Exclusive Interview With Honeywell China President Zhang Yufeng: The Sinking Market Will Become A New Growth Point 2020, The Growth Target Will Return To Two Digits.

"In the future, the goal of Honeywell China is to continue to do well in the high-end market, while vigorously developing the Chinese mid market, providing quality and cheap products to meet the needs of the Chinese market." Zhang Yufeng, President of Honeywell China, told the twenty-first Century economic news reporter.

In October 31st of this year, Honeywell announced the appointment of Zhang Yufeng as the new president of China, which is the third China president of the company since 2018. Dense high-level appointments also give the outside world some guesses and explanations.

"These appointments and transfers are carried out from a global perspective, which is a benign cycle for us." Zhang Yufeng said, "after taking over the president of the China region, how to make the business grow at a high speed, it is exciting and exciting for me."

It is reported that since 2000, Honeywell China's business has maintained double-digit growth in most years.

"The situation at home and abroad is complicated, so my first priority is to increase our growth rate back to two figures in 2020 by various means." Zhang Yufeng said.

Zhang Yufeng. Data map

Entering the mass market

Zhang Yufeng told reporters that Honeywell hopes to achieve the goal of double digit growth from the perspective of "open source", so as to continue to do well in the high-end market, it will vigorously expand the Chinese mid market in the second half of this year.

"The so-called mass market is the product and service that we want to offer cheap and good products to our customers." Zhang Yufeng said, "only by constantly developing new growth points can Honeywell achieve the goal of two digit growth."

As Honeywell's largest single market in the world except the US, Honeywell's annual revenue growth has averaged two digit growth over the past ten years. From 2004 to 2018, Honeywell China's revenue grew by more than six times. In recent two years, the growth rate has slowed down under the influence of the big environment, but it can still be commendable in comparison with the industry.

At present, Honeywell's four major business groups, including aerospace group, intelligent building technology group, characteristic materials and technology group, and safety and productivity solutions group, are doing business in China. In the future, the four major business groups need to continue to do well in the high-end market. Apart from the aerospace group, the other three major business groups will exert their efforts in the mass market.

Zhang Yufeng explained that the public end market strategy is the extension of Honeywell's "Oriental service to the East" strategy. Honeywell is committed to learning from excellent local companies and becoming a Chinese competitor.

"Many foreign companies have put their eyes on the high-end market after entering China. The customers in the middle end market value the price very much, while in terms of price, the advantages of foreign enterprises and stronger local private enterprises are not obvious." He said, "but from now on, many Chinese customers value the price as well as the quality and reliability of the products."

He said that unlike Honeywell when it first entered China, China's R & D, engineering, production and sales have all been localized. In the case of existing technology reserves, the company needs to provide more cost-effective products for its customers, and the products of the developing end market need to have more competitive advantages in terms of price.

For example, he said, for the intelligent building technology group and the security and productivity solutions group, there are many excellent local companies in China. Therefore, we need to further learn from Chinese competitors, increase their efforts in innovation and increase their horsepower at speed, thus not only meeting the needs of the high-end market, but also providing customers with more competitive products and technologies in the market. "Oil and gas chemical industry, our technology and customer groups and other enterprises have some technical differences. In adhering to the original development strategy, we also need to do a good job in the mass market penetration. He said, "from this year's point of view, we are more trying and preparing, because there is no precedent to follow, and we need to make further efforts to do business next year."

"Chinese competitors"

In order to achieve Honeywell's business sinking, Zhang Yufeng told reporters that in addition to the aerospace business group, we set up the head of the public market in other three business groups.

"We hope that in the mass market, the organizational structure, distribution mode and management design can be more flexible so that decisions can be made more quickly to meet the needs of this particular market." Zhang Yufeng said.

"In the future, the public end market business can have more free space and more to make independent choice of business development. We need to complete the transformation from" becoming a Chinese competitor "to" being a Chinese competitor ". Zhang Yufeng said.

In this process, the time cost of decision-making is greatly reduced, but the result is likely to be an increase in the risk of post links. Zhang Yufeng said that it is the most challenging part of our work to analyze the risks and control risks at the same time. It is to find a balance between shortening the decision-making process and the risk of follow-up work.

"In addition, we need to incorporate some good experiences from Chinese local companies and integrate them with the advantages of international companies, which requires more fresh blood to be introduced into the market." Zhang Yufeng said.