Santai Town belongs to Anxin County, Baoding City, Hebei Province. It is located on the west side of Xiongan New District and is less than 150 kilometers away from Tiananmen. According to official media reports and public data, Santai Town currently has 3,000 shoe enterprises, with an annual output of 500 million pairs, an annual output value of 20 billion, 30,000 people in the township, nearly 150,000 migrant workers are employed in the local shoe production line.
Santai has the same long history of shoemaking as Jinjiang, but compared with the national brand and monopoly stores that the latter has long been famous for, Santai has long latent in the northern wholesale market and is compared to Jinjiang in the 1990s.
After 2008, the decline of the industry made the radical shoe enterprises in Jinjiang fall into a collective dilemma, but let the conservative Santai see the opportunity. Some bosses began to take advantage of the opportunity to expand their scale and upgrade their brands. Meanwhile, equipment manufacturers, workers and R&D teams flocked to Jinjiang, where even disappointed shoe executives came to seek new development against the haze.
The establishment of the new area has brought the whole Xiongan economy a rare opportunity for development for thousands of years, and has also provided a boost for the transformation and upgrading of the three shoes industry, but the pressure has also followed.
"If the first three drove oxcarts and Jinjiang drove airplanes, now we can say that we have caught up with the high-speed railway." A local shoe business owner hesitated to express his gratitude, but he soon fell silent. "Whether the new area can accommodate the shoe industry, which has been classified as backward production capacity, is now the confusion of all three owners."
If the savage growth of Jinjiang sneakers originated from the imitation of Adinek, then the three sneakers started from "stealing teachers" in Jinjiang.
After 2000, the old equipment eliminated in Fujian has gradually entered three sets. Three shoe factories originally manufactured by hand have begun to have assembly line production, and the output and quality have been greatly improved. Although the first-line brand of Jinjiang is still far from reach, the small and medium-sized shoe enterprises in Jinjiang have now felt the threat from Santai.
Three Taiwan's Counterattack
Since 2010, as long as the price is affordable, the three sets have been able to buy shoes-making equipment and original design synchronized with Jinjiang in the market through formal channels, and the space barrier has been thoroughly broken. At the same time, the domestic shoe-making industry has fallen into a downturn, and the Jinjiang shoe-making enterprises, which depended on the rapid expansion of capital operation in the early stage, have fallen into collective predicament.
In the eyes of three bosses, this once worshipped learning model has become a negative teaching material.
"I've studied Delphi's shoes. They are of good quality. They must have gone bankrupt because the boss was thinking of using them elsewhere." Liu Quansheng believes that the loss of focus during the start-up period is the decisive factor for the decline of Jinjiang shoe enterprises, and dedication is exactly the greatest advantage of Santai.
Incorporating brand breakthrough and industrial upgrading into the next planning has formed a consensus among the three well-developed head shoe enterprises.
In 2016, Tianhong (837702.OC) landed on the new third board and became the first shoe company in the electric shock capital market. At the same time, it invited Zhao Liying to represent its tidal shoe brand. In January this year, Zhao Zhongxiang signed up as the spokesperson for its aged walking shoes brand, which had the largest output of 100 million trillion.
"In the past, we only knew how to make shoes well and how to sell them. In the future, we must be bigger, make brands, develop e-commerce and retail stores, but not too fast, and keep pace with the pace of our products.
” Liu Quansheng believes that the three shoe factories have equalized the domestic midline brand, but he also admits that compared with the first-line brand like Anta, the three shoes are still backward in all aspects. Although celebrity endorsements have been invited, the three bosses still have psychological defense in advertising.
Liu Quansheng does not want to invite celebrities to endorse him for the time being. He wants to do a good job of the product and then sell it again. This process is expected to take three to five years.
Fujian People Drifting North
Technology, design, examples, lessons, after Jinjiang "fall", talent became the last wealth they left to the three sets.
After 2010, the upgrading and transformation of three large-scale shoe factories began one after another. With the expansion of the scale, the family-based management model was difficult to continue. As a result, a large number of senior shoe executives from Jinjiang background were digged into three high-paying shoe factories as the last piece of jigsaw puzzle. Now, 90% of the managers of three shoe companies with more than two production lines come from Fujian.
