Chapter 16 Chapter 3 Three major problems that must be faced when returning to industry

Manufacturing used to be our glory and dream.The distant historical memory makes us no longer cling to the fascinating brilliance made in contemporary China, nor feel powerless to cope with the temporary predicament. History gives the best answer: from radiant to sinking into the night, everything seems to be just a reincarnation.However, at the beginning of each reincarnation, there will always be new problems. Almost without exception, the predecessors of Wenzhou's manufacturing industry were family workshops.This background is doomed to the family business form of Wenzhou enterprises.This shackle is a major factor that restricts the development of capital in Wenzhou. It has also destroyed countless enterprises with unlimited development prospects and brewed many family tragedies that make people feel sad.

Li Zhongwen, a Wenzhou entrepreneur, started with 4,000 yuan. Since 1994, in less than 8 years, he has established 80 chain shoe stores across the country, and at most there were more than 100.Li Zhongwen himself is known as the "king of Chinese shoes", and the total assets of Baixin Shoes, which he owns, once reached more than 3 billion yuan. However, in May 2003, the shoe king was imprisoned in Changsha on suspicion of bill fraud.On the surface, due to problems in the capital chain, Baixin Shoes has maliciously owed money to suppliers and issued empty checks at the urging of customers, but the deep-seated reason is the lack of restrictions and regulations adopted by Baixin Shoes. family business management model.

In Baixin Shoes, a typical family-style management is implemented: almost all core departments and management positions are held by Li Zhongwen's relatives and friends, and they lack supervision and checks and balances among each other.As a result, the internal management of Baixin Shoes was chaotic and full of problems.The distribution center of Baixin Shoes Industry is controlled by several relatives of Li Zhongwen, and the phenomenon of taking kickbacks and enriching private pockets often occurs.Li Zhongwen has also heard about this, but due to the "face" of his relatives and friends, he was unable to impose institutional punishment, but he once lost his temper without naming names in meetings.

This kind of non-painful way naturally cannot effectively manage the Baixin shoe industry. In addition, there were problems with the credit sales model adopted by Li Zhongwen before, which eventually led to the tragedy of the company. Li Zhongwen's personal tragedy also reveals the general dilemma faced by family businesses in Wenzhou: during the start-up period, the company was small in scale, with few staff, and easy to control; , the enterprise is not easy to control.In addition, the decision-making mechanism in which the final decision rests with the boss in a family business also easily puts the business in danger of life and death.

The same tragedy also happened in Wenzhou Far East Leather.This "rich family dispute" did not break away from the paradigm of family members fighting for power and profit in Chinese business history. Under the strong commercial atmosphere, the plot was bizarre and the ending was heavy.A large group ranked among the top 500 private enterprises in China fell apart in the endless struggle and drifted away. In the process of enterprise development, it is not capital or product quality that plays a decisive role, but the quality and management of operators, and this is the weakness of small and medium-sized enterprises in Wenzhou.Producing more products every day, or "being the boss during the day and sleeping on the floor at night", are the strengths of Wenzhou people who are hardworking and able to endure hardships; For Wenzhou bosses who are generally not high, it is somewhat difficult.

Similarly, at present, the vast majority of Wenzhou enterprises have diluted the equity of families or individuals, and have reorganized into modern corporate organizational forms by attracting social forces, such as Chint Group and Geely Group, etc., have transitioned from family enterprises to joint-stock enterprises , has broken through its short board and is going down the road of standardization. In the development history of manufacturing enterprises in Zhejiang or Wenzhou, it is not without examples of successful family businesses.For example, Aokang and Red Dragonfly abandon the family model and develop side by side.Wenzhou Kangnai Group and Youli Group have equally accomplished the inheritance and succession between the two generations of the hereditary system, and achieved a further leap in the hands of the second generation of entrepreneurs.

On July 7, 1998, Zheng Laili declined the invitation of a well-known accounting firm, returned to Wenzhou from Shenzhen, and reported to Kangnai the next day as a "workshop worker". Starting from the first process of cutting materials, to cutting materials, skinning, sewing uppers, and entering the assembly line, the difficulty increases.Zheng Laili wears myopia glasses and sits among the workers concentrating on her studies, her hands are covered with blisters.The master felt distressed and secretly pleaded with her father.Zheng Xiukang ignored it, and he suffered even more when starting a business.Half a year later, Zheng Laili mastered all the shoe-making processes and participated in the company's management.

