HAIER - POSITIONING OF AN ASIAN BRAND IN

SOPHISTICATED WESTERN MARKET

 About Haier
 Haier is the world’s 4th largest whitegoods manufacturer and one of
China’s Top 100 IT Companies

 The Haier Group is China’s largest home appliance brand and one of
the world’s leading white goods home appliance manufacturers.

 Founded in 1984 with headquaters in Qingdao, Shandong Province,

China ;Chairman and CEO: Mr. Zhang Ruimin

 Manufactures home appliances in over 15,100 different

specifications under 96 categories.

 Haier is the official Home Appliances Sponsor of the Beijing 2008

Olympic Games.
 Employees: Over 50,000 worldwide

Haier’sglobal revenue in 2005 reached RMB 103.4 billion

Average annual growth of 68% between 1984 and 2005

 No.
of Subsidiaries Over 240 Listed Subsidiaries on the Hong
Kong Stock Exchange & Shanghai Stock Exchange

BusinessScope: Technology research, Product development and

manufacturing, Trade, Financial services

Key Product Lines: Refrigerators/Freezers, commercial air-conditioners,

microwave ovens, washing machines, dishwashers, televisions, mobile
phones, computers

Global Presence & recognition

Haier today…
400 products each year

60 category of products

Collaboration which gives it access to 12

technological research institutes,48
development centres,10advanced
laboratories,6 design centres
Problems Faced
 Most critical problems facing Asian brands in recent
years is the perception of “cheap & poor quality”

 Difficult to shift perception

 Haier
chose this issue to fight its battles with the
commercial enemy- US where quality begins at home
Brand Elements
Logo
Taglines
‘What the world comes home to’

Brand messages in western Europe-

‘Haier & Higher’ , ‘Head held High’,
‘Haier.Believe it’

Latest: Inspired Living

Motives behind brand building
Began in mid 1990’s when CEO Zhang
was dissapointed with Chinese
markets:Price wars,shrinking profits
He felt China’s entry into WTO in 2001
was more a challenge than opportunity
due to competition from MNC’s,critical
anti-dumping regulations & non-trade
barriers on global markets
Strategic Branding decisions while
going international
Market first,profits second
Three phases of brand building:
seeding,rooting & harvesting
Difficult things first,easier steps later
Balanced growth
Observe & digest-imitate-design them
independently
Focus on quality
Break in with 1 product
Niche marketing
Haier American Trading as a JV
Brand Positioning
Known as having an innovative
personalized & high-quality product
designs & a reliable after sales service
Positioned itself as an international
leading brand of chinese origin
Brand evolution: Chinese Global
Refrigerator
Household appliance
brand(high product brand(individualit brand(High
brand(good service)
quality) y) speed)
Brand Innovation
Product Mass Customization: Compact
rerigerators in college dormitory rooms
Sensitive to needs along with providing
aesthetic value.E.g-Wine cooler
Quick cycle of product development
Innovation with Brewmaster &
refrigerater with fold-out table for
students
`
Some Innovative Products
Wine cellars
Beer Dispensers
Beverage centres
Cellular telephones
Water dispensers
Dish Washers
Refrigerators
Freezers
Fans
Rangehoods

All have good design & space utilization to create value

Brand distribution
Internationalization strategy
Haier’s position in FDI overseas
Motives Underlying Haier’s Strategy

•The main motive underlying Haier’s internationalization is to achieve

competitive-oriented foreign market-entry and development

“Only by actively taking part in global competition can we

seize a chance to survive”

Building permanent market position : Haier’s exporting or other

entry modes were all focused on building a world-famous brand. They
clearly declared that :
“exporting to build a brand, not to earn foreign currency”
Shaping The Competition :
 For creating a world famous brand by making use of local funds,
intellectual resources and culture ex. Haier’s acquisition of an
Italian factory in 2001 was a milestone in Haier’s course towards
internationalization.
 These achievements demonstrate that Haier has the technology and
manufacturing capabilities to make quality products and
 Thereby compete with world consumer appliance giants, such as
GE, or Whirlpool even in the hyper-tough developed markets.
Building up brand awareness :
 Building a strong brand image is also a top priority for haier.
 Haier has taken major steps to improving its brand awarness quickly for ex

Haier has established long term relationships with OECD-based brand

building specialists.
Another route to brand recognition that Haier has been exploring is
acquisition of established brands, as well as their distribution networks.
Brand Culture
Brand Culture of Haier………..
Initiation program

Itemphasizes team work, safety, and importance of

quality

On factory floor Haier heritage are displayed

Trip to china

Itattempts to blend the best of east and the west in

employee relations
The Future?????
Future…………
Haierhas plants in 13 countries and sells its
products over 160 countries

Haier brand is on TV sets, air conditioners,

mobile phones, pc peripherals, restaurant chain,
haier brothers cartoon……

Goal is to get 10% of US market for standard-

sized refrigerators

Company is learning much from Nike and Dell

If it can survive in the united states and not
dilute its brand equity too much by trying to be
all things to all people, then a global brand will
emerge
Brand Strengths
Product innovation
Speed to market of new products
Passion of its people
Niche market strategy
Strength in low-end appliances
Decentralized sales and marketing
Ability to move the manufacturing plants away
from china
Brand weaknesses
Country of origin issue

Consistency of product quality across the markets is

still a bit suspect

Haierwill have to take on the giant brands in mass-as

opposed to niche-product categories

Loss of focus in US market

Most design work is still done in china

Brand Architecture
Mainly Corporate branding
Shared branding