Acquired European company Chinese shoe company ushered in the era of "back-to-manufacturing"

Claudio R. Boer, Chairman of the Global Intelligent Manufacturing Organization, recently visited Dongguan and other places frequently. As an economic adviser to the governor of Guangdong Province, he gave himself a Chinese name “Bole”. In many factories in Guangdong, he hopes that he will be able to use the "Cherima" in the phase of the competition to use the European technological innovation force to help China's manufacturing transformation and upgrading.

In Bole's mobile phone, pictures of a variety of fashion shoes, including fish shapes, were collected. The Swiss, who grew up in Italy, was under the influence of the Italian footwear industry. Italy is the world's traditional shoemaking and exporting country. Its finished shoes lead the world trend in the selection of materials, high-quality science, and design concepts. In the international market, it has been occupying the high-end market with the brand effect of high quality and high prices. Bole has been fascinated by the European shoemaking process and design for decades.

Bole said that due to rising labor costs, appreciation of the renminbi and other factors, whether active or passive, Chinese shoe companies are accelerating their transformation and upgrading. Some Chinese shoe companies no longer play the role of OEM. With the deepening of cooperation with international companies in the areas of manufacturing, R&D, design, marketing, and branding, they extend to the two ends of the value chain and gradually grasp the power of discourse.

The world consumption pattern has changed quietly, and the global industrial chain has also been adjusted accordingly. In particular, after the outbreak of the financial crisis, in the case of the European and American markets that have yet to restore their vitality, the Chinese consumer market is thriving. This has created an excellent opportunity for Chinese companies, especially footwear and other fast-moving consumer goods companies. "The time is coming.

Let European shoe OEM

Resolutely do not OEM, Liang Yaohua, chairman of Guangzhou Tianchuang Shoes Co., Ltd. took a step. Since the establishment of the shoe factory in 1991, he has persisted in this, even though he has encountered many difficulties, and has come up with a route that is different from many Hong Kong shoe companies. Today, his shoe company not only does not do wedding dresses for others, but also allows European shoe companies to do their own brand for OEM.

Having worked as a trader for electronics, shoes, and other products, Liang Yaohua is very aware of the embarrassing position of foundries in the industry chain. The core parts of R&D, brand design, and the market are held in the hands of others, if not in the core value, the road Only narrower and narrower.

“Electronic product foundry profits were about 6% in the 1980s and are now generally falling to 1%~2%. With rising labor costs, this is an inevitable trend. However, the electronics industry wants to focus on core technologies. Breakthroughs are very difficult, and there is limited space for design. It is relatively easy to achieve value extension on fast-moving items such as shoes and clothing. It is mainly possible to break away from consumer psychology and fashion design. Liang Yaohua, an electronic engineer, explained that at first Why did you turn into the shoe industry?

In the early 1990s, most of the shoemakers in the Pearl River Delta were still busy with OEM production. In the absence of a brand in the Chinese shoe market, Liang Yaohua began to target the “women's shoe brand” and became a company with Belle and Sat. The first generation brand of Chinese women's shoes was created.

Today's market proves that these enterprises have seized the opportunities for development. At present, Tianchuang Footwear has 15 branch offices and more than 800 retail stores across the country. KISS CAT sales have ranked fifth in the women's footwear market for six consecutive years.

In the process of seizing the domestic market, the company has always been concerned with design. Over the years, Tianchuang has been working closely with a number of European design studios to integrate Europe's leading fashion design style into its own footwear products. However, this alone is not enough, or can not learn the exquisite craftsmanship of European shoes.

In 2008, Liang Yaohua and the European Patricia brand, which has more than 80 years of history in Europe, reached a cooperation to establish a company in Beijing. He holds 75% of the shares and controls absolute control of the company. Under the influence of the financial crisis, the European and American consumer markets have been sluggish, and many European brands have focused on the Chinese market. The Patricia brand will hand over its brand management rights in the Chinese market for 30 years to Tianchuang. Liang Yaohua adopted the Patricia brand of women's shoes imported from Europe. In addition, he also entrusted some of his own brands, such as kissing cats, to the EU shoe factories.

