Haier Group
Haier is the world’s 4th largest whitegoods manufacturer and one of China’s Top 100 IT Companies. Haier has 240 subsidiary companies and 30 design centers, plants and trade companies and more than 50,000 employees throughout the world. Haier specializes in technology research, manufacture industry, trading and financial services. Haier 2006 global revenue was RMB107.5 billion.
Guided by the business philosophy of CEO Zhang Ruimin, Haier has experienced the development stages, noted as Brand Building, Diversification and Globalization. At the 21st anniversary of the founding of Haier Group on December 26, 2005, Haier announced its 4th strategic development stage of global brand building. In 1993, Haier brand was officially recognized as a famous brand. In 2006, Haier brand was valued at RMB74.9 billion. Since 2002, Haier has consecutively been ranked first in the row of China’s most valuable brands for manufacture of 18 products, including refrigerators, air conditioners, washing machines, televisions, water heaters, personal computers, mobile phones and kitchen appliances. Haier was ranked first of China’s Top 10 Global Brands by China State Bureau of Quality and Technical Supervision (CSBTS) for refrigerators and washing machines. On August 30, 2005, Haier was ranked 1st of China’s Top 10 Global Brands by the Financial Times.
Haier has been widely recognized as a leader of 9 products in terms of domestic market shares and the 3rd player of 3 products in the world market and world-class company in the fields of home integration, network appliances, digital and large scale integrated circuits and new materials. Haier has long attached significance to innovation in satisfying the demands of worldwide consumers and realizing win-win performance between Haier and clients. Haier has currently obtained more than 7,000patented technology certificates (1234 for Haier inventions) and 589 software intellectual property rights. Haier has hosted and taken part in modification of about 100 technological standards. Haier technology of safe care water heaters and dual drive washing machines has been proposed to the IEC Criteria.
Haier’s “OEC”, “Market-chain” and “Individual-goal combination” management performances have been recognized worldwide. Haier’s experiences have also been introduced into case studies of business mergers, and to financial management and corporate cultures of many foreign educational institutes, including Harvard University, University of Southern California, Lausanne Management College, the European Business College and Kobe University. Haier’s Market-Chain Management practice has also been recommended to the EU for Case Studies and “Individual-goal combination” management concept has been recognized by worldwide management researchers as an feasible solution of commercial over stocks and accounts overdue.
Facing the fierce global market competition, Haier launches the Global Brand Building Strategy and updates spirit “Create resources, worldwide prestige” and work style “Individual-goal combination, swift action and success” with an aim to gain global recognition and sustainable development.
Unmatched Home Appliance Product Offerings
Haier’s product categories range from refrigerators, refrigerating cabinets, air conditioners, washing machines, televisions, mobile phones, home theatre systems, computers, water heaters, DVD players and integrated furniture, among which 9 are ranked market leaders in China, and 3 are ranked among the top 3 worldwide in their respective industries. Haier is also a world leader in the technology domains of intelligent integrated home furniture, networked home appliances, digitalization and large scale integrated circuits.
By April 2006, the Haier Group has obtained 6,189 patented technology certificates and 589 software intellectual property rights. Haier’s proposal for safe care water heater technology initiative was accepted at the 66th IEC Conference in 2002 and Haier dual drive washing machine technology was included in the 2006 IEC standard proposal. This clearly demonstrates Haier’s world-class innovation capabilities in product R&D.
Global Branding Strategy
Haier’s global branding strategy aims at positioning the company as a local brand in different world markets in conjunction with enhanced product competitiveness and strong corporate operations. Haier’s international business framework encompasses a global network of design, procurement, production, distribution and after-sale services. Today, Haier has established 15 industrial complexes, 30 overseas production factories and bases, 8 design centers and over 58,000 sales agents worldwide.
In China, Haier’s 4 leading product categories - refrigerators, refrigerating cabinets, air conditioners and washing machines - have over 30% market share. In overseas markets, Haier products are available in 12 of the top 15 chain stores in Europe and 10 leading chain stores in the USA. Haier is now approaching its goal of being “local” in American and European markets via localized design, manufacturing and sales processes. In addition, Haier has set up production facilities and plants in the USA, Italy, Pakistan, Jordan and Nigeria.
Haier’s innovative management principles, such as Haier’s OEC management model, “market-chain” management and “individual goal combination” – a system of assigning incentives-based responsibility to staff to ensure the quality of products delivered to their customers – have gained high recognition among international management institutes. Haier business case studies are included in the text books of Harvard University, University of Southern California, Lausanne Management College, European Business College and Kobe University.
Services
With the concept of “customers as the foundation of growth”, Haier provides a one-stop star service to its customers. In a joint survey conducted by the China Consumer Association and the China Enterprise Research Centre of Tsinghua University on China’s domestic durable commodities for 2003 and 2004, 8 of Haier’s product categories were ranked No. 1 for customer satisfaction and overall satisfaction.
In addition to high quality home appliances, Haier is also focused on offering best-of-breed service solutions to its customers. Haier’s service system runs throughout the production process from product design, production, manufacturing, to pre-sale, under sales and after sales service. Since 2002, Haier has successfully established a network of over 5,000 domestic professional service suppliers to deliver timely customized service.
Partners
Haier has established an extensive sales network around the globe. Key partners in perspective markets include:
- China: Strategic alliance with Suning and Gome chain stores
- America:Cooperation with TOP 10 retailers, e.g. SEARS, Lowe's, HOME DEPOT, Best Buy, PC-Richard, Wal-Mart, Sam's, Costco, BrandsMart and Target
- Japan: Cooperation with TOP 10 retailers, e.g. YAMADA, KOJIMA and JUSCO
- Europe: Cooperation with KESA, Media Market and Carrefour
