It is often said that we should not let the beauty of spring slip away, and April is the perfect time to hit the road. Today, I would like to share with you three anecdotes about the overseas market of electricity meters, hoping to inspire you.
When seeking partners in the European market, don’t use the Top 20 of the State Grid as a reference
“Don’t worry, we can meet all the technical requirements.”
“I’ve been a bit busy recently and haven’t had time to take a closer look. Just a moment, please.”
“Oh, I have a headache. These few items might not suffice. What should I do?”
“If it really doesn’t work out, forget it. You can try looking for other manufacturers.”
Haha, are you familiar with such experiences? Friends who are familiar with the European market know that many projects are not directly awarded to smart meter companies, but rather to system service providers. To successfully secure orders, the choice of metering partners before bidding is crucial, as price is sensitive to everyone, especially during a period when the European economy is sluggish and the smart metering process has been delayed repeatedly. Despite traditional resistance, the competitive advantages of Chinese metering companies have compelled some international companies to consider collaborating with them.
Due to the vast size of the Chinese market and the abundance of metering enterprises, foreign companies have their own self-righteous criteria when selecting partners, namely choosing the Top 20, Top 10, or even Top 5 performers in the Chinese market. The aforementioned response process is also a common scenario encountered by enterprises. Here’s a reminder: when choosing Chinese partners for the European market, don’t take it for granted to refer to the Top 20 bidders of the State Grid. Although some companies have impressive performances in both the Chinese and international markets, their actual capabilities may vary significantly when it comes to the European market. Knowing oneself and others, as well as selecting the right partners, is crucial to the success of the project.
I can understand, speak, and even use the language familiar to foreigners. “Yesterday, I introduced China’s electricity environment, PLC meter application, and the comparative test data from Haixing Carrier Laboratory at the G3 Alliance meeting on behalf of China. The response was very good. ERDF conducted a special interview with me. The G3 Chairman had an in-depth conversation with me and considered holding the G3 Asia Conference in China this year, planning to establish a G3 Joint Laboratory in China.”
“Nowadays, many countries in the world pay close attention to China’s voice. The key is for us to seize the opportunity and speak in a language they are familiar with. We have different voices at home, but we remain silent in the international arena, which makes foreign peers look down on us. They think that China doesn’t speak up because of political reasons. In fact, this is a misunderstanding. I hope that more and more Chinese experts who understand both technology and English (and also understand the actual situation in the local area) will stand on the international podium. Only through communication can we reduce misunderstandings and more easily gain understanding. If we quarrel behind closed doors but remain silent in the outside world, it will greatly affect the world’s perception of China. The opinions of our Chinese experts often fail to choose the correct English expression, and some key points cannot be expressed, so there is no substantial contribution. For Chinese technology to go global, it must first go global at the standard level.”
“Currently, China has no say in the formulation of international PLC and RF-related standards, which makes it very painful for our watch companies that handle foreign orders. The exposure of the huge usage data of the State Grid has stunned those foreigners. Before this, they always thought that our Chinese technology was not good and that we protected the backward. How can this be justified?”
At 10:00 am China time, which should be 3:00 am France time, Li Xiangfeng, Vice President of Haixing Research Institute, who represented China at the G3 Alliance meeting and introduced China’s electricity usage environment, PLC meter application, and data testing results from Haixing Carrier Laboratory, sent a series of messages in the WeChat group. It has been emphasized many times that we should speak in a language that foreigners are familiar with, so as to communicate effectively. I hope this time can continue to touch the hearts of enterprise executives. Don’t underestimate or overestimate, now is a good opportunity for Chinese enterprises to enter the European market
Not long ago, we received a European delegation who came to China specifically to seek partners for smart meters. Before their arrival, their goal was simple and somewhat helpless: to reduce costs. Little did they know that after in-depth discussions, their gains would far exceed their expectations, completely changing their perception of Chinese metering companies. They were particularly satisfied with the technical capabilities of several companies and their response efficiency in the European market. On the other hand, the Chinese companies hosting them felt a bit uneasy, worried that they might not meet the standards that would satisfy the other party.
The point of this segment is that, compared to truly high-tech products, smart meters can at best be considered mid-tech. Due to their inherent traditional consciousness, foreigners have a complex about Chinese manufacturing, and their initial resistance was strong, unless they had no other choice. This has led to the current situation, where on the one hand, foreigners underestimate our understanding of meter products, and on the other hand, we overestimate the technological barriers of European companies. Everything stems from perception. When there is genuine communication, they will find that the cognitive ability and technological level of Chinese companies far exceed their expectations, while Chinese companies also see the more realistic technological requirements of Europe.
The demand for smart electricity meters in the EU market is approximately 250 million units (with Italy and Sweden also about to enter the early stage of smart meter replacement cycle). The demand for smart gas meters and smart water meters is basically the same as that for smart electricity meters, while the demand for heat meters is in the tens of millions. By the deadline of 2022 set by the EU for completing the smart metering process, considering the several major international metering giants active in the European market with high enough popularity and brand recognition, their production capacity is only a small fraction compared to Chinese metering enterprises, which can produce tens of millions or even millions of units. The largest production capacity is only one million units, while medium and small-sized enterprises can produce hundreds of thousands of units. To truly meet the demand of the European market, with an average annual demand of 40 million units over the next six years, metering enterprises in the European market alone are clearly not capable of fulfilling this task. At this time, for Chinese manufacturers with technical expertise and comprehensive quality advantages, it is the best opportunity to enter the European market.
Of course, if one aspires to tap into the European market, even for a MID certification, the value of certificates issued by different certification bodies and the services they provide can vary significantly. Moreover, a certification certificate is merely a means; ultimately, securing a contract is not as straightforward as simply spending money to obtain a certificate. For Chinese enterprises aiming to enter the European market, this is the time to test the strategic acumen of their top executives.
