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This once impoverished county-level city created wealth at an alarming rate. Of the 2011 Hurun Rich List of 1,000 people, 14 were directly from Jinjiang, almost all related to shoes and clothing, and Anta Sports’ Ding Shizhong family assets were as high as 145. Billion, special-budding water wave assets reached 5 billion, and the family assets of the Peking Jingnan Family and 361° Ding Wu also reached 4.5 billion and 3.1 billion respectively.
In early March, 42-year-old Ding Shizhong, president of Anta Sports, participated in the “**†for the fifth time as a representative. He said that from the "micro" to "small" and from "small" to "large", different stages of growth have different annoyances.
Almost at the same time, the American basketball legend Michael Jordan sued Jordan Sports to the court, accusing this well-known shoe company in Jinjiang waiting to use its name as a registered trademark without authorization.
"Shanzhai" and "Yongfu" are not a fresh "trouble" in Jinjiang. There is not only Jordan, but also Yao Ming, Kobe, and King Addi.
After the financial turmoil in 2008, the volume of foreign trade in Jinjiang's footwear industry has been drastically reduced. Orders for foreign brands have largely shifted to Burma and Cambodia. The domestic market is experiencing severe overcapacity. The rising labor costs and shortage of funds have made it difficult for many shoe factory owners. Follow.
In two or three years, hundreds of shoe factories collapsed in Jinjiang. In terms of wealth alone, in 2010, the assets of the Ding Shizhong family, the Ding Shuibo family, the Xu Jingnan family, and the Ding Wu family were also 21 billion, 8 billion, 6.8 billion, and 7 billion.
“Not only is the shoemaking industry in Jinjiang, the golden period of the entire manufacturing industry has passed.†A shoe factory manager who has been in the footwear industry in Jinjiang for over 20 years laments.
Ding Zhihao, a wealthy shoe and clothing company of Tsao Shangshang Road, has a history of 23 years. Now there are more than 300 workers and it is a medium-sized scale in Jinjiang. He is located in the town of Doutou Village in Chenjing Town, which is equivalent to a shoe wholesale market. In addition to finished shoes, there are also various shoe companies such as insoles, shoelaces, shoe uppers, and leather in front of the street. China's shoe industry center is in Jinjiang, and Jinjiang's center is Chen Yu.
Ding Zhihao introduced that at the end of the 1970s Chen Xiaozhen began to have one or two small shoe factories. Most of them were established by the villagers in order to make a living partner. Several scissors, several hammers, and several sewing machines could be started.
361° founder Ding Jiantong was the earliest batch of shoes for Chen Yin. He relied on farming, fish catching, and helping people to raise stones to support his family. Four children did not go to school, and they were sent to the shoe factory as apprentices. In 1981, Ding Jian raised two thousand dollars and bought tools and raw materials. Together with four children, he built a small family workshop in his living room and produced five pairs of shoes a day.
In the words of the local people, only a few hundred dollars was spent on the hand and dare to open a factory to do business. Even if it fell, it would be at least spelled. The Southern Song "Love will fight to win" is to describe them, and Jinjiang due to long-term poverty, lack of resources, even more so.
Like Ding Jiantong, Jinjiang shoe dealers have almost the same family history. Around the 90s of last century, sports shoes entered the era of “laying can make moneyâ€, especially for Nike Addi, so that local people saw the financial road of the sports shoes market, shoe business began to become a wind.
Anta founder Ding Shizhong brought 10,000 yuan and 600 pairs of shoes borrowed from his home to Beijing for marketing. Peak King Xu Jingnan plans to use a pull cart to save his savings to open a sports shoe factory. The 17-year-old Ding Shuibo and the two brothers joined together to invest 500 pieces and set up a shacks in a small river near Chendai to produce a dozen pairs of slippers every day.
Different from other business groups, during the Ming and Qing dynasties, the refugees in the South China Sea and the south of Fujian Province were mostly in southern Fujian Province, while the southern Fujianese people's complex in local areas allowed them to communicate with the outside world more easily and the information was more open.
The owner of a local underwear company only knew that women would wear bras because of the return of their overseas Chinese sisters. He asked his sister to take down a study and discovered that it was a good daily necessities. So he took 50 sales to the street and grabbed it. Then he began mass production of the factory and gradually became bigger.
Lv Qinghua, a professor at the Overseas Chinese University Business Research Center, believes that the commercial genes of the Fujian people were sown abroad and then germinated in the country. The first generation of shoe entrepreneurs in Jinjiang will inevitably have a grassy atmosphere. Similar to Jordan's strategy of using celebrities as a trademark, it is only the tip of the iceberg. It is also doomed that the shoe traders in Jinjiang need two or even three ventures to make the transition from businessmen to entrepreneurs.
