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) Chinese producer Household appliances market 2009’s turnover: RMB124 billion a top-leading company240 subsidiaries 30 design centersPlants all around the world > employees DIDIE
Customers From 160 countries over the world
Suppliers 840 suppliers (71% international) 44 out of Fortune 500 businesses Win-win strategic partnerships Active involvement (design, development) DIDIE
Competitors Source: Euromonitor International JG
Key success factors Adaptation Technology Consumer satisfaction Quality control Efficient distribution Efficient supply chain DIDIE
Haier’s international strategy Growth slowdown in China (nineties) leads to hunt new growth areas! Will to focus on difficult markets From niche products to mass-market Staff with local DIDIE
First steps out of China JVs to explore foreign markets 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... JG
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. JG
Implementation in the US Localization strategy: - design center in Los Angeles - marketing center in New York - products factory in Camden, South Carolina Focus on niches: - compact refrigerator - wine storage -... Partnerships with U.S. retailers (Wal-Mart, Lowe’s, Best Buy...) Chinese products made in America by Americans! DIDIE
Recommendations Build brand equity Strenghten public awareness Communicate on the new «made in China» Image of high-quality & ecological-friendly products International rankings JG
Conclusion First chinese brandHousehold appliances moving abroad EuropeUSA Localized strategies High-qualityDesign Focus on consumer needs « made in China » DIDIE
Thank you for your attention ! JG