Haier Group, one of China's leading home appliance makers, will
continue to implement its "global strategy" to capture a bigger
share in the overseas home appliance market.
"Since the initiation of the strategy last year, we have
developed a sound overseas production and sales network. But there
is still a long way to go for us to reap a lion's share of the
global market," said Haier President Yang Mianmian.
So far, Haier has built 13 production bases, eight design
centers, 22 trade companies and more than 45,800 sales centers in
Southeast Asia, South Asia, North America and Europe, since the
establishment of its first joint venture in the Indonesian capital
Jakarta in early 1996.
The Haier Refrigerator Manufacturing Center, set up in the
United States in early 1999, is Haier's largest production base in
the overseas market and the largest Chinese-invested company in the
US.
Yang revealed that the company expects to have 20 production
bases in other countries and regions by 2010.
She added that Haier has realized an annual growth rate of more
than 40 percent in the global market since 2000.
In 2005 alone, the company's sales revenue hit about US$12.8
billion, of which the overseas market contributed about US$2.9
billion.
Haier is expected to realize sales revenue worth US$13.9 billion
in the global market (including China) in 2006, company sources
said.
In the US market, Haier products have entered the country's top
10 home appliance sales centers.
Strategic partnerships
In Europe, Haier has also established strategic partnerships
with 12 chainstore groups, helping boost China's top home appliance
brand in the region.
Meanwhile, Haier has carved out a 30 percent share in Pakistan's
home appliance market since its entry four years ago. It has also
set up an industrial base in the South Asian country.
After robust performance in the global market in recent years,
Haier has established a series of partnerships with overseas
counterparts.
So far, the company has worked with more than 200 overseas
producers in the home appliance design sector.
Haier has also set up sales networks in 20 African countries and
regions.
The company's joint ventures in Nigeria, set up in early 2001,
now produce 300,000 sets of home appliance products annually,
including refrigerators and TV sets.
Another joint venture in Tunisia produces 200,000 sets of home
appliance products per year.
Haier currently holds the largest share of the African home
appliance market.
"We will take three steps in our global strategy. First, we
should set up a large overseas production and sales network.
Second, all Haier's products that meet the local market demand
should move into the major sales channels. And last, the company
should produce mainstream products in local markets," said
Yang.
Technological Innovation
Yang said that technological innovation is the core element for
the company to realize the global strategy.
"Advanced technology plays a key role for us to enter into the
global market. So we have kept investing large sums of money out of
sales revenues in technological innovation," the Haier president
said.
According to Yang, Haier has earmarked more than 10 billion yuan
between 2001 and 2005 for scientific and technological
research.
The company has undertaken six national "863 technology
projects", five "national torch technology projects" and 47
national key projects for research and development of new
projects.
Last April, Haier developed the nation's first dryer-tumble
washer, attracting large volumes of orders from overseas sales
agents in Germany, Spain, France and Russia.
"We have developed a series of high-end home appliance products
following large investments into technological innovation. Now we
will attach more importance to the establishment of sales networks
that meet high-end overseas market demands," Yang explained.
As a result, Haier is seeking more partnerships with leading
international sales agents in order to build a more professional
and effective global sales network, according to Yang.
Haier also signed a sponsorship project with the United States'
National Basketball Association (NBA) last April, becoming the sole
TV sponsor for the world's leading basketball competition.
Meanwhile, the company also launched a sponsorship project with
a basketball team in Saudi Arabia and set up the Haier Rocket
Basketball Team in April last year.
"Such cooperative projects with the world's leading sports
entities will help boost Haier's development in the global market,"
Yang said.
(China Daily March 13, 2007)