Shoe enterprises "reverse foundry", the road is long and far-reaching

In recent days, many media have repeatedly clamored about the “anti-OEM” incident. A news headline entitled “Made in China into the era of “Retroactive OEM”” was even reprinted hundreds of times by online media such as Sina and NetEase. Even the media even loudly declared: “Thirty years of Hedong, thirty years of Hexi, We used to work for European brands. Now it's their turn to give us OEMs.... Isn't the "back-to-manufacturing era" of China's manufacturing industry really coming?

Xiao Bian did not think so. After carefully reading the reports of major media, he found that the anti-substitution “back-to-manufacturing” was just a misreading, or more like a self-deception.

Observe the two examples mentioned in the article: Aokang and Guangzhou Tianchuang Shoes Industry.

Aokang acquired the Italian brand MallyVide Greater China trademark and patent ownership, set up an international R&D center and procurement center in Italy. Wanliweed provided the necessary equipment, production staff and technical guidance for the two centers. Aokang provided design and procurement personnel. The two parties cooperated to complete the prototype design and production, and the batch production was placed at the domestic production base.

Guangzhou Tianchuang Footwear Co., Ltd. established a company in Beijing with Patricia brand in Spain in 2008. Tianchuang holds 75% shares. The Patricia brand will hand over the 30-year brand management rights of the Chinese market to Tianchuang.

For O'Connell, this is just one of the examples of "international brand acquisitions" that have ignited the past few times. The Tianchuang shoe industry is more like an agent. It only has the right to operate in the Chinese market for 30 years. After 30 years, it is just “helping other people raise their children.” And careful people will see that there is something in common between the two: the Chinese market. Aokang and Tianchuang Footwear buyout is only the right to operate the Chinese market or brand trademarks, patent ownership, and in the international market, still can not escape the "OEM" status.

China is the world’s largest shoe production base with annual production of nearly 12 billion pairs of shoes, accounting for 70% of the world’s total footwear production. However, in the international market, China’s footwear industry still does not have a company that can be regarded as an international brand. . In recent years, with the decline of the “demographic dividend” and various intangible increases in production costs, many footwear industries have begun to seek transformation and take the route of brand operation. However, this is only a beginning. Tens of thousands of OEMs and ODM OEMs in China may not be able to “open a thousand trees for pears” overnight. The advent of shoe-making enterprises was the same as the time when the shoe-making industry was foundry.

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