Ding Zhihao of the brand took over the family business at the age of 15. “At that time, we had fewer books to read. Some people even started to write factories with their own names. When they did branding, I was a child and the prices were not good enough.
The era in which the sports shoe industry lay “making money†is also when the first batch of well-known brands in Jinjiang emerged. In 1994, Ding Shizhong put the Anta logo at the door of his workshop for the first time and became the "first person to eat crabs."
Immediately afterwards, Ding Jiantong established Buick Footwear Co., Ltd. (it was renamed 361° because of a conflict with Buick Motors). Xu Jingnan was thinking hard about why Nike and Adi were so expensive and someone bought them. He tapped his thighs and decided to name the shoes he produced as "Pick."
Before and after 2000, Wu Rongguang founded "Hongxing Erke," and Ding Shuibo created "Extrastep". Ding Guoxiong integrated a collective unit affiliated with the village committee into "Jordan Sports."
Jinjiang's brand strategy was later dubbed the "advertising sponsor + celebrity endorsement + cottage" model. In 1997, Anta first landed on CCTV. Two years later, Kong Linghui was signed as the spokesperson. Later, Chen Xiaochun, Twins, Nicholas Tse, and Shane Battier successively signed contracts with Jinjiang shoe companies. In the 2006 World Cup, 25% of CCTV5's advertisements came from the Jinjiang brand and were dubbed "Jinjiang Channel".
In 1999, Anta, which was just starting up, signed a contract with Kong Linghui for 800,000 yuan, and 3 million for CCTV advertising. Later on, the sponsorship of the China Basketball League alone would cost 40 million each year.
In 2005, Xtep spent 8 million yuan to become a sponsor of the Nanjing 10th National Games. When negotiated, it was reported that the Japanese sports brand Mizuno had to bid 10 million. Ding Shuibo, who had just left Nanjing, flew back and raised the price tag to 15 million, and spent 1.2 million to buy the franchise.
"Cottage" is another way to open a brand. Quanzhou's commercial streets can be seen everywhere like Levi's Levi's store and the cottage Armani's Amani store.
"Jordan has been doing for many years. In fact, everyone has similar quality. It is a typical Jinjiang shoe company. Jordan can see the shadow of a group of Jinjiang shoe companies. As long as there are Nike, Jinjiang will have Peak, King Lake, Fink. Buick, there are special steps with Reebok, Hongxing Erke's trademark is also changed from Mizuno." A local shoe dealer said, "Their idea is actually very simple, is to do visibility, first open the visibility, other things to say, Taking a step forward, this approach has really started to work."
There is a saying in Quanzhou, "big ride dragon riding a tiger, gall bladder riding a cat riding a rabbit." Cost of 4.7 million invited to Xie Yufeng endorsement of special steps, and soon set a single product sales of 1.2 million pairs of shoes sales. Anta's stores reached more than 2,000 in 2004 and reached 4,000 two years later. Hundreds of millions of copies of the total assets of the Peak, the advertising hit Yao Ming effectiveness of the Houston Toyota Center, a few years time sales exceeded 1 billion. Even after changing the name of 361°, the market share has already ranked among the top five in the country.
Lv Qinghua believes that the well-known shoe companies in Jinjiang can be said to have achieved great success in establishing a brand. Even if there are hidden dangers and blindfolds, after all, there are several well-known shoe companies and a number of outstanding entrepreneurs. However, as low-end consumer products, initial visibility is easily digested, and the follow-up visibility of these companies is generally insufficient. Unmatched product, service, and corporate image are fundamental issues.
“If companies have passed the brand threshold, they cannot stop them,†said Lu.
The capital fandom is the same as many traditional Chinese business men, and the merchants have the tradition of inheriting their fathers. Ding Wutong’s son Ding Wu had taken over 361° years ago. In 2000, 45-year-old Xu Jingnan took his eldest son Xu Zhihua back from Huawei, and Peake entered the Toyota Center. It was from Xu Zhihua's idea.
“There are many companies with hundreds of millions and billions of enterprises in Jinjiang, but there is almost no going further. They have a natural resistance to capital operation, especially for stocks and real estate, and they only have money to open factories. Most people’s ideas Even if it is at a loss, at least the factory machinery is still there," said a manager of the raw materials business in Jinjiang. His assets are close to one billion, but he has never considered listing since "own funds are fully operational, once the listed company is someone else's", he said that if the land is bought, it will only cover the rental of the factory.
Until 2004, Ding Shizhong, who spearheaded the listing, still felt that Anta did not lack money. There was no need to bring the company into the capital market and even resist foreign investors. Ding Shizhong later said that the listing of Li Ning made him realize that he must make another big step and must break the stereotypes of family businesses.
