Hengda Shoe Industry: Innovation Creates Unbeaten Myth

February 14th Qingdao

Technological innovation: stimulating the development of surrounding industrial circles

There is no doubt that the strong impetus to support the rapid development of Hengda Group first comes from the technological innovation of enterprises.

It is understood that Hengda has hired Fabie, the famous designer of Italy as the chief designer, and has established the domestic advanced enterprise technology center through technical cooperation with the world-class leather shoes enterprises, such as the company such as Monte Carlo and British Kelan.

In 2000, the enterprise technology center was identified as the municipal technology center of Qingdao. In 2005, it was certified by the provincial technology center.

At the same time, in order to meet the needs of technological research, the company has invested about eight million yuan RMB, bought the first-class testing and testing equipment at home and abroad, and formed a systematic operation of research, production and marketing through the establishment of information system.

The company has also established a new product R & D center in Guangzhou, Wenzhou, Quanzhou, Chengdu and other famous footwear industry frontiers of the country. Through the construction of scientific research network, a sensitive and rapid information integration application system has been formed.

At present, the company has 26 national patents, and the company's technology center is involved in the formulation of 16 industry and national technical standards. In the operation of the independent innovation system, the company has more than five thousand varieties of new products trial production each year, and it has been converted into two thousand varieties of listed products every year.

At the same time, in cooperation with foreign large footwear enterprises, Hengda rapidly promoted the R & D level of enterprises by introducing, digesting, absorbing and carrying out two innovative systems engineering.

Hengda rapidly absorbed its first class shoemaking technology and research and development concept through cooperation with the world's first ladies' brand NINEWEST (Nine West), American Pie Monte, Japan HUSKY and other world-class companies. In the course of communication and study with its experts, it has made two R & D achievements, and has been pformed into production to meet the needs of the domestic market, thus enhancing the ability of enterprises to absorb, pform and innovate.

In the continuous development of enterprises, Hengda not only rapidly improves the domestic and foreign resources, but also rapidly promotes the scientific research strength of enterprises, and actively contributes to the research of the region and the same industry.

In 2006, Hengda founded the "Qingdao Hengda Leather Research Institute" with the R & D resources of the provincial technology center, and opened an open research on the whole contract industry resources. The research and development achievements directly benefited the same industry in the Shandong peninsula area, and rapidly stimulated the development of the peninsula shoe making industry circle, and played a decisive role in the rise of the peninsula shoe making industry circle.

System innovation: complete business process reengineering

The market competition in twenty-first Century has started from the competition of simple capital economy to the competition of "knowing the capital economy". In the tide of market economy, facing the surging tide of economic integration, how to find a suitable operation mode to adapt to the current market situation and enable Hengda to remain prosperous has become a pressing matter of the moment.

The answer given by the Hengda people is to carry out the shareholding system reform.

In 2003, Hengda Group formally completed the shareholding system reform and implemented the market-oriented operation within the company.

The original private enterprise "internal big pot" has been pformed into a modern enterprise group with clear property rights, complementary advantages and international integration.

Looking back on the history of this reform, Wang Jiwan, chairman of Hengda, has a deep feeling: "brand is not only a packaging, image, it is a manifestation of enterprise strength, and brand upgrading must have an internal, metabolic and sustainable business mechanism."

First, Wang Jiwan carried out the "business process reengineering" in Hengda Group. Around this work center, Hengda implemented seven major projects, including Hengda Group's strategic organizational structure design and department's power and responsibility decomposition, enterprise information pformation project, financial management analysis system and accounting control system, enterprise's overall human resources planning and management mode, brand promotion and implementation project, enterprise legal system construction, enterprise's overall management system integration, and invested more than three thousand million yuan in 2004 to establish ERP information management system, using modern enterprise management mode to reengineer the process, using scientific process mechanism to realize standardized management, and ensuring that the enterprise smoothly pformed from the traditional system centered on function to the modern enterprise with process as the core, and comprehensively enhanced the core competitiveness of enterprises. Relying on this

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Brand strategy: achieving the pcendence of value and quality

In 2003, Hengda prospectively threw off the OEM and low price war of its domestic rivals, and took the lead in going out of the country to reach a strategic cooperative relationship with the French international brand group.

Wang Jiwan deeply felt that the core competitiveness of the brand is not advertising, nor is it simply technology. It is a large multinational enterprise group specializing in leather clothing, R & D, design, brand operation and production and operation.

First class international human resources, market channel resources, brand differentiated resources and the most advanced technology and equipment, and even the dominant resources of globalization are what Hengda values.

For a time, hundreds of top designers from the United States, France, the United Kingdom, Italy, Australia, Israel, Japan and Hongkong of China gathered together, forming the "brain" and "heart" of the world's top decision making, design and development.

Through the strategic cooperation of complementary and complementary advantages, Wang Jiwan not only successfully ran the international brands such as "Adi Lina" and "dynamic foot", but at the same time, by leveraging the global market and channel resources of France international brand group, we finally succeeded in pushing our own brand, "Hengda leather shoes" to the center of the world market.

