European Union on the one hand, and has completed the domestic investment layout and the footwear industry chain deep tillage on the one hand, and has cast its eyes on the whole world.

After several years of tacit cooperation with the European brand GOEX, AOKANG group attacked Italy again in early 2008, becoming the first brand of Wanli Wade global strategic partner, and gained the worldwide brand marketing and operation authorization.

Cooperation overseas brand exploration to the world is not OEM, not the general agent of China, nor is it an overseas M & A. AOKANG's cooperation with Wanli Wade opened up a new mode for overseas cooperation of Chinese shoemaking enterprises.

According to the agreement: AOKANG group obtains Wanli Wei's global brand management rights. Its global brand marketing and product manufacturing are all operated independently by AOKANG. Wanli Wei provides product development resources, provides technical personnel and provides legal support.

In addition, Wanli Wade will assist AOKANG group to set up R & D center in its Italy headquarters, and provide venues, equipment and production resources. The development results will be shared by both sides.

Wanli Wade is widely known in Italy.

With the help of bionics principle, the deep breathing and air exchange system of leather shoes has been developed successfully. Wanli Wei has pioneered and led a new era of footwear industry in Italy.

Wanli Wade has more than 2300 stores in the world. It is the world's most famous brand of leather shoes in Italy.

"With the gradual aging of European society, the industry began to decline.

In 2004, there were two more than 200 enterprises in Spain, and only one left in 2005.

Most of these enterprises are concentrated in the scale of 10 to 30 people.

At present, the number of employees in China's footwear industry reaches about 2200000, and only AOKANG has nearly 20000 people.

Dr. Armando Arcangeli, head of Wanli Wade said.

In fact, Wanli Wade has felt the impact from cheap Chinese products.

Since 1980s, the focus of world footwear industry has shifted from Europe and North America to the Far East.

China has become the focus of the world shoe industry pfer.

Over the past 20 years, the accumulation of industrialization in China, especially in the eastern region, has brought Chinese enterprises to a new platform. Chinese enterprises, especially some Chinese shoe enterprises, already have the capability of global sourcing and global sales.

"If we want to conquer the whole world, we must find an excellent partner."

Dr. Armando Arcangeli commented on the cooperation of AOKANG group.

Xu Yongceng, honorary director of China Leather Association, said that China and the EU should not be simple competition in the development of footwear industry, but the relationship between competition and cooperation, complementation and development.

Franco Balin, vice chairman of Italy Footwear Manufacturers Association, also said that China is not a competitor but a complementary partner.

Get rid of the worries of growing up, the East is not bright, the Western bright China shoe enterprise internationalization strategy presents the multi direction trend.

Take AOKANG as an example, in addition to working with Wanli Wade and GEOX, the "international brand Department", which is self-control in the international market, is also planning to achieve international brand pition from global marketing to international R & D.

For its own brand, its internationalization strategy is "overseas localization" operation.

In June 2007, AOKANG hosted the Global Marketing Summit. At the same time, AOKANG, the three largest companies in the US, India and Hongkong, started at the same time, aiming at the high-end American market, the population size of the world's second India market, and the Hongkong market of the international fashion Frontier -- AOKANG's global marketing strategy.

This means that AOKANG has already designed the footwear market of more than 1/3 of the world's population.

And entering the Hongkong market is the springboard for AOKANG to turn overseas from "domestic marketing".

The difference is that 100% of the three companies employ local talent.

Employing "foreigners" to work to enable Chinese enterprises to "go out", AOKANG launched a strategic blueprint for overseas localization expansion.

Nowadays, Chinese shoemaking enterprises are trying hard to get rid of the worries of growth, and strive to expand their development space, not just BELLE and AOKANG.

Since 2006, the European Union has introduced anti-dumping duties and the European orders for Chinese shoes have been reduced by 20%, and shoe traders in Wenzhou, Zhejiang, China have again taken their sights back to the Central Asian market.

Statistics from various ports in Xinjiang showed that the value of footwear exported from Xinjiang port reached US $963 million in 2006, which is nearly half of the export volume of shoes exported to Wenzhou in China.

As early as more than ten years ago, "made in Wenzhou" had passed through land pportation to Xinjiang via central Asia. After opening up a stronger European and American market, Wenzhou shoe enterprises abandoned this path.

"The crisis is just beginning.

If China's shoe-making enterprises do not realize industrial upgrading without changing the backward competition way of price war, the future crisis will be more fatal.

Wang Ying, Secretary General of China Footwear Association of Light Industry Crafts Import and Export Association, said.

The industry believes that controlling export volume and raising product prices is an effective way for Chinese shoes to overcome barriers to trade barriers.

In 2006, the export volume of Wenzhou shoes increased by 10.41% over the previous year, but the amount increased by 26.04% over the previous year, and the growth rate of export volume was significantly higher than that of the export volume.

In the first three quarters of 2007, Wenzhou exported 483 million pairs of shoes, with an average unit price of 4.34 US dollars, up 7.7% from the same period last year.

China's footwear production and export volume are ranked first in the world, and Chinese footwear enterprises are in the critical stage of development and pformation.

What does "made in China" win for the future?

Zheng Xiukang, chairman of Kangnai group, believes that no matter the anti-dumping measures taken by the EU against Chinese leather shoes or the labor pains caused by the pformation of labor costs in China, it will not block the pace of Chinese shoe companies going into the international market as a whole, but it will produce a phased obstacle to the development of China's footwear industry.

Under such circumstances, Chinese enterprises should increase their independent innovation efforts, grasp core technologies and create world-class brands so as to occupy the international high-end market.