SHENZHEN, CHINA– One of my very early posts for TechCrunch referenced the “futurism” of 1950s Americana, where companies like Monsanto and Disney played out dreamy visions of a new automated way of living that never quite came true. I’m writing this post from Shenzhen, in Southern China—a place whose jaw-droppingly impractical-yet-beautiful architecture and building-size LED-lit billboards make the city look like it could be the set for just that kind of dreamy science fiction megatropolis. (Example? The other night I had drinks outside the InterContinental’s bar, which is shaped like a huge pirate ship.)
So imagine my expectations when I set out to see BYD’s “Village of the Future.” BYD—for those who don’t know—is a Chinese powerhouse of battery innovation with more than 130,000 employees, roughly 10% of whom work in R&D. The company is a living, breathing reality check to Westerners who think Southern China is merely a hub for assembling the technology U.S. designs. My BYD guide told me that the company gets at least one member of Western media coming through the office a week, many of them shocked that a Chinese company could be so innovative.
In recent years, BYD’s founder Wang Chuan-Fu has leveraged an un-sexy expertise in lithium electronics batteries into an electric car business.
And, now, the company is harnessing that same technology to make solar panels that can efficiently store solar energy and manage it. It’s impressive enough stuff that Warren Buffett paid $230 million for 10% of the company in 2008, spurring every major media organization to start taking BYD seriously. (According to a great article in Fortune, he wanted even more.)
But you want futurism? Go somewhere else. This house of tomorrow—totally powered by solar power and piped with recycled rain water—looks just like any suburban house in the world. (See picture above. Yep. That’s it.) Turn on the tap and it’s just like turning it on at home. The air conditioning sounds and feels like the AC in my hotel. The company uses the top of the concept house for executive meetings. The conference rooms only stand out in their unremarkableness.
And, while it may make for uninteresting photos, that’s what makes BYD so impressive, and part of what would attract someone like Buffett to break the same cardinal rules of investing that convinced him to avoid the late 1990s dot com mania: Stay away from what you don’t understand. When my guide was taking me through BYD’s “museum” of its products, she waved her hnad dismissively at a sexy electric convertible, saying the ho-hum practical sedan was the company’s best-seller. What sells in a country where millions are scrambling into the middle class is practicality, not sex appeal.
Similarly, BYD’s house of the future is steeped in practicality, not look-at-me tree hugging or science fiction. That’s something that could actually make a difference for the solar industry and for smoggy, energy-guzzling China.
Ok.
no
Yeah, the “house of the future” has changed over the years from a Jetsons sort of approach to a more sensible, self-sustained approach. Hopefully the technology will continue to improve. -JP
You on a world tour? Where’s the next stop?
If you want to witness more “awe”, you should visit Huawei, Tencent and Foxconn, who are all in the Shen zhen area.
Honestly, Shen Zhen is “the place” in China for any kind of hardware related entrepreneurial ventures. Too bad that many of the companies are young and lack business sense.
I wouldn’t say they lack business sense. Rather because they are young, they have to focus on sustainability/profitability first.
BYD is not making anything revolutionairy.
Look at the chinese car market and see that its all ‘clones’.
Stop sniffing the sauce and start seeing things without blinkers on
And I’m sure you said the same thing in the 70s about Japanese cars.
Electric cars, lithium batteries, sustainable houses are not revolutionary?!? Don’t FLAUNT your ignorance for christ’ sake! China, like so many other countries, is getting a huge leg up on us implementing the green revoution and 21st century economy. Thanks alot, f@*%ng Republicans!!
How many plug-in hybrids has BYD actually sold? Maybe a couple of hundred. It’s about twice the price of a normal car in China, so it’s not selling. I’d be looking at Toyota rather than BYD.
I’m unconvinced that this is evidence that China is innovative. This tactic works now, but it means that their products can never make a big impact in countries that actually have copyright and intellectual laws enforced properly.
Take a look at how innovative BYD’s logo is:
http://thomasda...byd-logo-00.jpg
Also take a look at some of their innovative designs:
http://www.moto...copy-the-byd-f8
http://www.star...ese-innovation/
The fact that China is moving towards sustainable (and innovative!) economy with a huge resource base, human capital etc from its dump-country-factory state is just matter of time.
And everyone has to admit that they are doing this much quicker than its was predicted by “global experts”. I cant stop suprising how fast are they moving forvard. They are producing thousands(literally!) of new car models every year. Most of them are still creepy, but progress is incredible fast! Have you ever been at any car expo in US or Europe? Check out how many Chinese ppl are there -they are making photos of every small detail for all new models! First time i was scared to see that..
