Honeywell's East-to-Rest (E2R) strategy, which aims to develop products that suit the needs of fast-growing Asian markets before introducing them abroad, may provide a roadmap for Western companies seeking to leverage China's economic clout and market size, says Briand Greer, president of Honeywell Southeast Asia.
Honeywell, a New Jersey-based conglomerate whose strategic businesses are aerospace and home and building technologies, places China at the core of its marketing strategy, stressing the importance of competing with Chinese companies both in local and global markets.
"As China is heading towards becoming one of the strongest economic competitors in the world market, if you are not able to compete with it locally and in Asean, you will not be able to do so globally," he said.
He said Honeywell is designing more product features and testing them for customers in Asia in a bid to appeal to locals.
The products are passed on to the company's E2R development team, which identifies and adapts to the desires of its regional customers and what they are willing to pay, said Mr Greer.
In an interview at the opening of Honeywell's new headquarters in Kuala Lumpur, he said the company needs to leverage the presence of China in Asean. Mr Greer said the new headquarters in Malaysia reinforces Honeywell's drive to strengthen its position in Asean and take advantage of its fastest growing economy.
Despite considering Thailand for its new headquarters, he said the ease of working with the Malaysian government is the main reason it won the bid.
Malaysia will benefit from US$500 million investment that will be pumped into its economy, said Mr Greer.
Sri Mustapa Mohamed, Malaysian Minister of International Trade and Industry, said Honeywell's decision to choose Malaysia as the location for its headquarters complements government effort to become an investment destination.
Mr Mustapa said that the headquarters would help the company tap into the growth potential of both Malaysia and the region.
Honeywell's portfolio in Thailand accounts for $200 million (6.7 billion baht), 50% of which is in the oil and gas sector. Honeywell employs 440 staff in Bangkok, as well as Chon Buri and Rayong provinces.