Wenzhou shoe enterprises are engaged in ISO9002 certification, and Kangnai has been doing certification work, but the effect is not good.Zheng Laili organizes employee learning and training, reintegrates relevant systems, and works until eleven or twelve at night every day.At the end of the year, Kangnai passed the ISO9002 certification. Zheng Laili was affirmed by the company.She successively served as assistant to the general manager, manager of the advertising department, and manager of the marketing department. "Holding the mentality of learning", she became the vice president of the company four years later. She is busy with business, but "can still make a complete pair of leather shoes from a piece of leather".

In 2004, Zheng Laili was named the youngest representative among the "Top Ten Economic Women". The evaluation given by the jury was: young and creative, with an international strategic vision, good at using information technology to transform and develop traditional industries, and actively integrating into International rule-making. At present, in the Kangnai Group, there are also excellent professional managers hired. Zheng Laili believes that the modern management of enterprises is very important, but this is not contrary to family businesses. "Many internationally renowned companies are family businesses. Family businesses There are many advantages, such as fast decision-making speed, flexible direction changes, low communication costs, and high loyalty.”

At present, the large-scale enterprise group with the most complete varieties in my country's plastic industry - Youli Group, is also developed from a family business. In 1997, Hu Xucang, who was only 22 years old, was promoted to the position of chairman. When he took over, his father only said one sentence to him: "You are young, even if you fall, you still have a chance to get up." In this way, the young man who graduated from university less than two years ago became the leader and decision-maker of the company.In fact, he almost grew up with the business.When he was studying at Wenzhou University, he had already “invoiced” on the construction site of the factory: someone brought 1 truckload of sand and gave 1 sand ticket; 20 bags of cement were given 20 cement tickets. The work was simple and boring.

