Background
Zheng Yonggang was born in 1958, China.
永刚 郑
Zheng Yonggang was born in 1958, China.
Prior to joining industry, Zheng graduated with a masters degree from Nanjing University of Science and Technology.
As a young manager, he demonstrated a strong leadership style and created tremendous growth momentum after restructuring an almost bankrupt state-owned clothing factory into the successful Firs Group, Ltd. In the early 1990s Firs Group was best known as a producer of Western-style men’s suits. Throughout the decade, under Zheng’s leadership, the company initiated cooperative agreements with US, French, Japanese, and Italian companies to develop their current offering of 18 brands. The Firs Group plans to have 30 brands by 2010. At the turn of the century, Zheng faced another difficult managerial decision, one that if handled correctly could turn the Chinese-centric business into a global competitor.
The question facing Zheng was whether to move the headquarters of his garment manufacturing company from his hometown of Ningbo, Zhejiang Province in Eastern China, to Shanghai, where the market might be unfamiliar but more amenable to expanding his business. If the company remained in Ningbo, they could continue to take advantage of an established good working relationship with the local government, a key success factor for many growing Chinese enterprises. After much consideration, Zheng relocated to Shanghai. In an interview with the Chinese press, he recalled the difficult choice, noting how the decision represented ‘. . . a battle between an enterprise and the traditional localism’ (China Daily, n.d.) Reflecting back, he celebrated the decision and acknowledged the resulting financial success.
The newly expanded and diversified Shanshan Group reported total assets volume growth from 1.8 billion yuan (US$217 million) to over 5 billion yuan (US$604.6 million) within four years of the decision (2004) and growth continues to the present day. Perhaps more importantly, the company has not only secured its position in China’s apparel industry, but has also reaped the rewards of its expansion into other sectors as well. For example, Shanshan Group is the largest shareholder of Shanghai-listed China-Kinwa High Technology Co. Ltd, which controls almost 17 percent of 9you.com. Never forgetting his local ties, Zheng pursued a goal to open a manufacturing operation in his hometown of Ningbo to produce metal materials used in high-tech electronic products.
Accolades celebrating Zheng’s success include ‘China Management Master’ from the Academic Committee of the Development Research Center of the State Council and recognition as one of China’s ‘National Extraordinary Entrepreneurs’ in 1999. In 2006 Zheng Yonggang, then Chairman of Shanshan Group Co. Ltd resigned his title to par- ticipate in the management of its subsidiaries as a financial investor and to play an essential role in the key decision-making for the conglomerate. This did not stop the magnate from being listed in the 2007 Forbes ranking of ‘The 400 Richest Chinese.’ Ranked at number 219, Zheng’s estimated net worth was $370 million. More recently, he has given invited presentations at the Fortune Global Forum, the APEC Forum, anв the World Economic Forum. In 2007 he spoke at the Singapore Fashion Week confer- ence on his passion for brands and Chinese fashion. ‘By cooperating and partnering with foreign brands,’ says Zheng, ‘China gains capital and experience that will serve as a base from which to launch competitive, global fashion brands from China’ (Lin, 2005).