HANWEI Technology Group is a leading gas sensor manufacturer, instrument and meter manufacturer, IoT solution provider, and one of the first companies listed on the ChiNext board (stock code: 300007) in China. The group has achieved full control over the entire industry chain, from material technology to design and process. They have obtained 763 patents, including 114 invention patents, and have repeatedly broken international monopolies. The group offers more than 300 types of sensors across 17 series, including catalytic combustion, semiconductor, electrochemical, infrared photoelectric, PID, MEMS, laser, flexible, and ultrasonic sensors. They provide complete IoT solutions for urban management, industrial safety, environmental protection, home security and health, as well as smart automobiles, smart home appliances, medical health, human-machine interaction, and other fields. HANWEI's products cover nearly 100 countries and regions worldwide, serving over 30,000 customers.
Figure 1: Ren Hongjun, Chairman of HANWEI Technology Group
Currently, the main products being sold in overseas markets are as follows: 1) Industrial gas and toxic gas sensors; 2) Gas sensors for civilian applications, carbon monoxide sensors, air purification sensors, and sensors for smart home applications; 3) Gas, CO, air purification, and refrigerant detection sensors for the home appliance industry; 4) AQS air sensor modules, new energy thermal runaway sensors, and hydrogen detection sensors for the automotive industry; 5) Consumer-grade alcohol testers and household combustible gas alarms.
Figure 2: HANWEI Technology Group's laser methane gas alarm for household use and fixed gas alarm detector
Amidst the current scenario of declining demand in the Chinese market, which has led to excessive competition, an increasing number of Chinese semiconductor suppliers are setting their sights on overseas markets. Moreover, the current international environment provides five growth opportunities for Chinese brand products to enter the global market.
Firstly, after years of accumulation, China has reached a competitive level with international counterparts in numerous application areas. As the country with the most complete industrial chain, China's semiconductor devices have abundant opportunities for application domestically, enabling Chinese semiconductor sensors to have the most comprehensive range of applications worldwide and the potential and capability to lead global applications.
Secondly, there has been significant progress in technology innovation and R&D capabilities among domestic Chinese semiconductor suppliers. They have reached international standards in certain niche areas and have introduced competitive products and solutions in multiple fields such as gas alarms, household appliances, and the Internet of Things. This technology innovation, R&D capabilities, and economies of scale provide opportunities for Chinese semiconductor suppliers to gain a competitive advantage in overseas markets.
Figure 3: Overview of HANWEI Technology Group
Thirdly, the global trade situation plays a role in the expansion of domestic semiconductors overseas. Although there is some impact from the trend of deglobalization and the China-US trade disputes, since the outbreak of the conflict between Russia and Ukraine, Russia has been unable to purchase European and American brand products. As a result, Chinese suppliers have been welcomed with open arms. Currently, exports to Russia and Central Asia have been growing rapidly. Leveraging the Belt and Road Initiative policy and the warning effect of restrictions imposed by Western countries on Asian and African countries, Chinese products have experienced rapid development opportunities in emerging countries such as Central Asia, the Middle East, Africa, and ASEAN. Chinese domestic brands have also had opportunities to replace well-known brands such as Honeywell, Figaro, and Nissha in these regions.
Fourthly, government support and bias play a significant role. The Chinese government has consistently supported the development of the domestic semiconductor industry. HANWEI Technology Group is located in the Sensor Industrial Park in the High-tech Industrial Development Zone in Zhengzhou, Henan Province. This park is the only sensor industrial park in the province with features such as scale and high-end capabilities. The government has led the establishment of an industrial internet platform for the sensor industry, providing a favorable growth environment for HANWEI as part of the "sensor ecosystem," with support in talent, industrial support, and financial services.
Figure 4: Headquarters campus of HANWEI Technology Group
The government supports enterprises to go out of China, with China's quality to the world stage, for overseas exhibitions, technical exchanges and other business activities to give certain subsidies to support the empowerment of enterprises; Overseas, with the adjustment of the internal policies of other countries (such as the demand for safety testing in various fields of demand for the rigidity of the demand) or can bring new demand growth points, such as Japan had a serious school bus accident caused by drink driving, the local government to introduce the corresponding regulations to promote the rigidity of the liquor testing market to release a certain market demand. The local government introduced corresponding regulations to promote the rigid demand for alcohol testing market, releasing a certain market demand. In the future, new demands and growth points for safety testing in overseas markets are likely to emerge. HANWEI will stabilize the existing market, continuously improve the competitiveness of products and services, grasp the opportunities, and continuously launch products to meet new needs and develop new markets.
Fourth, the persistent development of Chinese enterprises. For example, at present, HANWEI Technology Group after years of global promotion, whether Europe and the United States or the third world countries, HANWEI / WEISHENG sensors in the field of gas detection had become a well-known brand, for the development of new application scenarios and the promotion of new products have a good brand foundation.