Standing in a new position overlooking the overall situation, the unknown situation of the enterprise makes people unable to be optimistic.In order to seek new profit growth points, the company has completed the leap from low-voltage electrical appliances to thermal plastic pipes, which is a new industry that is still blank in China and has an optimistic prospect.Hu Xucang understands another meaning of the blank in the industry. Without experience support, he cannot learn from others.Hu Xucang's loneliness has nowhere to tell.And his way of dispelling loneliness is to keep himself busy. He led engineers to visit various places and visited university laboratories and scientific research institutions.After dozens of days of hard work, the result is disappointing: domestic technology is backward, and it is impossible to produce high-precision components.In desperation, Hu Xucang decided to develop independently and invested 8 million yuan in technical research.The money was spent, but still no qualified products were produced.Some within the family were discouraged and refused to invest again. At the end of the day, Hu Xucang got news from the Internet: American Novo Company will participate in the plastics exhibition held in Beijing.This was the most advanced producer of CPVC plastic in the world at the time. In order to have a close contact, Hu Xucang applied for a job as an exhibition commentator, and spent five days looking for any possible opportunity to communicate with Nuoyu employees.Through contact and understanding, a bolder idea was brewing in his mind: to cooperate with Nuoyu and use the other party's technological advantages to help the company out of the predicament. Cooperation seems to be the only way out, but "on what terms should we cooperate with others"?Hu Xucang confessed his weakness to the other party, but deliberately emphasized that "the people from Wenzhou are the ones who can play the market best in China".Nuoyu, who is determined to win the Chinese market, attaches great importance to this matter and sent negotiators to inspect the negotiations.A few months later, the US was impressed by Hu Xucang's frankness and agreed to cooperate.The problem was solved easily, and Hu Xucang let out a sigh of relief: he narrowly escaped death. After many years, Hu Xucang put more energy into the field of venture capital.Such a wonderful story of creating the second generation has inspired countless latecomers, and it is also proclaiming to the world that Wenzhou enterprises with a family model can also lead to the beautiful spring of modern enterprises. After the emergence of a few well-known large enterprises, many small and medium-sized enterprises in Wenzhou seem to be in a state of "not growing up".The history of family business development is an important reason for the small scale of private enterprises in Wenzhou.Another key factor is that although Wenzhou enterprises have always been known for their "group spirit", in fact, Wenzhou people have a strong ability to start businesses independently, and they do not have a true spirit of cooperation. Therefore, this has also led to a strange phenomenon in the development of Wenzhou enterprises - Wenzhou enterprises only have "divided" success, and seldom "combined" wonderful. Over the years, small and medium-sized enterprises in Wenzhou have tried to get out of such a vicious circle. The "horizontal alliance" of Zhuangji Group and SAINT ANGELO Group has made exemplary efforts.In such a society that no longer pursues single-handedly riding the world, joint efforts are the greatest competitiveness and influence. In recent years, under the circumstance of continuous sluggish overseas economy, Wenzhou brands have begun to set off a wave of overseas mergers and acquisitions. This is a manifestation of the strength of Wenzhou enterprises, and it is also an attempt for Wenzhou enterprises to get rid of the small and medium-sized enterprises. In 2009, Xijing Group, a subsidiary of Wenzhou entrepreneur Ye Maoxi, wholly acquired a local satellite TV station in the UK; in the power grid transformation of the largest power grid company in Russia, Chint Group defeated a famous European power equipment company and won a total of 4 substation renovation projects of 110KV and 350KV . At the beginning of 2010, four Wenzhou entrepreneurs joined forces to invest 370 million yuan in Pierre Cardin's business in China, officially obtaining the right to use part of Pierre Cardin's trademarks in China for leather goods, knitted garments, and leather shoes. Compared with previous investments purely for profit, the acquisition of overseas brands will improve the ranking of Wenzhou's private enterprises in the international market.For a long time, due to the lack of brand support and packaging, Chinese private enterprises have never had pricing power in the international market, and the acquisition of international brands can make up for this shortcoming to a certain extent and help improve the core competitiveness of enterprises. The impact of the financial crisis has not yet dissipated. It is wise for Wenzhou enterprises to go abroad to acquire brands. However, this is not a market raid, nor is it encouraging Wenzhou capital to go overseas to buy bottom.After all, in mid-June 2009, the "Wenzhou Boss Group" went to Europe to acquire 50 well-known Italian brands. During the 10-day inspection, there were no substantive results and nothing was gained.Freezing three feet does not happen overnight, and this failure case also confirms that acquisitions are not easy, let alone bargain hunting. In 2009, Wenzhou capital hit rocks one after another overseas, lost as much as 2 billion yuan in the Dubai crisis, and lost 7 billion to 8 billion yuan in Russia's "crackdown on gray customs clearance".But as long as it is an investment, there will be risks.Risks are beyond the control of the business. At the beginning of 2009, the European real economy was hit hard by the international financial crisis. The Danish Carlsberg Group, which owns Russia's largest beer brewing company "Baltic" beer company, saw a 6% year-on-year decrease in beer sales in Russia.At the same time, Cowboy Beer Co., Ltd., a private enterprise in Wenzhou, intends to expand the European market. On July 14, 2009, Dr. Luo Di, former Director of International Operations of Carlsberg Group, flew to Wenzhou from Germany to take up the post of Asian Marketing President of Zhejiang Cowboy