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Pernod Ricard China wins by giving back
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Jean-Etienne Gourgues, managing director of Pernod Ricard China, received the 2018 Shanghai Magnolia Award in recognition for his outstanding contributions to supporting Shanghai鈥檚 economic development, promoting exchanges in the wine and spirits industry, and fulfilling corporate social responsibilities.
Pernod Ricard has been in China for nearly 14 years, with its key brands such as Chivas Regal, Martell and Royal Salute having grown to become China鈥檚 leading imported spirits brands.
Under the leadership of Gourgues since 2014, Pernod Ricard China applied and was qualified as a 鈥淭rade Headquarters鈥 in Shanghai, setting an example for industry peers to open up more domestically and internationally, and promoting the construction of trade headquarters in the city.
鈥淔or the past three years we are pushing forward the Shanghai trade-headquartered way of working,鈥 Gourgues said. 鈥淲e are getting closer to the local development which helps us to better understand the change in regulations and how to interpret new regulations in the market.鈥
Since China鈥檚 economic development entered a 鈥渘ew normal鈥 in 2014, imported wine and spirits companies were confronted with a formidable challenge: What can they do to survive the highly competitive market environment?
Under the new circumstances, Gourgues transformed the company by launching bold reforms such as adjusting not only the company鈥檚 product lines but also its market operations and organizational structure. This resulted in the division of its sales team into the Prestige BU and the Premium BU.
These reforms tapped the opportunities of consumption upgrade and rapid urbanization, and enabled the company to meet consumer needs with a more complete and optimized product portfolio.
Gourgues highlighted the speed of change in the China market and its ability to embrace new trends including rapid technological revolution.
鈥淚f we look at mobile payment for instance, it didn鈥檛 exist a few years ago. And we also see more people go back to a bike and more people do sports than what it was before. So that鈥檚 the increasing speed of transformation, which is very different to any other country in Asia or in the world,鈥 he said.
鈥淚n the Western countries, one generation gap is maybe 15 to 20 years, while here in China one generation is maybe five years. It means that the pace of change is three to four times the one which is happening in any other market in the world,鈥 he noted.
With the belief that innovation is the key to adapting to and leading the new normal, Gourgues has adhered to the strategy of innovation-driven development and fostered mass entrepreneurship and innovation.
For instance, Chivas Regal has been organizing the 鈥淲in the Right Way鈥 Chivas Entrepreneurship Competition for many consecutive years to support next-generation entrepreneurs with coaching and encourage them to solve social and environmental issues in innovative ways with an aim to build a more sustainable future for people and the planet.
By adopting the strategy of innovation-driven development, the company has been driving regional economic growth and contributing to Shanghai鈥檚 economic development.
Pernod Ricard China has won multiple awards for its tax contributions and business operations. In particular, it has been listed among the 鈥淪hanghai Top 100 Third-Industry Taxpayers鈥 for three consecutive years, making remarkable contributions to the economic development of the region.
As for the business environment in Shanghai, Gourgues said that it has improved recently.
鈥淔or us we鈥檙e using a lot of the Shanghai harbor. The flexibility and the ease for the products to go through customs is a very organized process,鈥 he said.
In addition to steering the company toward rapid development, Pernod Ricard China has been actively undertaking corporate social responsibility initiatives under Gourgues鈥 leadership, participating in and launching various Sustainability & Responsibility (鈥淪&R鈥) events to give back to the society.
Under his support, the company has maintained in-depth cooperation with various national and municipal-level industry association and the road and transport authorities in promoting responsible drinking and enhancing public awareness of 鈥淒on鈥檛 Drink and Drive.鈥
Additionally, Gourgues initiated the 鈥淪&R Leave鈥 policy as an extension of Responsib鈥橝LL Day, which grants each employee a one-day paid S&R Leave per year to encourage them to engage in social public service.
鈥淓verything started a few years ago with what we called the 鈥楻esponsib鈥橝LL Day鈥. It was one day in the year when all employees of Pernod Ricard China as well as in other countries in the world stopped working for business but working more for S&R activities,鈥 he said.
鈥淚t was originally more related to 鈥楧on鈥檛 drink and drive鈥 or 鈥楴o underage drinking鈥, and then we had a feeling that we need to give back more to our local communities where we are present.鈥
鈥淓specially to the younger generation, work is not just to grow themselves but it has to give a good reason why to get up every morning, and I think it鈥檚 helping to give them one more reason to join us because as a multinational company we want to give back to our local community,鈥 he said.
Since the launch of the policy, a new wave of S&R programs has been rolled out in Shanghai and other cities across the country. Employees in Pernod Ricard China have now spent a total of over 8,292 hours in S&R activities in the last fiscal year.
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