Shoe Industry Shift Model Of Huajian Shoe Industry

What we are doing is laying the foundation for upgrading 35 years later.

In fact, upgrading can not solve the current difficulties, because upgrading means a lot of investment.

Zhang Huarong, the chairman of Huajian shoe industry, is in the autumn of survival.

It will probably be the most vivid image of today's troubled times.

It is easy to change.

We use the method of dissecting sparrows to give a real case of pformation and upgrading of traditional manufacturing enterprises.

In the traditional manufacturing industry, Huajian shoes industry has become a pathfinder for manufacturing pformation.

From scratch, there are three ups and three falls. How can Huajian break out of a way out?

It is not easy to use the gold medal of "Sino foreign joint venture".

"Ye Qiang court deceived us.

No next cent, no order. "

Zhang Huarong had been struggling for two years and was in a terrible mess.

It produces 18 million pairs of mid and high grade women's shoes, and more than 20 thousand employees, with an annual output value of nearly 400 million dollars.

Zhang Huarong is worthy of the nickname "godfather of Chinese women's shoes".

You can see the words "Huajian group" in Dongguan Houjie, Guangdong Jiangmen, Jiangxi Ganzhou, Henan Xiangcheng, and even Vietnam.

No one is born an entrepreneur.

At the age of 25, Zhang Huarong earned hundreds of yuan by selling dishes.

With this money, he went to Zhejiang to sell shoes wholesale to Jiangxi and made a lot of money.

Since then, Zhang Huarong and his shoes have been puzzled.

Zhang Huarong, who loved his brains, soon developed the idea of making shoes himself.

After a year of apprenticeship in Zhejiang, he spent 4000 yuan with his family and set up the first shoe factory in his hometown, Nanchang County - Hei hee youth shoe and hat factory.

"Bought 3 sewing machines, employed 8 people, and made ten to twenty pairs of" Beijing cloth shoes "a day.

After several renaming and relocation, the "youth shoe and hat factory" has grown up rapidly.

In 1992, Zhang Huarong had more than 200 employees and more than 1 million capital.

Zhang Huarong, who is constantly upgrading in the footwear industry, has attracted the attention of foreign investors.

A Taiwanese businessman named Ye Jianting found him and wanted to engage in Sino foreign joint ventures with him.

In those days, the four word "Sino foreign joint venture" was a gold lettered signboard.

How can we get away with flying opportunities?

Zhang Huarong bought many machines from Ye Yan Ting, the workers increased to 560 people, the workshop expanded to 5000 square meters, and from each of the names of two people, so that we have today's "Huajian".

But the "Sino foreign joint venture" is not easy to use.

"Ye Qiang court deceived us.

No next cent, no order. "

Zhang Huarong had been struggling for two years and was in a terrible mess.

He recalled that he was still in the factory every day.

Every single item is strictly controlled in terms of quality, price and delivery time, and gradually wins back some business.

In May 1996, Zhang Huarong, down and down, went down to Dongguan.

It destroyed 1 million sets of shoe factories near the Houjie street and set up today's Huajian shoe industry Co., Ltd.

At that time, the footwear industry in Dongguan has gradually become a climate and Taiwan businessmen are in full swing.

But Zhang Huarong had a heart to heart.

A "straw" achievement of Godfather Zhang Huarong quickly became debt laden, and once felt "unable to go on" and even thought of spending money to escape to Russia.

When Zhang Huarong went down to Dongguan, he went to the tiger's den alone.

At that time, the footwear industry in Dongguan was almost dominated by Taiwanese businessmen.

Sports shoes include Yuyuan, oasis, women's shoes are prosperous, and thick streets are the world of Taiwanese businessmen.

To break the existing pattern is far from easy.

Besides, Zhang Huarong used to make cloth shoes, but the factory under the factory was producing women's shoes.

Without management talent, there is no effective management mode and no stable orders. Zhang Huarong soon became heavily indebted. Once he felt "unable to go on" and even thought of spending money to escape to Russia.

