Path Study Of Kangnai Group Ltd.’s Transformation And Upgrading

In recent years, with the dramatic changes of domestic and external situation inpolitics and economy, transformation and upgrading has become one of the mostfrequently mentioned hot topics in domestic government and the business community.Economic transformation and industrial upgrading have also become thehigh-frequency words nowadays. Enterprise transformation and upgrading is thefoothold in the micro-level of economic transformation and industrial upgrading.Private enterprise is not only an important part of domestic economy and modernsocial production, whose transformation and upgrading as well as rapid developmentis inevitable requirement of our country to change the economic growth mode andstimulate domestic demand, but also their own needs to break through the limitationsin the development and enhance the competitiveness. Affected by the global financialcrisis, Wenzhou private lending crisis burst out, which further accelerated financialreform as well as the transformation and the development of Wenzhou privateeconomy. Wenzhou shoe industry cluster, whose transformation and upgrading affectsthe sustainability of Wenzhou economic development, is an important part ofWenzhou private economy, and the path of its development needs theoreticalguidance.The research object of this paper is Kangnai Group Ltd., which is therepresentative of China’s footwear enterprises as well as one of the mostrepresentative private enterprises in Wenzhou. In the process of the transformationand upgrading of Kangnai Group Ltd., the enterprise has gone through every period ofChina’s shoe enterprises’ development since China’s reform and opening up fromscratch, from no brand to create brand, from products introduction to imitation, fromlow cost to differentiation, from the domestic market to the international market, frombrand image building to brand internationalization. The enterprise has experienced afull range of development and change in technology, brand and market. KangnaiGroup Ltd. develops step by step from a small shoes workshop to a large corporation whose employees increase from less than ten to tens of thousands. It has made rightstrategic decisions in each of the key moments of its transformation and upgrading.This paper reviews the four important stages of the company’s development since itsfoundation, and puts an emphasis on the path of its transformation and upgrading toin-depth analysis from the year of2008to2012. Currently, Kangnai Group Ltd.launched the brand strategy and put brand promotion as a starting point to introduce atop brand of leather shoe named Kangnai Family, in order to carry out the overalltransformation and system upgrade of the enterprise. Kangnai Group Ltd. has takenthe way combing branding capability expansion, market power expansion andtechnological capacity expansion in the exploratory phase out of its transformationand development. Kangnai Group Ltd’s measures and practices have many highlights,which help the enterprise achieve tangible results, maintain rapid advancement andkeep a high growth in turnover.On the basis of reviewing domestic and foreign theory as well as the present pathstudy of enterprises’ transformation and upgrading, the thesis studies the path ofKangnai Group Ltd.’s transformation and upgrading to find out its success factors, inorder to explore the path and the direction of China’s footwear enterprises’transformation and development. It brings forward a conclusion that provides usefulreferences for large and medium sized footwear enterprises’ transformation andupgrading.