Exclusive Interview with Emmanuel Fromont
What key strategies did you implement to drive the growth? And how do you see or navigate the unique challenges of a multi-country, multi-geography to see that growth?
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LifestyleTranscript
00:00 I think here we serve most of the EMEA market.
00:03 This is our recipe.
00:04 We embrace local culture.
00:06 We believe there is a new cycle starting from PC.
00:09 And that's the reason we invited you today
00:11 and we wanted to have this launch.
00:13 [MUSIC PLAYING]
00:16 What key strategies did you implement to drive the growth?
00:22 And how do you see or navigate the unique challenges
00:26 of a multi-country, multi-geography
00:30 to see that growth?
00:33 So of course, I think it's nice to say under my leadership,
00:38 we grew a lot.
00:39 To be fair, I think we've been dependent on the market itself.
00:42 So we had amazing growth during COVID.
00:44 Market was more difficult. So I think we tend to fall.
00:48 But all along, as you said, I think
00:50 we maintain a strong market share.
00:53 We grew new markets.
00:54 We expanded a new product line also.
00:57 So you've seen there.
00:59 So that has been the mantra of the company, not mine,
01:03 by the way, which is to say the market, the PC market itself
01:06 will fluctuate.
01:07 And there is not so much we can do.
01:09 So we cannot always complain about the market being there
01:11 or not being there.
01:12 I think we have to make sure our fate is in our own hands.
01:17 And then you have two ways to expand.
01:19 One is, as you said, geographically,
01:22 how do we embrace more markets?
01:24 And I think here we serve most of the EME market.
01:27 And there's almost no exception.
01:28 Of course, we don't have presence
01:30 in every single market, especially
01:32 in the Middle East or Africa, in particular
01:34 where we use partners.
01:36 But we have local teams in most countries.
01:40 This is our recipe.
01:41 We embrace local culture.
01:44 We embrace local teams wherever we go.
01:48 And this helped build relationship,
01:50 understand the market.
01:52 And we are a company that trusts our local organization
01:57 to be the best way to drive the markets.
02:00 At the same time, again, we've embraced new product lines,
02:05 some even a little bit far from PCs, like e-mobility or others.
02:11 But we always use our knowledge either in battery management,
02:14 in software development, and try to find
02:17 adjacent segments that are related to PC,
02:21 but where we can grow.
02:22 So that's another way to avoid that we're
02:25 depending on the PC itself.
02:26 But all this being said, thanks to AI PC now,
02:31 we believe there is a new cycle starting from PC.
02:34 And that's the reason we invited you today
02:36 and we wanted to have this launch.
02:38 I think PC has been fluctuating with market demand,
02:42 maybe because it lacked a little bit of innovation
02:44 in the past few years.
02:46 And so it was difficult for actors like us
02:49 to really, really create a need to replace your PC
02:53 if your PC was working perfectly well.
02:55 I think AI is different.
02:57 AI brings finally a new usage in your PC
03:01 and will require some hardware upgrade,
03:04 will make the PC exciting again.
03:07 And I think we're ready for this.
03:09 I think this is the strength of our company.
03:11 We're flexible, we're fast.
03:12 And when we see market wave, we may not
03:16 be able to create the wave ourself,
03:17 but we want to be a first mover and vastly embrace
03:21 that new wave.
03:22 So fantastic.
03:22 I mean, you already answered my next question with AI,
03:26 but the demos we saw earlier today, truly spot on.
03:30 And I think AI is going to impact us in every way
03:34 and shape we're going to see.
03:36 And back to your earlier point, we
03:38 did see lifestyle as part of your ecosystem.
03:42 It may not be the center of the ecosystem,
03:44 but definitely there is an extension to lifestyle
03:48 to your technology.
03:49 Yeah, I think this has been a pillar of development for us
03:52 because over the years, there was a feeling that the PC was
03:56 becoming commoditized.
03:58 And I think how do you break a little bit,
04:00 how does your brand stand alone?
04:02 So you have different way of doing it,
04:04 but especially in the Windows ecosystem
04:06 where every PC is a Windows PC, is using Intel or AMD processor,
04:12 is using the same graphic cards.
04:15 So how do you make sure you stand for something?
04:18 And I think we made a big effort for Acer
04:22 to stand towards lifestyle.
04:24 So we are expanding a lot of accessories.
04:27 We created even what we call almost crazy accessories
04:30 like our Stronos, which was a big gaming
04:33 chair where you enter and you had big screen
04:36 and you had a total immersive experience.
04:40 So we're expanding like this in cooler and cooler products.