The internal and external troubles have forced Zhang Huarong to make an important turn in the commercial road.

When the strength of manufacturing is twisted into a rope, foreign brands are facing difficulties.

When they shake their trademarks and try to make Taiwan businesses make the best products at the lowest price, Taiwanese businessmen are united and refuse to accept it.

Foreign brands feel that Taiwanese businessmen are "disobedient" and want to cultivate new forces to contain Taiwanese businessmen.

They saw Zhang Huarong, the factory on the verge of collapse.

There are two reasons: first, Zhang Huarong has completely lost the ability to ask them for money; second, Zhang Huarong's shoes are doing well.

Zhang Huarong finally came to "lucky straw".

After being rejected by Taiwanese businessmen, an internationally famous shoe manufacturer in Brazil turned over an order of about 300000 pairs to him.

Zhang Huarong is almost working hard at prices.

"The support of this brand has not solved the problem economically, but has solved the problem in the image.

I heard they gave us orders, and all the suppliers supported us because we felt that we had a future. "

Zhang Huarong, who has fallen to the bottom for three times, is unwilling to lose his chance again.

He insisted on making the best quality shoes at the lowest price.

This is catering to the tastes of foreign brands.

Zhang Huarong has been following the wind since then, and orders have kept pouring in.

By 1999, Huajian had been quite famous in the footwear industry of Dongguan.

By 2002, four shoemaking factories, one PU sole plant and one shoe material factory were successively established.

It is precisely that "straw" that has made the name of a generation of Godfathers.

Transfer: Ganzhou or Vietnam?

At that time, there was no shortage of migrant workers. There was no price increase of raw materials, no shortage of land and water and electricity, and no external demand was depressed. Is Zhang Huarong able to see the opportunities?

In January 2002, Zhang Huarong seemed inadvertently to become the pioneer of "industrial pfer".

He invested heavily in Jiangxi's old home to build Ganzhou Huajian international shoe city as the main production base of medium and low grade shoes, while the factories in Dongguan produced high-grade shoes.

There is no shortage of migrant workers, there is no big price increase in raw materials, no shortage of land and water and electricity, and no external demand is in the doldrums.

Zhang Huarong himself unveiled the mystery: the train ticket was tight during the spring festival that year, and a large number of workers were left behind in the factory.

Zhang Huarong stayed in the factory and accompanied the workers for a spring festival.

But this does not bridge workers' yearning for home.

For a time, the factory was filled with discontent.

At the end of the year, many workers were late because they could not buy train tickets, which affected the original production arrangements.

This spring festival brings Zhang Huarong brains.

"If we run the factory to the door of the workers, don't work so hard."

So he came up with the idea of investing in the mainland.

So it seems that Zhang Huarong has just hit a fortune in the "industrial pfer".

Zhang Huarong also said that there was no concept of pformation at that time, and only wanted to invest.

A few years later, it turned out to be a rare success story in the history of Chinese footwear industry.

Just as there is no free lunch in the world, pure luck can not explain Zhang Huarong's subsequent success.

With the idea of pferring the production base, Zhang Huarong first went back to Nanchang's hometown, and then went to Fuyang, Anhui. She did not choose the right place.

After several rounds of turnover, he arrived in Ganzhou, Jiangxi, just as the local government's enthusiasm for attracting investment was high.

"Who has not done well in attracting foreign investment, who will become a sinners in the history of Ganzhou development?"

With this slogan, Ganzhou issued dozens of preferential measures, which made Zhang Huarong determined to invest.

Zhang Huarong didn't dare to put all his eggs in one basket. At first, he moved to a production line and recruited more than 300 workers.

Later, he became more and more courageous and invested more than 300 million yuan until he founded Huajian international shoe city.

Up to now, the production line has expanded to 18, with about 10 thousand employees.

Why did you choose Ganzhou?

Zhang Huarong first stressed the location of Ganzhou's pportation.

