Ｔｈｅ Ｓｐｉｒｉｔ ｏｆ Ｗｅｎｚｈｏｕ

ＨＯＮＧ　ＺＨＥＮＮＩＮＧ

A “can-do” attitude is still the basic fuel of entrepreneurial action in Wenzhou. New

concepts are combined with

reliable conventions,

stimulating innovations that help their businesses solve practical problems.

AS soon as the policy of reform and opening-up began to unfold in China, the tough and shrewd Wenzhou people began to actively test the implications for business and trade. At first, they just sought inconspicuous jobs like cobbler, barber or peddler – much like their counterparts in other parts of China. Gradually, though, people found more and more retail operations, especially clothing and electronic stores, were being run by the Wenzhounese. Various kinds of products made in Wenzhou also flooded into the market. Such phenomenon made people take notice. Curiosity became admiration of Wenzhounese cleverness, and their big fortunes.

Start Bit by Bit

In Wenzhouneses eyes, there is neither lowliness nor nobleness in careers: the difference that matters is whether your occupation is profitable or not.So these commercial adventurers leave home for every corner of the world, take over almost all the jobs neglected by the local people, and quietly become rich.

Wenzhou people dont start a business, they grow it. They spare no effort to do a good job as long as the outcome is a profit. They are the makers of buttons, labels, toys and other small commodities that can be found throughout the country. Narrow margins dont worry the Wenzhou people, only missing a chance to make money. They also know small commodities can find big markets.

When running a company, this determined populace has also gained a footing by concentrating on the business – service or product – that the area lacks. Typical examples are hardware and electronic appliance factories in Yueqing County, button production in Yongjia County and small commodities in Cangnan County.

The farsighted Wenzhounese do not stop at marketing items that are easy to ship and turn over. After they accumulate capital, they expand the garment business to textiles, or the appliance product to a complete set of equipment, even taking on real estate markets and the intangible goods of the financial industry. All their businesses flourish.

Never Self-satisfied

The development of Wenzhou itself has gone through three phases. The economic boom of the first phase in the 1980s mostly relied on small-scale private operations. The vigorous trade of this period not only stimulated the processing industry, but also broke down the barriers between the socialist and capitalist economies – territory long disputed in China. During the second phase, businessmen in Wenzhou strove to transform the extensive start-up phase to an intensive operation phase and develop a scale economy and integrated operations. Now the third phase of innovation is ripe for development: its the era to emancipate peoples minds, explore the marketing territory in quality issues, and innovate technology.

Along with the different economic strategies they adopted, Wenzhou businesspeople have also improved and transcended themselves, both materially and ideologically. A past saying described them as“By day, chairing the board; by night, sleeping on the floor boards.” Now the second half of the saying has changed to“by night, gluedto the blackboard,” which means todays businessmen attach great importance to learning. The Wenzhounese are conscious that the more knowledge you have, the more money you make.

According to the Smiling Curve theory, however, Chinese companies are always in the lowest position of the value chain. In recent years, companies in Wenzhou began to change this trend by taking advantage of geographic location, capital and technology. They transfer production to other places while focusing on in-house R&D and marketing – the two high ends of the Smiling Curve. A case in point is the clothing company Metersbonwe, which, by outsourcing production and leading off with the virtual operation in China, has surpassed expectations.

A “can-do” attitude is still the basic fuel of entrepreneurial action in Wenzhou. New concepts are combined with reliable conventions, stimulating innovations that help their businesses solve practical problems and meet new targets. What gives the Wenzhounese such a high profile is that they are never satisfied with small, tidy fortunes. While their ambition has colored their city with passion and energy, their broader vision ensures the business community is expanding briskly and wisely.

Wisdom and Cooperation Pave the Way

In this new phase of development, Wenzhou continues to benefit from its initiative, but should focus on wisdom as much as on bravery. It is said their commendable courage is based on creative destruction, but the modern age requires a business wisdom that meets the demands of creative construction.

Thanks to the survival skills they developed meeting crises and hardship, people in Wenzhou are forever blessed with a mental resilience that has made their cooperative strategies renowned. Indeed, their social networking and “economic brotherhood” seems to make them indomitable.

Examples of successful Wenzhou management abound. Enterprises that implement virtual operations are also adapting “the bucket principle of economics” to leverage their advantages and mitigate their disadvantages, achieving improvements through complementarity and synergy. Lin Dong from Greenfull Group has integrated both real and virtual components to form a non-competitive and mutually beneficial alliance. Another example is Hazan Corporation. This transnational private “workplace” integrates teams and functions from all over the world into real global cooperation.

International virtual operations require a global vision and an ability to source and allocate resources worldwide, as well as the skillful utilization of technology like the Internet to build in added value. The current financial crisis doesnt appear to prevent Wenzhou people from stepping up to the plate to meet these challenges, armed, as always, with their legendary commercial and social savvy.

HONG ZHENNING is vice-president of the Wenzhou Social Sciences Federation.

Link: Related Publications

A total of 1,716 books about Wenzhou are available on dangdang.com: 224 titles in business management and 221 titles in literature.

The Fearsome Wenzhounese

Authors: Jin Hui and others, published by Writers Publishing House, 2004

Some quotes: Wenzhou folks are merchantile at birth, with strong commercial awareness in their blood…. These words are often heard when Wenzhounese are mentioned. They nose around here and there and always sniff out business opportunities. They are enterprising in thinking and even more so in action. They are both very experienced and reputable in commercial activities.

Actually You Dont Understand Wenzhounese

Author: Bai Huihua, published by Tuanjie Publishing House, 2005

An encyclopedia about Wenzhounese probing everything, from their regional culture, political background and lifestyle, this book traces their rise in the commercial world through a comparison with Jewish merchants and businesspeople in other parts of China.

How Wenzhou Merchants Make Money

Author: Jin Long, published by Culture and Arts Press, 2006

What is the Wenzhou commercial spirit? A willingness to take on any role, be it a boss or a legman, the courage to question theoretical knowledge and established rules, a focus on details, a readiness to milk any opportunity no matter how small, self-confidence when challenging giants, a sharing spirit, strong hometown ties, and last but not the least, an ambition to sieze the brass ring.

The Different Thinking of Wenzhounese

—What Makes Them Rich?

Author: Yang Hongjian, published by Shishi Publishing House, 2007

Wenzhounese have an insight different from yours; Wenzhounese have courage different from yours; Wenzhounese have connections different from yours; and Wenzhounese have an approach different from yours.

How different? Read this book and you will be in the know!