Focus On Double Star Shoe Industry

One side accuses the other side of invisible MBO, while the other side thinks that the other party is taking similar trademark. Why?

Out of stock, Ji'nan stores sell goods, stores in Chengdu fail, and stores in Chongqing fail.

A double star store is facing a crisis of "no rice".

The production base of the southwest Double Star Investment in Chengdu and Chongqing has also been discontinued because of the cancellation of the brand use and operation authorization. "The loss of the single Chengdu base is nearly 500 thousand yuan a day," said Wang Weifeng, chief capital operation officer of the southwest double star board and chairman of Chongqing company.

This storm originated from a notice of double star group.

In February 23rd, the double star group released the authorization of Southwest double star with the form of "green Twin Star (2008) 8", indicating that it had already awarded the celebrities industry for the production and operation rights of shoes and garments, and the southwest double star should cooperate with the pfer of stores.

Two days later, the celebrity industry informed the southwest Double Star: "the company decided to grant us only the regional operation rights of the double star products to our holding company (holding more than 51%)."

Immediately after that, the two star group stopped supplying the southwest double star, and 4 companies such as Chongqing, Yunnan, Sichuan and Guizhou, and closely related Ji'nan binaries, also broke out.

The focus of the conflict stems from the struggle for control.

According to the southwest double star related personage: since June 2007, the double star group has repeatedly talked to its chairman Liu Shuli and CEO Han Junzhi on the basis of "making the two star bigger and stronger". It asked the celebrity industry to hold 51% of its holdings and carry out asset appraisal.

In January 2008, the double star group sent Xu Ping, Yan Zhiwei and Wang Sugang three executives to Chengdu, and once again explained the implementation of the "51%" and asset appraisal issues to the southwest double star backbone team.

In February 15, 2008, Wang Hai, the president of the double star group and the famous industrial major shareholder, personally launched a meeting with Liu Shuli and Han Junzhi. He asked the southwest double star to hold 51% and asset appraisal issues, and give a definite reply as soon as possible, but failed.

Two days later, in February 17th, the two star group sent Wang Su Gang to Chengdu to issue an ultimatum: Liu Shu Li needs to give a definite answer within two days.

Liu Shuli also refused to be outdone. In February 19th, Wang responded to Wang Hai's response to the double star brand, but demanded that the main body of the holding company should be a two star group or a celebrity industry.

As a result, the two sides embarked on a stalemate. The scene appeared in the beginning of the paper: the double star group released the southwest double star authorization and put it out of stock on the ground of "counterfeiting products" of the southwest double star, "imitating" group trademarks, and "infringing" the trademark interests of the group.

The next February 28th, the southwest double star wrote to the Qingdao Municipal Committee and the municipal SASAC that they had never infringed the trademark interests of the double star group, and "the shortest authorization period is between July 2008 and the" double star group ". The longest authorized period is April 2009, and the celebrity industry and the double star group can not cancel the authorization at will.

"51% is only a fuse. The main problem is trademark."

Han Junzhi said that if the Qingdao SASAC requires the two star group (instead of the double star industry), the state holding southwest Binxing 51% will actively cooperate with them.

Who is the star industry?

Whose celebrity?

"After the restructuring of the southwest binaries, all the state assets have been withdrawn, and they have become purely private enterprises. They have no property rights and affiliation with the Binxing group. The two star group has no right to impose on them the control of celebrities." Southwest double star, in an emergency report on the double star incident submitted to Yan Qi Jun, Secretary of the Qingdao Municipal Committee, pointed out: Celebrity industries encamp state intangible assets.

"Celebrity holding channels, in essence, is Wang Hai's invisible MBO."

Han Junzhi said: "from the divestiture of double star footwear assets, we can see Wang Hai's idea."

The report was quickly pferred to the Qingdao SASAC, and a special group was set up for investigation.

In mid March, under the auspices of the SASAC officials in Qingdao, they sat together, but the "war of words" remained fierce and deadlocked.

What happened?

