Shanghai is not only considered to be the gateway to China, it is, to be more specific, the gateway to business in China. As history shows many leading Western businesses have relocated or set up business by the Bund and subsequently thrived.

Geberit is no different. After exploratory moves in the late 1980s, Geberit started its operations in Asia Pacific in 1996 with two joint ventures in China (fully owned since 2001). Today, Geberit is active in more than 15 countries in this region and most recently opened its new head office in Nanxiang/Shanghai; a facility that includes a modern production infrastructure, new office spaces and a training centre tailored to the needs of customers. The new buildings also house spacious development and testing laboratories for the regional Research and Development Competence Centre. The total investment amounts to approximately AU$20 million.

With such a large investment, Geberit expects that Shanghai will provide an excellent hub for production and manufacture, yet there is a greater goal to influence and improve current plumbing practice in the immediate region. This push into the region is now being led by Geberit Asia Pacific CEO, Michael Schumacher who boarded the plane to Shanghai three years ago.

“I have been with Geberit for more than five years, starting out in Switzerland in marketing as the head of the group,” Michael says. “Almost three years ago, I came over with my family to lead China and was made CEO of Asia Pacific almost twoi years ago.”

Michael says the change in environment was a challenge, as he and his family had to adapt to the pace and size of China. Yet he sees the challenge as refreshing and inspiring and is looking forward to further mandating Geberit’s initiatives for the region.

“The good thing is Geberit has a long standing history in China. We started joint ventures in 1996 and have been gradually growing them organically, starting with a production buy out and then opening sales offices across China. We are expanding the production location and there are more than 750 people working in Geberit China with only a few Europeans. So, although we are a European company, we have a big local footprint here.”

The new facility in Shanghai – which took a year to build – allows Geberit to expand this footprint further.

“The clear strategy of Geberit is selective internationalisation. China is one source of growth for the future and that was the key reason to move to this market. This building represents a new phase in commitment and expectations for Asia Pacific but also for China.”

Michael points out that the market approach is different. He says the Asian market, (particularly in those countries in South East Asia), is special in terms of distribution because there are no established wholesale structures. This means the distribution is usually undertaken through small-scale distributors supplying to developers or contractors working on specific projects.

There is also a difference in skills and knowledge. “There is a comparatively low skill base especially in sanitary installation, so this requires additional effort in knowledge building, training and education,” Michael says.

“Then there are product and application Standards which are not set or are evolving, so we see this as an opportunity to shape the market. These are three key differences that need a different approach in tackling the market to be really successful.”

Geberit is in the Asia Pacific for the long term and is working on projects that will have more than a short-term impact. The company is working closely with five regional universities to build skills and has a scholarship program in place for plumbing engineers. They are also involved in Standards work and the regulatory environment to help develop the industry.
“We have been welcomed by the relevant Chinese government bodies.