Haier—The world’s No.1 of the five-square-meter home appliances’ realm

2017-10-17 13:35:00 source: China net

You can understand Haier --- the world's No.1 large home appliance enterprise in consecutive eight years from many angles of view: Leading Internet explorer, leading enterprise of traditional home appliances, representative of China brands...…, all of them are the "honors" and "roles" of Haier. In the first 8 months of 2017, the overseas market sales volume of Haier was close to Chinese market sales volume. The export growth ranked first by 2 times higher than the industry. It proves the high-end upgrade of China's foreign trade. How does Haier realize overseas branding?
Today, we took the chance of the 122nd Guangzhou Export Commodities Fair to have a look at the companies, including Haier, how they make use of this fair to achieve rapid development in overseas market step by step from export to localization.

5 square meters stand 30 years ago: It is the "start point" to walk from China to the world.
What can you do with 5 square meters area? Someone can use it to open a breakfast stand, someone can build a study room with it, and someone can turn it into a compact bedroom. But 30 years ago in 1988, this same 5 square meters area became the "start point" of Chinese enterprises going to the world and winning the recognition by the world.

1988 is the most special year in the globalization history of Chinese enterprises. This year, Lenovo, Haier, HUAWEI, known as three globalization benchmarks of Chinese enterprises, took a key step in the development history of enterprises: Lenovo was founded in Hongkong; HUAWEI was founded in Shenzhen; Haier founded in earlier years tried hard to get a stand less than 5m2 in 1988 Guangzhou Export Commodities Fair, just half booth for two refrigerator samples. However, no one expected this 5 square meters area would become "start point" of three benchmark Chinese enterprises to walk to the world for the first time.
After 30 years, Haier, Lenovo and HUAWEI have turned from "sparks of fire" at beginning to "prairie fire" at present. Lenovo and HUAWEI have successively become the representatives of Chinese enterprises in the world stage. Haier has also realized that China's No.1 is also the world's No.1. In this Guangzhou Export Commodities Fair, New product release area, refrigerator area, washing machine area, air conditioner area and other areas, total 10 exhibition areas showed high-end home appliances with world top technologies to the world, becoming the creator and leader of global home appliance trends.
Although 30 years globalization road of Lenovo, Haier and HUAWEI has twists and turns, it is still worth for all enterprises to learn from. This point is most obvious from the fact Haier wins the recognition from the world with 5 square meters stand. 
Deep plowing in cold current: Chinese enterprises sowed seeds of "self-brands".
In a comprehensive survey on Chinese enterprises with global labels, the 1990s was called as collective starting point. In 1996, China's home appliance industry was interconnected with the world for the first time. Haier set up its first overseas factory in Indonesia, another factory in the United States in 1999, became a representative of overseas branding. In 1998. Tencent, Sina and Sohu were founded, together with NetEase, became four major portals in China. In 1999, Alibaba was founded, later became the world's largest online trading market...…
Chinese enterprises are blooming in the world. In fact, the seed of "reason" has long been deeply planted. Take Haier as an example, although the products were exported initially in early 1990s, 1988 Guangzhou Export Commodities Fair was the first attempt to explore "going out". Haier appeared in less than 5 square meters exhibition booth of Guangzhou Export Commodities Fair for the first time, only 2 sales men were at the booth and only refrigerators were displayed. The market was cold at that time. In this cold storm, Haier refrigerator, the first gold medal in the history of the Chinese refrigerator, rather than cut the price, on the contrary, the price was increased by 12%.
After this attempt, Haier refrigerators began to be exported to Germany, the United States and other developed countries. In the United States, Haier passed the most stringent UL certification; In Germany, Haier refrigerator with its strength was praised by the critical Germans, entered the German market and got orders of 20000 refrigerators.
All enterprises are analyzing Haier’s successful cases and finding that "self-created brand" is the only idea insisted by Haier. Even if unable to earn the foreign exchange profit in the short term, Haier also insists on exporting its own brands. Haier demonstrated "self-brand" success for the globalization of Chinese brands and became "Chinese brand" in overseas users' life ahead of "OEM" enterprises.
Growing up in innovation: Overseas branding from home to the world
As the globalization is deepening daily, more and more "Chinese brands" begin to appear on the world stage. Baidu was founded in 2000 and successfully listed in the stock market in 5 years, became the world's largest Chinese language search engine. In 2004, Lenovo merged the personal PC business of IBM, including ThinkPad brand, quickly became the world's first class laptop computer manufacturer. In 2009, Haier got 5.1% share of global market. Chinese white home appliances first became the world's No.1 brand.
In this stage, China's role in the world was no longer a country only receiving FDI. Chinese enterprises began to go out on a grand scale. We can get a glimpse of that in the 105th China Import and Export Commodities Fair in 2009. This year, Haier displayed 15 series and more than 180 high-end products made from six production bases in the United States, Italy, Pakistan, Thailand and India, enhanced the high-end brand image of globalization of Chinese enterprises.
It is worth noting that they were not the products made in China and exported to overseas markets, but the Chinese brand products made in the overseas. Haier has secured global resources. With 24 industrial parks and 108 factories, the overseas production capacity reaches 20 million units. It realizes local production in overseas, local production for local sales. This is the development idea contributed by Chinese enterprises to the world.
Subversion in transition: "OEM" is transformed into "creator".
Guangzhou Export Commodities Fair is just a miniature of China's home appliances in overseas market. On the big stage of the world, with the extensive use of Internet and big data platform, Chinese household appliance enterprises also gradually get rid of the position of "OEM", have a place in the world as creator. HUAWEI has set up 16 R & D centers, 31 joint innovation centers around the world, joined more than 170 standard organizations and open source organizations. In addition to the headquarters of Shenzhen China, DJI-Innovations also set up research and development center in Silicon Valley and introduced a large number of international top technology talents.
It is the situation of the electronic industry. What is the home appliance industry? The last 30 years, China's home appliance industry relied on the most solid industrial foundation and the most complete industrial chains, realized the comprehensive strong rise from product, technology to brand and innovation. 
The home appliance giant Haier set up 10 R & D centers in Kumagaya Japan, Nuremberg Germany, Queretaro Mexico and other overseas regions in its global layout. From one-way "technical import" to "technical output", Haier becomes the China's household appliance enterprise with the most overseas invention patents.
In this Guangzhou Export Commodities Fair, Haier insisted "no high-end, no release", released many world class new products with average price more than RMB 20000 Yuan, such as the world's first refrigerator with oxygen control fresh-keeping technology, the world's first washing machine with "one machine double barrels", the world's first air conditioner with cooling and cleaning functions and so on. Compared to 5 square meters stand 30 years ago, Haier is rectifying the name of China home appliance industry to the world.

