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China Daily 0803 D5.Indd CHINA DAILY FRIDAY, AUGUST 3, 2012 businesscompanies 17 A shop assistant adjusts a Haier air conditioner in a store in Queens, New York. PROVIDED TO CHINA DAILY Taking on America The president of Haier America explains what it takes for a Chinese company to crack an overseas market By ARIEL TUNG in New York appliance brand for a third con- or fearless than the head of the [email protected] secutive year by Euromonitor Chinese appliance giant”. International, a London-based It called Zhang a “national It’s been 10 years since Haier business intelligence company. hero” in China; the man who America bought the wonderful Its global brand market share turned the failing factory into former head office of Green- We had to make Amer- grew by 1.7 percent to 7.8 per- Haier, “a galloping enterprise with wich Bank. icans feel that Haier is cent last year, according to the revenue of $20 billion and one of But there’s been no fanfare a localized US brand report. China’s fi rst global brands”. within the imposing 1920s, instead‘ of‘ an imported Due largely to the sheer size After saving the company, six-story limestone and sand- of its home Chinese market, Zhang quickly acquired other stone build- Chinese brand.” Haier Group’s total sales grew businesses and expanded the INVESTMENT ing at the ZHANG RUIMIN about 15 percent to $23.8 bil- product line to include other intersection HAIER’S CEO lion last year. appliances such as freezers, of Broadway and West 36th Its in the US, on the other dishwashers and microwaves. Street in Midtown Manhattan hand, that its individual prod- In 1991, these businesses in New York. And the fi rst thing uct market shares are still tiny merged to form Haier Group. Instead, Haier quietly cel- they need to do, is to in comparison: for room air Today, Haier has 29 manu- ebrated by acknowledging the understand their con- conditioners that’s 16 percent; facturing bases and 16 indus- series of milestones the com- portable air conditioners 22 trial parks in the US, Europe, pany has hit since fi rst entering sumers. We are always percent; and compact refrig- Asia, the Middle East and the United States 13 years ago. learning about what erators 20 percent. Africa. It also has eight R&D It was in 1999 that Haier our customers want.” According to Kan, the centers in the US, Germany, Group — a company based in company’s ambition remains Japan and South Korea. SHARIFF KAN Qingdao, a coastal city in East PRESIDENT OF HAIER AMERICA clear: to overtake Whirlpool Its success story in going China’s Shandong province — QI HENG / XINHUA and GE in the US — far from overseas could certainly be fi rst arrived in the US with a People visiting Haier’s pavillion at the 2010 International Consumer Electronics Show in Las Vegas. over ambitious, as it’s certainly described as an object lesson clear objective in mind. well-known for tackling major for many Chinese companies Unlike many of its Chi- HAIER'S GLOBAL Kan said that it firmly ances such as air conditioners, obstacles. struggling with what remains nese counterparts which aim REVENUE believed that if it could succeed washing machines, and dish- In 1984, Haier Group — the key obstacle for many — to export massive volumes Unit: Billion yuan 151 in the West, it would then be washers. then known as Qingdao Gen- brand building in an interna- of goods to the US and else- able to do well in other Asian Another key area in its US eral Refrigerator Co — was on tional market. where, Haier was here to create 136 markets. success has been R&D and the verge of bankruptcy when Kan’s advice is clear: “Under- 124 a brand, which the company 118 119 Although Asian players such thorough market research. CEO Zhang Ruimin took the stand that what works in China hoped would appeal around as Samsung and LG Electron- To understand its customers’ reins and returned it to profi t may not work in America. the world. ics started their US businesses needs, Haier invested heavily in in just a year. “And the first thing they The company may be a 2007 2008 2009 2010 2011 much earlier, Haier doesn’t a program of sending its own According to a recent profi le need to do is to understand household brand in China, well- view them as threats but R&D people out to talk directly in Fortune magazine, “you’d their consumers,” he said. Shariff Kan, president of Haier Source: Haier CHINA DAILY known and respected as one of America “strong Asian brands that we to customers and salespeople be hard pressed to fi nd a man- “We are always learning about the world’s leading manufactur- can emulate”. in stores right across the coun- ager who is more innovative what our customers want.” ers of refrigerators, air condition- start