Haier, a representative brand of home appliances in China, has had a firm position in the global market, which has also entered American market with one headquarter in New York. The emphasis on consumers and services contributes to its success in the Chinese market and throughout the world.
As a domestic brand, Haier is one of the rare brands of home appliances in China which get the international reputation all over the world. Founded in 1984, Haier at first was a traditional brand for manufacturing home appliances in China. But now Haier has realized the successful transition to the Internet-oriented enterprise. In 2015, the worldwide business volume of Haier reached 188.7 billion RMB, with a year-on-year growth of 20% and profit of 18 billion RMB. Besides, Haier’s factories have also covered the whole globe, with 5 research centers, 21 industrial parks, and 66 commercial companies. The users and consumers of Haier come from 100 countries and regions all around the world. Moreover, Haier has cooperated with GE in the United States, signing the Memorandum of Understanding. The core of Haier culture is innovation, both for products and employees. For the products, Haier has created the digitalized factory, subverting the traditional mode. With the digitalized factory, Haier can design, manufacture and deliver the products according to the consumers’ personal requirements. For now, Haier has set up seven smart connected factories all around the world. For the employees, Haier believes that every employee has his strength and weakness. The company should establish a flexible platform and shoulder the responsibility of improving their strengths. Moreover, Haier encourages the fair competition and dynamic management, creating the room for improvements.
Haier’s Rapid Growth in the Home Appliances in China
Haier’s development complies with the nation’s development. From 1984 to 1991, that was the phase for Haier’s image building. When the nation carried out the Chinese economic reform and open up in the 1970s, people had more disposable income for household appliances. The demand of the market surpassed the supply. But what Haier focused was quality rather than quantity. Haier even destroyed 76 refrigerators in 1985 when the quality problem was reported. From 1998 to 2005, Haier confirmed to China’s strategic action of entering into WTO. As a result, Haier entered other countries and established a firm standing under its own efforts. Besides, Haier did not “retreat” from abroad under difficulties and pressures, but set up a system in the local market, involving design, manufacture, and marketing. From 2005 to 2012, the internet sprang up in China and got a hit. With the development of the internet, Haier started to shift to a consumer-oriented model for selling the products. Besides, the pursuit for global brand urges Haier to advance in order to cater to diversified cultures. Haier also carried out the policy of “demand and supply”. From 2012 to 2019, Haier took and will take a step forward on Internet-based corporation management and operation, forward promoting the policy of “demand and supply”.
Home appliances in China: Haier successful strategy
Haier’s insistence on price and quality helped it win the consumers’ trust. Since other players entered the market of household appliances in China, these players started to reduce the price to attract more consumers. For example, Changhong lowered the price by 30% and became the monopoly player for color TV. In comparison, Haier never participated the “price battle” but stuck to the original price. For instance, when it released the duplex dynamic washer, the price of 2780 was higher than other counterparts by 300 to 500 RMB. But it still maintained the position of Top three in the market, for Haier stuck to the route of building the image and put much importance on the quality of the products.
The emphasis on service is also one factor for Haier’s success. For Haier, the consumers are always right, thus, Haier’s employees should try their best to meet the consumers’ demand. Haier’s after-sales service is impressive. 45 minutes after the consumers call the service hotline, the after-sales service personnel will come to their homes and help solve the problems. The slogan and core of Haier service are “To be true forever.”
Effective strategies to the different channel are also conducive to its success. Channel connects the producers and consumers. Haier’s channel network develops from regional networks to national or even global networks. Besides, Haier also classified different channels, such as logistic provider, channel carrier, service supplier, enhanced resource provider, and dealer. For these different channels, Haier pays attention to their characteristics and comes up with different strategies.
Under the new circumstances of the Internet-based market, Haier will also shift its focus to O2O. Never being left behind by the trend is one characteristic of Haier.
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