What is the secret to AO Smith’s success in innovation?

Mastering "core technology" is the capital for an enterprise to subvert the industry. With this concept, AO Smith has come to where it is today. From March 9 to 11, 2017, the China Home Appliances and Consumer Electronics Expo (AWE) kicked off in Shanghai. This year is also the 20th year for AO Smith to enter China, and AWE has become the best place for it to show its strength to the industry.

After 20 years of deep cultivation in China, AO Smith has mastered the essence of craftsmanship. As we say, "the one who understands you is the most suitable." With years of research on the Chinese market and understanding of consumers, AO Smith has always occupied the position of the industry's big brother. The products it brings have also refreshed our understanding of traditional products time and time again, and have always been a promoter of industry development.

How Technological Innovation Enterprises Survive

AO Smith started out as a water heater company, and is still a leader in the water heater industry. Currently, its sales share of the entire water heater market is as high as 27.46%, ranking first in the industry. The new products displayed at AWE2017 are full of black technology from the inside out. AO Smith's thin Jingui inner tank electric water heater not only has a long life of anti-corrosion and anti-fouling inner tank, but also has a thinner body of 28cm, which is 42% thinner than traditional electric water heaters; the high-rise intelligent wind-resistant gas instant water heater is not only equipped with a US patented carbon monoxide safety protection system, but also has an innovatively developed "Efron" easy-to-wipe body panel that can resist kitchen grease and become new with just one wipe; the Jingui inner tank air energy water heater is equipped with the latest "intelligent variable speed" heat pump system, which intelligently adjusts the compressor and fan speed, and uses one unit of electricity to achieve five times the utility.

Energy-saving innovation is the direction of the industry's development, and all walks of life are moving towards this point. AO Smith's research and development based on energy-saving innovation can undoubtedly drive the development of the entire industry. Innovation has always been the foundation of AO Smith in the water heater industry. In its 143 years of development, the company's research on innovation has been revealed all the time. Its chronicles show that it obtained the patent for the Jingui inner tank in 1936 and it became an industrial standard. It is not difficult to see from today's market share that AO Smith is powerful in the water heater industry.

Reform with an open mind and move forward through exploration

AO Smith has been constantly reforming in innovation, because the Chinese market is a process of urbanization. In the process of Chinese consumers' consumption upgrade concept change, how to enjoy this dividend as a manufacturing company is a difficult problem. First of all, the company's products must have core technology, and the core technology must be better, and secondly, it must adapt to this market.

AO Smith started in the United States and entered China 20 years ago. During the 20 years of exploration in China, it has always insisted on its insight into the market and consumer needs. If it does not change, it will definitely not adapt to the local environment, so change is also an important condition for AO Smith's success. Looking at all walks of life, only those who actively adapt to local customs and based on China's environmental status like AO Smith can live better.

Actively expand the industry with accumulated strength

The AO Smith we see today is no longer just making water heaters, but has more products. In addition to electric water heaters, there are also gas water heaters, water purifiers, air purifiers, wall-mounted boilers, air-energy water heaters, face water softeners, constant temperature hot water mattresses and a series of other products. The changes in AO Smith tell us that it is pursuing more than just high quality and innovation of products, but also the vision of creating a high-quality and healthy life for Chinese families. It is not just about products, but more of a lifestyle.

Developing new products will inevitably face various difficulties, and no one can foresee whether it will succeed. Mr. Ding Wei, Senior Vice President of AO Smith Group and President of (China) Investment Co., Ltd., once said: "When we choose a category, we don't care what the current market share is or what the current situation is. If we do it, we must be the first in the industry." His words have been reflected in his own air purifier. Although this product has not yet achieved the largest share in the market, I believe that its design and quality assurance will definitely attract more consumers' attention.

With the economic growth and the improvement of people's living standards, consumption awareness has also begun to change. Chinese consumers, who are in the stage of consumption upgrading, are more willing to spend more money to buy better and higher-quality products and services. The market also needs high-quality products and leading brands to lead the healthy development of the industry.

Since its founding in 1874, AO Smith has been forging ahead on the path of technological innovation. Success is not based on luck, but on experience and strength. The craftsman's secrets that have been passed down for more than a hundred years are the way to survive. We believe that AO Smith can develop better.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.