In 2007, Anta listed on the Hong Kong Stock Exchange at an offer price of HK$5.28. Before and after the 2008 Beijing Olympic Games, Jinjiang shoe companies entered the capital market one after another. Xtep, 361°, and Peake were successively listed in Hong Kong. Hongxing Erke and Hi Delong went public in Singapore. For several years, the listed companies related to the footwear industry in Jinjiang rapidly expanded to more than 20 companies. If it is not because of infringement lawsuit, Jordan Sports will also land on the Shanghai Stock Exchange this year.
"The pull of sports events on the industry is certainly there, but it is not that big. It does not belong to national fitness. It should be said that the overall business trend of the industry is forcing these enterprises.** The boundaries between sports shoes and casual shoes are increasing. The more obscure, the more fashionable and cost-effective brands like Uniqlo and H&M have a great impact on traditional sports brands, forcing them to inflate,†commented one executive who was involved in the preparation of listings.
By 2010, more than 7,000 stores have been listed after the listing of Anta, Peak, and 361° stores. "For people in our industry, we don't even look at how many branches he has, are they listed companies, and only look at funds and performance." Zhang Wanquan runs a foundry factory in Quanzhou, and many big brands are his customers. He said that if a company has strength or not, it can be seen from the word-of-mouth in the industry. “Now there are problems with the capital chain of many listed shoe companies. Some OEMs are unwilling to cooperate with them, including raw material suppliers. They must pay cash, and only a few funds are benign."
"The Hongxing Erke store in Shangxiajiu in Guangzhou can cost 4 to 5 million a year and lose 2 to 3 million. The store must be advertised first. Think about how many pairs of shoes can be sold in one day's rent. Earn back, the more market conditions are not good, the more forced to open more, do not rule out the future of some shoe companies listed to ** circling money." Zhang said.
In early 2011, Hongxing Erke was suspended by the Singapore Stock Exchange for financial issues and became the first failure case of Jinjiang's shoe capital operation.
Jinjiang-style turned Ding Zhizhong complained in Beijing: “The national brand that grew up competes with international brands in the same domestic and diplomatic difficulties, and the esteem of shopping mall channels makes domestic footwear and clothing enterprises represented by Anta feel unfair.†Xu Jingnan is in trouble. The importance of "building an international brand and opening up the international market". The Hongke Erke, a financial crisis, directly reduced physical store investment and turned his attention to online sales. Ding Shuibo relocated Xtep headquarters to Xiamen, and believed that it was “closer to international talents and marketsâ€.
In 2010, Anta acquired FILA, a 100-year-old Italian sports brand. Ding Shizhong excited afterwards that he had always wanted to own a brand in the high-end field.
Tan Ke, an analyst of Dongxing Securities' textile and apparel industry, believes that the convergence of the Jinjiang brand's positioning and operation model leads to their own lack of features, and there is little difference in their capabilities. The latecomers are familiar with the success of the first-line companies and can quickly catch up if they can grasp the opportunities for growth in the industry. When the industry entered the adjustment period, the competitive landscape was solidified, making it difficult for these brands to produce true breakouts.
From opening workshops, brand building, to listing and internationalization, Jinjiang shoe companies are almost all completed at the same time, and the mutual imitation between companies has not improved the communication between the bosses. "The relationship between Jinjiang enterprises is basically not much of an intersection. There is neither grace nor resentment. Unlike Zhejiang enterprises, they like to huddle together. Jinjiang companies do each one of their own, and go it alone. The other party can afford it," said a businessman from Jinjiang, who has been in the shoes industry for many years.
Liu Mingyong, an executive who is listed in a shoe company in Jinjiang, said that as a family-owned company, many employers already have the awareness of introducing foreign managers. “But not completely, these managers are not very optimistic about their living conditions. They have a short life cycle. They can't put their hands inside the company. They involve licensing issues, trust issues, regional culture issues, and also involve a company. The concept of home."
Ding Jiantong continued to personally go to the shoe material market to understand the market after the company became bigger. "These bosses are hard-working, hands-on, and relatively low-key, have a strong sense of learning, but often do not jump out of their own thinking circle, even if it is big, there will still be ordinary township enterprises." Liu said. “Similar to the issue of Shanzhai, it is actually a problem of the value of entrepreneurs in a region, and it is related to its living environment. These enterprises may be more likely to do business than those in the regions around Jiangsu and Zhejiang, but they must be a long-term enterprise and be an entrepreneur. May not be as good as Jiangsu and Zhejiang."
A shoe company boss said meaningfully: "Maybe only when the tide ebbs, does he know who wears the clothes and who is naked."
In Jinjiang, entering a shoe street, it is possible to reach a village. In most parts of Jinjiang, the farming population is less than 10%, and more than 600,000 people are living in the shoemaking industry chain. The total output value exceeds 60 billion yuan***.