Beer Co., Ltd.Luo Di has more than 20 years of working experience in the Carlsberg Group, and has two professional doctorates in economic management and beer brewing.When it was learned that Dr. Roddy was about to retire, the Cowboy Beer Company immediately extended an invitation to him and "took a lot of care".In the end, the sincerity of the Cowboy Beer Company moved Dr. Roddy, and after going through the early retirement procedures, he chose to join the Cowboy Beer Company. Dr. Roddy is not only responsible for the marketing strategy in Asia, but can also use existing resources to help Cowboy Beer Company expand its market in Europe. Undoubtedly, in terms of exploring overseas markets, Cowboy Beer Company has a broader vision. It does not only focus on capital, but also recruits international talents to enhance its own strength.And this kind of thinking should also give inspiration to more companies preparing to enter the overseas market. While owning overseas brands through various channels, Wenzhou enterprises are also trying to establish their own brand influence in foreign markets, in an attempt to get rid of the heavy title of "world product foundry" for many years. Wenzhou shoe industry seems to be going faster and more actively than other industries in the world journey of brand strength. In 2001, the Wenzhou Kangnai brand publicly took its first step towards the world stage under the internationalization thinking of the second-generation Zheng Laili, and opened its first exclusive store in Paris, France.After that, Kangnai specialty stores appeared in New York, Milan, Venice, Barcelona, ​​Berlin and more international cities. In 2009, thanks to the efforts of Wenshang Red Dragonfly Group, it finally kept pace with the familiar international luxury brands LV, PRADA, GUCCI, and DIOR, and entered Los Angeles Westfield (WESTFIELD), one of the top shopping malls in the United States. image store.In this market, Red Dragonfly is positioned as high-end, with a price of about 200 US dollars, trying to compete with top foreign brands in the market. In an interview with the media, Qian Jinbo said that Red Dragonfly's entry into the U.S. market is not a so-called "market bottom-hunting", but a commercial strategy for brand development. "Because the U.S. business market is in a downturn, business costs are relatively low. , and the barriers to entry are relatively low.” It is the ancient wisdom of the Chinese to wait for the opportunity and follow the trend.After making enough preparations, Red Dragonfly finally waited for such a good opportunity to arrive. In 2008, Aokang opened its first overseas exclusive store in New Delhi, India, and began to realize the rush of Chinese brands overseas. In 2010, quietly, Aokang Shoes completed its first overseas acquisition.This acquisition has been planned for a long time. As early as the beginning of 2008, Aokang contacted the Italian "time-honored" shoemaker Wanli Weide and signed a global strategic cooperation agreement. The price of Wanli Weide's 10-year brand management rights in the Asia-Pacific region was acquired. Founded in Italy in 1969, Wanli Weide currently has more than 2,300 exclusive stores worldwide.Wang Zhentao said: "Since the outbreak of the financial crisis last year, many traditional Italian shoe-making companies have approached us for cooperation, or expressed their willingness to be acquired. This is a good time, but it also requires Chinese shoe companies to treat it carefully and build China's For high-end brands, in addition to pure blood, their own foundation is more important." The increasingly mature Wenzhou enterprises are less blind and impulsive in the development of overseas markets.Although Wanli Weide has the intention of selling the company as a whole, Aokang only acquired the brand ownership in the Greater China region in stages, considering that one-time eating and drinking would inevitably lead to indigestion.This enterprise, which mainly produces "breathing" functional shoes, provides product research and development, technical and legal support, while the production, manufacturing and marketing in the Asia-Pacific region are operated by Aokang according to local conditions. Facts have proved that Wenzhou's private enterprises want to go out, relying on price competition to obtain a temporary and narrow market, and they are also constrained everywhere.Therefore, only by enhancing the brand and increasing the added value of products can Wenzhou enterprises find their own blue ocean in their overseas market development. "Three million migrant workers came in, and two million bosses went out."The essence of rivers and lakes and grasslands is the biggest characteristic of Wenzhou Light Industry Manufacturing.After all the ups and downs, Wenzhou enterprises urgently need to improve their technological content, realize structural transformation and upgrading, bid farewell to low-end manufacturing, go all out towards brand and innovation, and establish a real core competitiveness in the market. For Wenzhou, this crisis is not the end of the road, but the corner of the heart and the return of industry.Of course, if the industry wants to achieve substantial development, Wenshang must get rid of the quagmire.Famous economist Dong Fufeng pointed out that the most valuable feature of the Wenzhou model lies in Wenzhou people's strong desire to get rich and entrepreneurial spirit.In the process of starting a business, the spirit of daring to fight, daring, and fearlessness has the magic power of being invincible and conquering everything. Stand out from the fierce competition. As one of the typical examples of regional economic development in the early stage of China's market economy, Wenzhou's economy has experienced rapid development, and the industrial structure model dominated by small and medium-sized enterprise clusters and labor-intensive has begun to face internal and external troubles: the industrial structure is not high-level, innovative Insufficient enterprises, slowing economic growth, and increased relocation of enterprises. A thorough study of these ills reveals that "people" is the key factor.Wenzhou's economy has not established a positive interaction mechanism with talents. Wenzhou's current talent structure does not meet the needs of economic transformation and upgrading. This is the main reason. As a typical market-oriented economy, Wenzhou's economic development is not based on abundant