The Power Engine Behind 25 percent Growth
If Honeywell ever writes "Memoirs of China’s Market" someday, it might start with something like this -“When Honeywell moved its AP headquarters to China 15 years ago, although not bare-handed, it could hardly find any existing textbook to learn from. For any company, the Chinese market was undoubtedly one of the most challenging one in the world. But 15 years later, Honeywell China realized a 25?percent?year-on-year growth in 2017.”
Well, a 25?percent?YOY growth, which is almost 4 times of China’s 2017 GDP growth, is something marvelous that we should take a closer look at. The exciting news was announced by Shane Tedjarati, President of Honeywell Global High Growth Regions (HGR), in his recent China Town Hall meeting in Shanghai
The engine boosts the incredible growth is the strategies that Shane and his leadership team mapped out in the past decade.
The “Becoming Chinese Competitor (BCC)” strategy, which established 12 years ago, has helped Honeywell greatly enhance local competitiveness in China. It empowers the local team to be more responsive to the market needs, Right and Fast.
The “East for east (E4E)” strategy is the most important driving force behind all this high growth. In recent years, the percentage of E4E revenue in the entire annual income has increased to 30?percent. In 2017 only, Honeywell China launched more than 80 E4E New Product Introduction (NPI) projects, while NPI cycle time continued to be shortened: It takes only 8-9 months from pure concept to going into the market on average.
With E4E’s success, “East to rest (E2R)” found its stage. Going forward, while maintaining the development trend in HGR, China team has been encouraged by Honeywell President & CEO Darius Adamczyk to seek more sales growth in developed countries.
Meanwhile, following China’s “Belt and Road” Initiatives, Honeywell’s “Follow the Growth (FTG)” strategy has gotten us the opportunities for some great, long-term projects.
"FTG has always been the most fundamental strategy for HGR’ high growth," Shane's remark was unambiguous, "Meanwhile, E4E will remain to be our most important strategy in China in the next decade."
China is a unique market, and one of its uniqueness is something Shane joked about in the Town Hall – “The Chinese ‘Spring Festival’ is always celebrated in the middle of the winter, which means that the Chinese families already start to celebrate in advance, even before the first sign of spring, with all hope, a fruitful future harvest in the most festive fashion.”?
The best is yet to come, with the strong strategies, Honeywell China is going to embrace another great year.