Transformation Strategy Of Chinese Shoe Enterprises

In the past 2007, it was a very unusual year for China's footwear industry. During the year, EU anti-dumping intensified, RMB appreciation, raw material prices and labor costs rose, resulting in the closure of nearly 1000 shoe enterprises in Guangdong, and China's footwear industry made a 2008 jump.

It is understood that in 2007, China exported 180 million pairs of leather shoes to the EU, down 8.9% from the same period last year.

Faced with such a situation, people can not help asking such questions: Why did the collapse of nearly 1000 enterprises appear in the Pearl River Delta under the same international and domestic environment, and did not appear in Jiangsu and Zhejiang provinces where manufacturing was concentrated?

The fundamental reason is that Guangdong enterprises have always made the way of "made in China", organized production in the form of processing trade, and made profits in international trade by virtue of price advantage, which is therefore greatly influenced by the international environment.

However, the manufacturers in Jiangsu and Zhejiang have strengthened the operation and extension of the brand in the international market while expanding the international market, and sought the international brand influence in the way of marketing.

This period selected two brands in Jiangsu and Zhejiang provinces, one for AOKANG, and with the special status of leather suppliers in the 2008 Beijing Olympic Games, launched a large-scale and influential Olympic marketing, which brought great development opportunities for its international expansion. The other one was the red dragonfly, although it did not catch the Olympic Games, but with its unique understanding of shoes culture, its brand operation was also quite successful.

In the course of the interview, the reporter discussed the development strategy of the Chinese enterprises and discussed the future development of China's footwear industry through the high-level dialogue with the directors of the two enterprises.

At present, China's footwear production and export volume are already the world's largest, and Chinese shoe enterprises are in the critical stage of development and pformation.

Starting from the marketing mode of two enterprises, this may be a reflection of how China's footwear industry should get out of the predicament.

AOKANG: constantly gaining Adidas, Coca-Cola, Samsung and Johnson in the process of going out, and all brands rely on the Olympic Games to jump up. This is the great charm of the Olympic Games. Of course, AOKANG also wants to be one of them.

A year ago, when AOKANG was officially signed as an exclusive supplier of leather products for Beijing Olympic Games, Wang Zhentao, chairman and President of the group, said: "from market expansion to brand expansion".

The Olympic Games have become a fast track for brand internationalization, and belong to AOKANG, the first camp in China's leather industry. For its own development goal, AOKANG never concealed, "AOKANG, global brand".

The Olympic Games public welfare marketing "Olympic Games" and "AOKANG" have the same word "Olympic". For the Chinese market, AOKANG has already occupied a favorable correlation advantage. People can easily associate AOKANG with the Olympic Games.

However, if we want to make our brand bigger and stronger in Olympic marketing, it is not enough to rely solely on accidental coincidence on the name. The core content is how to integrate the spirit of the Olympic Games with the spirit of its own brand.

In Wang Zhentao's view, the most important point is that "AOKANG" and "Olympic Games" share the same humanistic value, that is, "create value for dreams", and "creative innovation" is the core culture of the soul of enterprises. Through the promotion of Olympic marketing, it will be run to consumers and potential consumers, so as to create momentum for enterprises.

In order to implement this concept, AOKANG's greatest effort is to launch a series of public Olympic Games.

After careful and meticulous analysis, AOKANG chose the Olympic champion as the breakthrough point, with the dream of Olympic champion unfinished, and AOKANG to help him achieve it, and sought the relevance between AOKANG and the Olympic Games.

After analysis, every Olympic champion is accompanied by great success in their career. They have a strong desire to pform their personal values into social public values. They hope to achieve more social value by participating in public welfare activities, and AOKANG's dream action comes from this.

At present, Tian Liang, Li Na, Wang Liping, Yang Ying, Ma Yanhong, Qian Hong, Jiao Zhimin and other Olympic champions have become AOKANG's "dream ambassadors" to help ordinary people realize more dreams.

In May 10th last year, AOKANG set up a huge dream fund for the cause of public welfare. Its total investment was 30 million yuan to help the Olympic champion realize their dream of public welfare, such as helping Gao Min set up the Gao Min scholarship project of Beijing Sport University. In January 28th, 193 days from the opening of the 2008 Beijing Olympic Games, AOKANG's dream of "2008 champions' dream", which is the theme of advocating the spirit of Humanistic Olympics, was solemnly staged in Wenzhou. At the beginning of the new year, at the headquarters of AOKANG Wang Junxia, Wang Junxia personally ignited, and the "AOKANG dream torch relay run" started. This move also marked the opening of the 2008 Olympic marketing curtain.

In the series of large-scale activities such as AOKANG, the public welfare card and the Olympic champion's appeal force have made remarkable progress in the dream action, and the popularity and reputation of AOKANG have greatly improved.

Through horizontal comparison, we find that although it is the same as Olympic marketing, AOKANG has very different marketing strategies with other brands.

It should be noted that Olympic sponsors generally sell product sales cards and improve sales through the Olympic Games.

But AOKANG is different, and its Olympic marketing is finally settled in public welfare. Many people do not understand this.

In fact, the marketing means of various public welfare undertakings reflect the value innovation of AOKANG, and become the essence of Olympic marketing by innovating to become the demand of Olympic marketing and creating a unique brand culture.

Seeking breakthroughs in international cooperation, such as Coca-Cola, Adidas, Samsung and other brands can be popular all over the world, its strong technical support is indispensable. This has also given Wang Zhentao great inspiration. Similarly, with the help of the Olympic platform, if he wants to grow into a global brand and enhance her R & D and technology, it is the key.

