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From FMCG to paint circle -- dialogue with Mr. guozhenhua, President of AkzoNobel China and North Asia

from FMCG to paint, so the key to producing a good product is to link the local circle -- dialogue with Mr. guozhenhua, President of AkzoNobel China and North Asia, paint,

from FMCG into the paint circle -- a dialogue with Mr. guozhenhua, President of AkzoNobel China and North Asia

September 4, 2019

for the Chinese paint circle, AkzoNobel is a thunderous name, which is well known. AkzoNobel, especially in China, has always attracted the attention of Chinese painters. In March this year, a "brand-new" professional manager entered AkzoNobel and the paint industry in China. He is Mr. guozhenhua, who is currently the president of AkzoNobel China and North Asia and the managing director of decorative paint China and North Asia business group

president Guo is "brand new" because his resume is different: guozhenhua once held important positions in many international and regional companies. Before joining AkzoNobel, guozhenhua was the president of Li Jinji sauce group in China. In addition, he has held important positions in companies including P & G, Master Kong Group/Pepsi beverages, Johnson & Johnson, and has accumulated rich experience in business development and leadership

In other words, Mr. Guo is an experienced professional manager of FMCG, but he is a "new handsome" in the coating industry

on August 30, at Beijing Houshan art space, with the theme of "meet, rejuvenate art", the Dulux rejuvenate service brand under AkzoNobel held a press conference to announce the heavy upgrade. This press conference was also the first time that China paint had a face-to-face zero distance contact with Mr. Guo Zhenhua. With a strong curiosity about Mr. Guo, China paint magazine, as the only industry media, conducted an in-depth interview with Mr. Guo

China paint: Hello, Mr. Guo. First of all, I would like to congratulate you on your new job as president of AkzoNobel group in China and North Asia and managing director of decorative paint China and North Asia business group! It has been nearly half a year since he took office in March this year. In this half a year, President Guo has been attracting the Chinese paint industry with two keywords of "low-key" and "mysterious". Maybe many people are full of questions about your stepping into the paint industry from FMCG, as I am now thinking. Then, I want to ask, what is the reason for you to move from FMCG to the paint industry? What are the similarities and differences between the two industries

guozhenhua (laughter): this problem can be discussed in depth for an hour, so I'll talk about it briefly! In my opinion, FMCG and coating products are necessities of consumers' life. Although there are differences in consumption frequency and unit price, both of them can reflect consumers' requirements for quality of life at the consumption level, which is reflected in the choice intention of brands. Speaking of brand, AkzoNobel is a global company with a long history. It is a leading brand focusing on the coating industry and has strong potential for sustainable development, which attracts me very much

pay attention to the consumption trend of the coating industry and study the deep needs of consumers. To sum up, we should achieve these two points: on the one hand, we should fully understand the current market situation and the demand changes of some tensile testing machines in the low-frequency market at 50~500mm/min. At the macro level, China's real estate industry has transformed from an incremental market to a stock market, while at the micro level, rigid demand and consumption upgrading have become the dual stimulus of personalized consumption, which together open an important growth point for the coating industry in the future

therefore, generally speaking, although the coating does not belong to FMCG, it has some properties of FMCG. For example, in the repainting of old houses, today's Dulux Huanxin service brand held a press conference, which stems from this original intention

China paint: OK, thank you for your answer. AkzoNobel, as the world's top paint giant and Dulux, as one of the most famous decorative paint brands in China, has also experienced the impact of the economic storm in recent years, which has been affected to a certain extent, but the overall huge volume is still there. What is your plan for Dulux in the next few years when you take over this position? How to better maintain Dulux 'leading edge in the Chinese market

guozhenhua: Dulux's future is certainly getting better and better, because Dulux has a high brand awareness in China, and the company has great confidence and determination in the Chinese market. The Chinese market accounts for a large proportion of AkzoNobel's global revenue. We account for 14.3% of the global revenue, and the number of employees accounts for 15.4%. In terms of the proportion of revenue and the number of employees, China is the largest single market of AkzoNobel. The Chinese market has an important strategic position for the whole company, and we will continue to invest in the Chinese market. In the long run, whether it is product innovation or performance, we should become the benchmark of the industry

at present, our strategy of "win-win cooperation: 15 by 20" is to achieve the goal of 15% return on sales by 2020. We have seen a substantial increase in this data in the second half of 2018, and it has risen to 13.7% in the second quarter of 2019. We have full confidence to prove that we are on the right path to achieve our 2020 guiding goals

in the past year, we are also actively implementing and formulating the strategy and agenda of internal change to further improve efficiency. Now there are 14 large projects in the company at the same time, which can make us more flexible. This is also a large-scale investment in the long-term future development of the company. Our focus now is to strictly promote the company's reform tasks that have been formulated, including price adjustment strategies

