From express products into the paint circle - dialogue AkzoNobel China and North Asia President Mr. Guo Zhenhua

AkzoNobel is a well-known name for the Chinese paint industry. AkzoNobel's news, especially in China, has always attracted the attention of Chinese paint people. In March, a "new" professional manager walked into AkzoNobel and into the Chinese paint industry, where he is Mr. Guo Zhenhua, who is currently president of AkzoNobel China and North Asia and managing director of the Decorative Paint China and North Asia Business Group
guo is "new" because of his distinctive resume: Mr. Guo has held senior positions at several international and regional companies. Prior to joining AkzoNobel, Guo Zhenhua was president of Li Jinli Sauce Group in China. In addition, he has accumulated rich business development and leadership experience in companies including Procter and Gamble, Master Kang Group/Pepsi Beverages, and Chuangchen, USA.
, Mr. Guo is an experienced fast-food professional manager, but a member of the paint industry".
August 30, in Beijing's Backsan Art Space, with the theme of "Meet, Revitalt art", AkzoNobel's Dolezal New Service Brand held a press conference to announce a major upgrade. This press conference, also the first time "China Paint" and Mr. Guo Zhenhua face-to-face zero-distance contact, with a strong curiosity about Guo, "China Paint" magazine as the only industry media, Guo General conducted an in-depth interview.China Paints:
Hello Guo, first of all, I would like to congratulate you on your new job and serving as President of AkzoNobel Group's China and North Asia Region and Managing Director of Decorative Paint China and North Asia Business Group! Since taking office in March this year, time is close to half a year, this six months, Guo has always been "low-key" and "mystery" two key words to attract China's paint circle. Perhaps a lot of people and I now think the same, you step from fast-food into the paint circle full of questions, then, I would like to ask, what is the reason for you from fast-food to war paint industry? What are the similaries and differences between the two industries?Guo Zhenhua (laughs): "
in-depth, can speak for an hour, then I will simply say it!" I think, fast consumer goods and paint products are the necessities of consumer life. Although there is a difference between the frequency of consumption and unit price, but in the consumption level can reflect the consumer's quality of life requirements, thus manifesting the choice of brand intention. Speaking of brands, AkzoNobel is a global company with a long history of focusing on leading brands in the coatings industry, and the potential for sustainability is very attractive to me.
focus on the consumption trends in the coatings industry and study the deep needs of consumers. At the end of the day, we want to do both: on the one hand, to gain full insight into the current market situation and low-frequency consumer products demand changes. At the macro level, China's real estate industry from the incremental market to the stock market transformation, and at the micro level, rigid demand and consumption upgrade into personalized consumption of the dual stimulus, the two jointly opened up the paint industry in the future important growth point.
So, in general, although the paint is not a fast consumer, but with some properties of fast consumer goods, such as in the old house renovation of the re-painting work, we today's Dolezal Huan new service brand held a press conference, is from this original intention.Paint: I'm
, thank you for your answer. AkzoNobel as the world's top paint giant, Doles as one of China's most well-known decorative paint brands, in recent years has also experienced the impact of the economic storm, by a certain impact, but the overall volume is still large. You take over this position, what is do you think of Doles' plans for the next few years? How can we better maintain Dolex's leading edge in the Chinese market?Guo Zhenhua:
is certainly getting better and better, because Dolex has a high brand awareness in China, the company has a lot of confidence and determination in the Chinese market. The Chinese market accounts for a large global share of AkzoNobel, accounting for 14.3 per cent of global revenue and 15.4 per cent of employees. The Chinese market is an important strategic position for the company as a whole and we will continue to invest in the Chinese market. In the long run, whether it's product innovation or performance, we're going to be the industry's benchmark.
, our "Win-Win: 15 by 20" strategy is to achieve a 15% return on sales target by 2020. We have seen a significant increase in this data in the second half of 2018, rising to 13.7% in the second quarter of 2019. We are confident that we are on the right track to meet our 2020 guidance goals.
the past year, we have also been actively implementing strategies and agendas for internal change to further improve efficiency. There are now 14 large projects going on across the company at the same time, making us more flexible and a large-scale investment in the company's long-term future. What we're focusing on now is strictly pushing through the company's transformational tasks that have been developed, including price adjustment strategies."China Paint":
In the past decade, environmental protection green, versatility, science and technology factors three key words, but also closely with the paint products and symbdance, Doles in the past few decades, always in product development before the trend, what new initiatives in the future? And a new breakthrough? What are the three key words?Guo Zhenhua:
yes, as you said, environmental protection green, versatility, science and technology factors three key words always accompany the industry forward. As with today's five-day standardized service system launched at today's press conference, Dolezal has always been at the forefront of the field of greening: from the introduction of the first anti-formaldehyde wall paint, to the first "no addition" concept, to the 2017 launch of the Mori Breath Natural Plant Series, and this year Dole Shi heavy-weight listed Mori breathing zero series, not only condensed the peak of doles more than ten years of environmental protection technology, but also to lead the development of environmental protection wall paint milestones, we have always been through product innovation, set a benchmark for the industry's safety and environmental protection, for consumers to create a green living environment. In the future, Doles will continue to gain insight into consumer needs and bring more environmentally friendly and healthy products to market.
