Economy
Kangnai Group cobbles an international footprint
By Xiao Wang (China Daily)
Updated: 2010-05-04 07:45
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The shoe business, Kangnai Group, located in Zhejiang province plans to build about 35 new stores abroad in 2010, said Zhou Jinmiao, vice general manager of the group.
 Kangnai was one of the first Chinese shoe brands to open stores overseas. [CFP] |
Kangnai was one of the first Chinese shoe brands to open stores overseas.
In the late 1990s when other players in the industry were worried about what accession to the WTO would mean for their businesses, the company's founder Zheng Xiukang saw it as an opportunity to push sale of their Chinese brand shoes abroad.
In 1998, the group established an international trade department to explore its prospects overseas.
The group opened its first store outside China in Paris in January 2001. Since then Kangnai has opened over 200 stores in Rome, Milan, Paris, and New York, and founded its own branches in the US and Italy.
The specific store locations have gradually migrated from at first being located within the Chinese expat communities to now being within the main shopping areas.
During the global financial crisis, Kangnai continued to grow in Europe and the United States.
In 2008, Kangnai's overseas business surged by 45 percent.
In 2009, the overseas stores contributed $21 million to the group, more than a 10 percent increase compared with the previous year.
Zhou attributes Kangnai's sound performance during the crisis to the high quality but low price, and its long-term commitment to international consumers by researching and developing desirable products.
Zhou said that a studio staffed with designers from China, Italy, and Spain was established in order to produce styles to suit tastes in different parts of the world.
It has also partnered with SATRA, a British shoe research institute, to develop the best shoe-making techniques.
The two-pronged strategy of catering to domestic markets as well as setting up overseas has played an important role in guaranteeing sustainable growth.
Now, nearly 90 percent of Kangnai's sales revenue is from the domestic market.
"We will take more effort to consolidate our advantages in the domestic market. Now a lot of international famous brands are aggressively heading to China, which will increase competition in the domestic market," said Zheng Xiukang, chairman of the company.
Last July, three items representing Kangnai's expansion, including a model of its first overseas flagship store, were collected by the Chinese National Museum, since they reflect "achievement of Chinese private enterprises' internationalization strategy", said museum officials.
Zheng said Kangnai would continue to improve its brand value through its international operations.
