Schneider Electric's China Development Road

Schneider's DNA attaches great importance to the relationship with Chinese partners. Schneider Electric's global CEO Zhao Guohua said that if it succeeds in the Chinese market, the possibility of success in the world is very high.

President’s dialogue

Twenty years ago, Schneider came to China with her delicate shell-type circuit breakers, and traditional fuses retired. The low-voltage electrical appliances that have been introduced since then have laid a leading position for Schneider Electric's products. When China's energy-saving and emission reduction market is showing up, Schneider is also trying to transition from product service to solution to better meet the needs of China's energy-saving market.

After working in China for five years, Schneider Electric's global CEO Jean-Pascal Tricoire was probably the most fluent Chinese among foreign leaders, but he did not think he was “China Pass” and “If there’s any experience, in China To do business, you should contact more, visit more, listen more to the Chinese."

Chinese people know most about the Chinese market

China is Schneider Electric's fastest growing global business with an average annual growth rate of more than 20%. You have spent 5 years in China. How do you think foreign companies can succeed in China?

Zhao Guohua: As a foreign company, it is difficult to integrate into Chinese local culture. It is even more difficult to become a real Chinese company. But Schneider China has done this: China is Schneider's second largest market in the world after the United States. Sales in China account for 10% of Schneider’s global sales, and the number of employees exceeds that of the United States, France, and the world’s number one.

Schneider's DNA attaches great importance to the relationship with Chinese partners. We do not do any business alone, it must be with partners. In addition, we trust local talent very much. You see that the president of China is a Chinese person and the person responsible for finance is a Chinese person. The thinking of the entire team is Chinese style. They have a lot of power to make their own decisions.

The Chinese team not only has to make decisions on Chinese operations, Schneider's global affairs also need to listen to the views of the Chinese team. For example, when opening a global conference, there must be a representative of the Chinese team present.

In short, when you are doing business in China, you need more contacts, more visits, and more listening to the Chinese. The Chinese know the Chinese market best.

You just mentioned that Schneider valued the relationship with its partners. However, in the dispute over NVC Lighting's control, we saw that Schneider was widely questioned as a foreign investor and even interpreted it as an attempt to annex NVC.

Zhao Guohua: Schneider is a minority shareholder of NVC. Our two companies are strategic partnerships. NVC has a strong lighting channel, and our electrical solutions can be more powerful and help distributors to develop faster.

How to evaluate China's business environment?

Zhao Guohua: I have visited many places in China and I am very interested in China’s history and culture. China has 5,000 years of history. China's way of seeing the world is completely different from other countries. You must understand this.

China is the most competitive country. The market environment is improving and consumers are getting more and more mature. You go to Beijing and Shanghai. The shopping environment in these cities is very good. Of course, China may be regarded as the most complicated market in the world. If it can succeed in the Chinese market, the possibility of success in the world is very high.

Energy investment is the best investment

As an energy efficiency management expert, how did Schneider see China's energy-saving emission reduction plan?

Zhao Guohua: Energy is a major issue considered by the Chinese leadership. In the “Eleventh Five-Year Plan”, China proposed to save 20 percent of energy and reduce consumption; the new “Twelfth Five-Year Plan” means that energy consumption should be reduced by 17%. These are very positive. aims.

You see that the United States has changed from an oil-importing country to an important oil-exporting country. The United States’ self-sufficiency is not only an increase in production, but also an investment in energy efficiency. The Obama administration launched a policy on energy efficiency in automobiles, and domestic oil demand has dropped significantly.

The United States is "walking on two legs", higher oil production, higher energy efficiency, and less dependence on the oil of other countries.

In the next 20 years, China may become the world’s largest energy-consuming country. However, if China can adopt newer technologies, the situation may change. Through effective energy solutions, 230 megawatts of coal power generation and 120 megawatts of gas power generation can be saved, equivalent to one-third of China's annual power consumption.

Energy conservation can also stimulate employment. When you build a new power plant, you may need hundreds of people and 10 years to return to this. But when you rebuild an intelligent building, you may need thousands of people to work. You can return to this in about 3 years. So energy investment is the best investment.

President Business Card

Zhao Guohua, aged 48, joined Schneider Electric in 1986 and has been President and CEO of the Schneider Electric Group since 2006.

Zhao Guohua has held senior positions in Schneider Electric's operations in Italy, China, South Africa, and the United States. In 2002, he served as executive vice president of international operations. In 2004, he was appointed chief operating officer.