AOKANG: China Shoes King "Three Jump"

"R & D, manufacturing and sales are closely linked, and AOKANG can do well in the" middle "and have the confidence to do well.

Wang Zhentao said.

The AOKANG group decided to go south to build the city after the layout of the western region and its investment in the central region.

In August 27th, AOKANG Group signed a contract with the Shilin Town of Huadu, known as the "leather capital of China". The two sides will cooperate extensively in the fields of technology research and development, personnel training, brand building and public welfare undertakings, so as to create "international fashion leather city" in Guangzhou.

At the same time, the company has established an international R & D center of 3000 square meters in Dongguan, and has set up 3 international branches of the United States, India and Hongkong.

As a result, AOKANG boss Wang Zhentao put forward the idea of "home door internationalization" in his early years, and gradually shifted to "localization of overseas".

In August 27th, AOKANG group, China's largest private shoe making enterprise, went down to Guangzhou Huadu, and signed an international fashion leather city in Shiling Town.

In June 2007, Guangzhou AOKANG leather company, which has a construction area of nearly twenty thousand square meters, has been put into production in Shiling Town.

Wang Zhentao hopes to build the project into the "headquarters economy" of China's largest leather industry, and as a brand technology and leather technology research and development center and Trade Center.

Data show that at present, there are more than 6000 industrial and commercial households engaged in leather and leather industry in Shiling Town, Huadu, with an annual output of more than 100 million leather products, with an annual output value exceeding 8 billion yuan. In the European public leather luggage market, more than 50% of the products are "Shiling manufacturing".

According to the market survey of luggage and bags, the market volume of China's luggage and bag market has reached 14 billion in 2004, while the market share of famous brands like crown Crown and Samsonite is less than 20%.

Looking at the Chinese leather goods market, the famous international brand at the top of Pyramid has a high price and high profit, but its market share is less than 5%. The lowest price in Pyramid is at the stage of shuffle and life and death.

"What we AOKANG is doing is the middle market, striving to become a leading brand."

Wang Zhentao said that AOKANG leather relies on AOKANG's leading position in the domestic shoemaking industry. With nearly 20 years of development history and heavy corporate culture, AOKANG leather products will become a supplier of leather products to Beijing 2008 Olympic Games, which will bring a strong shock to the domestic luggage market.

Xu Yong, vice president of China Light Industry Federation, said that the complete industrial chain and strong industrial foundation of Shiling Town form a good complementarity with AOKANG enterprises.

With the accumulation of brand, industrial base and existing market network, with the help of the Olympic Games and its strong R & D and marketing capabilities, AOKANG will surely promote the development of scale, branding and internationalization of leather industry in Shiling City, accelerate the optimization and upgrading of China's leather industry, and Shiling Town will cultivate a number of leather brands with international influence, enhance the brand image of China's leather industry and enhance the competitiveness of the international market.

In addition to the industrial layout, AOKANG group also increased R & D efforts.

Recently, the group has moved the AOKANG international R & D center from Dongguan, Wenzhou to Dongguan. It has invited first-class designers from Italy and Germany to deeply grasp the overall positioning of AOKANG and its leather brand "TAOTAO" and provide product design with color, style and quality.

"We will take Dongguan as a window to expand international orders," Wang Zhentao said. Dongguan is one of China's leather industry bases. Many foreign businessmen have asked to complete the confirmation and trial process of the outer samples of leather shoes in Dongguan.

To this end, AOKANG decided to set up a R & D center in Dongguan.

He said that the fashion trend of the global fashion industry originated from Britain, France and Italy, and then spread to Asia.

Japan and South Korea are the countries that crave the popularity of international brands. The next stop is Dongguan, where fashion information is rapidly pformed into products from different industries.

This is also the reason for attracting large traders who send tens of millions of orders to Dongguan.

Compared to Dongguan, Guangdong, Italy is closer to the starting point of fashion.

Since 2002, AOKANG has set up a research and development center in Vergy Vano, a traditional shoemaking town near Milan (Vigevano). From here, designers and craftsmen are invited to return to Wenzhou and Italy, bringing new technology, new materials, new design concepts and styles to Wenzhou for AOKANG designers to reintegrate.

The globalization of leather industry brings the globalization of demand.

AOKANG invited a Taiwan designer who has a design studio in the UK, so that he often travels to the United States and Britain, and specializes with European and American sales companies and purchasing groups.

If we can see clearly the demand and bring the information back to R & D department, the factory can make the style that the customer really needs.

To create a large scale production pattern, Wang Zhentao moved ahead with the construction of the three major "limbs" projects in Wenzhou, Hubei and Chongqing before moving the "mind" center to the south.

Wang Zhentao, a shoe king, started selling shoes in the early years and pioneered the mode of "putting factories into stores and selling products" in China.

In 1988, the Yongjia Olin shoe factory was founded in 1988 so far. Wang Zhentao has developed the small family workshop into a large enterprise with annual sales income of about 2000000000 Yuan and total assets of about 1000000000, and its products are exported to more than 20 countries and regions all over the world.

By February 1998, AOKANG became the "real leather shoes king of China".

Today, AOKANG shoes have been reelected for four consecutive years, and China's real leather shoes king Wang Zhentao has also revealed the overbearing of China's shoe king in the domestic market.

