How does Schneider Electric tap the Chinese energy

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How Schneider Electric exploits China's energy market interview with Xu Hongyan, senior vice president of Schneider Electric worldwide and senior vice president of the energy division of Schneider Electric (China) Co., Ltd.

China's energy conservation and emission reduction policies contain great opportunities

China's population growth, economic development, energy reduction, carbon dioxide emissions, environmental pollution, etc., have put the topic of energy conservation and emission reduction on the agenda, So I am particularly confident

q: the adjustment of China's policies now has a great impact on high energy consuming industries. In the future, more high energy consuming industries may be eliminated. What impact will this have on Schneider Electric

a: I think this has two advantages for us: on the one hand, from the perspective of our traditional end-user, he is the user. He buys Schneider Electric's power equipment, and the product quality is reliable and guaranteed, which is the most important. All our switches and equipment may not be used for ten or twenty years, but at the moment of using it, it must and will work. Second, although the current market is under great competitive pressure and price pressure, traditional high-energy customers are more willing to choose Schneider Electric for the consideration of products and services, and for the requirements of energy conservation, emission reduction and high quality in policies. From the perspective of Schneider Electric, energy conservation and emission reduction do not rule out new technologies, but we advocate achieving higher results with fewer resources. For many existing technologies, we believe that optimizing them is a way to achieve environmental protection. China's population growth, economic development, energy reduction, carbon dioxide emissions, environmental pollution and so on have put the topic of energy conservation and emission reduction on the agenda, so I am particularly confident

q: on the whole, is energy conservation and emission reduction a simple cost or a rewarding investment

a: in Europe and the United States, there is a relatively mature business called energy management service contract. Its concept is that customers do not need to invest in replacing energy-saving equipment, but Schneider Electric will invest in replacing it, because we can estimate how to replace it and how to optimize it better. After the investment is completed, the enterprise can give the saved expenses to Schneider Electric. This process may take ten or fifteen years. This is a mature business of Schneider Electric in Europe and North America. When we started this business, the cost saved has exceeded the input cost, and this transformation will be completed in ten or fifteen years. All the remaining income is the income of end users, so the investment in energy conservation and emission reduction is rewarding

q: what are your priorities in 2014

a: the most important thing is business growth. This is divided into two aspects: first, our advantage is that we have a complete global network. On this basis, Schneider electric energy division how to use its technical advantages or sales advantages to achieve business growth. In fact, there are many growth points for China's economy in the future. For example, China still has a lot of investment overseas. Under the business model of overseas investment, foreign-funded enterprises such as our single screw extruder have been relatively perfect in recent years, but they still have certain advantages, because we have a large number of networks in the world. Second, we need to find a better position in this market segment and then work hard. In addition, localization is also very important. Localization also includes our R & D work, such as the integrity of our production line, which is a continuity

q: what are the new development plans of Schneider Electric Energy Division in 2014

a: there are four points: first, determining our growth point in the case of market segmentation depends on the layout of sales, products and production. We will take some specific measures around growth in the above three aspects. The second is research and development. First of all, we should quickly adapt to the needs of the Chinese market and implement our products. The second is forward-looking research and development, that is to say, by using our global resources, we can develop cutting-edge technologies and products that lead the Chinese market in the Chinese market. Third, our overall engineering design and project management should be constantly bidding and optimized. Because we believe that the process of integration is the process of constantly improving our own ability. Schneider Electric has two core words this year, one is to improve capacity, the other is to achieve optimization, which are inseparable. Finally, in terms of our overall production control, in addition to balancing the production ratio, we should also constantly improve product quality and continue to make technological and production modifications

q: what is Schneider Electric's localization strategy in China

a: I have worked in other foreign enterprises before. Schneider Electric is at least the best localized foreign enterprise in my personal experience, which can be reflected in many different aspects. First, from the perspective of management, the senior managers of Schneider Electric China are all Chinese. Zhao Guohua, the global president of Schneider Electric, spoke Chinese when communicating with many Chinese government officials, which is actually a representation. Second, the core competition is that they will enter the localization of thousands of households. For example, the hvx series vacuum circuit breaker produced by Xiamen factory is also produced in China. The third is R & D. Many multinational companies use Chinese resources to make improvements, or support global R & D on R & D platforms. Schneider is one of the few large manufacturers of bridge parts in the United States. The so-called Chinese original and Chinese R & D positioning of de Electric is two parts: first, grasp the unique needs of the Chinese market, use Chinese R & D to respond to the needs of the Chinese market, and transplant the global R & D technology to make some improvements; The second is to get some unformed ideas developed abroad, that is, our original patents, to land in China first, that is to say, the first generation of my innovative products is in China. In other words, the Chinese market is defined as a complete and systematic ecosystem, from sales to production to design to R & D, and the optimized technical products are invested in China

q: any foreign enterprise will always encounter some difficulties when integrating into the local market. What are the difficulties Schneider Electric faces in the Chinese market

a: I think it's normal to have difficulties. It's also a part of daily work. We can be more creative in the face of challenges. For Schneider Electric, the larger the size is, the dilemma it faces now is that if I am facing a market with very serious homogenization, not compared with brand differences, quality differences and design differences, but only compared with price levels, how to measure the advantages of an enterprise? Therefore, we also feel that every enterprise needs to participate in the change of market environment and the establishment of competitive standards. I think this process is a learning process for every enterprise

q: Schneider Electric has launched an innovative business smart city in recent years. Please give us a brief introduction

a: from the perspective of Schneider Electric, the most important point of smart city is to achieve the highest effect with the least resources. The most basic thing for human survival is energy resources. This is a potential supporting condition. On the basis of this support, we can live a free, comfortable and peaceful life. Therefore, Schneider Electric's concept is first of all efficient. On the basis of efficiency, it is sustainable. On the basis of sustainability, it is livable for everyone

Wen | Xu Peiyu

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