APC 2015 Annual Report Download - page 23

2015 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC 21
OVERVIEW OF THE GROUP’S STRATEGY, MARKETS AND BUSINESSES
1
BUSINESSES, END-MARKETS ANDCUSTOMER CHANNELS
2.3 Products and Solutions, two complementary business models
The businesses in each of our four business segments offer
products and solutions. Solutions are comprised of systems, such
as highly customized products or combinations of our products,
and services. Our P roducts and S olutions businesses have
different revenue growth and profi tability profi les, with our S olutions
business complementing our P roducts business. Solutions is also
an important platform to develop our presence in Services, where
we can deliver higher added value more frequently and lower capital
requirements.
Product business model
We believe our products offer best-in-class technology, strong
channel access to markets and optimal quality and cost, which
allows us to achieve scale and pricing advantages in the markets
in which we operate. We market and sell our products principally
through distributors and direct partners, such as contractors,
system integrators and electricians, who provide us with the ability
to reach large numbers of small and medium-sized customers.
Solutions business model
We believe our solutions offer leading technology, strong integration
and service capabilities and segment-specifi c expertise. We market
and sell our solutions through direct partners, such as contractors
and system integrators, or directly to larger customers.
2.4 Multiple accesses to markets
Customer satisfaction
Customer satisfaction is an integral part of Schneider Electric’s growth strategy. Every contact with Schneider Electric
should be a positive experience that makes all customers, no matter who they are or where they are located, feel
understood and satisfi ed. This commitment is an important differentiating factor, and customer satisfaction surveys
are regularly carried out in all countries in which the Group operates, and employees attend related training programs.
Customers also have access to online diagnostics and support services (an e-catalogue, downloadable software and
online information and training).
A large portion of Group revenues are made through intermediaries
such as distributors, systems integrators, installers and purchasing
advisors, who all bring their own added value and know-how,
allowing the Group to access a number of different markets.
Distributors & retailers
Distributors account for approximately 40 % of the Group’s total
revenues through an extensive network in 190 countries all over
the world.
Schneider Electric works with many different types of distributors:
local distributors, electrical wholesalers and generalist distributors,
large international groups such as Rexel, Sonepar, Graybar and
Grainger, and IT specialists such as Tech Data and Ingram Micro
in the United States. In the residential renovation sector, Schneider
Electric also sells products through large home improvement chains
such as Home Depot and Lowes in the US, Kingfi sher in the UK
and Saint- Gobain Distribution in France. In addition, the Group
uses specialized distribution channels for highly technical products
such as automation solutions and industrial software, as well as for
access control and security products.
Schneider Electric assists its distributors in advising their customers
and helping them to benefi t from technical innovations. To maintain
a high performance network, the Group works hand in hand
with distributors on supply chain issues, technical training and
marketing. Internet tools now occupy a dominant position for sales,
and above all, provide up-to-date information. Through the e-Shop,
distributors can link Schneider Electric’s product database to their
e-commerce sites so that customers have reliable 24/7 access to
information.
Other intermediaries & partners
Panel builders
Panel builders build and sell electrical distribution or control/
monitoring switchboards, primarily for the buildings, energy and
electricity infrastructure markets and industry. Their main customers
are contractors. Panel builders mostly buy low and medium voltage
devices, such as circuit breakers and contactors, and increasingly,
prefabricated systems. There are more than 20,000 panel-builders
throughout the world.