Founder's Story

17 years of dedication in HVAC/R：From one to Millions

The road to symbiosis: An entrepreneur and the air conditioning industry

Gavin

HVAC industry
Need to FOCUS AND DEDICATE

In the HVAC industry, the most important thing is to “focus and dedicate” —— after graduating in 2008 till now, Gavin’s 17-years have been almost tied to the HVAC/R industry. Today I want to talk about this road of dedication: from a newcomer to a veteran in this industry, from zero to a professional company with an annual turnover of 160 million yuan. Even now a new attempt of the new energy industry, the HVAC has been and always will be my root that I will dedicate.

17 years of HVAC/R master

——From "KNOWING " to "CONTROLLING"

When I graduated from university in 2008, I decided to devote myself into HVAC. Some people asked, “Why choose HVAC?” In fact, there is no complicated reason – at that time, I thought AC is a “necessity”, and the HVAC will have a big booming in market demand. No matter how the economy fluctuates, the “heat” will force people to buy AC. But I didn’t expect that this would last for 17 years.

In these 17 years, I started by “reading models” and gradually got to know the pulse of the industry. At first, I went to factory workshop and stared at the production line to see how copper pipes were bent and how compressors were installed; later, I went to R&D, to know the process of developing a new product and the testing facilities and laboratories, then I liked to talk with engineers to know the difference in capacity and efficiency; then, equipped with product know-how, I started visiting the market of Latin America and stayed closely with customer. I got to know the local power standards, the import regulation and installation habits, and even knew which dehumidification HVAC was more suitable for the rainy season in Brazil, and which energy-saving host was more favored by shopping malls in Mexico.

Now I dare to call myself a “HVAC expert”, not arrogantly, but really “knowing everything” about this industry. For example, in the HVAC industry chain, from the core components such as compressors and copper pipes in the upstream, to the assembly plants and brand owners in the midstream, and then to the overseas channels and installation service providers in the downstream, I can clearly draw a “resource map” – which company’s goods can be shipped from Guangzhou Port to Rio de Janeiro within 48 hours, which after-sales team can cover 70% of the cities in Southeast Asia, and which technology can solve the problem of “high-temperature cooling efficiency attenuation” in the desert areas of the Middle East. These are the “hard work” honed in 17 years.

This is even more true for the knowing of overseas marketing, especially for Latin America market . For example, when selling the Latin American market, we found that local customers not only want “HVAC”, but also “solutions” – the floor height of their shopping malls is generally more than 8 meters, and the cooling effect of ordinary cabinets is poor; the humidity in the rainy season is as high as 90%, and HVAC is prone to mold. So we customized a special HVAC with “high static pressure + mildew prevention” in conjunction with the factory, and then worked with a local installation team, and opened a name and a reference project in Brazil. This is the precipitation of 17 years: not just selling goods, but knowing “what customers really need”.

Newex International's 13 years

——From "selling HVAC" to "making solutions"

When I founded Newex in 2012, I set a rule: not to be a “mere trader”, but to be an “HVAC solution provider”. In the past 13years, we have grown from 0 to 160 million yuan in annual revenue, relying on this clear and accurate Many people think that “HVAC business trading is just buy-and-sell”, but we make it different.

Newex is more like an “HVAC resource hub” – if customers want a Air conditioner equipment, we can offer choices from internationalbrands such as York and then to local domestic brand like Gree or Hisense and even we can OEM our customer’s brand; if they want accessories, from air vents to installation materials, we can integrate the supply chain from all over China and provide fast and immediate coordination; if they want services, from project drawing design to overseas installation and after-sales response, we are able to react fast and professionally. Last year, there was a hotel project in Asia, and the customer required “500 HVAC supply + installation within 30 days”. Our competitors thought it was impossible, but we did it: we urged the fastest production and shipping, and make pre-installed on site checking for installation, and even some materials like copper pipe, we ship by fast courier, and finally finished it 3 days earlier than the agreed time. The customer said, “You are not selling HVAC, you are solving problems” – this is exactly what we want.

We neverfeel shy about the fact of not being a factory. When meeting customers, I often say, “We may supply you with York or Hisense, but you have to buy from us.” Why? Because factories only know how to produce, but we know how to support. For example, Canadian customers want “low-temperature heating HVAC”, and the standard models of domestic factories cannot meet the heating requirements of -30℃. We jointly with the R&D team to change the parameters and add auxiliary heating modules. The customized solution we finally came up with is 15% lower than the customer’s expected cost. This is the value of solution providers and the know-how: to put together the “fragmented resources” of the industrial chain into the “complete answer” and make a solution to offer.

So far, Newex International has served customers in more than 50 countries, from tropical factories in Middle East to cold chain warehouses in North America, from hospitals in Africa to office buildings in Europe, from government building to universities in South America. NEWEX is becoming a well-recognized brand and a reliable partner for HVAC industry.

Some people may ask, “Is the profit high with a revenue of 160 million?” To be honest, it is not a huge profit, but it is stable because customers recognize “professional service” rather than “alternative price”. These 13 years have taught me that in the upcoming future of the HVAC industry, the competition is not about who can get cheaper goods, but about who can weld the chain of “goods + service” more firmly. Most importantly, “solutions” always matters.
Working with NEWEX, you choose a New Experience of HVAC. Let’s explore the new world together.