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Dale Wang Lijun: unswerving determination to plough China deeply

2024-04-22 Update From: SLTechnology News&Howtos shulou NAV: SLTechnology News&Howtos > IT Information >

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Shulou(Shulou.com)12/24 Report--

Since Dell opened its first office in Xiamen, China in 1998, it has ushered in its 25th year of development in China. Over the past 25 years, with the fluctuations and ups and downs of the market cycle, Dell has grown from growth to maturity in the Chinese market.

"China has always been an important international market for Dell. We adhere to the purpose of 'promoting human progress through scientific and technological innovation' and are always committed to our commitment to Chinese employees, customers and partners. This commitment has never wavered." Wang Lijun, senior vice president of Dell Technology Group, said.

Give a shot of confidence "cardiotonic"

Although the Winter Solstice arrives, there is a period of spring return. When will the PC market usher in its spring after the winter? Judging from the current signs, there seems to be an answer.

Statistics released by market research agency IDC show that global PC shipments in the third quarter of 2023 were 68.2 million units, an increase of 11% month-on-month. The market is showing a warming trend.

This is also reflected in the financial results of PC giant Dell. According to its latest results, Dell's total revenue for the fiscal second quarter ended August 4 reached $22.9 billion, higher than market expectations of $20.9 billion, while net profit under non-GAAP was $1.2 billion, surpassing the best level in history for the same period last year.

The duck is the first to feel the smell of spring. With its unique direct sales model, Dell has always been in more direct contact with its end users and sensed the changes in the market earlier.

In China, the growth pillar of the PC consumer market mainly comes from gamers and education industry. "China's game population is extremely large and growing year by year, and players' demand for computers is rigid. On the other hand, China attaches great importance to education. The penetration rate of computers in universities is quite high. More than 90% of students will buy brand-new computer products. Rigid demand ensures the stability of the consumer market." Wang Lijun shared his observations.

In addition, it is reported that the PC commercial market in the long-term development trend, the total volume will remain high. In addition to the growth momentum in areas with low penetration of the household PC market in the past, the hybrid work model also brings warming demand for PC products with productive applications in the commercial market, contributing to the follow-up and lasting development.

According to the 14th five-year Plan for the Development of the Digital economy, by 2025, the digital economy will enter a period of comprehensive expansion, and the added value of the core industries of the digital economy will account for 10% of GDP. With the deepening of digital-real integration, the digital economy has become an important engine for steady growth and transformation, which also shows the great potential of China's IT market.

"I am full of confidence in the development of this industry, in the future development of PC industry in China, and in the future development of Dell's business in China." The three "confidence" reveal Wang Lijun's ability to go deep into the industry for nearly 20 years.

Looking for certainty in change

In Dell's view, it is a series of changes in the Chinese market that have created opportunities.

"from the point of view of the business I am currently responsible for, this year has been a 'reset' year for the PC industry. The hot online office market led to the rapid growth of PC demand in the past two years, and now the PC industry is in the reset correction stage." Wang Lijun said that in the face of the cycle of replacement and upgrading and the changes brought about by new technologies, Dell has made continuous adjustments in terms of sales targets, cost control, and product iterations, making full preparations for the future development after the market is reset.

In fact, hardware devices such as servers, storage, PC and so on are standardized products. In a standardized industry, Dell quickly adapts to changes through supply chain advantages, procurement advantages, scale advantages and quality advantages, introducing global products to China, and can also sell Chinese products to the world.

"there is another important magic weapon for us to seek certainty in the changes in the market cycle and the economic environment, that is, 'talk less and do more'. If we do our job in a down-to-earth manner, a lot of things will come naturally." Wang Lijun said. "in the past 25 years, our development in China has not been plain sailing, and the challenges we have experienced at each stage are different, but every time we have been able to meet the challenges successfully, it depends on our solid style of doing things. Set goals, perseverance, do not give up easily, this is Dell's style."

Wang Lijun said: "We have established a retail store service system covering all domestic cities, which can provide end-to-end solutions for consumers and customers. At the same time, Dell has thousands of engineers in China. Provide product services, software services, consulting services, etc., to achieve maximum consumer and customer satisfaction with Dell products."

It is understood that Dell already has complete and comprehensive business capabilities in China, including R & D, sales, service, engineering manufacturing, procurement, production and processing, etc. Its R & D centers are located in Beijing, Shanghai and Chengdu, service centers are located in Shanghai, Xiamen and Dalian, and channel retail teams are all over the country.

Wang Lijun in response to the recent market hype of "de-Sinochem" and "foreign enterprises withdrawing from China" is timely to Dell, and can also reflect Dell's style of "talking less and doing more". "these are all rumors and belong to nonsense," he said. By sharing a fact, you can understand what the truth is like: we have manufacturing bases in Xiamen, Chengdu and Kunshan. According to the data just released in November, our factory in Xiamen is the largest local manufacturer in 2023, the factory in Chengdu is the top five, and the factory in Kunshan is also the leading manufacturer in the region. "

Dell's share price has risen more than 90% so far this year and is now at an all-time high, a recognition of Dell's response to the economic cycle and various challenges. Among the changes, what remains unchanged is Dell's attitude of doing things with a bow to his goals.

Long-term doctrine continues to write Dell stories

Peter Drucker, the father of modern management, once said that to judge whether an enterprise is a good enterprise, in addition to the economic dimension, there needs to be a social dimension.

If Dell's financial statements reflect its profitability under cyclical changes, then its ESG report shows Dell's sustainability in the social dimension.

According to Dell's fiscal year 2023 ESG report, Dell Technology Group has further optimized the company's ESG goals for 2030 and beyond, focusing on promoting sustainable development, fostering inclusiveness, improving people's livelihood, and maintaining trust.

"by 2030, for every ton of products customers buy, Dell will reuse or recycle products of the same weight; by 2030, women will account for 50% of Dell's global employees and 40% of their leadership positions; by 2030, 75% of Dell employees will participate in donations or volunteering in their communities." Wang Lijun detailed Dell's blueprint in the field of ESG.

Dell is also on its way to achieving these goals. Taking the effectiveness of achieving sustainable development goals as an example, data show that Dell used 155500 tons of sustainable materials in products and packaging in fiscal year 2023. Among them, a variety of sustainable materials are used in products, including recyclable materials, renewable materials and materials that can reduce carbon emissions. At the same time, Dell launched a new recycling service and upgraded the existing recycling service, successfully recycling 16.5% of the products sold, an increase of 4.4% over the same period last year.

Wang Lijun said that in the 25 years since entering China, Dell has always worked hand in hand with customers and partners to promote local economic development, but also brought considerable progress to society and people's livelihood. we continue to fulfill our long-term commitments to the community, employees and the environment through public welfare projects and the construction of corporate culture.

As Wang Lijun said, Dell 25 years later may have new challenges and stories at that time. "the development of the market or industry is constantly adjusting, and our attitude towards development in China has never wavered."

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