To be the richest man in sensors, what should domestic instrument companies learn from KEYENCE?

[ Star Enterprise of Chemical Machinery Equipment Network ] On September 14, the founder of sensor manufacturer Keyence Takehikari Takizaki replaced Uniqlo Yanai as the new generation of Japan's richest man, worth as much as 38.
2 billion US dollars
.
And Yanai Zheng is currently worth 35.
5 billion U.
S.
dollars, ranking second; SoftBank Group Sun Zhengyi is worth 26.
9 billion U.
S.
dollars, ranking third
.

 Chemical machinery equipment network star enterprise chemical machinery equipment sensor
Affected by the epidemic, the opening hours of Uniqlo stores have been shortened, and profits have fallen sharply
.
As a result, the personal wealth of its founder, Yanai Masa, has shrunk sharply .

 
　　But also because of the epidemic, the importance of production automation has become increasingly prominent
.
In order to reduce personnel contacts in the production process, a large number of industrial companies around the world have increased their investment in automation equipment.
The revenue and profit margins of the invisible industrial automation giant Keyence have also risen sharply
.

 
　　This is an example of changes in the wealth pattern during the COVID-19 pandemic.
A factory automation entrepreneur replaced a retail giant to the top of Japan's rich list
.
The epidemic has stimulated demand for factory automation, and Keyence’s operating profit margin currently exceeds 50%
.

 
　　The new richest man and his company
 
　　Public information shows that Takemitsu Takizaki was born in Hyogo Prefecture, Osaka City in 1945.
He has never attended a university, and his highest degree is a vocational high school
.
After experiencing two consecutive bankruptcies, KEYENCE was founded in 1974
.
A manufacturer dedicated to R&D and manufacturing of sensors, measuring instruments and other industrial automation equipment
.

 
　　KEYENCE’s mission is to "create added value".
Whether it is pressure sensors , barcode readers, or microscopic measurement systems, all of its products are outsourced, which greatly reduces the pressure on the company to have a large number of fixed assets
.
All of its products adopt a direct sales business model.
The company directly manages sales, inventory and distribution, and can process orders and deliver products at an extremely fast speed.
Most orders can be shipped on the same day
.

 Pressure Sensor
　　KEYENCE's products are not directly oriented to mass consumers, but mainly serve the production automation of industrial enterprises
.
Its customers are mainly manufacturing companies that produce automobiles, steel, tires, and plastics
.

 
　　The epidemic has accelerated the automation upgrade of global industrial enterprises and the replacement of labor
.
This has led to Keyence’s performance and stock price continued to rise.
By September of this year, its stock price had almost doubled from the same period last year, with a market value of US$167.
36 billion
.
Today, Keyence is the second-highest company in Japan by market capitalization after Toyota
.

 
　　Secret of Keyence's success one: direct sales model
 
　　Unlike other sensor manufacturers who sell products through agency distribution, KEYENCE has been insisting on direct sales for many years, and sales staff of its own company sell products directly
.

 
　　Takemitsu Takizaki believes: "We believe that the product we have developed is the world's first high-value-added product in this field.
Agents do not know the overall advantages of the product, and it is impossible to accurately pass this information to customers
.
"
 
　　Therefore, in order to better understand customer needs to improve products and develop new products, KEYENCE chose a direct sales model rather than a sales model of layered dealers
.

 
　　On the one hand, sales engineers can accurately deliver the company’s product information to customers, solve various problems for customers in a timely manner, and put forward new rationalization suggestions; on the other hand, sales engineers can analyze existing products from customer feedback.
Improve and upgrade, and discover new potential needs in time, so as to start new product research and development
.
In addition, KEYENCE also stipulates that R&D personnel are obligated to accompany sales engineers to visit customers on a regular basis, which is also to provide better advice to customers on the production line
.

 
　　At present, KEYENCE has 230 sales offices in 46 countries around the world, and has extensive transactions with approximately 300,000 customers in 110 countries
.

 
　　Secret of KEYENCE’s success two: fairness/equality, emphasis on talents
 
　　First of all, unlike most Japanese companies that like to conduct family operations, KEYENCE does not conduct "hereditary" management, and even prohibits immediate family members of management and employees within three generations from entering the company
.

 
　　Secondly, Keyence, regardless of age, seniority, even the boss himself, must line up to enter in order when taking the elevator
.
In company meetings, both veterans and recruits can speak equally
.

 
　　Third, Keyence also pays special attention to the cultivation and training of talents.
When recruiting talents, it basically does not look at whether the other party has graduated from a prestigious school or what major they have studied
.

 
　　Fourth, Keyence is also a company known for its high salaries
.
In 2020, Keyence's employees have an average annual salary of 18.
39 million yen (approximately RMB 1,199,800), which is the highest in Japan
.
This has won KEYENCE the core of the development of many high-tech enterprises-talents
.

 
　　With the support of excellent talents and excellent management, the sales of KEYENCE’s new products have accounted for more than 30% of total sales in recent years, and more than 70% of the company’s products are world-firsts or industry-firsts
.

 
　　Secret of Keyence's success three: attach importance to technological innovation
 
　　In order to develop high value-added products, KEYENCE has never stopped its pace of innovation
.
It is openly stated that 70% of enterprise products are the world's first, and it has been rated as the world's most innovative enterprise TOP100 for 8 consecutive years
.

 
　　And innovation is more than just innovation
.

 
　　KEYENCE products are easy to use and have a very good learning curve.
Compared with existing products, almost everyone can use the new product without any training, whether it is a maintenance worker, an engineer, a scientist or a manager
.
Innovation is not more complicated
.

 
　　KEYENCE has always attached importance to scientific and technological research and development, constantly researching and developing new products, and established its position in the industry by maintaining a 30% share of new products
.

 
　　What is the reference for domestic instrument and meter companies?
 
　　In recent years, China has further stepped up its efforts to develop and support specialized, specialized and new-type small and medium-sized enterprises, especially small giant enterprises with potential and specialization in the specific manufacturing track
.
The Keyence case is quite worth learning
.

 
　　Specialization and newness are fundamentally specialized
.

 
　　In addition to attaching importance to scientific and technological research and development, and continuous research and development of products, more importantly, Keyence is a very patient and dedicated company.
Monopoly position
.
For example, in the field of robot vision, Keyence has now monopolized 50% of the global market with Cognex in the United States
.

 
　　Only by focusing can we be refined and special, can truly continue and produce major innovations, and can truly make a sustainable contribution to the country's industrial development and even the development of the human economy
.

 
　　KEYENCE’s attention today is not only driven by the current situation, but more of the result of its own focus on development and continuous improvement.
Its business philosophy and business model are worthy of reference for domestic instrumentation companies
.

 
　　Original title: To be the richest man in sensors, what should domestic instrument companies learn from KEYENCE?