On Oct.11th(GMT+8), we had great honor of interviewing the industrial park operation expert Mr.Lawrence Luo, who is Regional General Manager of Shanghai at Liando Group.During the interview, He shared the deep insight and experience on industrial park purchasing, consutruction and operation.
Innoverview: How would you describe yourself in three words? What’s your motto?
Lawrence: Frank ,professional, and grateful.
NO PAIN,NO GAIN.
Innoverview: Can you please share more about your educational and professional background? And we’d love to hear what brought you to industrial park.
Lawrence: I graduated from JILIN University with bachelor degree of engineering in 1996. After that I came to Shanghai Jiao Tong University and finished my master degree of engineering in 1999 and got my MBA degree at Fudan University and finished in 2004.
My first job was cellphone designer at OCT, the leading theme park owner in 1999 at Shenzhen, then I moved to investment department to analysis industrial investment. In 2001, I moved back to Shanghai and joined a private company focused on commercial real estate and industrial real estate industry and started my career as industrial park engager. There were few industrial park developers at that time. In 2013, I joined Liando Group as Regional General Manager of Shanghai and in charge of the industrial land purchase, but also construction, marketing，and Daily Park Operation .
Innoverview: You have been deeply involved in land purchase, could you share 2/3 cases to explain the difference when purchasing residential land, commercial land and industrial land in China?
Lawrence: Within my 20 years working experience in real estate, I have engaged in land purchase for 18 years.
In china, residential land, commercial land and industrial land are quite different.
First, the land usage terms are different. For residential land, it is 70 years, but for commercial land, it is 40 years. For industrial land, it is 50 years(some cites now have 20 or 30 years’ industrial land) .
Second, the consideration factors are different. For industrial land, the main factors are enterprise quantity, industrial output，industrial profit ，Convenience of cargo traffic，type of industry and etc. While in residential and commercial land, the main factors are population, their purchasing power，public transportation and etc.
Third, purchase methods are different. For industrial land, we can sign investment agreement before go to public land auction while we cannot in most cities for residential and commercial land.
Innoverview: From your perspective, what kind of strategies will promise the highest success for industrial parks?
Lawrence: Being concentrate and professional is the most important strategy if you want to win in this field. Industrial park is a complicated system. If you are not professional enough, it is very easy to fail. This is the reason why many real estate developer want to invest in this field, but successful projects are rare and success on a nation-wide scale are less.
Innoverview: It is said that the connected machines — the primary components of the Internet of Things (IoT) — were to be the backbone of industry in the near future, do you agree with that? Is there any emerging technologies will also have influence on the industrial park operation?
Lawrence: IOT is coming soon. IOT will affect not only industry, but also our daily life. But industry includes many fields .Besides IOT, new material engineering, gene engineering will also have big influence to industry development and our future life. All these these new technologies will have influence on the park operation. Factories will be smarter,will have less people,and etc.Park operation must suit this trend.
Innoverview: As technology begins to alter the relationship between industrial manufacturers and their customers, the traditional pricing model for the service contract must be changed as well, how to settle the innovative pricing model from pay-for-product to pay-for-performance?
Lawrence: Whether it is service or product, pricing model will always abide by supply and demand principle. Price will vary due to the balance between demand and supply. The more innovative technologies are adopted, the lower the price will be. With a lot of innovation emerge, many new products with better performance emerge which give the customers more choices. because of this change, customers can pay for performance.
Innoverview: Nowadays, the environment for industrial parks and infrastructure service providers is still difficult and has worsened during the global economic downturn, what are the opportunities and challenges for industrial parks in China?
Lawrence: Challenges also mean opportunities. These years, the traditional industries are declining, but some new technologies are emerging such as new-energy vehicles，AI, IOT.
Companies with new technologies will be more competitive which means that they have more power to expand business. They will become our main target customers.
This kind of company are different from traditional companies. For example, they will have more engineers and robots in their factories. Engineers need a more beautiful, smarter, and more convenient park. Industrial parks with these features will have more opportunities.We have a saying, move with the times.If you are always keep up with the times,you will have opportunities,if not ,you will face difficulities.
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