Haier - An aspiring Chinese global brand
Haier is an example of how an Asian company can build a brand and take it beyond its national market. The Haier brand which is built on quality and a commitment to offer innovative products at a competitive price, exports to over 150 countries around the world, has 13 factories spreading from Philippines to Iran to the US and recently became the no. 1 refrigerator maker in the world overtaking Whirlpool.
Haier traces its history back to the Qingdao General Refrigerator factory which was founded in 1958 as a cooperative to repair and assemble electric appliances. Till Chinese entrepreneur Ruimin Zhang took charge of the factory in 1984, the company struggled with its quality and incurred huge losses. Haier attracted tremendous publicity when Zhang smashed faulty refrigerators with a sledgehammer, to send out a message about his commitment to quality. Today, Haier commands approximately over 30% share of the Chinese market in white goods and had revenues of US$9.7 billion as of 2003.
True to that event, Haier has built its brand on quality. Haier's strategy has been to establish a leadership position in the domestic market before venturing into global markets. Unlike most players who concentrate on the low end of the market by offering cheap products, Haier has focused on offering innovative products at a competitive price and the brand is starting to see results. A case in point is that Haier is the leading brand in the US in mini-refrigerator category.
Haier's commitment to quality and innovation is evident by the 18 international product design centers that it has established in Los Angeles and Tokyo which are in turn supported by production facilities in US, Japan and Italy.
Though it is common to see charismatic CEOs such as Sir Richard Branson, Steve Jobs and Bill Gates leading the brands in the western world, it is hardly the case in Asia. Many Asian executives shy away from publicity. Ruimin Zhang has set an example to many Asian companies about how the CEO can take charge of the brand and be the chief brand ambassador. Zhang's aggressiveness to build his brand, his commitment to quality and his business acumen has attracted much deserved global accolades.
Ruimin Zhang was placed nineteenth among the twenty-five most powerful people in business outside the US by Fortune magazine in 2003 and Haier was ranked the most admired Chinese brands in 2004 by a Financial Times/Pricewaterhouse Coopers survey.
Haier traces its history back to the Qingdao General Refrigerator factory which was founded in 1958 as a cooperative to repair and assemble electric appliances. Till Chinese entrepreneur Ruimin Zhang took charge of the factory in 1984, the company struggled with its quality and incurred huge losses. Haier attracted tremendous publicity when Zhang smashed faulty refrigerators with a sledgehammer, to send out a message about his commitment to quality. Today, Haier commands approximately over 30% share of the Chinese market in white goods and had revenues of US$9.7 billion as of 2003.
True to that event, Haier has built its brand on quality. Haier's strategy has been to establish a leadership position in the domestic market before venturing into global markets. Unlike most players who concentrate on the low end of the market by offering cheap products, Haier has focused on offering innovative products at a competitive price and the brand is starting to see results. A case in point is that Haier is the leading brand in the US in mini-refrigerator category.
Haier's commitment to quality and innovation is evident by the 18 international product design centers that it has established in Los Angeles and Tokyo which are in turn supported by production facilities in US, Japan and Italy.
Though it is common to see charismatic CEOs such as Sir Richard Branson, Steve Jobs and Bill Gates leading the brands in the western world, it is hardly the case in Asia. Many Asian executives shy away from publicity. Ruimin Zhang has set an example to many Asian companies about how the CEO can take charge of the brand and be the chief brand ambassador. Zhang's aggressiveness to build his brand, his commitment to quality and his business acumen has attracted much deserved global accolades.
Ruimin Zhang was placed nineteenth among the twenty-five most powerful people in business outside the US by Fortune magazine in 2003 and Haier was ranked the most admired Chinese brands in 2004 by a Financial Times/Pricewaterhouse Coopers survey.
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