Deng Shenwei: China's Leather Goods Market Will Eventually Rely On Local Strength.

Starting from scratch, it now sits on 13 outsourcing global design institutes, with over 30 top designers, 55 design and process patents, and over 800 self designed versions each year, with sales of 1 billion. Deng Shenwei spent only 12 years.

Such a record can really make Deng Shenwei and his Guangzhou Red Valley leather goods proud.

However, he was not satisfied, "I want to do 10 billion as soon as possible".

Q: you.

There is a basic judgment: in the next five to eight years, in the leather industry, the focus of domestic consumers will shift from foreign brands to domestic brands.

Can you explain the basis for making this judgement?

Deng Shenwei: two aspects.

The first is the history of China's economic development. Since the reform and opening up to ten years after the reform and opening up, China is very poor. Everyone is poor. Suddenly, the economy has improved. In the past twenty years, especially in the past ten years, there is a mentality of comparison and vanity to promote the consumption habit of the whole society.

But this consumption habit will change greatly with the growth of Chinese enterprises and the gradual improvement of local brand or product quality. I think this is an analysis of our big trend.

Secondly, in the past, China's own brand is hard to get the recognition of consumers, because it is crude, in the first ten years, twenty years, eight years and nine years, it is called shoes for a week. "Shoes in Wenzhou one week, the Baigou box is bad."

But now the situation is different, the quality of domestic products has been greatly improved.

As for the trend of international brands in China, I am in Guangzhou, I see Cantonese, and now there is not much attention to the brand, which is one of the important reasons for my conclusion.

So we have to adjust and adjust to the same quality as international brands.

I believe the choice of consumers will become more rational and calm when I am famous.

This is my prediction. It is not clear that the estimate is not clear. No one can say it clearly.

There is another interesting phenomenon.

Some big international brands control many industries in China through various ways. The most powerful killer of Chinese enterprises in the "overturn" process is the price war.

But we will not do so. The leather industry headed by Red Valley wants to "turn the tables" and will control the price in a reasonable range.

Leather industry, the backbone of the Red Valley, is fully capable of restoring the price of leather goods to a reasonable price.

The vast majority of domestic brands are now implementing their low price strategy in a rough and crude way, but this strategy makes the gap between us and foreign brands far too wide.

We need to maintain the quality of the foundation, so that our consumers get the highest price, this is our main point of attack.

Q: which agencies have given you specific support in formulating the strategy for the next ten years?

Deng Shenwei: in the process of enterprise development, some professional organizations have been doing a lot of consultation and research for us.

Although the results of their research are large, we may not be able to use them. But through such research, we can conduct research and analysis, as long as we have no conflict with our own strategic direction.

In 2013, when the company redesigned its overall image, it included the design of company attributes.

Shop appearance pformation and so on.

In many brands like ours, the average business has been settled by three or four million, but we spent millions of dollars. Our main energy and capital are spent on in-depth research. After investigation, we have to discuss and decide quickly.

Q: you have said that early introduction of investment will have an impact on the brand culture and the formation of corporate culture.

However, in many investment cases, the introduction of professional investment institutions at an appropriate time will greatly enhance the brand image of the enterprises and help them smoothly move towards the capital market.

Why does Red Valley come to the conclusion that it is contrary to most enterprises?

Deng Shenwei: in fact, the introduction of investment is not bad. The key is whether the timing is right.

According to our analysis, there may be less than 10% of the enterprises in China at present. It is because of the rapid introduction of investment and success, some enterprises have formed such a train of thought.

But most enterprises, when the team and brand building are not ready to introduce investment, lead to the development stage can not keep up with the requirements of investors, resulting in a break, it is very painful.

Over the past two years, we have done a lot of research. At present, our main task is to re organize strategies, including brand culture, corporate culture and team culture, so as to ensure that we will be more successful when we introduce investors in the future.

That's my idea.

In fact, Red Valley is by no means not introducing investment.

With regard to investment, our strategy is very clear. We must guide and basically define two broad directions. One is the investment institutions that are helpful to our brand operation and management. Two is for our channel construction and market operation management. That is to say, investors themselves have such brand, experience and ability, such as the international time and LV.

We do not rule out cooperation with channel organizations in the market, nor do we rule out cooperation with Mr. Wang Jianlin's Wanda Group in the future.

We are not going to introduce these investors, but at this stage, this is not our main goal.

Even if we introduce investors, we will not introduce too much weight. Our main energy must be placed on our management team. Only in this way can we identify the attributes of the next ten or twenty years in order to enable the enterprise to operate safely.

That's my attitude.

Q: is the listing your goal in the strategic planning of the next ten years?

Deng Shenwei: definitely not.

Listing is not our goal. It is natural for us not to go public. To a certain extent, the listing of a company is actually a product of a stage.

As far as Red Valley is concerned, our business is in good condition. We have no shortage of capital. The cash flow is very good. The financing of the bank is enough. It can completely solve our development problem.

As for brand and channel, we can solve it through our business mode and our own efforts.

In this way, I am more motivated. I give my share to those who follow us, participants, or more capable people. He has more protagonist thoughts, and the company will get better and better.

If we do this platform well, our sub brands, such as SISI (Qian Qian), M2M and so on, will go to Hongkong capital market to go public.

This is our strategic plan. I think this strategic plan is more robust.