AOKANG: Trustee Europe's Old Family Shoe Factory

From the initial OEM to later China brand agent of Italy brand GEOX, and then to Wanli wade to win its global brand management rights, AOKANG's competitive relationship with international brands is deepening.

After purchasing BELLE Jiangsu shoes for 1 billion 600 million yuan and creating the biggest acquisition case of Chinese footwear industry, Wenzhou AOKANG group also accelerated the pace of acquisition - it aimed at foreign markets.

In January 8th, AOKANG signed a global strategic cooperation agreement with VALLEVERDE, the world shoe capital Italy Footwear Company, in Shanghai to acquire the 10 year global brand management rights.

This is the first time that Chinese shoe companies have gained the right to speak in Sino foreign cooperation.

The Wanli Wei global brand management power, founded in 1969, mainly produces high-tech "breathing type" functional shoes. It is the first shoe making enterprise in Italy with the reputation and reputation. In 2007, it sold 150 million euros.

At present, it has more than 2300 stores in the world, and also a major supplier of footwear for Italy football team.

In the second half of last year, Wang Zhentao, chairman of AOKANG group, met the head of the Wanli brand and the famous doctor Armando Arcangeli in the footwear industry of Italy in a market survey of "world shoe capital" in Italy.

Through communication, the two sides have the idea of cooperation across Europe and Asia.

After returning home, Wang Zhentao immediately convened a meeting to discuss the cooperation with the Wanli brand, and discussed the long distance telephone and e-mail with Wanli Wade several times, and finally determined the way of global strategic cooperation.

The cross regional operation of the world footwear industry also highlights new trends.

According to the two sides' agreement, AOKANG will win the global brand management rights of wanwade. The latter's global brand marketing and product manufacturing are all operated by AOKANG; wanwade is pformed into a R & D department, which mainly provides product R & D resources, technology and legal support, and helps AOKANG build an international R & D center in Italy.

In January 9, 2008, as the footnote of this cooperation, Wanli Wade opened its first flagship store in Shanghai in China. It is also a store run by AOKANG.

AOKANG plans to launch 130 wanwade stores in China in 2008 and extend its tentacles to Singapore, Japan and Russia.

Wang Zhentao revealed that all the stores in Italy, except for the local market, will be owned by AOKANG in the future.

"These stores will sell two kinds of shoes later, one is AOKANG, the other is Wanli Wade."

At the same day, neither side was willing to disclose the price of the cooperation.

Wang Zhentao also stressed that although China's sales agency relationship with Italy GEOX brand is about to end, GEOX has already promised that AOKANG will continue to be the world's largest producer of GEOX.

Direct merger and acquisition within 10 years will not touch brand ownership.

Experts said that the acquisition of brand management rights is a brand acquisition, is unable to achieve the overall purchase of choice, often in luxury goods, such as LVMH to buy Dior perfume, cosmetics series, L'OREAL to buy Armani perfume, cosmetics series, "and the overall acquisition is only one step away."

In response, Wang Zhentao responded with "good play is still behind."

He said on the same day that the duration of the cooperation is 10 years, but it certainly can not take so long. The mode of cooperation will change.

In fact, he predicted at the end of the year that in the next 5-10 years, some top footwear brands such as Italy and Spain will merge for Chinese shoe enterprises. The traditional industries, including the footwear industry, have been on the decline.

For Dr. Armando Arcangeli, President of Wanli Wade, it may be a more sensible choice to hand over the future of an enterprise to a Chinese partner than a daughter who has no intention of inheriting a family business.

In addition, Wanli Wade is also expected to have a share in AOKANG's IPO this year.

Does hosting global management and expanding the domestic market affect AOKANG's own brand?

In response, Wang Zhentao said, "the lower end of the Olympic Games, and the two sides will not compete in the international market."

Wanli shoes, priced from 1500 yuan to 3000 yuan, belong to high-end brands in Italy market. Bailey and Hollywood star Kevin Costner are all in favor of the old manufacturing enterprise, which has been established for more than 40 years, enjoying a high reputation in Europe.

However, as the focus of world footwear industry shifted from Europe and North America to the Far East in 1980s, China became the focus of the world shoe industry pfer.

Wanli Wade, like many European peers, has almost lost the ability to expand independently.

"We can't imagine that without AOKANG, we can carry out large-scale sales all over the world."

Arcangeli said.

"Backdoor listing" curve into Europe, Wang Zhentao said that alliance Wanli Wade is equivalent to "backdoor listing" for AOKANG, finding the fastest shortcut for AOKANG's internationalization strategy.

This will help AOKANG develop the EU market, which is still a piece of ice, and make AOKANG shoes go further with the help of the platform.

From the initial OEM to later China brand agent of Italy brand GEOX, and then to Wanli wade to win its global brand management rights, AOKANG's competitive relationship with international brands is deepening.

Wang Zhentao said that AOKANG could intervene in Wanli Wei as an international strategic investor, and for the first time led the "right to speak" in Sino foreign cooperation, to a certain extent, on the basis of the rapid development of China's footwear industry and the growing confidence of AOKANG in giving international brands.

"Europe, which has been occupying the high end of the industry, is in fact weak in competition, and the shoe industry in China is catching up with the European market."

Yan Feng, a professor at Shanghai Jiao Tong University, said.

It is understood that China is already the world's largest footwear producer, exporter and consumer country, accounting for 68% of the world's market.

Chinese manufacturing enterprises with global sourcing and global sales capabilities have begun to expand the new path of "westward development".

For Europe's competitors, Wanli Wade's introduction of AOKANG is like "leading the wolf into the room".

In October 7, 2006, the European Union formally launched a two-year anti-dumping duty on leather shoes originating in China, in an attempt to block Chinese shoe companies from outside the country's doors.

However, AOKANG actively respondent and respond in a variety of ways.

The AOKANG managed Wanli Wade, also let the European Union's anti-dumping enterprises graphics are nominal.

By way of wal Wade, AOKANG will seize the European market.

"AOKANG wants to go out, trust the international brand like Wanli Wade, enhance the brand of AOKANG by" backdoor ", and ultimately sell AOKANG's own brand.

AOKANG group responsible person stressed.

AOKANG has always been famous for its unpopularity in China's footwear industry, both at home and abroad.

Now, the cooperation between AOKANG and Wanli brand is once again showing a difference. This is undoubtedly a new breakthrough for the Chinese manufacturing industry, which is still puzzled by "China design" and "China created".

"Can we find another way to make use of the existing brand resources, the replacement and integration of industrial manufacturing and marketing network advantages, and go out of the new road to create a world brand"?