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Haier's hand reaches far overseas

By Du Shu (China Daily)
Updated: 2008-05-01 07:34

Refrigerators made by Chinese home appliance giant Haier are now used by 280 million consumers in more than 160 countries and regions far distant from its Qingdao headquarters.

The group now plans to increase its footprint through localization in foreign countries and expanded multinational networks.

"Haier aims to realize its localization in overseas markets and become a global brand," president of Haier Group Yang Mianmian told the media.

Haier Group is forming a global network in design, manufacturing and marketing through nine research and development centers, 30 manufacturing sites and over 5,000 marketing outlets in the United States, Europe, the Middle East and the Asia-Pacific region.

After starting its "internationalization strategy" in 1998, Haier is an increasingly global brand that sells 20 million refrigerators yearly, the most in the world.

On a list of the world's 200 most-respected enterprises published by Forbes magazine in 2006, Haier ranked 25th, the highest among Chinese brands.

Olympic champion swimmer Qian Hong (left) and her husband with Wang Anxi (middle), chairman of the board of supervisors of Haier Group. Qian, who won a gold medal in the 100-m butterfly at the 1992 Barcelona Olympics, and her family were the first selected as a "Haier Gold Medal Olympic Family". Ju Chuanjiang

In 2005, Britain's Financial Times ranked Haier in the Top 10 of Chinese world-class brands.

Nineteen Haier products have been awarded the status of famous Chinese brands.

"More and more consumers find the appeal of Haier, for its products meet their requirements," Yang said.

To meet the lifestyle in Pakistan, Haier designed a "wide-body" refrigerator able to store more food and make ice quickly. Such features have brought Haier over 35 percent of the high-end market in the country.

Twice, a US electronic newspaper, noted in January that demand for household appliances in the United States is declining due to the real estate market downturn and subprime mortgage crisis, yet Haier's sales have increased.

Outselling international brands from Japan, the US and South Korea, Haier's air conditioners top the US market with more than 18 percent of the total.

Comet, one of the biggest appliance retailers in Britain, promotes Haier high-end drum washing machines through prominent displays with placards "introducing a world leading brand".

Overseas sales of PL drum washing machines increased 40 percent in 2007 and accounted for more than 30 percent of the European market.

In April 2007, Haier's French Door refrigerator with 24 technological innovations enjoyed brisk sales after its debut in 65 countries.

In 2006 Haier purchased a Sanyo electric factory in Thailand with an annual capacity of 1 million units and last year acquired a facility in India that makes 350,000 refrigerators annually.

The acquisitions strengthened Haier's capabilities in overseas markets by lowering costs and shortened delivery time.

(China Daily 05/01/2008 page12)