The Growth History Of Good Kids Group

Originated in the secondary school run factory, Song Zheng was also appointed director of the factory in 1988. Due to poor management, the factory owed 200 thousand of the school teachers' fund-raising funds.

"My goal at that time was to earn 200 thousand debts and return them."

Song Zheng also recalled to reporters from the world Zhejiang business network.

The first product developed is a cradle which can be used as a cradle and a trolley. But at that time there was no production line and capital, Song Zheng sold a patent to a Pudong enterprise at a price of 40 thousand yuan at an exhibition.

"So I started to use my brain to pay back the money by selling patents."

Soon, Song Zheng also developed a new model, I did not expect this patent is more welcomed by manufacturers, auction price reached 150 thousand.

"At that time I thought about it and felt that the other companies were confident that the market would be very large, so the exhibition did not end and went back."

In 1989, good children put their products on the market, and the business started to thrive.

"But in 1990s, we were in trouble."

Song Zheng also recalled that at that time, the products that were imitating the children in the market were all over the world, and the selling prices were much cheaper. Even a Zhejiang enterprise planned to crush the good children in 3 years.

"Almost all of us are facing a disaster. At that time, we were small in scale and relatively high in production costs. The enterprises with large production scale could create exactly the same as ours, but the cost was even lower.

We have only one way to continue developing products, they imitate the first generation of products, then I will develop second generation, third generation products, so that they will always follow me. "

The effect is very obvious. By the year 1993, the sales volume of good children has become the number one in the country.

Why internationalization?

The pursuit of the market did not destroy the good children, but in 1993 a German businessman's speech made Song Zhenghuai suffer a lot.

In order to enter the international market, Song Zheng also invited a leading enterprise in Germany to visit the factory. "When I think our management is very standard, we have even worn shoes into the workshop."

But to Song Zheng's surprise, the manufacturer told him after the tour that the children's car was not made in this way.

"I was dumb at that time.

What I am most proud of is nothing in their eyes.

So Song Zheng went to Japan and the United States to investigate, and found that the products in the market were full of quality, and the work was very meticulous.

After returning home, Song Zheng also readjusted the development strategy.

"It can be said that the real start to let good children go to the international market is in 1993."

The first step for a good kid to internationalize is to go to Hongkong to find international investors.

"At that time, China's home buyers were very interested in good children. They invested US $4 million 500 thousand in the fourth quarter of 1994. The money is timely. If we do not, the capital chain of good children will be broken."

Song Zheng also revealed that Chinese real estate sold shares to a investment bank in Shanghai in second years, and its value doubled.

"I think there is nothing wrong with it. Enterprises must create benefits for shareholders."

The second step is to internationalize good children's markets.

At that time, the company did not have the strength to recruit talented people in Hongkong, but it used Hongkong's resources in trade and market to open multinational companies in New York.

"How to become the first seller in the United States? Terminal sales channels favor products with both margins and consumers. What we rely on is R & D innovation and what we do not have in the world."

Two years later, good kids developed new products for the American market.

"At that time, there were two cradles on the trolley. We would shake it harder, and call it" Daddy shake ".

The product design invites the designers in Hongkong. Because of its good design and unique functions, it immediately launched into the 11 chain systems of the United States.

Song Zheng also said that he was most pleased that he often saw the signs that "goods were sold out but could be ordered" on the sales stage.

Through continuous research and development of new products, in 1999, child king became the first sales person in the United States.

"When we went abroad in 2010, we made a market survey ourselves. We were surprised by the data at that time. The market share of good children in the United States was 55%."

At present, good children have established 4 overseas R & D centers in the United States, Europe, Japan and Hongkong.

"There was a lot of controversy about whether to build R & D centers overseas.

At that time, an overseas R & D center was 10 times the cost of our operation in Kunshan.

However, this is indeed worth it. Now the efficiency of overseas R & D centers is getting higher and higher, and the interaction with the mainland is getting better and better.

At present, we maintain 2.5%-3% in total R & D investment. "

Using the world's resources to do the Chinese market

"If we were to use China's resources to make the world market before, then we should use the world's resources to do the Chinese market."

Following the successful entry into the US, European and Japanese markets and the listing of some H-shares in the international market, good children will move their focus back to the mainland market.

"Good kids are doing well in retail sales and distribution in the Chinese market. They must also be listed."

When asked about the specific time to market, Song Zheng laughed and said, "our next goal is to be a global, world-class, integrated enterprise of 100 billion, which can compete with any market in any market in the world and integrate international brand resources."

For Zhejiang merchants in the baby supplies market opportunities, Song Zheng also said that "Zhejiang businessmen's energy is particularly large", he also believes that the Zhejiang infant market is very active, professional and scale children's car.

The nursing products industry area is worth learning in manufacturing and supply chain management.

"If Zhejiang merchants increase their efforts in R & D, they will have the full strength to go to the world and become the guide of a field."

Finally, he said: Zhejiang is a very open market. The development of enterprises is very active and flexible. It is worth learning from Jiangsu businessmen and hopes to have the opportunity to cooperate with Zhejiang businessmen.