Of course, for Chinese local brand semiconductor product suppliers, to these overseas markets also have to face a lot of challenges. Ren Hongjun, Chairman of HANWEI Technology Group, pointed out that "the first is the current international environment, China and the United States decoupling and trade de-globalization for Chinese products in North America has a certain impact on sales. Second is the technical competition and innovation pressure: overseas market competition is fierce, China's local brands based on geographical restrictions and operating costs, basically rely on online sales, localized service capacity is weak. And many internationally renowned brands have occupied a leading position, China's local brand semiconductor product suppliers can only strengthen and competitors to maintain competitiveness in the level of technology and innovation capabilities, and continue to introduce products with differentiation and high value-added products."
He went on to say that in addition to this, there are the following three challenges: First, market access and regulatory requirements: there are differences in market access and regulatory requirements for semiconductor products in different countries and regions. Chinese local brand semiconductor product suppliers need to understand and comply with the regulations and standards of the target market, including product certification, environmental protection, industry standards and other requirements to ensure product compliance and smooth entry into the market, such as Europe's EN, IEC and so on.
Second, delivery and logistics: Logistics in overseas markets are complex and varied, which will bring challenges including logistics costs, delivery time, tariffs, etc. Chinese local brand semiconductor product suppliers need to manage supply chain and logistics through multiple channels to ensure that products can be delivered on time. For example, at present, Russia in the case of FEDEX, DHL cannot be used, the enterprise to open the air transport, steamship, railroad and other logistics channels to flexibly meet the needs of customers.
Third, cultural and linguistic differences: overseas markets involve different cultural backgrounds and language environments, which may become barriers to communication and understanding, especially in small language countries, Korean, French, Spanish, Russian, the use of large groups are also very large, such as the absence of language experts is difficult to carry out marketing and brand promotion in these regions. Chinese local brand semiconductor product suppliers need to adapt to and understand the cultural and linguistic characteristics of their target markets in order to communicate and cooperate effectively.
To meet these challenges, HANWEI Technology Group has developed six strategic initiatives. We have firstly increased our investment in technological innovation and R&D to continuously improve the technical level and innovation ability of our products, said Mr. Ren. Horizontal and vertical integration of the sensor industry chain, to maintain the level of R & D investment of 7% of annual revenue, to strengthen the talent advantage of Shanghai and Shenzhen R & D centers, multi-location joint to play their respective advantages.
Secondly, we have strengthened the research on overseas market access: we have gained a deep understanding of the market access and regulatory requirements of the target markets, such as IEC60335 in the refrigeration industry, WELL building series standard certification, LEED and RESET building certificates focusing on the comfort and health of building occupants, and we have gained accurate market information and guidance by cooperating with local partners or professional consulting organizations to ensure that our products can enter the market smoothly. We work with local partners or professional consulting organizations to obtain accurate market information and guidance to ensure that our products can enter the market smoothly.
At the same time, we have also strengthened brand building and promotion in overseas markets. We have set up a professional overseas marketing department, with SEO, SEM, and brand promotion in their respective roles, and have strengthened the Internet, social media marketing, and small-language localization promotion. By participating in international exhibitions, industry forums and technical seminars, we demonstrate the advantages of our products, establish contact with customers and increase brand exposure.
In addition, we focus on strengthening our localization strategy and team building: laying out distributor networks in target markets, using distributor sales teams to understand local culture and market characteristics, and providing better customer support and communication. We recruit and train talents with cross-cultural backgrounds and language skills to strengthen our understanding of and ability to adapt to the target markets.
Finally, we are actively expanding our business in emerging world factory countries, such as ASEAN, Mexico, and Turkey, and utilizing third-party whole product opportunities to penetrate the European and American markets.
The following are the 3 main selling points of HANWEI Technology's gas sensor products. "First of all, HANWEI is one of the few suppliers who owns the core components of the sensors as well as the finished product manufacturing, the technology owns and long-time technology precipitation, the product quality is stable and reliable." Mr. Ren pointed out, "Secondly, we have a complete range of products and provide one-stop packaging solutions to meet different customer needs. Finally, we support flexible production, which can quickly meet customer customization needs."
In terms of technical support and after-sales service, HANWEI Technology has established an iron triangle team (sales + technical + product manager) to serve customers together, and we have a specialized technical support and after-sales service team.
The brand marketing strategy of HANWEI Technology Group in overseas market adopts the following 4 main methods to promote simultaneously.
1) Engine promotion: establish a multilingual website (English, Korean, Russian), with the help of international search engines Google and Yandex, constantly optimize SEM, promote products and brands globally, and improve the visibility and influence of the enterprise in the industry and various application fields.
(2) Cross-border e-commerce: Layout of cross-border e-commerce market, operating stores on Alibaba International Station, Speed Selling, independent station, OZON platform, with the help of platform diversion to do brand publicity and sales increment, and achieved good results.
(3) Social media platforms: Compared with domestic communication, which usually focuses on news platforms, the important position of overseas communication is mostly social media platforms, and platforms such as Facebook and Youtube are more likely to attract customer interaction. We combine the trend of overseas communication with the publicity put on Facebook, Youtube, LinkedIn and overseas forums and regularly put brand promotional materials.
