In October 2012, Xylem made its debut at the “2012 China Water Expo and China International Film and Water Equipment Exhibition” and focused on exhibiting its analytical instrument business products. It seems to be releasing a signal to the market: analytical instruments. Market, Xylem came!

At the end of 2011, Xylem was established as a spin-off from the ITT Group and was independently listed on the NYSE. In the same year, Xylem also added Xylem Analytics. Lv Shuping, vice president of China, and the director of China, Lu Leping told the author, “At present, Xylem mainly has three major businesses: water technology solutions, water application system solutions and analytical instruments. Although the analytical instrument business is newly established, its The huge growth potential is one of the four major growth platforms in the development strategy (2012-2017) of Xylem over the next five years. The company plans to achieve an analysis instrument business revenue of US$1 billion by 2017 through organic growth and mergers and acquisitions.”

As head of China for this business, Zhang Min, Director of Analytical Instruments, Xyleon China, is in the process of reform. The direction of reform is to “dilution individual brand concepts, promote the Xylem Analytics brand, and promote the industry. To reintegrate products to form solutions for different industries.”

Instrument Information Network: 2011 was an "unusual" year for Xylem. In November 2011, Xylem officially split from ITT and went public. Please tell us what changes have made to Xylem since the split. What are the main tasks of Xylem China?

Lu Shuping: Xylem inherited ITT's century-long experience in water management. After the spin-off of an independent company from ITT in 2011, she focused on the fields of water transport, water treatment, water detection, and general industrial fluids control testing. He mainly focuses on water technology solutions. , water application system solutions and analytical instruments three major businesses. One of the changes that we can see is that we have added analytical instrumentation business and we have world-renowned brands such as WTW and YSI. In addition, we have launched a series of energy-saving and high-efficiency products in the most advantageous water transportation field through technological innovation, and acquired Godwin, a high-power drainage company. Of course, we have not changed in many places. For example, the world’s leading brands such as Wedeco, Leopold, and Flygt are still under Xlymo’s. We are still adhering to providing customers with energy-efficient products and solutions. The plan maximizes the best customer experience for local users.

In China, first of all, we improved the existing organization, strengthened the construction of the front-end sales team, and consolidated the power of the channels. Therefore, our business in China maintained a rapid growth rate. Second, we introduced new products and The solution focuses more on energy-efficient products and provides customers with high value-added products and services. Third, we have strengthened the management of major customers and established a close strategic partnership. Fourth, we have increased our efforts in local research and development. The power to meet the special requirements of local customers by providing innovative solutions. In addition, we continue to maintain our leading position in the municipal area, and the rapid growth in the construction services market, the newly formed water treatment solutions department also won several sewage treatment projects. In addition, our efforts in promoting sustainable development have also been recognized. In the first year after independence, we were elected to the Dow Jones Sustainability World Index and the Dow Jones Sustainability North America Index Company.

Instrument Information Network: Please tell us about Xylem's performance in 2011. What is the proportion of the three major business revenues?

Lu Shuping: In 2011, Xylem's annual revenue reached 3.8 billion U.S. dollars, 64% of which came from the non-US market, an increase of 18.8% from 2010, and operating profit reached 482 million U.S. dollars, of which the extra costs due to spin-offs had been removed. This is an increase of 24.2% over 2010. As for the three major businesses, water technology solutions with sewage treatment and transportation as the main market are the company's largest businesses. The revenue of this business accounts for about two-thirds of the company's total revenue, water application system solutions and analytical instruments. Accounted for 1/3 of total revenue.

Instrument Information Network: There are 37 brands under Xylem, and many brands have a reputation for playing “Large”. How does Xylem manage 37 brands? In terms of publicity, how does Xylem balance the relationship between the company's brand and the product brand?

Lu Shuping: Indeed, there are many well-known brands under Xylem, such as Flygt, Weedkoo, Goulds, Rowaro, YSI, WTW, etc., all of which are used in different water sectors. The reason why ITT used to be in the past The water industry is so famous because it has so many excellent brands. The history of these brands has been short for several decades and has been long for more than a century. These brands and their sales channels and successful cases established in the water industry over the years are still in Xylem. Therefore, we believe that more and more people will know Xylem brands.

