Transformation Of Small Shoe Factories: Production Mode And Pformation Of Company Structure

The market is forcing Sichuan shoe enterprises to upgrade.

From this month, the European Union formally cancelled 16.5% of the high anti-dumping duties imposed on China's shoe enterprises.

The market door seems to be open, but the potential is more rigorous in terms of intellectual property and product quality.

Labor costs rise, raw material prices rise...

The cost advantages of Sichuan shoes have been significantly weakened, and the daily business pressure of enterprises has increased.

Industrial upgrading, in the next 5 years, Chengdu will produce more than one billion output value, or even 10 billion shoe factories. The situation of small shoe factories will be even more difficult.

The financial crisis, the closure of Russia's Cherokee hovsk market, and the subsequent anti-dumping cases.

In a market "defensive battle", some small shoe factories in Chengdu have withdrawn from the historical stage due to the unsuccessful pformation. Some shoe companies are better off because of their pformation.

The choice of Chengdu high Zhao Xinmin Footwear Co., Ltd. is the epitome of the difficult pformation of many small and medium-sized shoe enterprises in Sichuan.

"The first phase of operation in April 2nd will quadruple the capacity this year."

Zhao Zhihu is the chairman of the high Zhao Xinmin Shoes Co. Ltd., a famous celebrity in Shuangfeng Village.

He is famous, not only because the enterprise is the key investment enterprise in the village, but also because he is "ruthless": in order to pform, 8 workers were replaced last year, and the share of the company held by him was diluted to management.

Twice in search of market access

Gao Zhao Xin Min shoes was successfully registered in 2007.

After a year of painstaking efforts, the scale of the company expanded to 200, and the Russian and European Union orders were half open.

At this point, the EU anti-dumping case climax.

In 2008, the overburdened merchants pferred the order of 10 million yuan to the lower bidder of Wenzhou.

Gao Zhao Xin Min shoes only rely on sporadic small orders.

In order to turn the tide, Zhao Zhihu is going to shift his focus to Russia.

However, for a long time, excessive reliance on the middleman channel of traditional border trade ports such as Beijing and Xinjiang lacks the firm customer resources, which is a hidden danger for the development of Chengdu shoe industry in Russia.

In 2009, the Russian government took the lead in the market of nakhzkzovsky, which cut off the "gray customs clearance" of Chinese businessmen in Russia, resulting in a stagnation of Chengdu women's shoes export and completely shattered Zhao's dream of making money in Russia.

Two times a wound, a painful experience.

Zhao Zhihu locked in a more mature market in Europe and the United States, looking for opportunities again.

The way of production is changed.

In 2009, Zhao Zhihu met Liang Dingwen, a Shanghai native who spent more than 20 years in shoe industry.

Two people talked all night long to find out the crux of the problem: manual work, workers wages higher than the line production 15%-18%; manual management, raw material consumption more than 3%.

Combined, the cost is 20% higher than that of Wen Shang.

The profit of shoes is only a few percentage points. Simply lowering the price is just a way to die.

There is only one road: the way of production is pushed back.

It is about to replace manual production into assembly line production and control quality by setting standards.

After the announcement of the decision, contradictions emerged.

Many old shoemaking people do not use machines, and the habit of lax is not suitable for pipelining.

After the introduction of 3 production lines in September last year, more than 200 of the more than 200 workers went to a slack or even found another job.

We must resolutely carry out reform with the courage of breaking our strength.

Zhao Zhihu did not retain the runaway workers. Instead, he trained again with the support of the village committee.

After a month, the pipeline is running normally.

With the increasingly saturated orders and scientific management, the new production line has liberated productivity for the company.

Family management and corporate governance

To achieve a career, a person's strength is not enough.

In 2008, the idea of diluting equity began to germinate in Zhao Zhihu's mind.

This idea has been floating for three years.

As a "dictator" of a family enterprise, such a sacrifice will not be accepted for a while. But in the hope of making preparations, he hopes to "take his brother to the world".

In the three years of market vicissitudes, many small shoe factories always say goodbye to the shoe industry stage because of the unsuccessful pformation.

Liang Dingwen saw his anxiety.

In November 2010, the two men talked again.

Liang Yi hit the key: if the staff do not have the desire to share the same boat, how long can the vitality of the business last?

Zhao Zhihu finally made this difficult decision: dilute the exclusive shares to management, and turn family management into corporate governance.

A month later, his shares fell from 100% to 55%, now 43%.

"By 2013, my shareholding will not exceed 15%, so that all employees of the company can become shareholders."

Nowadays, domestic and foreign counterparts are at low prices.

The EU has dozens of inspection procedures for imported shoes, and the shareholders of high Zhao Xinmin footwear industry are very good at management: they have strict quality and material standards for each batch of products, and win the lowest cost and best products.

What is surprising is that the salary of the team management is lower than that of peers, but often a person rushing to do two jobs.

Everyone has a steelyard in mind: if the company performs well, it will get more dividends at the end of the year.