Ganzhou is only more than 400 kilometers away from Dongguan.

The car is loaded at Ganzhou at 8 in the evening and arrives at Dongguan on the second day.

"At that time, we calculated the freight from Ganzhou to Dongguan, which is 3 cents 2 cents for each pair of shoes, but the cost of electricity and water can be reduced to one."

Besides, Ganzhou's labor force price is 10% lower than that of Dongguan, which is equivalent to the low cost of 1.5%-2%.. In addition, Hakka culture prevails in the local area, and the workers are very stable.

Ganzhou's investment has greatly reduced the overall cost of Huajian.

A few years ago, many people said that Zhang Huarong was "a madman and did things wrong."

Now he can defend himself with facts.

However, the same is the pfer of industries. The miracle of Ganzhou failed to repeat itself in Vietnam.

In 2004, Zhang Huarong invested in Vietnam's Huajian shoe industry.

But the 2 production lines never expanded again.

Zhang Huarong said that the wages of Vietnamese workers are 60%-70%. in the mainland of China, but because the industry matching is not perfect, even a needle must be shipped from Dongguan. There is also the problem of overtime time and the problem of government integrity.

"If it's not for the guests, we'll take it off."

The reason for this is Zhang Huarong's view that it is related to industrial matching.

"After our past, procurement is still in Dongguan, and no supporting enterprises are following the past.

We rely solely on our own efforts to improve the industrial chain, which is generally not done by enterprises.

Zhang Huarong believes that Huajian's success lies not only in its pfer itself, but also in its complete support for industry.

Do you create your own brand or go out by sea?

He is still playing with his shoes. The difference is that Zhang Huarong's feet have already stepped out of the manufacturing industry.

What he has done is exactly a specimen of "the third industry for the second industry".

If Hua Jian is a big hit in industrial pfer, Huajian is entirely conscious of its independent research and development and its own brand.

Zhang Huarong is not willing to make wedding clothes for others, but is brewing a new revolution.

In 2001, he spent huge sums of money to set up R & D centers in Dongguan headquarters.

In a single building, more than 2000 employees are engaged in research and development.

In addition, he recruited nearly 30 professional designers from Italy, Brazil, Spain and other countries.

With independent research and development, Zhang Huarong naturally took another step forward.

This is the independent brand.

Zhang Huarong and movie star Jackie Chan have introduced the brand "Jackie Chan", and introduced Alan Delon from abroad. They also bought the famous brand of women's shoes, "Carver", and created something that COLCO. can think of. Zhang Huarong has tried it.

But what is the result?

"In the process, we invested nearly 50 million.

But the benefits are not very good. Now we have more than 200 stores, and we are still losing money. "

Zhang Huarong admitted that he had lost a lot of money in the past two years, and his own brand was obviously not as easy as it was theoretically.

Zhang Huarong temporarily stopped shop.

He plans to "ship to sea" - cooperate with some good service brands, create shoes with good design, good quality and fast delivery, and help them grow in 3 years, then share shares with these service brands and implement stock market listing.

"We are confident that our strongest strength is R & D, manufacturing and fast supply. We use our own decades of production experience to cooperate with their advanced commercial operations, and then share cooperation, which is a combination of common interests."

At the same time, Zhang Huarong is preparing to spend nearly 1 billion of the world to build a "world shoe industry (Asia) headquarters base" in Houjie.

The shoe base, which covers an area of 180 thousand square meters, will be an aircraft carrier that the Dongguan shoe industry has emerged.

This headquarters base will set up a "one courtyard, two platforms, ten centers" soft and hard platform, covering the whole chain of shoemaking industry.

Among them, the "one hospital" is the Dongguan international footwear research institute. The "two platform" is the world footwear development forum and the footwear industry technology innovation platform. The "ten center" refers to the international shoe trade center, the international shoe display and procurement center, the international leather shoe material trading center, and the international shoe machine hardware accessories trading center.