Xylem is a company brand, and all product brands are integrated under the company's parent brand. Our product brands are the best in the segment market, and Xylem's parent brand is a strong backing for our product brands. We believe that such a combination will win the trust of customers. Our product brand promotion focuses more on solutions, and the company brand focuses on the overall capabilities of the company and the social responsibilities it should bear.

Instrument Information Network: In the past two years, Xylem has acquired OI Analytical and YSI companies, and has obviously increased its investment in analytical instruments. What are the plans of Xylem for the development of analytical instrument business? In terms of mergers and acquisitions, what is the Xylem M&A standard?

Lu Shuping: This year, the company has established a development strategy for the next five years (2012-2017) - a core company and four growth platforms. The core company is water delivery and processing, while the four major growth platforms include water infrastructure construction and emerging markets. , drainage and analytical instruments. As one of the company’s four growth platforms for the next five years, analytical instruments are naturally the focus of the company’s development. We expect that Xylem's analytical instrument business will grow from the current $300 million to $1 billion in five years. Of course, in order to achieve this goal, in addition to organic growth, it is more important to rely on acquisitions to achieve growth.

Xylem is a water technology company. We hope to continuously expand our business scope in the water cycle and build a comprehensive fluid technology solution system. Water quality monitoring and analysis technology is to realize our concept of providing a comprehensive solution in the water cycle system. A powerful addition. One of the principles of our M&A is to select industry-leading product brands, and their joining will enable us to provide more comprehensive solutions. At the same time, the objects and standards of mergers and acquisitions will also be based on whether it meets the company's overall business development plan. Whether it can further promote the corresponding business development, whether it can be well integrated into our overall development plan as the first requirement. Followed by the business and financial, asset conditions, the technical characteristics of the core product standards.

Zhang Min: There are 11 sub-brands under Xalem's analytical instrument business. Before, these sub-brands were independently operated and have independent sales channels. Now, we are reforming in China, gradually diluting the concept of individualized small brands, promoting the Xylem Analytics big brands, and dividing the market by industries, such as surface water, coastal, sewage municipal, food processing, pharmaceutical chemicals, etc., will each sub-brand Product integration into more relevant solutions. After that, our sales are no longer targeted at a single brand, but rather for industry solutions. The current reform is in progress and is expected to be completed early next year.

In addition, for Xyleo's analytical instrument business, we will still focus on channel sales, while Xylem itself is mainly responsible for large customers, solving customer problems, and giving distributors support.

Instrument Information Network: In the field of analytical instruments, many multinational companies moved their production and R&D to China many years ago. On the one hand, they use China's lower production costs, and on the other hand they also provide Chinese customers with localized products. Does Xerome's analytical instrument industry have production and R&D in China? If not, is there any plan for the future?

Zhang Min: First of all, we have fully realized that the habits and monitoring requirements of local Chinese customers are very different from those of foreign customers. Second, we also see that China is growing rapidly as a very large-capacity market; There are a large number of highly-efficient R&D personnel with creative thinking in the domestic R&D field, but there is a lack of effective convergence and standardized R&D management in the industry and research fields. Making full use of China's relatively low manufacturing and R&D costs to develop products tailored to local customers will be a major trend in the future. The localization process of Xylem's analytical instrument business started more than a year ago. We have established Xylem's first factory to manufacture analytical instruments and integrated systems in Beijing and have assembled buoys for domestic customers. In the future, we will also use this as a basis to develop products that are suitable for local Chinese customers' application habits while taking into account the habits of users in other regions.

Instrument Information Network: In terms of analytical instrument business, what is the core competitiveness of Xylem compared with competitors?

Lu Shuping: Many brands of Xylem's analytical instrument business have a place in the market with their own unique technologies and unique product designs. This is the fundamental part of our participation in market competition. While our business scope is gradually expanding, we have a wealth of product lines that cover water delivery, water treatment, and water detection so that we can provide our customers with comprehensive products and services. At the same time, we are very concerned about the customer's application and provide customers with high-quality localization services. While we serve our customers and provide application support for our customers, we can understand customer requirements and usage habits in greater depth. As a result, we have gained a foundation for continuous improvement and innovation, while applying our global application experience to help us The customer completes the task better. Advanced technology, rich product lines, strong application support and services make us different from most competitors.