04:43 And we had the e-mobility, e-scooter.
04:46 We had a chair where when you pedal, you bring electricity.
04:50 So all of them, I wouldn't say they
04:52 contribute to a large part of our top line,
04:54 but they contribute to build something unique about Acer.
04:59 So again, that has been a strong strategy from our CEO
05:04 since he joined the company.
05:05 Speaking of which, gaming and the lifestyle, the Gen Zs.
05:11 I mean, I'm sure everyone is trying to get their market
05:14 share of Gen Zs.
05:16 How do you see Acer capitalizing on this opportunity
05:20 with the many products and services
05:23 that we've seen here at Acer?
05:25 I think the product and services, we have them.
05:29 But as you said, Gen Z is not an easy generation to capture.
05:33 The young generation is very versatile, very connected,
05:37 very knowledgeable.
05:38 So I think it's very important to somehow make
05:41 sure your brand resonates with them.
05:43 There's a little bit of a status when you buy a PC.
05:46 So what we did is first, we embraced gaming
05:49 very, very early.
05:51 So I think now every brand has gaming.
05:53 But at the early stage of gaming,
05:54 I think we were one of the pioneer in the gaming industry.
05:58 So I think that has contributed, of course,
06:00 to the Predator brand and the Nitro brand.
06:03 We were able to be relevant to this new generation.
06:07 Of course, we changed our marketing dramatically
06:09 from traditional, maybe print paper to online,
06:14 to influencers, to Twitch.
06:17 We were finding Gen Z where they are.
06:19 And now we embrace TikTok, for example, and other media
06:22 like those.
06:23 Because again, otherwise, they don't
06:25 go in traditional shopping with a paper flyer
06:28 than they get in their mailbox.
06:29 So I think that communication strategy
06:31 has been very, very important.
06:34 And I think we've evolved with this,
06:36 making sure, again, we make ourselves visible
06:41 and we resonate with where they buy.
06:43 And of course, part of our business move also online.
06:47 So now if you look in EMEA retail, for example,
06:50 50% or most of the sales are online.
06:53 And a lot of the purchase, even they are in store,
06:55 are starting online.
06:57 So the content online, interactive content,
07:00 that has been the key of our strategy
07:03 to capture that generation, which is not easy, again.
07:08 A term I read, conscious technology,
07:12 is something that I saw it on Acer exchanges communication.
07:19 The environmental, social, and governance
07:21 are key pillars for Acer.
07:24 How is the MIA, the Middle East Africa region,
07:29 faring or contributing to this?
07:31 A lot.
07:32 Because whether you like it or not,
07:34 I think European in general, a bit more than Middle East,
07:39 if I'm totally honest, but Middle East is coming there,
07:42 has been very planet-oriented and sustainability-oriented.
07:46 So countries like Nordics, like Germany, UK,
07:49 have been at the forefront.
07:51 Then progressively, more and more market-embraced.
07:54 And now we see that coming everywhere.
07:57 And if you recall, we were at COP28 in Dubai,
08:02 where we presented all our sustainability offer.
08:05 I think, again, I would say most companies move
08:08 to sustainability, genuinely.
08:09 I think there was a little bit of maybe green bashing
08:12 at the beginning.
08:13 Now I think everybody's moved.
08:14 But we just try to go faster and more, and show that it's real,
08:19 and be miserable.
08:21 So everything we say, we measure.
08:23 So the carbon footprint of our PC, for example,
08:25 you can go online.
08:26 Now we have about 60% of our product,
08:29 because it's more on the new products than the old one,
08:32 where we go backtrack.
08:33 But 60% of our product comes systematically
08:35 with a carbon footprint, measured
08:37 by an external company.
08:40 We even announced the first product
08:41 that will be carbon neutral.
08:44 So we try to, by every mean possible, optimize.
08:47 And whatever's left, of course, we
08:49 offset by buying some carbon rights.
08:54 We have no choice, because there is no such zero emission PC
08:57 yet.
08:58 But at least we commit that when you buy it,
09:00 it will be zero emission.
09:02 I think we were the first one to embrace PCR
09:04 with a zero product line.
09:06 Strongly now, in that product line, we have 60% to 70% PCR.
09:11 The reason it's not 100% is because mechanically, you
09:14 cannot do it.
09:16 And also, we've been vocal to say,
09:20 sustainability is sustainability of the planet.
09:24 So we have to be a good citizen ourselves.
09:26 What is the footprint of Acer?
09:28 And this is why we commit to 2035 renewable electricity,
09:32 2050 carbon neutral, as a company.