This should start from 2001, when Qingdao's twin stars bought and bought the Qingdao Huaqing tire Industrial Corporation, thus stepping into the tire industry. In 2003, it stressed the development strategy of enterprises: making every effort to invest more in the tire industry.

In September 2002, Qingdao star Limited by Share Ltd was founded.

Immediately, double star group vulcanized shoes business was stripped to celebrities.

At the beginning of 2008, the cold sticky shoes business of Qingdao stock company was divestied to celebrities.

So far, celebrities have included all the shoemaking businesses of the two stars, and the core business of Qingdao's dual star has been pformed into tire manufacturing and sales. The reason is "the competition in the shoemaking industry is fierce, the profit margins are falling, and the potential competition and related pactions are reduced."

But Qingdao double star 2007 annual report data show that footwear business gross margin is 15.68%, while tires only 9.75%.

According to public statements, the double star trading with celebrities, the Qingdao SASAC will agree that because "Wang Hai's over age makes Qingdao double star unable to implement stock incentive to him, and Qingdao wants to promote the strong character of Wang Hai retirement, so we must find a plan acceptable to the government and Wang Hai."

"The pfer of these assets is also a legal procedure after the sign hanging procedure," Wang Hai said. The pfer of the assets of the double star footwear industry was supported by the Qingdao SASAC.

"This is a special policy that the government has given to Wang Hai president as the representative of the backbone of the 30 years' contribution to the double star brand" in the reform of state-owned enterprises.

Wang Zengsheng, deputy secretary of Binxing group, said.

The famous "W" trademark has been pferred to the celebrities from the double star group in March 26th last year. "The celebrity bought it from the star group at a price of 2 million 300 thousand yuan."

At the same time, celebrities were granted the right to use double star trademarks, which was approved by 9/1000 of the use rate.

However, celebrity industry is the provider of double star shoes, and Wang Hai is the biggest shareholder of celebrities. So the outside world has questioned Wang Hai's promotion of personal brand in the name of double star group and listed company.

In fact, the two star group began to promote the "Wang Hai", "WANGHAI" and "W" series trademarks in the whole country, especially the "W" deformation trademarks.

This has become one of the reasons why Han Junzhi did not cooperate with Wang Hai's action: "we have feelings for the two star group and are willing to cooperate with the two star group, but it is impossible to cooperate with Wang Hai and celebrities."

But in Wang Zengsheng's view, Wang Hai holds only 21.88% of the shares, not absolute holding, while celebrities include 16.5% state-owned shares and 16.5% trade union shares.

Therefore, celebrities are state-owned shareholding companies, trade unions participating in the stock market, and Limited by Share Ltd, a major joint venture participating in the development of double star brands.

"According to the development plan, the Group subordinates will be divided into three industrial companies, including tire, footwear and machinery, while celebrities are responsible for the integration and development of the historical responsibility of the two star shoes and garment industry," Wang said. Therefore, only 51% of the holding channel platform has been established.

Restructuring and confrontation "double star footwear industry from Qingdao double star company to double star celebrities, this is the completion of the supply chain stripping, and now want to completely control the terminal."

Shi Yunwen, deputy general manager of Ji'nan Binxing, said that 51% control means a full allocation of the property of the terminal people.

And Wang Zengsheng's rule is that, on the "51%" issue, Liu Shuli has gone back on their feet.

He said that after the 51% question was raised in April 2007, the leaders of the Binxing group negotiated with Mrs Liu Shuli several times in June, July, October, and 1 and February this year.

He said that in early January of this year, Liu Shuli made a clear statement to Wang Hai and agreed to the 51% plan. Subsequently, three deputy chief of the double star group arrived in Chengdu to give a briefing on the implementation of the 51%. The two sides agreed to conduct an asset assessment of the Chengdu company first.

But when the two star group was preparing to send someone to assess it, Liu Shuli did not agree to assess it on the grounds of "waiting for the Spring Festival."

After the Spring Festival, Liu Shuli and his wife began to disagree with 51%.

