None of the foreign companies that have entered or will come to
China after WTO accession are charitable organizations, he
explained. Their principal aim is to stomp out competitors.
To
become wolves, Chinese enterprises must learn how the market works
and take risks to beat competitors, he said.
"Opportunities exist in this challenge," Zhang said. "Only when we
are bold enough to face the challenge can we have the
opportunities."
A
market system that places equal emphasis on both domestic and
overseas expansion is key to survival. If the company is not
successful domestically, it is doomed overseas, he said.
Still, that cannot be the only tactic because the international
market is important, too.
When Haier started working to push into the world market even as an
untapped market existed at home, some people did not understand
why.
"If all Chinese enterprises want to enjoy meat at home, the meat
will soon be finished," he said.
For the home appliance business, this was a sound strategy. China
is one of three major world markets in this area, along with the
United States and European Union. China's demand accounts for a
third of the world's total, so taking a large market share here is
critical to overall success and provides Haier with a solid
foundation for overseas expansion.
The same is true, though, in reverse, Zhang said. Solid overseas
marketing success will help at home, too.
Chinese enterprises ought to focus mainly on making quality
products. Satisfied customers will reward firms with profits, he
said.
Haier's strategy is paying off with expanded market shares in the
United States and Europe. The company does not dominate there, but
its reputation, capital supply and labour resources are helping
make a difference in the bottom line.
"The key is meeting customer demands fast," Zhang said.
Foreign firms usually spend six months turning out new products,
Zhang said. Haier takes two months, he claimed.
This difference is helping Haier grow their market shares on both
domestic and foreign markets, he said.
(China Daily October
23, 2001)