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Marketing challenges
By Li Jian
VINCENT Tai, the director of Marketing and Business at Electrolux (China), smiles confidently as he contemplates his new mission to put his company's products into the kitchens and laundries of millions of Chinese homes. The new task will be a lot different and more demanding than his former job as Managing Director of Apple Computers China. "Electrolux is a wonderful professional challenge for me. Electrolux is a very big company and the No. 1 manufacturer of household white goods and appliances," he said. He is now ready to launch the new business strategy he has devised after being in his new post for just 12 months. The right man His rich experience in management and his excellent record impressed Electrolux at a time when they were looking for someone to take charge of their expansion into the household appliance market in China. Tai has 21 years management experience, 10 of which have been in the Chinese mainland China. He joined Apple in 1988 as marketing director of their Hong Kong operation. In 1993, he became managing director of Apple Computers China and moved to Beijing. During his tenure, Apple established a strong presence in the market and sales in China made it the fastest growing region for the corporation. His efforts and achievements won him the "Apple President's Award", the most prestigious award within the company, for two consecutive years. His new appointment with Electrolux is part of the company's drive to establish greater brand recognition among Chinese consumers. The Electrolux refrigerator, one of the company's key products, is well known to Chinese consumers but many customers had no idea whether it was a local Chinese brand or an international one. And sales did not return satisfactory profits to Electrolux. Low prices and the vague brand identification failed to convince local consumers who were looking to buy high-quality products. Clear vision Tai, however, is clear about the right identification for the Electrolux brand. "It is a European brand which is the choice of 55 million people all round the world every year. It represents a new lifestyle," he said. Electrolux is now undertaking a big change in its merchandizing strategy. Over 2,000 Electrolux outlets will be fitted out with the new merchandizing which reflects a modern, family-oriented lifestyle. "We want to develop different products for the needs of different consumers," he said. "We aim to provide consumers with products which make their lives easier and more enjoyable." Although China is one of the biggest potential markets for household appliances in the world, sales of Electrolux refrigerators in China will only account for 2 or 3 per cent of its whole business worldwide. "That is because refrigerators are our only major product line in China at the moment." Vincent said. Rosy prospects "Every day you see so many new buildings being built in Shanghai, which means opportunities for us. They all need household appliances." Electrolux is also putting more emphasis on washing machines and kitchen appliances. Tai is confident about Electrolux's future in China. "The front-loading washing machine will become more and more popular among customers and Electrolux is the largest manufacturer of front-loading washing machines in the world." Another opportunity for the company is in kitchen appliances. "In the market, there are not many high-quality products and there is no dominant international brand in China," he said. "We will bring in more advanced technology, better products and a healthier, easier as well as more enjoyable life style for Chinese consumers." Tai knows it is vital to establish a brand name with a high reputation and he said he is aware of the pressures he is working under. "Pressure is not always a bad thing," he said. Compared with his former job at Apple, he believes his new post will be more challenging and exciting. "At Electrolux, we have the chance to develop products according to the needs of the local Chinese consumer," Tai said. "We have invested in our own R&D and Design Centre in China. It is hard to imagine this happening in a high-tech company such as Apple. They designed the computers in the US and my job was just to sell them." He believes the biggest difference between the two companies was in their business cultures. "One is American and the other is European. But they both stick to the rule of 'People First'. |
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