EXCLUSIVE INTERVIEW
EXCLUSIVE INTERVIEW Bringing German Excellence to China BSH Home Appliances leverage huge demand in the region Many people around the world think of China solely as a producer - however BSH has been developing sales channels in the country for many years (just like a number of other major European brands in areas such as automotive). We asked Roland Gerke, CEO and President of BSH Home Appliances in China to tell us a little more about how his company has been building business in the region and what its objectives are for the future. China is the most important and fastest growing market for the BSH Group. On the demand side, Chinese consumers have unique demands for high-quality home appliances, and BSH China has experienced extraordinary growth in the past ten years by meeting these demands. On the supply side, BSH Group has built up an entire value chain in China, including R&D, manufacturing, and supply-chain integration. BSH shares in China’s growth momentum and plays a leading role in the home appliances industry, growing with the market. We are optimistic about China in the long run, and are continuously increasing our investment and expanding production capacity in the country. More importantly, we are committed to introducing the latest technology, customized products and healthier lifestyles to Chinese families. With the capability of our new dishwasher factory in Chuzhou and our R&D center in Nanjing, we are committed to building China into the BSH Group’s No.1 market. You personally have been based in China for a number of years, and as a result have a good “vision” of the market. What are the key changes affecting business in China today? In recent years, more companies and manufacturers are in the process to transforming themselves to a more modernized and digitalized business model in an effort to gain profits and obtain new business opportunities. Based on our long-term market observation, Chinese consumers are also in high demand for intelligent offerings, including smart home-related products. With the development of the Chinese economy, increasing amounts of WE ARE OPTIMISTIC ABOUT CHINA IN THE LONG RUN, AND ARE CONTINUOUSLY INCREASING OUR INVESTMENT AND EXPANDING PRODUCTION CAPACITY IN THE COUNTRY. Chinese consumers are pursuing a high quality lifestyle, which provides us with the opportunity to promote our high-end built-in home appliances in China. As most of you know, China is the world’s largest online retail market, and has a mature Internet ecosystem. BSH China has been consistently intensifying our on-line user experiences to better fulfill the demands of a younger generation of consumers. Do you do business differently? If so, how? We are insisting on precision production standards that comply with German standards. Meanwhile, we keep improving ourselves and focusing on innovation and transformation. BSH has specifically done many consumer studies to obtain insights in relation to local consumers’ needs and preference. These insights are analyzed and incorporated into product developments that make localized applications and products perfectly suit local customers’ habits and needs. Moreover, our future lies in strengthening our talent capacity in the region. We grant specific rights to sub-offices in different regions and regional offices also receive entrepreneurial responsibility while maintaining synergies with the global team. Messe Berlin is making a major step to help build “bridges” thanks to the CE China event. What are your thoughts about this? China is a promising market and we are impressed by the country’s successful transitions to a modern, developed economy under the “New Normal.” In the Roland Gerke Chairman & President, BSH Home Appliances Holding (China) Co., Ltd. “New Normal” economic environment, we are convinced that we will see a major shift in consumption patterns, as demand for high-end home appliances continues to increase. We appreciate CE China’s bringing IFA – the pioneer of consumer electronics expos – to China. We believe that this expo is a bilateral platform – showing substantial innovations to Chinese consumers while also enabling foreign manufactures to deeply understand the fast developing momentum of the China market. It is quite valuable for all of us to be inspired by the collision of ideas from all these different countries. At CE China, both Bosch HA and Siemens HA will showcase their latest built-in kitchen products and smart home offerings to the event’s audience, and we welcome all participants to visit out booth in hall 2 of the Shenzhen Exhibition and Convention Center. 4
TRADE TALK Alibaba – A Strategic Partner Exclusive Interview: Yin Jing, President of Tmall 3C & Home Appliances Business Unit - Alibaba One of the primary reasons behind the creation of CE China is that of helping Chinese retailers introduce new products from around the world into the domestic market. Key to this is the Alibaba group, a highly strategic partner for the event. In this exclusive interview, we asked Yin Jing, President of Tmall 3C & Home Appliances Business Unit for Alibaba what key factors are affecting the local market at the moment… In the context of China’s overall consumption upgrading, more and more consumers will choose better home appliances to improve and enjoy their life. Therefore, in this context, what we are facing now is that home appliance and consumer electronics brands, and platforms such as ours, need to achieve indepth connection with consumers and provide them with a better shopping experience. How is Alibaba growing and adapting to new market dynamics? Alibaba will drive the markets by focusing on consumers and shopping experiences, and promoting ecosystem prosperity. Within the ecosystem, we will empower our brands and business to ensure consumers with better shopping experience, including adopting VR technology, enriching their choices by attracting world renowned brands, precise matching and personalised recommendation through big dada, and lastly, convenient delivery experience by expanding the logistics service network. What are your thoughts about the arrival of the CE China show in Shenzhen and what do you think makes this show different to other electronics shows in the region? Shenzhen, as one of the most dynamic cities and Chinese Silicon Valley, has a population of more than 15 million people in the electronics industry. While IFA is world’s largest consumer electronics exhibition Expo, it makes top-notch technologies and products easily accessible to Chinese consumers. As the biggest e-commerce platform in the world, we would like to work with IFA, bringing better products and services to Yin Jing President, Tmall 3C & Home Appliances Business Unit - Alibaba Chinese consumers, and bringing consumers to the brands. This is also how we fulfil our mission, of making it easy to do business everywhere. What do you hope to achieve from your participation in the show? I hope more and more great goods can show up thanks to IFA, providing Chinese consumers with more “upgraded services”. WE WOULD LIKE TO WORK WITH IFA, BRINGING BETTER PRODUCTS AND SERVICES TO CHINESE CONSUMERS, AND BRINGING CONSUMERS TO THE BRANDS SUNING LEVERAGES CONTACTS AT CE CHINA TO CREATE NEW SYNERGIES Suning, now partly owned by Alibaba, is present at CE China as a key partner in the event, where manufacturers from around the globe will be able to learn more about the retailer’s latest developments, including the opening of “cloud stores”, where shoppers can try products they can buy online. Suning Appliance Company Ltd., which in August sold a 20% stake to Alibaba Group Holding Ltd., opened its first “cloud store” last April in Shanghai. About half the store is devoted to an area where consumers can see and touch different goods, and then order online through iPads provided by the store or their own smartphones. Store employees also explain savings accounts and loans that Suning offers and that consumers can apply for online. Suning has already refitted several dozen stores as “cloud stores” and is reported to be aiming for 50 by the end of the year. The company also has opened an online store on Alibaba’s Tmall.com marketplace and offers Tmall.com shoppers services in its stores. Meanwhile, speaking with CE China News before the event, a spokesman for Suning said the CE-China show is the “first chance for Suning and IFA to come together to provide Chinese consumers with an attempt to understand the world’s most advanced consumer electronics products. For both China and Europe, the CE-China exhibition will build better bridges of communication and this shared platform allows Chinese consumers to learn more about European and American brands of products and services, as well as taking domestic brands and products out of China, into the world of opportunities.” CE China News • 20 th - 22 nd April 2016 5
