from China to the World
Jean-Guillaume HERVÉ & Élodie TRY
Summary
I/ Presentation of Haier
1. Customers
2. Suppliers
3. Competitors
4. Key success factors
II/ Haier’s international strategy
1. First steps out of China
2. Europe
3. US
4. Recommendations
5. Conclusion
Presentation of Haier
Founded in 1984 (Zhang Ruimin)
Household appliances market
Chinese producer
2009’s turnover: RMB124 billion
240 subsidiaries
30 design centers
a top-leading company
Plants all around the world
> 50 000 employees
Customers
From 160 countries over the world
Suppliers
D
44 out of Fortune
500 businesses
Win-win
strategic
partnerships
840 suppliers
(71%
international)
Active
involvement
(design,
development)
Competitors
JG
Source: Euromonitor International
Key success factors
Consumer satisfaction
Quality control
Adaptation
Efficient distribution
Technology
Efficient supply chain
Haier’s international strategy
Objective
Growth slowdown
in China (nineties)...
... leads to hunt new growth areas!
33%
34%
Will to focus on difficult markets
33%
Produced & sold in China
From niche products
Staff
Produced in China & sold abroad
to mass-market
Produced abroad & sold abroad
with local
First steps out of China
JVs to explore foreign
markets
JG
• Contract manufacturer for
multinational brands
1995: first chinese company to
engage in FDI (plant in Indonesia)
From 1997 to 2005: Europe,
USA, Middle East, Africa, New
Zealand...
Implementation in Europe
1997: implantation in Europe
(plant in Belgrade)
from «Liebherr» to «Haier»
Headquarters: Italy then France
Distribution centers: Italy, Spain,
UK, Netherlands
Huge market size
Think global, sell local
Distribution channels
Consumers
preferences: very
different.
Implementation in the US
Localization strategy:
- design center in Los Angeles
- marketing center in New York
- products factory in Camden, South Carolina
Chinese products made in America
by Americans!
Focus on niches:
- compact refrigerator
- wine storage
- ...
Partnerships with U.S. retailers (Wal-Mart, Lowe’s, Best Buy...
Recommendations
Build brand equity
J
Strenghten public awareness
Communicate on the new
«made in China»
Image of high-quality &
ecological-friendly products
International rankings
Conclusion
First chinese brand
Household appliances
moving abroad
Europe
USA
Localized strategies
High-quality
Focus on consumer needs
« made in China »
Design
Thank you for
your attention !
JG