addition, "color expert" Doles is good at color, but not just color. We have always adhered to the implementation of integrated solutions, including color trends, including a series of color marketing activities, with the "Dolezal New Service" and constantly upgraded environmental protection products, to bring consumers a one-stop full range of wall services.:
I had the privilege of visiting Dolezal's new plant in Sichuan last year and remember the modern, intelligent and efficient production line. Now Doles is also Chinese mainland plant layout, what is the performance of each region? Some articles claim that the future trend of China's paint industry is gradually shifting from east and south China to central and western China, do you agree with this statement? Is it pure market behavior or policy reasons? Or something? Zhenhua:
Our decorative paint factory in Yan, with a total investment of more than RMB 300 million, is AkzoNobel's fourth and largest decorative paint production base in China. After the completion of decorative paint factories in South China, North China and East China, AkzoNobel has improved the market layout of our decorative paint business in China with Chengdu as the core of the west, and is also one of the initiatives to actively promote the urbanization of the west.
actively cooperate with the government's urbanization development is one of akzoNobel's development priorities in China. Under the guidance of urbanization development, urban construction, urban development and residents' living needs in the western region are also changing quietly. AkzoNobel has gained early insight into the needs of this market, and the new site has built to bring us closer to this emerging market and better support local sustainability with our strengths in product technology and industry. As the base becomes operational, we will provide greater value to our customers in the western region by increasing our geographic coverage capacity and capacity upgrades. Based in Chengdu as the center, to better support our expansion to the southwest and northwest regions, timely and efficient for local customers tailored to quality products and services.
about the midwestern shift in China's coatings industry, more and more companies now have a shifting footprint, but the east and south are still focus areas, I believe that the future will reach a regional balance. China Paints:
Since 2009, China's paint industry has firmly held the position of "the world's largest output", although in the past two years, growth has slowed, mergers and acquisitions fierce, but overall, is still a positive development trend. In addition, the number and ranking of Chinese mainland companies on the List of the World's Top 100 Paint Companies (from Data From Data from DataWorld) have also increased. : We have always had
confidence and expectation in China's coatings industry. Healthy and dynamic 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 leverage our global experience and strengths while better serving our local customers by implementing our local strategy. We have a very strong local research and development capabilities and channels in China, with the most front-end geotechnology for the development of the entire industry has provided a lot of inspiration and help. At the same time, we are also very aware of the needs of local customers and consumers, the company has also done a lot of tailor-made innovations to help these customers in the local market to achieve better development. :
theme of this event is around "New Service", in this part of the business, what is the consideration and intention to do? What's the point? : "
, the re-painting cycle is generally 3-4 years, in China the re-painting cycle is 7-8 years." Since the launch of the new service in 2008, Dolezal has always wanted to make it easier for users with brushing needs and drive Chinese users to shorten the re-painting cycle. This new service brand upgrade three major initiatives:
really practice the brand's new positioning "peace of mind, fast step": the establishment of a five-day standardized service system, through standardized services, the use of bottom-to-surface environmental protection products, with the use of mechanized tools, in the user without worrying about quality issues, improve construction efficiency.
Space color solutions developed for the Chinese market: Dolezal through the continuous upgrading of environmental protection products and a series of color marketing activities, with the advantages of globalization of international companies, the implementation of localization strategy, so that new services to better meet the needs of Chinese customers in the overall space wall and soft clothing matching;
Mini new service, to help solve the problem of local walls in consumers' homes, create a variety of thematic walls, with services closer to the general needs of users to attract consumers, so that users more convenient and fast new home. : "In the future,
doles better cooperation with the China Coatings Industry Association win-win situation, Guo's overall plan is what?" Guo Zhenhua:
Dolezal has always fully supported the work of the Association, actively participated in the development of standards for a range of key industry issues, including environmentally friendly products, quality certification and new services, and fulfilled its corporate responsibility to promote industry progress; Associations and peers to share cutting-edge product information and technology: Dolezal plays the role of industry leader, constantly develop new products, and regularly share cutting-edge product information and industry technology, with the Association to establish long-term, stable, friendly relations of cooperation, together to solve the industry pain points, promote the healthy development of the industry.
From Guo's words and demeanour, it is not difficult to see TVB's early Hong Kong imprint: struggle, hard work, progress, half a year has passed, in Guo's departure, Doles China this big ship, is moving in the established direction and route to chop waves, accelerate progress, we look forward to 2021, can see Doles China's "win-win cooperation: 15 by 20" strategic implementation, let's wait and see!