AOKANG's Socialization Of Stock Ownership

In 2008, I visited the field and wrote a case of AOKANG's family business management. In the interview, I strongly felt the AOKANG boss. Wang Zhentao The importance of absolute holding is related to the red dragonfly. Qian Jin Bo In stark contrast. Wang and Qian Ben, who studied carpenter's brothers, founded the Olin footwear industry in Wenzhou in 1989. In the end, because many family members involved in the operation, the idea is difficult to coordinate, in 1994 chose to break up: Wang Zhentao founded AOKANG, and Qian Jinbo set up the red dragonfly.

　　 AOKANG And the red dragonfly is "the same root", but the ownership structure and development path of the two sides are quite different. After the separation of Wang Zhentao, he felt the disadvantages of dispersed ownership and insisted that all the shares of the company belonged to him. He invented a "option" model similar to dry stock, which was used to motivate management. AOKANG's "option" is not a share of the company, it has the right to dividends but does not enjoy the rights of shareholders. The centralization of ownership ensured Wang Zhentao's absolute control. When he interviewed in the interview, he said, "stock ownership should be very concentrated and can not be dispersed any more. Otherwise, it is not conducive to decision making, and is not conducive to the development of enterprises. Moreover, it will bring some fundamental crises to enterprises and bring some turbulence."

Qian Jinbo's idea is quite the opposite. He is more willing to gather the strength of his relatives and friends, so that everyone can join the stock and seek common development. By 2007, red dragonfly's shareholders increased from 4 to 14 at the beginning of their business, during which money was diluted to no longer hold shares.

The shareholding structure of AOKANG and red dragonfly is different, but the development of both companies was good before 2007. It is clear that ownership structure is not the only factor for the success or failure of family businesses. But in May 23, 2007, it was a watershed. BELLE listed in Hongkong and became China's largest female shoe retailer. After the listing, BELLE acquired a series of brand names, such as MII Li and sun Da, and its market share climbed to 21.5%.

The development mode of BELLE as a public company has created a huge "demonstration effect" for those who adhere to the traditional family business tradition. The expansion of BELLE poses a great threat to AOKANG and other enterprises. It not only owns eight footwear brands such as BELLE, Teenmix, Staccato, real beauty, but also the largest in China. Gym shoes Distributor.

Even so, in our 2008 conversation, Wang Zhentao was still worried about the listing, which would mean breaking the original 100% stake structure. From 1995 to 2007, the advantage of ownership concentration was obvious. For example, because Wang has a 100% stake, he can persuade all members of the family through a meal in 2001 to achieve the professionalization of management through the way of "releasing wine and wine".

However, after 2007, the disadvantages of the shareholding structure became more and more obvious: many people were afraid to express their true thoughts when the executive meeting was held. The responsibility of the enterprise decision was completely on Wang Zhentao's side, so he said with emotion that the reason why he had to go to business school to recharge was because the company had to rely on me alone to understand. In 2008, some executives expressed concern about this decision-making mechanism privately, expressed no understanding of strategies including multi brands, and expressed no incentive for any equity incentive.

After more than three years, AOKANG finally went public! I can hear the cheers of executives. AOKANG has gone through several typical development stages of private enterprises from the previous reluctance to be listed and now embracing the capital market to become a public company.

First of all, the management of the initial stage of family management. In the early stage of entrepreneurship, family members can be twisted into a rope, so that enterprises can quickly complete the original accumulation without considering the gains and losses of comparative advantages. However, with the development of enterprises and the entry of foreign personnel, some drawbacks of family businesses are inevitably revealed.

Secondly, the professionalization of managers in the development stage. In the early stage of entrepreneurship, family businesses can quickly gather family strength at very low cost and achieve rapid development in a short time. But when the enterprise develops to a certain extent, it is necessary to break the family management mode and attract more talents to come to the enterprise. At this point, AOKANG released the military power with a glass of wine, while in the red dragonfly, Qian Jin Bo gradually let all shareholders withdraw from the management level and enter the board of directors, only responsible for the macro strategic decision.