Subject category:
Marketing
Originally published in:
2014
Version: December 2013
Length: 46 pages
Data source: Published sources
Abstract
Though many consumers in the US or Europe are apt to ask 'Haier who?” Haier has been one of the most exciting brands to emerge from China. Despite relatively low brand awareness outside its home market, Haier - the Chinese appliance conglomerate - dominated the Chinese market. Outside China, Haier had proven that a Chinese manufacturer could compete - and win - beyond its borders with high quality, low-priced products. Haier prevailed not only in other emerging markets but also in entering the highly contested, sophisticated market for white goods in the US and Europe. Indeed, in a relatively short period of time, Haier had become the global leader in home appliances with over 8 percent volume market share. In 2012, the Haier Group reported a profit of $1.4 billion on $25.8 billion in revenue, an increase of 11 percent year-on-year. Overseas revenue accounted for over 25 percent of total revenue. However, Haier’s success in international markets was mostly in niche categories (eg dorm fridges or wine chillers) and at the low-end of the market. To succeed in establishing itself as a global brand in key product categories, Haier’s main challenge was clear: build brand equity to appeal to image-conscious consumers in developed markets who wanted value but who had predisposed assumptions about the perceived lower quality of Chinese brands. This was a challenge for every Chinese brand but Haier, however, was a strong contender in the race to become one of the first blockbuster Chinese consumer brands on a global scale.
About
Abstract
Though many consumers in the US or Europe are apt to ask 'Haier who?” Haier has been one of the most exciting brands to emerge from China. Despite relatively low brand awareness outside its home market, Haier - the Chinese appliance conglomerate - dominated the Chinese market. Outside China, Haier had proven that a Chinese manufacturer could compete - and win - beyond its borders with high quality, low-priced products. Haier prevailed not only in other emerging markets but also in entering the highly contested, sophisticated market for white goods in the US and Europe. Indeed, in a relatively short period of time, Haier had become the global leader in home appliances with over 8 percent volume market share. In 2012, the Haier Group reported a profit of $1.4 billion on $25.8 billion in revenue, an increase of 11 percent year-on-year. Overseas revenue accounted for over 25 percent of total revenue. However, Haier’s success in international markets was mostly in niche categories (eg dorm fridges or wine chillers) and at the low-end of the market. To succeed in establishing itself as a global brand in key product categories, Haier’s main challenge was clear: build brand equity to appeal to image-conscious consumers in developed markets who wanted value but who had predisposed assumptions about the perceived lower quality of Chinese brands. This was a challenge for every Chinese brand but Haier, however, was a strong contender in the race to become one of the first blockbuster Chinese consumer brands on a global scale.