"The treatment given here is 30% higher than that given in Jinjiang." Ding Wei, a native of Fujian Province, has been engaged in shoemaking industry for 23 years. He has served two listed shoemaking enterprises in Jinjiang. At present, he is the general manager of a relatively large-scale shoemaking enterprise in Santai, namely "the shrinkage of Jinjiang and the expansion of Santai", which made him decide to go north five years ago.
Ding Wei is psychologically prepared for the gap between the two places, but when he first arrived at the three stations, he was surprised by the difficulty of his work. "A dozen workers a day, a dozen a day for three days." It took him a year just to rectify the fight. "Workshop is not standardized, quality is not standardized, process is not standardized, management is not standardized." According to Ding Wei, Santai was at least 15 years behind Jinjiang in terms of enterprise management standards alone.
"I almost know the executives of Delphi and Hyderon. Their bosses no longer want to make money with shoes. They want to make real estate, speculate in stocks and use money to make money." Despite the low start of the three sets and the lack of broad horizons in Fujian, Ding Wei was flattered by the more stable and pragmatic attitude of his boss, his full cooperation with his work and his thirst for talents. He insisted on staying.
After five years of adjustment, Ding Wei's factory is now on the right track in all aspects, with saturated production and sales. "To be honest, I think the three sets have surpassed Jinjiang. There is no difference in quality and technology. The style is updated and the production speed is faster." The three footwear industries, which had a gap of 15 years, developed faster than Ding Wei expected.
"Of course, beyond just refers to Jinjiang as a shoe company in the same market, to become a win-win first-line brand in the factory market like Anta, is a systematic project. From the thinking of the boss to the ability of the whole staff, it needs a great improvement. I don't think there will be such an enterprise in three sets of shoes in ten years." After a moment's hesitation, Ding Wei added a sentence.
In Jinjiang, bosses usually require 30% to 50% performance growth, but in Santai, 10% growth will make bosses very satisfied.
Relocation and upgrading
Relocation is a threshold for the three bosses.
After the establishment of Xiongan New Area, the local shoe factories have not received any definite attitude from the government on the issue of whether to leave or leave the three shoes industry. Like outsiders, they can only get sporadic information from the network.
In the second half of last year, the industrial parks around Xiongan came to Santai to invite investment. Zhang Guoxiang has visited several places. The last time he visited the old town of Hengshui City in early January this year, the county government gave him the policy that the bank should first buy land for him with a loan of 30,000 yuan and one mu. The other construction parks should be planned in a unified way, first paid by the bank, and then the enterprises should start to repay the money and interest.
However, each industrial park requires the scale of the industrial chain to be stationed, which means that only the unified planning under the contact of the two governments can be reliable. His family can not make any decision. On the other hand, there must pay for the land first, in case of not moving, but also have to bear a vacant space.
"Now, there are at least five trade associations related to heels in the three sets." A local shoe business owner said that at the beginning of last year, there was only one loose trade association in Santai. After attracting investment from all over the country, there were differences in where to move. Several big shoe enterprises took the lead and established their own portals.
In the direction of relocation, there are Shijiazhuang Gaoyi School, Hengshui Old Town School and Dingzhou School, while Gaoyi and Dingzhou, Anxin County Government have sent personnel to attend. "As long as the county does not make a clear statement, no one will act rashly." The shoe business owner said.
Compared with Zhang Guoxiang, Liu Quansheng is ready to bear huge losses. "Fifty-one million mu of land without a certificate." Because of the inability to allocate professional land as in the south, the three shoe factories can only occupy arable land in order to expand production. The 20 mu land he bought in the three shoe factories the year before last is "not much money even for compensation".
In Santai, there are still many shoe companies like Liu Quansheng, who have purchased land of different scales and are ready to expand the scale of their enterprises.
“It is a good thing to upgrade the industry in the new area. I will stay in accordance with the policy requirements. If I have to meet certain access standards and investment amount to continue to do business, I will not give up. If I can't do it alone, I will work in partnership. Zhang Guoxiang said that his only wish now is to implement the policy quickly.