resources, but Wenzhou people are the first to enter the market, so they can seize market opportunities.Compared with people from other places, Wenzhou people can be called "talented" in terms of market economy. The 100,000 Wenzhou people running supply and marketing is the best example.On this basis, Wenzhou has quickly accumulated rich capital and created a large number of small and medium-sized enterprises chasing market demand. The biggest advantage of Wenzhou industry is the light industry.However, if Wenzhou wants to become the world's light industrial product manufacturing plant, it must meet two conditions: one is technological advantages, and the other is cost advantages.At present, although Wenzhou has a large cost advantage, it lacks technological advantages.The combination of low technology and low cost will inevitably fall into vicious price competition.Therefore, the top priority is how to upgrade Wenzhou's industrial structure. Now, Wenzhou's economy has developed into a stage of overproduction, and the aftermath of "emphasis on monetary capital and light on human capital" has become prominent.According to the published data in 2007, Wenzhou has a total of 890,600 talents, most of whom are skilled talents. The proportion of management and technical talents is not high, and there is a shortage of high-level talents; there are only 2 state-level enterprise technology centers in Wenzhou, and the key points for upgrading There are only 5 laboratories, and there is no national research institution. Only talents can provide the technical content of Wenzhou products, realize industry upgrading, and finally complete the leap from Made in China to Created in China. Over the years, Wenzhou's various abnormal views on wealth and consumption also reflect the rough and barbaric atmosphere of Wenzhou's economy. Mr. Wu Chuncheng, director of Huashang Economic Research Institute, visiting professor of Lancaster Business School, and vice president of Wenzhou Cultural and Creative Industry Association, is different from ordinary economists who only focus on economic operation. He also devotes his energy to Wenzhou's cultural development. He once said: "Wenzhou does not lack profound cultural and historical accumulation, but in the process of economic development, it has relatively neglected rich cultural behaviors. Similarly, almost all high-end clubs in China today advocate wealth, enjoyment, food, etc. , regretfully ignoring the powerful and deep storehouses of power that culture brings to us." In August 2011, Wenzhou Cultural Industry Research Center was formally established.According to reports, the Cultural Industry Research Center has established two goals: "One is to conduct in-depth research on Wenzhou's cultural industry policy, cultural industry development strategy, and the construction of Wenzhou's cultural industry innovation system. At the same time, carry out comprehensive, multi-level, Interdisciplinary research promotes the R&D and incubation of various cultural industry projects, especially the academic research on Wenzhou traditional arts and crafts such as Ou embroidery, Ou sculpture, Ou kiln celadon, and promotes them to become high-quality and industrialized." The stereotype that "Wenzhou is only a business place, Wenzhou people only make money, and Wenzhou is a cultural desert" has a long history.All over the country collectively "block" the profit-seeking behavior of Wenzhou people, and believe that this kind of Wenzhou business behavior is just a manifestation of the lack of cultural heritage.The following point of view has caused heated debates in major domestic forums: 20 years ago, shrewd Wenzhou people seized the development opportunity of reform and opening up and achieved today's great achievements in traditional manufacturing and commerce. While the unconventional original capital in the region has also formed a rigid wealth creation model, which directly restricts the development of the cultural industry in Wenzhou.The fact is that Wenzhou does not have a famous cultural product brand in the market so far. Compared with the industrial products it owns, it is like a deformity.At present, Wenzhou's capital has caused Zhou Tianhan to be so cold in the speculative market that the world even has the term "Wenzhou's capital" as "disaster capital".The shrewd Wenzhou people seem to be no longer shrewd in the face of their bulging wallets. Faced with the historic opportunities in the Chinese cultural industry market, hundreds of billions of "Wen capital" and his master turned a blind eye, but swarmed to speculate on "" "House" and speculative "shops" make people doubt the modern market vision and financial business of Wenzhou people, but at the same time, they have to feel sad that Wenzhou people have passed by the "gold mine" of the cultural industry.What's more serious is that the surrounding environment of this world-class "big factory" in Wenzhou is a suffocating cultural desert. Cultural connotation is also an important factor for brand charm and industrial upgrading.Qian Jinbo of Red Dragonfly was deeply touched by this. In 1995, Qian Jinbo had a small success in his business. He was full of joy and flew to Italy with the leather shoes he produced to find the famous leather shoe designer Marlogce for appraisal.The latter poured cold water on his head: "I am satisfied with the quality and style of your leather shoes, but I can only give you 90 points. Those 10 points are cultural added value, and you don't have any." For the 10-point gap, He successively invested more than 30 million yuan to create shoe culture and founded the shoe culture museum. He said: "In our shoe culture museum, we have made some exhibitions on the evolution history of shoes from ancient times to all dynasties. But in the museum Here, you may not be able to see how this is related to Red Dragonfly's shoes, markets, and stores. Yes, there seems to be no relationship between the two. In the process of our Red Dragonfly's 10-year research on shoe culture In it, I realized two sentences, one is: the reincarnation of the trend; the other is: the continuation of culture.” Qian Jinbo once said that his lifelong energy is to shorten the distance between commodities and culture.From the perspective of the development of Wenzhou's private enterprises, Qian Jinbo is also trying to narrow the distance between Wenzhou's business and culture. There is still a long way to go on this road.