from China to the World

Jean-Guillaume HERVÉ & Élodie TRY

SummarySummaryI/ Presentation of Haier

1. Customers2. Suppliers3. Competitors4. Key success factors

II/ Haier’s international strategy1. First steps out of China2. Europe3. US4. Recommendations5. Conclusion

Presentation of HaierPresentation of HaierFounded in 1984 (Zhang Ruimin)

Chinese producerHousehold appliances market

2009’s turnover: RMB124 billion

a top-leading company240 subsidiaries

30 design centers Plants all around the world

> 50 000 employees

CustomersCustomersFrom 160 countries over the world

SupplierSupplierss

840 suppliers (71%

international)

44 out of Fortune 500 businesses

Win-win strategic

partnerships

Active involvement

(design, development)

DIDIEDIDIE

CompetitorsCompetitors

Source: Euromonitor International

JGJG

Key success factorsKey success factors

Adaptation

Technology

Consumer satisfaction

Quality control

Efficient distribution

Efficient supply chain

HaierHaier’’s international s international strategystrategy

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

Objective

34%

33%

33%

Produced & sold in ChinaProduced in China & sold abroadProduced abroad & sold abroad

First steps out of ChinaFirst 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...

JGJG

Implementation in Implementation in EuropeEurope

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 Implementation in the USUS

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!

RecommendationsRecommendations

Build brand equity

Strenghten public

awareness

Communicate on the new

«made in China» Image of high-quality &

ecological-friendly products

International rankings

JGJG

ConclusionConclusionFirst chinese brand Household appliances

moving abroad

Europe USALocalized strategies

High-quality DesignFocus on consumer needs

« made in China »

Thank you Thank you for your for your

attention !attention !

JGJG