Grasp the domestic market terminal channels and pricing power, even if the manufacturing costs rise, the brand shoe can still afford. This year, only the labor cost has increased by 28%, and the rising cost is evenly allocated to each pair of shoes to increase the price. Customers can also accept it.

However, European-made prices are generally higher. “Currently, domestic consumers can afford the prices of women’s shoes imported from Europe in our stores, but these shoes are almost profitless. Therefore, European manufacturing accounts for only a few percentage points of our footwear products.” Liang Yaohua Say.

In comparison, the average export price of a pair of leather shoes in China is fifty to sixty yuan, while the purchase of a pair of women's shoes from Europe is basically three or four hundred yuan in the case of non-paid duty, plus tariffs and logistics costs, and some imported shoes are on the shelves. The cost price has reached more than 1,000 yuan / double, China's manufacturing has obvious cost advantage over European manufacturing, and fewer and fewer European shoe-making workers, hundreds of shoe factories have been rare, production capacity can not keep up.

Liang Yaohua also stated that entrusting the production of European shoe factories is only a stage behavior, not a trend. At this stage, it is to learn European shoemaking techniques, design, and obtain popular information from them, and further enhance the competitive advantage of shoes through cooperation.

Following the successful listing on Belle and Saturday, Tianchuang Footwear has also launched a listing plan. For Liang Yaohua, using capital operations to accelerate brand expansion is one of the directions of his efforts. He admits that he does not rule out the possibility of acquiring brands overseas to enter the international market.

Chinese companies launch acquisitions offensive

Ten years east and west ten years. Some European brands suddenly discovered that once they "bred tigers", they eventually fell into the "end" of Chinese partners' acquisition. Following Wenzhou Chenglong’s acquisition of the French brand Pierre Cardin’s footwear and other four brands in China for 37 million euros, Wenzhou Aokang Group acquired Italian footwear on May 18 this year for less than US$22 million. The ownership of the brand Greater China in Greater China trademarks and patents.

Following the acquisition, the two parties further implemented cooperation. On October 13th, Aokang established an international R&D center and procurement center at its headquarters in Maliwi, Italy. Wanliweed provides the necessary equipment, production personnel and technical guidance for the two centers. Aokang provides design and procurement personnel. The two parties cooperated to complete the prototype design and production, and the batch production was placed at Aokang's domestic production base. Both parties share R&D achievements for the promotion of the Maliweide brand globally.

Founded in 1969, Wanliweed produces "breathable" functional shoes. It is an Italian "old" shoe company with more than 2,300 stores worldwide. Aokang Group once produced only for Manlyweal's OEM. In January 2008, Aokang and Wanliweed signed a global strategic cooperation agreement, which won 10 years of Asia Miles brand management rights of Wanliweed. Wanliweed provides product research and development resources, technology, and legal support. Its brand marketing and product manufacturing in Asia Pacific are operated by Aokang.

The cooperation has always played a key role in the acquisition in May this year. Wanli Weide intends to sell its global business as a whole. Taking into account market risks, O'Connell acquired the ownership of trademarks, patents, etc. of Greater China in the Greater China region. If the test is successful, it will probably gradually expand to the global scope.

Wang Zhenquan, deputy general manager of Aokang Shoes Co., Ltd., said that Italy, where Wanliweed is located, has the most fashionable designs and raw materials, and has the most cutting-edge information. The establishment of an R&D center and procurement center here will, for the first time, transform Italian technology and information into domestic competitiveness.

Aokang reached a consensus with Wanliweed Company to build Wanliweed into the most competitive high-end brand in China and Asia Pacific region within three years. To this end, Aokang also formed a different operation team from the existing one.

You have me I have you. The integration of Chinese and Western footwear is higher than in many industries. In every link of the industry chain, Chinese and Western shoe companies gradually stand shoulder to shoulder. Chinese shoe companies no longer pity themselves in the low-lying areas of manufacturing.