Under this guidance, AOKANG began to seek international cooperation in technology.

At the beginning of this year, AOKANG and VALLEVERDE, a well-known footwear brand in Italy, formally signed the global strategic cooperation agreement.

According to the cooperation agreement, AOKANG takes over the management rights of Wanli Wade global brand, while wanwade provides product R & D resources, technology and legal support.

In addition, Wanli Wade will assist AOKANG group to set up 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.

"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.

The vast majority of these enterprises are between 10 and 30 people.

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

For this cooperation, Dr. Armando.

On the second day after the signing of the cooperation, the first Wanli Wei China image store officially opened in Huaihailu Road, Shanghai. After 3 months, 80% of the airports in Europe opened 25 such stores, and the number in Asia was 300.

It is undoubtedly a celebration for AOKANG to cooperate with Wanli Wade.

Founded in 1969, Wanli Wei has more than 2300 global stores.

At present, there are three categories of products: Breathing shoes, electrostatic shoes and air conditioning shoes, which sell well in 26 countries and regions.

This cooperation, AOKANG will use Wanli Wei's shoe making technology, so that breathing shoes into the AOKANG brand, air conditioning shoes into AOKANG's Kanglong brand, and another brand to enter the electrostatic shoes.

In this way, AOKANG not only enhanced its own technological strength, expanded its own product line, but also realized the localization operation of AOKANG's own brand, and gradually shifted its brand from global marketing to international R & D.

The localization of the world has taken place several times in the world shoe center along with the development of the global economy. Since the 80s of last century, the center has been gradually pferred to China. 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.

The great changes in the international environment are important to China's footwear industry's "going global".

But at present, in our country, such as the production model of the Pearl River Delta is still very common, small scale, processing trade not only can not make the Chinese shoe industry a high-end market, but also at any time facing the international anti-dumping litigation, which has also become the main cause of last thousand factories in Guangdong last year.

Last year, AOKANG held a Global Marketing Summit, while AOKANG launched the three largest companies in the US, India and Hongkong, China.

All of these indicate that AOKANG is aiming at the more high-end part of the international market, and AOKANG has started to turn from domestic marketing to global marketing.

It is understood that AOKANG began to exert its strength to the international market 5 years ago. Up to now, it has established five major sales centers in Japan, the United States, Russia, Italy and Spain, and has established shoe design centers in Milan.

Now, with the launch of the three major international companies, the US, India and Hongkong, China, AOKANG's thinking of "home door internationalization" has begun to evolve towards "localization of overseas".

Of course, the localization of overseas is far from being so simple. In order to understand the local market, AOKANG fully recruited locals to operate in the operation of these three companies, hoping to catch more sensitive market information, thus AOKANG launched a blueprint for expanding overseas.

"One is the use of brand sharing strategy, that is, franchising.

The two is to use brand agency strategy to cooperate with foreign mature operators, and use their resources and channels to penetrate their products into the high-end market.

The three is to adopt brand acquisition strategy.

For overseas localization, Wang Zhentao said so.

In the past 100 years, AOKANG and global brands, AOKANG has never deviated from this strategic goal when deploying strategic and tactical strategies, and around this goal, AOKANG started its strategic expansion to the world through going out.

Take the strength as the focal point, take the Olympic Games as the take-off point, and inspect the pace of the enterprise's progress in a strategic perspective. Will the market still give AOKANG a low score in such a reply?

Red Dragonfly: Although the top players who do not play Olympic Games are Zhejiang enterprises, but unlike AOKANG, the Red Dragonfly did not catch up with the Olympic Games.

In a sense, it has brought unfavorable factors to its marketing, but in a relatively unfavorable situation, the red dragonfly has a good performance in the market.

To sum up, the Red Dragonfly integrates the elements such as positioning, corporate culture, technology, event marketing and sales terminals, so that they can help each other and grow helix.

It can be said that in the many brands of China's footwear industry, the unique marketing method of red dragonfly is worth punctuation.

In order to win the business opportunities in the fierce competition of China's footwear industry, especially in the Jiangsu and Zhejiang provinces where manufacturers are concentrated, if we want to win the market, we must seize the opportunity.

And the most important thing is their reasonable positioning, which is also the basis for the red dragonfly to protruding.

In 2007, the Red Dragonfly put forward the strategic thinking of "three years" through space and time. At first glance it was slightly vague, but after careful understanding, it found that it was not.

"Wear" refers to the group's main business closely around the "wear", that is, mainly leather shoes, leather goods, clothing, accessories, supplemented by the diversified development.

"Yue" means crossing the stage of leather shoes industry that is assimilated seriously in brand, product, channel and other aspects, the competition is fierce but single, and the profit level keeps falling. The new cycle of differentiated development should be formulated, and the blue ocean should be actively searched for a first-class company with sustained development and excellent performance.

We should seize the opportunity and propose two businesses in a timely manner. At the same time, we should enhance the efficiency of supply chain and accelerate the integration and optimization of resources by taking the time and season as the main line and informationization as the means.

"Empty" to share future wealth space, the Red Dragonfly joint stock company to become the most conducive to the development of talent platform.

Scientific development, revitalize the stock, flexible innovation, independent research and development and ODM (commissioned R & D) development, independent production and OEM (commissioned production) processing, self channel and join agents of organic integration, coordinated development.

With clear positioning strategy and supplemented by strategic direction, enterprises can avoid a lot of resistance in the development process.

In addition, many enterprises will develop their own strategies in the process of development.