"Having a big vision is a great thing," says CEO of LIXIL Group Yoshiaki Fujimori. Already on top in its native Japanese market with the largest market share in its sector, housing equipment and building materials leader LIXIL has no greater vision than recreating its success at home in the rest of the world.

This strategy has been a key facet of LIXIL's decision to focus global activities in the world's current growth hub - Asia. Dubbed the "10x10 Matrix", its plan is to concentrate on 10 product segments in 10 Asian countries. In China it is leading the matrix pack by a significant margin, and China is a key part of its global plan.

"In China almost 20 million new homes are built annually, compared to Japan's 900,000 and 900,000 in the US," says Fujimori. China's rise to the world's second largest economy has resulted in a ballooning middle class now approximately 10 times the size of Japan's.

As incomes increase, more people are willing to spend on quality goods. "Japan is ahead of the game when it comes to quality products," explains Fujimori. "We want to talk to the middle class in China who want a better quality of life and a better standard of living."

LIXIL's joint venture with China's Haier Group is intended to solidify its presence in the country, and is indicative of its commitment to the Chinese market.

"It makes perfect sense!" he exclaims. "I believe the strong reputation of Japanese quality is why Haier approached us. Haier produces kitchens and kitchen products, but it can also market a wide range of products with quality that can be provided by LIXIL. We have great products, and Haier has great distribution."

Currently, the collaboration focuses on kitchen sets. Future expansion to other products is in the works, but LIXIL also wants to do more than just kitchens.

"We want to change the focus of technology in Chinese homes," he continues. "As the leading country now behind many initiatives in quality improvement, energy conservation and green products, China is the perfect market for LIXIL. Everything we have is green and energy efficient: exactly what can be utilized in China."

"We are now initiating a lot of changes to make our company more global, and to make LIXIL the best in the international market," Fujimori concludes. "It's a big target but it's also feasible. It stretches everybody's minds and creates excitement."

http://www.LIXIL-group.co.jp/e/

World Eye Reports provided the story

(China Daily 02/06/2013 page7)