China Coatings: in the past decade, the three key words of environmental protection, green, multifunctional and scientific and technological factors have also followed the symbiosis of coating products. Dulux has always been ahead of the trend in product research and development in the past few decades. What new measures will be taken in the future? And new breakthroughs? What are the three key words

guozhenhua: Yes, as you said, the three key words of environmental protection, green, multifunctional and scientific and technological factors have always accompanied the industry. Just like the five-day standardized service system launched at today's Huanxin service press conference, Dulux has always been at the forefront of the field of green environmental protection: from the launch of the first formaldehyde resistant wall paint, to the creation of the concept of "no addition", and then to the launch of the senrespiratory natural plant series in 2017. This year, the senrespiratory chunzero series, which was heavily launched by Dulux, is not only the pinnacle of Dulux's environmental protection technology for more than a decade, Moreover, striving to reach about 8% of GDP (gross domestic product) in 2015 is a milestone in the development of environmental friendly wall paint. We have always set a benchmark for safety and environmental protection in the industry through continuous product innovation, and create a green living environment for consumers. Duluxpro will also continue to gain insight into consumer needs and bring more environmentally friendly and healthy products to the market in the future

in addition, Dulux, a "color expert", is good at color, but not just color. We have always adhered to the implementation of the total solution, with a series of color marketing activities including color trends, combined with "Dulux rejuvenation service" and continuously upgraded environmental protection products, to bring consumers one-stop comprehensive wall services

China paint: last year, I had the honor to visit Dulux's new factory in Qionglai, Sichuan, and I still remember the modern, intelligent and efficient production line. Now Dulux has set up factories all over Chinese Mainland. What is the performance of each region? An article claims that the future trend of China's coating industry will gradually shift from East China and South China to the central and western regions. Do you agree with this statement? Is it pure market behavior or policy reasons? Or something else

guozhenhua: our decorative paint factory in Qionglai, with a total investment of more than 300million yuan, is AkzoNobel's fourth and one of the largest decorative paint production bases in China. After the completion of decorative paint factories in South China, North China and East China, AkzoNobel took Chengdu Qionglai as the core in the west, improved the market layout of our decorative paint business in China, and was also one of the measures to actively promote the urbanization development of the West

actively cooperating with the government in the development of urbanization is one of the priorities of AkzoNobel's development in China. Under the guidance of urbanization development, the urban construction, urban development and residential demand of residents in the western region are also quietly changing. AkzoNobel has an insight into the needs of this market in advance. The completion of the new base makes us closer to this emerging market and better support local sustainable development with our advantages in product technology and industry. As the base is put into operation, we will provide greater value to customers in the western region by improving regional coverage and capacity upgrading. With Chengdu as the center, the base will better support our expansion to the southwest and northwest regions according to the estimated maximum load, and customize high-quality products and services to local customers in a timely and efficient manner

with regard to the transfer of China's coating industry in the central and western regions, at present, more and more enterprises have the footprint of transfer, but the eastern and southern regions are still key areas, and I believe that a regional balance will be achieved in the future

China paint: since 2009, China's paint industry has been firmly ranked as the "world's largest output". Although the growth rate has slowed and mergers have been fierce in the past two years, on the whole, it is still a positive development trend. In addition, in the list of the world's top 100 coating enterprises (from coatings world data), the number and ranking of enterprises in Chinese Mainland have also increased. What is your view in the face of this situation

guozhenhua: we have always been full of confidence and expectation in China's coating industry. Healthy and vigorous competition is also the driving force and source of the industry's continuous upward development and progress in the market. As an international company, we make use of our global experience and advantages, and better serve local customers by implementing local strategies. We have very strong local R & D capabilities and channels in China, and we have provided a lot of inspiration and help for the development of the whole industry with the most advanced technology. At the same time, we are also very aware of the needs of local customers and consumers. The company has also made many customized innovations to help these customers achieve better development in the local market

China paint: the theme of this activity is centered on "Huanxin service". What are the considerations and plans to do in this part of business? Is there any emphasis

guozhenhua: in foreign countries, the recoating cycle is generally years, while in China, the recoating cycle is years. Since duluxpro launched its new service in 2008, it has always hoped to bring convenience to users with painting needs and drive Chinese users to shorten the recoating cycle

there are three major measures to upgrade the brand of Huanxin service:

truly implement the brand's new positioning of "ease of stay, one step faster": establish a five-day standardized service system, adopt bottom-to-surface environmental protection products through standardized services, cooperate with the use of mechanized tools, and improve construction efficiency on the premise that users do not need to worry about quality problems

spatial color solutions developed for the Chinese market

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