Grundfos Expands Presence in Eastern, Western China
Grundfos is a leading global pump supplier specializing in circulator and centrifugal pumps. As part of a campaign to strengthen its position in the Chinese market, Grundfos has recently opened a ‘Concept Store’ in Eastern China and introduced a new sales unit in Western China. By identifying varying needs in different regions across the country, Humphrey Lau, CEO of Grundfos China, is confident that the pump company can offer greater value to its customers.
“The Chinese market is constantly evolving, and if we are to keep up, we have to redefine our thinking. In order to maintain the growth we are experiencing in China, we have to cultivate and investigate new markets,” Humphrey Lau says.
In Shanghai, Grundfos recently opened a new ‘Concept Store’ that features product exhibition halls and information about the company; this store is the first of its kind in China. Customers, suppliers, politicians, and other stakeholders are invited to tour the showroom to learn more about new products and the company’s history in the Chinese market. In the future, Grundfos also plans to sell from this store, facilitating more direct dialogue with the customer. Initially, the focus will remain on DBS-products.
“This is a unique possibility to draw more attention to our energy efficient products and strengthen the Grundfos-brand,” Humphrey Lau, CEO of Grundfos China says. “In Eastern China the trend is moving towards wanting more and more energy efficient products. At our Concept Store, we are showing what we can do in connection with energy efficiency. In Western China, the situation is different. Here, the durability of the products, their reliability, and their prices are important parameters.”
Grundfos is starting up a new, independent sales unit further West in the metropolis Chongqing. This region is undergoing a growth period similar to that of Eastern China’s development in the 1990s. With an onsite location, the pump company hopes to strengthen its presence in that area. Lau notes the importance of ‘guanxi’ in making this a successful expansion, a Chinese word most translatable to the American concept of networking.