(4) Dealer network: We use the network channels of dealers and overseas agents to promote our brand.
Mr. Ren also shared the overseas marketing experience of HANWEI Technology. He said that it is generally necessary to consider adopting a layered communication strategy so as to maximize the influence of the overseas market. For example, for exhibitions, at least three months in advance to determine the communication strategy, with the help of the organizer's media platform, through the advance dramatization of product highlights and other forms, to strive for pre-show reports or interviews. Make full use of the exhibition forums to create more opportunities for contact with customers and media. Do a good job of post-show review to extend the long-tail effect of marketing.
Mr. Ren especially pointed out, "In case of social media marketing, due to the big difference between foreign and domestic cultures, it is recommended to do a good job in training and public opinion management to avoid the reputation risk caused by cultural differences. Domestic marketing mainly focuses on the level of new products, new technologies, new applications, in addition to these, foreign marketing also focuses on shaping the image of industry leaders, marketing to tell a more attractive corporate story, and pay attention to the sustainability of corporate culture and business model."
In addition, in-depth study of local market demand and consumer behavior, according to different markets to develop targeted marketing strategies. Strengthening cooperation with local partners or distribution platforms to gain more channels and resources through cooperation is also a good means to increase brand awareness and market share.
Finally, all marketing means are to reach users and promote cooperation, and whether the customers can eventually repurchase, whether to reach a long-term stable cooperation, the product is fundamental. Over the years, HANWEI Technology has been committed to continuously improve the performance, cost-effective, service and other advantages of the product, in order to lay a good foundation for overseas marketing.
Mr. Ren also shared some effective marketing strategies. For example, 1) Provide English or small language customers with detailed product specifications and performance information, including communication, power consumption, size, interface, etc., and can be downloaded from the website to help buyers understand whether the product meets their needs and expectations. 2) Provide references to customers and successful cases: Provide references to customers in related industries and successful cases, especially the head of the same industry, to show the advantages and achievements of the product in the actual application. Advantages and results to increase customer trust in the product. 3) Provide product reviews and comparisons, including comparisons with competitors' products, to help customers better understand the advantages and differences of the products.
The vision of HANWEI technology Group is to be the leader in sensor-centered IoT solutions.
The important development milestones of HANWEI Technology Group are as follows:
-- On September 11, 1998, Henan HANWEI Electronics Co., Ltd (the predecessor of HANWEI Technology Group) was established in Zhengzhou. In the same year, HANWEI developed the first sensor, MQ Metal Oxide Semiconductor Gas Sensor, which was mainly used for detecting combustible gas leakage at home, which was the first step of HANWEI on the path of sensors.
--In 2003, HANWEI developed the first gas detection meter, stand-alone combustible gas detector, which marked HANWEI's formal entry into the gas detection meter industry.
--In 2005, the first phase of HANWEI Industrial Park, 13000m2, was completed and put into use.
--October 2009, HANWEI was officially listed on the GEM board of Shenzhen Stock Exchange, becoming one of the first batch of listed companies on the GEM board in China and the first one in Henan Province.
--In 2010, HANWEI Internet of Things Technology Industrial Park started construction, which opened the process of comprehensively entering the Internet of Things industry. So far, it has formed three major industrial sectors with sensors as the core, intelligent instrumentation as the pillar, and Internet of Things with system solutions as the orientation.
-2013-2015, HANWEI industrial development and capital operation, through independent research and development and mergers and acquisitions integration, successive mergers and acquisitions of a number of data collection, software, GIS and other Internet of Things technology-related enterprises, to build its own Internet of Things technology ecology, sensing sensors, intelligent terminals, communications technology, geographic information and cloud computing, big data and other technologies closely integrated to establish a complete Internet of Things industry chain, the Successfully build an industry-leading IoT industrial ecosystem centered on sensors, further opening up the development space.
--In 2015, HANWEI established the IoT ecosystem with sensors as the core, and comprehensively explored the four major fields of safety production, people's health, smart city and environmental protection.
--In 2017, HANWEI Electronics officially changed its name to "HANWEI Science and Technology Group Co., Ltd." and started the road of group development.
--In 2018, the Xiangyun Internet of Things platform was released, sharing years of industry experience and Internet of Things technology with many enterprises in the industry and driving the development of the whole industry.
--November 2020, the second headquarters of HANWEI Technology Group (Shanghai headquarters) was officially opened, focusing on MEMS, optoelectronic technology and other advanced sensors, digital economy cloud platform and applications, and increasing the construction of R&D and innovation, marketing, investment and cultivation platforms.
--In July 2021, HANWEI's "Urban Lifeline Sensing and Operation Platform" was released, which helps to comprehensively improve the government's comprehensive management capability and construct a safe and solid urban underground "lifeline".
--In 2022, HANWEI's subsidiary Suzhou Nestar received strategic investment from Xiaomi's fund, and its advanced flexible sensors will be combined with Xiaomi's smart IoT terminal products to realize large-scale applications in smart wearable and smart home.
