Managers: Four challenges of Sany globalization

From: "Manager" text / He Dongdong (Vice President of Sany Heavy Industry)

The development of Sany Heavy Industry is very much in line with Professor Hermann Simon's theory of stealth* army - after achieving a clear competitive advantage in the industry and exceeding customer expectations, it has begun to go global.

How the product adapts to localization

Sany has also encountered many challenges internationally, *5656 are products and services. Our success in China is mainly based on our deep understanding of the needs of local customers, which is the main reason for the success of many companies such as Sany in China.

If we use a simple export model to do the global market, we will encounter obstacles - we do not have a deep understanding of the needs of overseas customers, and there is no way to meet the different technical standards of each country. What to do at this point? One is to establish a R&D and manufacturing system through direct investment or mergers and acquisitions, or through any form of cooperation, so that it is possible to provide local customers with products and services that meet their needs. This is a necessary step in globalization.

Now, Sany can provide a simplified version of the affordable equipment from India to high-end and sophisticated equipment in Germany, realizing a global*5654 product strategy. After so many years of international market development, we understand one thing - there is no good product or bad product in the world, and it is a good product that meets the needs of local customers.

Get rid of the negative image of China manufacturing

The second challenge is branding. When Chinese companies go global, they can only survive at the low end of the value chain without their own brands. However, the establishment of independent brands must start from the overall negative image of "Made in China", and have long-term persistent investment in quality and service, and customer value. Be psychologically prepared, there may be a long period of loss, or a long period of investment, so that independent brands can really get rid of the negative image of Made in China and let everyone accept that you are a high-quality brand. Sany has participated in the construction of some landmark buildings, such as the world's *5656 high-rise building, such as the Chilean mine disaster rescue, showing the new image of "Made in China" to the world.

Resolve conflicts between management and culture

The third relates to the challenges of culture and management. Whether it is the localization of products and services, or the globalization of brands, people are the main body that creates everything, and without a local professional team, all these assumptions are all in vain. At present, Chinese culture is still independent of the mainstream culture of Europe and the United States, and the management style of Chinese enterprises is easy to cause management and cultural conflicts in the world, which is a big and fatal challenge for Chinese enterprises.

Our experience is that, back to the basic value of the enterprise, Sany emphasizes high quality, cares about customer value, and is willing to share development with employees. We have found that these concepts can be accepted by most employees in India, Germany, the United States, and Brazil, because they are familiar with them, and the basic values of these companies are gradually recognized by foreign employees.

International political environmental impacts

* The latter challenge is international politics. Recently, we are concerned about the unfair treatment of Trinity in the United States, and we are now suing CFIUS and the Oba President Ma. When Chinese companies go global, they will inevitably encounter other people's cheese, and they will encounter all kinds of economic and political challenges, both explicit and implicit, from Huawei's unfair treatment in other countries to the suspension of our Sany project by the president in the United States. In the face of unfair treatment and unequal constraints, Trinity has a very clear attitude, and we must take up legal weapons to defend our rights. If Chinese companies as a group can use legal weapons to protect themselves in the face of various economic sanctions, there will be fewer and fewer such sanctions.