09:35 But sustainability also is sustainability as a company.
09:38 So you need to sustain yourself by being sustainable.
09:40 Otherwise, OK, if it's just a big cost,
09:43 then it's not going to work.
09:44 Business is about business.
09:46 So we believe if we can bring sustainable PC,
09:51 it's good for the planet, and it's good for our business.
09:53 So this is being sustainable, but also doing good
09:57 for our business at the same time.
09:59 And I think this is--
10:00 I don't think sustainability can only be a cost.
10:03 Company needs to embrace them in their product line
10:06 so they contribute to the sustainability of the company
10:08 and to shareholder expectation of your company.
10:11 Otherwise, it doesn't work.
10:14 Last question.
10:17 With an engineering degree and an MBA,
10:21 how have your technical background and business
10:25 education influenced your leadership at Acer?
10:30 And what advice would you give to the young,
10:35 let's say, Virginians who are surely
10:38 going to enter the market with aspirations
10:42 of becoming executives?
10:44 Always a tough question, you know,
10:47 because no one likes to bring light on its own leadership.
10:51 But of course, it's a nice background
10:55 to have an engineering degree and business
10:58 because you can embrace, understand the technology,
11:02 but then understand how to explain the technology
11:05 to others, how to sell the technology, how to embrace it.
11:08 If I look at my career and my leadership,
11:10 I always feel soft skills are so important at the end.
11:15 So yes, technical skills help in a sense
11:20 that you can keep learning and learning and learning,
11:22 and you're not afraid to embrace technology.
11:25 But let's be honest, the technical knowledge
11:28 you had out of school, three years later, five years later,
11:31 it's obsolete already.
11:32 So I think that technical knowledge is more
11:34 the appetite to keep learning and keep learning and keep
11:37 embracing.
11:38 I think in front of AI, we're all the same now.
11:40 No one studied AI at school.
11:42 No one used AI three or four years ago.
11:45 So be curious, embrace, don't be afraid.
11:50 That's the technical skill.
11:51 But to be successful and to be a leader,
11:53 I think the soft skill is important.
11:54 How do you get all the team together?
11:56 How do you get people to embrace a certain cause or your company
12:01 agenda and believe into it and give the best of themselves?
12:05 I think that's really, really what about leadership
12:08 is most than anything.
12:09 And if you're successful in doing this,
12:12 it's the ultimate success.
12:15 So if you're Gen Z, you're out of school now,
12:18 work on your communication skill.
12:20 Don't want absolutely to work from home,
12:24 behind your desk on your computer
12:26 doing teams all day long, because you're not
12:28 going to progress like this.
12:30 Go in front of other people, exercise your leadership,
12:33 test the way people react to your own behavior,
12:38 and learn to develop your soft skill.
12:40 I think that's the best advice I can give.
12:42 I love it.
12:43 Thank you, Emmanuel.
12:44 Great.
12:45 And a pleasure having the conversation together.
12:47 Same.
12:48 Shared pleasure.
12:49 And thanks again for taking the time to be with us today.
12:53 Thank you.
12:53 So we're now done.
12:55 Is there one thing you would like to say that people don't
12:58 know about you?
12:59 I always like to start the video with something that
13:01 attracts the minds of users.
13:04 I already have many, especially on the leadership part.
13:08 But if there's something that you would like to add,
13:13 you're free to add it now.
13:15 No, I think maybe what I said, but if I look at my career,
13:24 I would say I've been in formidable-- all my career
13:29 has been in formidable company.
13:31 I've been in IBM.
13:31 I've been in HP.
13:33 I've been in Packard Bell.
13:34 I've been in Acer.
13:35 I enjoy-- all of them are great.
13:36 You've been in Microsoft many times.
13:40 But sometimes it's nice to take a little bit of risk,
13:43 try something new.
13:46 And I think many, many carriers are successful also
13:49 because at some point you were given
13:52 a door that is probably a little bit more risky than staying
13:55 where you were.
13:56 And of course, sometimes the grass
13:58 is not greener somewhere else.
14:00 But you have to sometimes try this.
14:02 And I think if I look back at my career,
14:05 each time I've changed company, it was a tough decision
14:07 because I was leaving a nice job in a nice company--
14:10 The comfort zone.
14:11 --the comfort zone.
14:12 But I never regretted it.
14:14 And I always find something even more challenging and more
14:18 interesting wherever I landed.
14:20 Thank you, Emmanuel.
14:21 OK, pleasure.
14:22 [MUSIC PLAYING]
14:25 (whooshing)