Founded in 1984, the Haier Group has been dedicated to innovation and creating a world famous brand over the past 26 years. Originally a small collective plant on the verge of bankruptcy, it has now grown into an international group which has more than 70,000 employees around the globe and realizes a turnover of 135.7 billion yuan in 2010. Haier has risen to be the world's No.1 brand of consumer appliances. In addition, it was selected as one of the world's Top 10 innovative companies issued by USA Newsweek's website. Haier aims to create a world famous brand in the age of the Internet, which features satisfying the personalized needs of users in a short time. What such a business needs is large-scale customization rather than massive production. Taking this opportunity provided by the Internet, Haier addressed this challenge and actively explored and practiced the "Win-win Mode of Individual-Goal Combination". Through "Inverted Triangle" organizational innovation and "End to End" ZZJYT construction, it realized the transformation from "selling products" to "selling services" and fostered differentiated and sustainable competitive advantages. Trend-leading R&D advantages ---- The Haier's patent applications total over 10,000- ranking first among Chinese home appliance firms. Haier takes the lead to make breakthroughs in international standards. It participated in the drafting of 51 international standards, 27 of which have been issued and implemented. The company boosts the export of the entire industry chain through standard output. Zero-distance virtual and practical network combination ---- Haier has enormous marketing network advantages in China. In full combination with the Internet, it developed the competitiveness of catering to the demand of consumers in the quickest time via "zero-distance virtual and practical network combination". "Virtual network" refers to the Internet, which forms customer loyalty through online communities; "Practical network" refers to the marketing network, logistic network and service network, which helps realize the quickest delivery. Therefore, a lot of world-noted brands commission Haier to manage part or all of their sales in China. In the meantime, Haier utilizes their channels overseas to sell its products. With resource exchanges, Haier speeds up the pace of entering the world market. Zero inventory with on demand manufacturing and delivery ---- Giving up the traditional product-oriented development pattern, Haier adopts the user-oriented large-scale customization of "on demand manufacturing and delivery", realizing "zero inventory" and "zero accounts receivable". On the basis on working capital zero loans, Haier's cash conversion cycle reaches minus 10 days. In future developments, to meet demand in the era of the Internet, Haier will place emphasis on U-Home integration, try to control the say on patent standards, further improve global marketing networks and create more user resources. Meanwhile, the company will integrate worldwide R&D, production and sale resources with the "3 in 1" localized mode so as to create an international brand. While devoted to its development, Haier actively fulfils its social responsibilities, assisting in the building of 129 hope primary schools and producing the 212-episode children's science cartoon Haier Brothers. Haier was the sole consumer appliance sponsor for the Beijing 2008 Olympic Games. February 2011
Four Strategic Development Phases of Haier
Brand Building Phase (1984-1991)
In the early days of China's reform and opening, the market was still relatively controlled; a limited supply of goods was insufficient to meet the enormous demand. Economic conditions in the early 1980s were such that to buy a refrigerator required first obtaining a 'refrigerator coupon.' Haier observed that the demand was unrelated to product competitiveness, but was rather a byproduct of a closed system which kept companies...