Haier Group Competitive Strategy
The Haier Group
The Company
Haier Group started in 1984 manufacturing and selling refrigerators to the Chinese market. Under the leadership of Zhang Ruimin, Haier’s CEO grew a collective run factory into a global multi-national with over $12 billion USD in global sales. Haier produces a wide range of household electrical appliances, 15,100 varieties of items in 96 product categories, and exports products to over 100 countries including Wal-Mart and Target. In just 20 years, Haier became the 89th of the 2005 World’s 500 Most Influential Brands[i] and first in China’s Top 10 Global Brands[ii]. CEO Zhang Ruimin was also recognized as one of Asia’s Most Powerful People in Business[iii] and the Most Powerful Business Leader in China[iv].
Haier’s holds the leadership position in Chinese home appliance industry with a 21% market share for overall appliances, 34% of white goods, and 14% for small electric appliances. In the world market, Haier has ranked second in global refrigerator production[v] - only one percent less than that of Whirlpool. Haier is the market leader in compact refrigerators and wine coolers in the United States, washing machines in Iran, and air conditioning in Cyprus[vi]. Based on revenue, Haier is ranked fourth from global sales of white goods.
Zhang Ruimin’s ambition is to achieve global recognition for the Haier brand and higher quality. With a trademark valued over $7.5 billion[vii], Haier has set up many overseas production bases, service and sales facilities, procurement networks and international technology alliances and joint ventures with foreign players to better penetrate international markets.
The Industry
World demand for major household appliances (white goods) will reach 367 million units in 2007. The Asia/Pacific, Latin American and Africa/Mideast regions will grow the fastest based on rising urban populations and per capita incomes. Microwaves and dishwashers will lead gains followed by refrigerators, freezers and
The Company
Haier Group started in 1984 manufacturing and selling refrigerators to the Chinese market. Under the leadership of Zhang Ruimin, Haier’s CEO grew a collective run factory into a global multi-national with over $12 billion USD in global sales. Haier produces a wide range of household electrical appliances, 15,100 varieties of items in 96 product categories, and exports products to over 100 countries including Wal-Mart and Target. In just 20 years, Haier became the 89th of the 2005 World’s 500 Most Influential Brands[i] and first in China’s Top 10 Global Brands[ii]. CEO Zhang Ruimin was also recognized as one of Asia’s Most Powerful People in Business[iii] and the Most Powerful Business Leader in China[iv].
Haier’s holds the leadership position in Chinese home appliance industry with a 21% market share for overall appliances, 34% of white goods, and 14% for small electric appliances. In the world market, Haier has ranked second in global refrigerator production[v] - only one percent less than that of Whirlpool. Haier is the market leader in compact refrigerators and wine coolers in the United States, washing machines in Iran, and air conditioning in Cyprus[vi]. Based on revenue, Haier is ranked fourth from global sales of white goods.
Zhang Ruimin’s ambition is to achieve global recognition for the Haier brand and higher quality. With a trademark valued over $7.5 billion[vii], Haier has set up many overseas production bases, service and sales facilities, procurement networks and international technology alliances and joint ventures with foreign players to better penetrate international markets.
The Industry
World demand for major household appliances (white goods) will reach 367 million units in 2007. The Asia/Pacific, Latin American and Africa/Mideast regions will grow the fastest based on rising urban populations and per capita incomes. Microwaves and dishwashers will lead gains followed by refrigerators, freezers and