Wang Zengsheng said that in order to solve the problem as soon as possible, the double star group sent a deputy general to Chengdu for consultation, and took the official letter of "demanding a clear reply from the Southwest Company and Liu Shuli within two days". "It was supposed to be a normal text confirmation between the two companies", but it was described by Liu Shuli as the basis for "celebrity holding 51%".

"The 51% holding issue was first raised and agreed by the senior executives of the southwest double star, but refused to be changed to him."

Wang Hai said, "at least give daddy a face."

"Only Liu Shuli called me daddy at their age, but he finally faced me."

Wang Hai believes that at present, Liu Shuli has made hundreds of millions of property and should take the overall situation of the two stars into account.

But Liu Shuli and his wife do not think so, "after the restructuring, southwest double star company has become a private enterprise."

Han Junzhi said that celebrities are not eligible to invest in southwest double stars.

The reform, characterized by "private buyout" and "withdrawal of state capital", began in 1999.

By 2002, after the restructuring of the Ji'nan branch, only the southwest regional corporation had yet to be restructured.

This is, of course, the choice of Wang Hai. The double star of Qingdao was listed on the Shenzhen stock exchange in 1996. The two stars began to expand. Only then did the exclusive store expand to more than 1000.

But in 1997, the Asian financial turmoil unexpectedly arrived. By the end of 1997, accounts receivable amounted to 143 million yuan, and inventory reached about 86000000 yuan, but there was still 105 million yuan in book cash. However, by the end of 1999, inventory and accounts receivable had exceeded 300 million yuan, short-term liabilities such as short-term loans were over 70 million yuan, and the carrying amount of cash was only about 60000000 yuan.

Wang Hai's focus on the reform of the channel is to sell the inventory to individuals in a discounted way, so as to get the money back quickly.

In 2004, the companies in Southwest China completed the restructuring, and the southwest double star undertook about 49000000 yuan debt while the two star group "waived the four year operating fee and exempted four years of brand use fees".

"He (Liu Shuli) was picked up by white, and the general distributor took 8-10 percentage points after he took the goods. After he took it, he increased the price of 13-15% and shipped it to 80 million to one hundred million a year."

Wang Hai said.

However, when the Southwest Company changed its system, Liu Shuli proposed to Wang Hai's 26% dry stock. Wang Hai did not accept it.

"Sales and restructuring, although the promotion of the development of the double star brand, but there have also been some serious damage to the overall development of the group phenomenon."

Wang Hai said that southwest double stars do everything possible to suppress group products, which makes it difficult for group products to enter the southwest market.

Obviously, although this has reversed the burden of the two star group, the market has proved that this is not a good decision.

An example is that the market value of BELLE, which is the home of women's shoes, is HK $70 billion. The most important reason is that it has 6000 stores in its own hands.

In 2006, the Southwest Company applied for a "DBSD" trademark with the double star group's "DBSD" name which is similar to the "Star" group's permission to use the "DBSD" name. Wang Zengsheng said that it also applied for the registration of the "Star" trademark for the production of the twenty-fifth kinds of shoes and garments.

"We are also very helpless, no property relations dealers, plus management loopholes, resulting in the conflict should not happen."

Wang Hai said.

"We have not infringed, but some practices are not appropriate."

Han Junzhi said: "Wang Hai was the default. At that time, we also said that the trademark was handed over to the 5 star group and Wang Sheng Sheng and so on.

In fact, in southwest double star company's view, this is a dispute of interest.

In 2007, sales of Binxing clothing reached 700 million yuan, while southwest Binxing completed 600 million.

More importantly, there are nearly 2000 stores in the southwest double star, plus the "Ji'nan double star" which is closely related to the "Southwest double star", which "occupy more than half of the marketing channel of the two star group."

Han Junzhi said.

But "I feel very cold in doing so." Wang Hai said that no matter how difficult it is, we must solve the problem of integration of three interests in factories, agents and chain stores.

In fact, celebrities are opening up.