3M: Persistence behind Diversification

When visiting 3M’s online store, you will probably be dazed by the sheer variety of the company’s products, from water and air purifiers, to respirators, post-it and tapes. However, behind this apparent diversity, the real 3M is persistent and dedicated.

Keeping confidence in China

One of the earliest foreign companies to come to China after reform and opening-up began, as much as any other company, 3M has witnessed and participated in the evolution of the Chinese economy. As it does so, it has grown to know China well, and gained great confidence in it.

By 1984, when 3M China was set up, six years after economic reform was first mooted, 3M executives responsible for international business had already been on the ground in China for years, to learn about policy and the direction that the Chinese government proposed to take. This relatively long history in China is a heritage 3M is rightly proud of and its great competitive edge.

“I think it is an absolute advantage for us. First off, by being here since the early opening period, we have been able to learn more about the market than other multinationals that have arrived more recently,” said Stephen Shafer, president of 3M China.

Even as it tried to learn more about China, 3M was also investing in localization-- localization of manufacturing, R&D, and most important, leadership. This, along with the knowledge of China, has allowed 3M to be “more responsive, faster and to innovate quicker and that dates back to the foresight we had as a company back in 1984 to be one of the first multinationals here,” Shafer said.

Today, a close attention to government plans remains 3M’s watchword: The key to unlocking a market is understanding its megatrends.

Apart from a deeper understanding of China, by being here early, 3M has played an important role in the evolution of the national economy. From infrastructure construction during the 1980s and 1990s, to the advancement of manufacturing capabilities since China’s accession to the WTO in 2001, to a new emphasis on safety and environmental protection, 3M has been there during every evolutionary phase of the economy over the last 34 years.

At the upcoming CIIE, 3M will be showcasing the company’s capabilities rather than just an array of new products. For 3M, bringing in new products is really nothing special, for the company has been introducing hundreds of new products each year.

While the impact of the CIIE is yet to be seen, Shafer sees the expo as a platform for global opportunities and global innovation. Apart from sharing 3M’s capabilities with other companies, they will “learn a lot from other people who are coming and sharing with us what they are doing and what they think China’s opportunities are.”

From the earliest reforms to the CIIE, as the Chinese economy evolves, 3M is always there. Persistence and commitment in China is its own reward.

Dedicated to safety and the environment

“We view ourselves as a respiratory leader both around the world and here in China, so it is our obligation to give something back to communities,” Shafer said. It is mainly through safety education that 3M fulfills its social obligations. Shafer believes that safety education can change perceptions and prevent some avoidable disasters.

As many as six million patients in China suffer from pneumoconiosis, a chronic and incurable respiratory disease caused by inhaling metal or mineral dust, with a mortality rate close to 25 percent.

In 2018, 3M launched a pneumoconiosis care program with the Yuan Li Foundation. The program involves educating students in technical schools about safety, visiting workers, sharing true stories about pneumoconiosis patients, and promoting public awareness through touring exhibitions.

Between May 11 and 13, volunteers from 3M and Yuan Li Foundation visited counties in Hunan, a province with a high concentration of pneumoconiosis patients. 3M technicians gave safety lectures to students planning to take up careers as technicians in dusty environments. The visit took them to plants, where they shared stories and gave training on occupational safety. To date, over the course of 34 years, 3M has provided training to more than 600,000 workers in occupational protection.

After the trip to Hunan, 3M held exhibitions of pictures taken during the visit, in Beijing, Guangzhou, Shanghai and other cities to raise awareness of pneumoconiosis.

Apart from education, 3M is proud of its work in environmental protection. As a company reliant on technology, 3M also goes out of its way to help business partners, such as manufacturers in the automotive industry, reduce pollution by sharing eco-solutions.

“We are always working with our customers on sustainability, and it is a nice ecosystem that way,” said Shafer.

Born to Innovate

When asked about the challenges 3M faces, Shafer mentioned a much faster changing market requiring companies to be more responsive and agile. Once again 3M’s commitment to innovation is self-evident.

The company now has two R&D centers in China, in Shanghai and Xi’an respectively. Back in 1984, 3M China had no more than 20 employees. By now, it has grown into an operation with 8,200 people, 600 of whom R&D staff, and holds around 1,000 local patents.

The company credits this expansion to its innovative culture and mind-set. Shafer calls R&D “the heartbeat of 3M.” He is proud of its “15 percent” principle, which allows its R&D staff to work on any projects that interest them using 15 percent of their working time.

Moreover, 3M has instituted a host of awards and recognition, such as the 3M Golden Step Award and IP award, to encourage its scientists to generate new ideas and develop patents.

“We really treat our scientists as the superstars of the company, and reward and recognize them as such,” said Shafer.