Leading in ecology: Large platform shows exponential growth.
Looking at the development process of global household electrical appliance industry in the past hundred years, we can see clearly, after Europe and the United States become the birthplaces of home appliances, Japan and South Korea become "relay baton" of the development of home appliance industry for their fine manufacturing system. However, with the European and American veteran home appliance enterprises have changed hands, Japanese companies continue to decline, Chinese household appliance brands are rising by their high-end technology and independent innovation. Beyond purely innovative products, Haier opens up another path of ecological leadership.
Based on "big platform" of globalization, Haier U+ intelligent life open platform brings a new wisdom life 3.0 solution for all walks of life, covering a full set of smart home appliances and services, including kitchen, bathroom, living room and others, total 7 intelligent social ecosystems. More than 180 smart living scenes are constructed, bringing human beings into 3.0 age of smart household. In addition, the industry transformation and upgrading experiences “unique scientific and technological innovation as engine, original inventive high-quality goods as link, and intelligent ecological circles as drive” are also used by overall industry. Chinese home appliance industry is changing the lifestyle of global families and opening a new era of smart life as the participants and leaders of the times.
In 30 years, Haier has been recognized by the world from 5 square meters booth in Guangzhou Export Commodities Fair and its development process is a miniature of the biography of China's household appliance industry. Guangzhou Export Commodities Fair is also becoming a window for Chinese smart production to interact with the world. What will be the miracle of next 30 years? We wait and see!

Copyright 2017 GE Appliances, a Haier Company