Cloning of successful companies is just normal stage that they will surely pass very soon.
So watch out for Chinese car manufactures and if you are still skeptical just read what ppl said about Japanese cars after WWII and where are they now?
Tell that to Hollywood.
Great post, Sarah. I know I’d be impressed were it me to see BYD’s office and some of the innovations you’re describing. These other clowns here in the comments who constantly rip you are pissing me off.
That’s because most of these clowns have never been to China (or most likely out of their zip code) so most of their knowledge is based on what they see in the news.
Hmmm – you may sneeringly say that the chinese car industry is producing clones now, but isn’t that what the Japanese started doing in the seventies before steamrolling the US industry? And now Detroit is closed, Chevvy bought Daewoo to improve product quality (that is desperate), and guess how many US autos get exported? It’s your breakfast of ten years’ time that they’re preparing to eat so get with the programme or go hungry.
lol, and it’s not just the auto industry’s breakfast, look at Huawei vs. Cisco, Lenovo vs. Dell.
And this is not just an idea that only a few smarties in China know. This copy-follow-evolve idea itself is being copied and evolved while you’re reading this comment.
Hey Sarah,
Did you get a chance to take the inter-city high speed train when you were in Shenzhen? Two amazing things about it:
1. It cruises at 170+kmph, peek speed is 200+kmph
2. Its ticket, costs ~$11 from Shenzhen to Guangzhou, has a RFID in it.
Sorry I really dont mean to be a bummer…..
But since Sara started reporting from China I have been offended and flabbergasted at how ignorant she appears to be. The reporting she does from China is nothing short of LAME!
If you understand China you will know that very little “new” comes out of China. The “new” that does come out of China has not been reported from Sara.
There are homes from really stinking filthy rich people in Sanya, Hainan with incredible cool modern homes that make the Jetsons look ancient. I have seen very little “new” come out of Guangdong (Shenzhen) and I personally have visited 123 factories ranging from textiles, building materials, electronics, cell phones, cement, furniture, and more.
Some of the most innovative “NEW” things to come out of China are actually located in Shenzhen Port. Some amazing technology to scan cargo, load cargo, smell cargo contents, ship building, pneumatic blowers, etc. But instead were hearing about some LAME housing technology from 1999. My bet is Sara was invited by someone and she scooped it and hoped we here at TC would be wowed!
Not!
Please Sara for the love of humans around the world, take some time to travel to parts of China where really cool innovative stuff is being created. You wont find it in factories (and the junk that this home has came from the boring copy-kat factories). The new stuff to build homes is coming from USA, Germany, Italy, France, UK, and even Korea but NOT China.
If you really understand China and do business in China and TRADE with Chinese factories you would know this and would be scared to death to report such rubbish here on TC.
Stop!!! Writing this garbage. Each post is the same lame, “ohh how neat…thanks for the rice wine and the nice meal”.
I disagree, thanks for the article, now I know more abou byd and some of it’s innovation
Okay Steve
Let me understand why you disagree.
You have been to how many Guangdong Building Material Tradeshows?
You have traveled all over China?
You have lived in China for the past 6+ years?
You have an office in China with more than 40 employees?
Tell me all about it.
This is helpful. Next time you should think about including things that make you credible in your original posts.
Ok. Now at least, I you are authorative enough on this subject after putting down your experience
What is the point of this article? I don’t want to be rude but I feel like I just wasted a bunch of time learning about a company called BYD when I wanted to see something about a house of the future. Sigh.
You should DEMAND a refund!
I’ve written extensively on the adoption curve that BYD and the other electric vehicles OEMs face, for what it’s worth. My reports are available at: http://www.2gre...ee-brass-tacks/
wong ching chang moo coo kai chong chim su mai sum dum.
Warren Buffett has voted.
I have to agree with some of the negative comments, but not so much about China’s lack of innovation. I do believe innovation is rampant in China; however, I’ve always believed that Sarah’s reporting lacks depth and insight. She is too quick to promote the obvious instead of bringing us a new perspective or uncovering new information. I would characterize her writing as shallow as she lacks the ability to reveal the social or technological shifts and their impact on us.
Personally, I found the description of the “house of the future” extremely vague. I would have like to see the details and know how the recyceled water is recycled and made potable, how much energy is used in the process, whether pumps must be used and whether these pumps use solar power, etc.,etc. Surely, a true house of the future would be of interest to those of us interested in greening our own lives if only we had the right information.