subject: Traditional Sme International Business Case Analysis [print this page] Wenzhou Eastern Art Shoes Co., LtdWenzhou Eastern Art Shoes Co., Ltd. (hereinafter referred to as the East or the East Art Shoes Art) predecessor, was established in June 1986 the shoe factory in Wenzhou Dongfeng process, the then East Arts, A Roof, under no inch of land, registered capital of only 4.6 million, a dozen employees, more than 20 pairs of shoes daily production, product unknown without a license, only a small cottage. Today's East Arts, with a 20 thousand square meters of factory building, up to 110 million yuan of fixed assets; Today's East Arts, the device has already been "Niaoqianghuanpao" --- invest 3,000 million constantly updated equipment, it has been has more than 800 sets of equipment, eight modern leather lines. Among them, the company's former Italian Mo Nina helping plane after plane to help, Wenzhou shoe industry is a rare device, and the introduction of mechanical equipment is Wenzhou shoe first, best, most one. Today, East Arts Shoes has grown sales over 300 million yuan for the big shoe companies selling products in Russia, Eastern Europe, Japan, Korea, Southeast Asia, several countries, a small amount of exports to the U.S., Jordan, Western Europe and other countries, and far off Central Africa, South Africa, to become the largest footwear industry of Zhejiang, one of the country's exports of footwear and large foreign exchange large. The new century, the East arts shoes also planning 260 acres of land and establish a new industrial park east arts to build China's "shoes." East Art of the development objective is to do shoe master, create world famous brand. A private small business, how to conduct international marketing "stabbing outside the Country" in to achieve such outstanding performance? Valuable entrepreneurial experience that?
Case Comments: to effectively perform comparative advantages:
East Arts Shoes successful international marketing of important stone.
For most industries in developing countries, in order to successfully carry out international marketing, it is important to effectively perform comparative advantage, with superior performance and low cost to gain market. East Art shoes as our traditional industries, and Italy, advanced shoe-making enterprises which, not only do not product superiority, but do not have any edge technology, the East Art to create a favorable foundation for the international market is to give full play to compare edge, forming the direct product price advantages, excellent cost performance is constructed so as to obtain the international market acceptance. In the Russian market, the East arts shoe products in the performance of other similar international products with almost the same, but its price is low by half.
The comparative advantages of East Arts are:
(A) the cost of labor advantage in shoe form, the highest proportion of labor costs, the East Art of the employment policy is: 90% of labor force "imported", that is, most of the East arts shoe from the domestic labor force over the western underdeveloped areas. Dual labor advantage, led the East arts footwear products in the international market, significant price advantage.
(B) of the industrial chain advantage chain advantages, mainly that due to the division of labor within the industry to form the final product of the total cost reduction. Wenzhou has a long history of shoe production as early as the Ming Dynasty 400 years ago Jiajing, Lucheng's shoes had been classified as imperial tribute. After reform and opening up, China Wenzhou shoe is traveled north-south river. Around the shoe manufacturing, shoe manufacturing industry, raw hide of industry, footwear industry, hardware accessories, footwear design industry and many other related species of a mature industry, Wenzhou form a good chain. As the industry chain in the industry kind of division of labor relative to each industry kind of proficiency to achieve very high, creating a high labor productivity, and eventually the shoe falling prices. East Art shoe chain gained advantages, making products in the international market with significant price advantage.
(C) the scale advantages of scale advantages, mainly that due to the formation of mass production and lower production cost advantages. As a shoe company, how to more varieties of small batch production requirements into a large number of less and better varieties, and is an important advantage for large-scale way. East Art shoes since its inception, on the one hand positioning on the mass consumption of products through active marketing constantly improve shoe production, the other by the formation of competitive products, eventually forming a clear scale advantage. Scale has obvious advantages of its products a price advantage.
(D) the specialization of production advantages of East Arts and shoes since its inception, engage in any diversification, limited funds will be fully invested in shoe technology improvements, not only formed a professional production equipment, has formed a production equipment the scale, the direct increase of labor productivity, reduce costs, and ultimately the formation of the East arts products in the international market price. This is the business of many of our traditional industries an important way to enter the international market. Flexible marketing strategy: the success of East Arts Shoes important means of international marketing
Enterprises to develop international marketing, the basic pattern is: first domestic, then foreign production of excess is the road leading onto the main international motivation. However, the Eastern Art of the model are: export mainly sold, after first resisting foreign aggression, internal security, the initial start actively seize the reform and opening up on international marketing opportunities in international markets, and then expand the domestic market, It can be said to run small businesses in our country an international marketing, innovation, and its biggest feature is flexible.
Lost no time in seizing the opportunities of international marketing
East Art Shoes to the international market, we should say by chance from the very beginning. One day in 1992, a return to Wenzhou businessmen to visit relatives, when he saw the shoes produced by the Eastern Arts, the temptation exclaimed: "So why not export it good shoes?" Back to Hong Kong, the Hong Kong business immediate contact with the Belgian businessman export matters. The quality of the East Arts shoes have been endorsed by the parties trade, instantaneous East Arts shoes have received export orders, export that year reached 1.3 million U.S. dollars. A taste of international marketing of the "happiness" East Art will give up the domestic market and further develop and concentrate on the international market began to expand activities. East Art of innovative international marketing model is based on the profit-driven, rather than seeking to establish in the usual way on the basis of excess product. This is the East arts entrepreneurship starting point and destination point. Today, the question: What are your business is so great, why the market has not seen a pair of shoes do the East Yi? This issue is also a good indicator of the East Arts International marketing innovation in this new model, that is export oriented, first resisting foreign aggression. A good grasp of international marketing opportunities, and be pioneers.