In early 2003, AOKANG invested 1 billion yuan to build the West China shoe industrial park in Bishan, Chongqing.

Wang Zhentao believes that the cost of shoemaking will increase in Wenzhou within ten years, and AOKANG must build a base with lower labor costs to build a more profitable future for itself.

In the same year, AOKANG joined the Italy footwear industry's first brand, the world's fourth largest leisure footwear GEOX company.

The two sides agreed to share the resources of the sales network. GEOX's market promotion in China is fully responsible by AOKANG. The products and auxiliary designs sold by GEOX to Asia and Europe and the United States are responsible for AOKANG.

And can be allowed to enter the world's top brands in 55 countries in the world 50000 sales network.

In 2004, AOKANG launched the Hubei Huanggang commercial pedestrian street project with an area of about 76 mu, with a total investment of about 160 million RMB.

In October 2005, AOKANG international brand industrial park opened, and GEOX, the largest shoemaking enterprise in Italy, identified the park as its Asian production base and accepted AOKANG as the sole partner in the world.

The industrial park covers an area of 111 mu, costs 150 million yuan, and has 10 world-class production lines, with a capacity of 8 million pairs.

In May 18, 2007, the two phase of West China shoe capital project was launched.

In addition to 32 enterprises entering Chongqing, the construction projects of AOKANG building, exhibition center and standard factory building totaling over 1000 mu and 700 thousand square meters have been started simultaneously.

The two phase of the shoe market is expected to be put into operation in 1 years, when the whole "West shoe capital" will have 100 shoemaking enterprises and 1000 shoe materials supporting business operators, with an annual output of nearly 100 million pairs of leather shoes, with an output value of more than 10 billion yuan, and about 50 thousand people will be employed.

At this point, AOKANG's "big production" layout has basically been completed: the headquarters production base of Wenzhou -- the main production of domestic products; the AOKANG production base of the West shoe capital -- the main attacking middle and low grade products, and the world's retail giant OEM; the international brand industrial park -- attacking high-end products and becoming the international brand OEM and Italy GEOX's main production base for breathing shoes.

The whole system presents a pyramidal strategic layout, forming a hierarchical footwear production system.

Ready for the localization of the international brand "working".

The real significance of the above layout lies in the gradual realization of the upgrading direction of intra industry, industrial chain and industry.

An advanced manufacturing base is not only a concept of industrial scale, but also a cluster of internal and external factors that form a complete industrial chain.

And AOKANG has been operating according to the idea of industrial upgrading.

It has been revealed that if its capacity is fully released, it can produce more than 20 million pairs of leather shoes every year.

In order to complete the layout of the market industry chain, Wang Zhentao needs to effectively activate the sales channels for the "three jump" of Olympic marketing.

In June 22, 2007, AOKANG Shanghai flagship store was located in Shanghai international shoe city with a business area of nearly 2000 square meters.

AOKANG's AOKANG shoes, Kanglong casual shoes, beautiful ladies shoes, red Firebird leather shoes and other brand shoes all appeared.

Up to now, AOKANG has opened nearly 100 stores in Shanghai, and has signed strategic alliances with Shanghai Bailian Group. It plans to advance to 20 shopping malls of the group at the end of the year.

"We combine it with the group ERP system network, and AOKANG has 3000 stores in the country overnight."

Wang Zhentao believes that with the power of the Internet, AOKANG will achieve "zero inventory", "(consumers) zero distance", "zero cost (shop)" "30" target.

It is understood that AOKANG is becoming a McDonald's franchise store at the rate of 4 stores a day, and it plans to realize the scale of 1 000 stores in 2010.

As a leather supplier of the Beijing 2008 Olympic Games, Wang Zhentao hopes to win the Olympic Games and take public welfare marketing as a breakthrough point, not only to achieve the homogenization of the domestic market, but also to achieve a qualitative leap in the international market.

"We are concerned not only with the 2008 Olympic Games in Beijing, but also with the Organizing Committee of the 2012 London Olympic Games."

In early 2007, AOKANG also set up branches in the United States, India and Hongkong.

"Globalization first is the product going out; next is the marketing network going out; the third is the brand going out."

At present, AOKANG has established five major sales centers in Japan, the United States, Russia, Italy and Spain, and has set up an international headquarters in Hongkong to control other overseas branches.

Like many Wenzhou businessmen, AOKANG is best at home market in the past decade or so. Wang Zhentao knows well the importance of local experience.

Therefore, even in the process of globalization, we insist on employing local staff, and headquarters generally do not manage output.

He jokes that AOKANG's overseas staff will have three meetings: walking, speaking, and using the brain - "walking" means driving; "speaking" means speaking English fluently, and "using the brain" is proficient in computers.

Looking back in 2002, AOKANG's "Wenzhou heart and world dream" issued the first cry of internationalization of footwear industry: internationalization of sales mode; the first year of AOKANG's marriage to Italy footwear industry, the first brand GEOX created the third modes of "Sino foreign cooperation".

In the past 5 years, AOKANG's innovation practice has witnessed the internationalization of Chinese enterprises from the "doorway is also internationalized" and "the first brand project" to today's "leveraging the Olympic Games and achieving brand globalization".

"R & D, manufacturing and sales are closely linked, and AOKANG can do well in the" middle "and have the confidence to do well.

Wang Zhentao said.