If a cooperation does not prove the vision of Hengda's "standing on the moon to see the earth", it is a classic case for Chinese enterprises to establish "Hengda international marketing network".

The steady establishment of the international marketing network has enabled Hengda Group to extend its market tentacles to every corner of the world market: Russia has established "Hengda (Russia) Trading Co., Ltd." and has made a brilliant start and become famous internationally.

Hengda Group has established branches or offices in more than 20 countries and regions, including France, Italy, the United States, Japan, China, Hongkong and the Middle East.

With these touching market demand and the nerve endings of the popular frontier, Hengda harvested and activated the effective growth of the whole group's performance. Since its export to the international market in 2000, the export volume of Hengda has increased by 30% to 40% per year, and has become a new economic growth point for the company. It not only evaded strict trade barriers, but also made Hengda a truly international enterprise.

Brand strategy operation has made Hengda truly surpass its value and quality. At present, Hengda is also benefiting from its valuable achievements after hard work.

Build Hui Valley: speed up pformation and upgrading

In early March 2009, Hengda Group discussed a merger with a Italian company and reached a cooperation intention.

After the completion of the acquisition, Hengda plans to build a European R & D and production center in Italy.

He said the acquisition was mainly for R & D services, not just to expand the share of foreign markets; the reason for choosing Italy brand is that the Italian company has strong R & D capability.

As a Chinese shoe company, improving R & D capability is not a problem you want to do, but a problem you must do.

Today, Hengda is practicing the strategy of "focusing on the construction of Huai Valley" and has begun to lend its capital to the overall listing of the group.

It is understood that the "Hengda Hui Valley" innovation strategy is put forward and implemented by Hengda Group, which is the intelligent strategic plan to summarize and take the lead in the development of the international footwear industry, and actively explore and practice the upgrading and structural adjustment of China's footwear industry.

Its implementation not only presupposes the leapfrog Lean Development of Hengda Group, but also the milestone of the pformation from traditional type to intelligence type.

Based on Hengda International Digital Industrial Park, the footwear industry as the carrier, the creative industry and software industry as the core, the service economy as the guidance, and the innovation and integration of the international frontier information, R & D, operation, human capital, knowledge economy and capital operation mode, we can truly lead the modern "Silicon Valley" type "Hui Valley" that China and the world shoe industry develop, create and meet the domestic and international market demand. This requires not only a more efficient and efficient global resource allocation, but also a strategic system of daring to innovate and dare to win to ensure and sustain its sustained and healthy development in the future.

9 years ago, Hengda has broken away from the pure OEM processing mode, developed its own brand through R & D and innovation, and achieved the upgrading of ODM (original design manufacturer). In the past two years, it has been attacking the third stage OBM (private brand manufacturer) to achieve joint venture and cooperation with international famous brands and brand channel sharing.

The construction of Hengda Hui Valley is the carrier of the pformation, and the project plan is expected to be completed in 2015.

In Wang Jiwan's view, the construction of Hengda Hui Valley is the key to Hengda's third pformation.

With the help of this platform, Hengda Group is concentrating on the study of ergonomics, gait, footprints, leather products, production processes and so on.

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Thinking: how to upgrade China's footwear industry?

Henry Ford, founder of Ford automobile, said that without innovation, it would perish.

The key to innovation is the innovation of thinking mode.

Chinese enterprises are always talking about all kinds of innovations, but in the final analysis, they are innovative thinking.

It can be said that without any innovation in mind, all actions are poles apart.

With the rapid development of China's economy and the rising cost of labor and land resources, China's footwear industry is in urgent need of industrial upgrading and structural adjustment. The earlier the pformation of intelligence, the healthier and more sustainable development of the whole industry.

However, the "made in China" which was once spectacular and began to face painful pformation in 2008 under the impact of the global financial crisis.

Take the shoe industry of Guangdong as an example, the enterprises that have been closed in the past year include shoe factories, supporting materials factories, shoe machine factories and footwear traders, etc., with the scale of mainly small and medium-sized, and there are more than ten Taiwanese shoe factories with thousands of people.

These closing businesses account for 10% to 15% of the footwear industry in Guangdong Province, involving 150 thousand to 200 thousand employees.

The growth of orders is far less than the growth of production capacity.

Experts say that if China's footwear industry does not achieve industrial upgrading without changing the backward competition way of price war, that is the real crisis.

Nowadays, the so-called crisis faced by the footwear industry is a turning point.

However, it is no easy task for Chinese shoes to achieve industrial upgrading.

Rising labor costs, appreciation of the renminbi, rising prices of raw materials and rising land costs have made it impossible for shoemaking enterprises to travel lightly.

Obviously, entering the 2011, more low-cost and low profit starting, lack of independent brand and technical content, lack of core competitiveness of enterprises, small and medium shoe-making enterprises will accelerate bankruptcy because of the loss of cost advantage, and for most of the management standards and a certain size of shoe-making enterprises, is the beginning of a new industry shuffle, the footwear industry will also step into a healthy development track.