Two Paths to the Same Destination
Grundfos is strengthening its position in the Chinese market. In the east, a new ‘Concept Store’ is going to further establish the brand, while a new sales unit in the west is to accelerate the development.
Grundfos China and CEO Humphrey Lau are using new concepts to accelerate in the Chinese market (Image: Grundfos)
Grundfos is to continue its advancement in China. This is being done, partly by consolidating the position in the market in Eastern China, partly by expanding and strengthening the position in Mid- and Western China.
In order to strengthen the first target, Grundfos China has just recently opened a ‘Concept Store’ in Shanghai. Here, customers, suppliers, politicians and other stakeholders will get the possibility to learn more about Grundfos and the company’s products by taking a tour in the new exhibition halls.
"We are gaining an opportunity to show many new aspects of Grundfos and make it clear to our Chinese partners that we are capable of something else and something more than other pump companies. This is a unique possibility to draw more attention to ourselves and our energy efficient products and strengthening the Grundfos-brand", Humphrey Lau, CEO of Grundfos China says.
He makes it clear that the opening of the showroom in Shanghai, which is the first of its kind in China, also highlights Grundfos’ dedication to the Chinese market – among other things by showing the historical connection between the company and China.
In addition he explains that in order to make the new ‘Concept Store’ more vivid, in time the intention is to sell products from here, making an even more intense dialogue with customers possible. At first the focus will be within DBS-products.
New land in the west
At the same time, Grundfos is in the process of strengthening its presence in the west. Close to the metropolis Chongqing in the central part of China, the company is starting up a new, independent sales unit, intended to strengthen the efforts in the area.
"The Chinese market is constantly evolving, and if we are to keep up, we have to redefine our thinking. In order to maintain the growth, we are experiencing in China, we have to cultivate and investigate new markets, and there is an interesting trend in Mid- and West China", Humphrey Lau says. He compares the sprouting development in the west with the one that happened in the eastern part of the enormous country during the early 90’s.
Humphrey Lau clarifies that in order to achieve success, it is necessary to recognize and understand that China is a very diverse country with many, varying needs. "This is exactly what we are trying to meet with our new initiatives. In Eastern China the trend is moving towards wanting more and more energy efficient products. At our Concept Store, we, among other things, are showing what we can do in connection with precisely energy efficiency. In Western China the situation is different. Here the durability of the products, their reliability and prices are important parameters. By meeting the varying wishes and needs, we are giving ourselves the best possibilities for growth", he says.
He elaborates and pulls forward the way in which “guanxi” – the personal relations – plays a large and important part in Western China, while the focus in the east has shifted towards for instance knowledge and products.