with the decision to build a and marketing office — has “They represent the Asian try to get their feedback on its ers and other appliances — but factory in Camden, South Caro- another 220 staff . community. So we try to products. its name was virtually unknown lina — it marked Haier out as the Kan, who was named one learn from the best. But we Not only are its full-size when it fi rst broke into the US. fi rst Chinese company to actually of the “50 Most Outstanding are very confi dent of our own refrigerators produced in- BBeijingeijing HHuiyuanuiyuan But today, its products can be invest in the bricks and mortar of Asian American Businessmen” approach,” he added. market, but a design center widely found on the shelves of a manufacturing plant in the US. in 2002, has been key to Haier’s Carving out a niche market in Los Angeles makes sure all MMediaedia VVillageillage AApartmentpartment major US retailers such as Wal- The Haier Industrial Park success, and has been with the has proved to be key part of its products are tailored for the mart, Target and Home Depot. broke ground a month after company since it began in 1999. strategy in a US home appli- US market. And by partnering with the Haier set up its US office in He took over the reins from ances market dominated by “We are continuously look- National Basketball Associa- March 1999. former Haier America presi- American companies, such as ing to differentiate ourselves tion, it has gained considerable The $40 million facility on dent Michael Jemal in 2009 GE Appliances, Whirlpool and so we can create our own part leverage through advertise- 110 acres land was opened in aft er being his right hand man Maytag (before it was acquired of the US appliance market,” ments and other endorsements March 2000, and soon began for a decade. by Whirlpool). Kan said. with one of the highest profi le producing its fi rst refrigerators. Kan insists that Haier Amer- One of its best opening He adds that Haier prides sports in the US. “The factory was meant to ica is “very much American” in moves was to win over Ameri- itself in its ability and speed to Haier’s CEO Zhang Ruimin communicate our commitment terms of its employees compo- can customers, and Haier convert ideas into products in has always emphasized that to the American marketplace,” sition and work culture. found early success with mini- the shortest possible time. for its international business to Shariff Kan, president of Haier Th e company celebrates Chi- fridges for hotels and offices However, the Haier Indus- succeed, it needed to create a America, told China Daily. nese New Year just as it cel- and for home use, a segment trial Park only has the capabil- Beijing Huiyuan Media Village (Huiyuan Service Apartment) is located in the central localized brand name. To fully integrate into Amer- ebrates the Fourth of July and that the big players had avoided ity to produce full-sized refrig- area of the business district of the Olympic and Asian Games villages, about 500 meters away from the National Stadium (the Bird’s Nest). As the media village of the “We had to make Americans ican society, he said, the com- every US holidays. due to its relatively small size. erators, and other appliances Beijing 2008 Olympic Games, it was home to more than 1,000 Chinese and foreign feel that Haier is a localized US pany realized from day one that While most Chinese com- But for Haier, it was an ideal are still made in China. The journalists. It offers a number of different varieties of apartments. Spacious and brand instead of an imported it was vital local people were panies chose to enter other opportunity to gain consumer factory also ships some of its well-lit, they have ample facilities and furnishings and are suitable for residential or business use. Businesses may be registered here and it is ideal for individual Chinese brand,” Zhang said. running the business. Asian markets before attempt- trust, he said. US-made top-end refrigerators business or tourist customers. The company’s commitment Today, the Haier park ing to penetrate the more Aft er establishing itself with back to China, as well as other Preferential rents are available. Contact us for details. to establishing a US bridgehead employs 250 workers, and its unfamiliar markets of the US its mini-fridges, Haier then countries. Apartment Hotlines: (8610) 6499 3636/3528 E-mail: [email protected] for expansion into the country headquarters in New York — and Europe, Haier’s strategy began to move into higher-end In 2011, Haier was ranked Hotel Hotlines: (8610) 6499 2828/2929 E-mail: [email protected] Website: was fi rmly underlined from the which also functions as a sales has been exactly the opposite.
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