Building Presence in a Mass Market Beyond China - Hair in India a presentation that analysis the activities done by Haier the appliance Company in its globalization strategy

1. Dr. Aliaa Soliman
Management of SMEs
Ahmed Abd El-Latif – 1810707
Ammar Aly Mattar -
Ismail Mostafa -1810651
December 2020
Group ( A )
Haier in India
Building Presence in a Mass Market Beyond China

2. Agenda
About Haier
Chinese Market
Going global
Indian Market
International
Strategy
Challenges
EncounteredRecommendation
s

3. About Haier
Haier is a chinses company specialized in the home
appliances .
The company started 25 years ago as a small refrigerator
factory in northeast china
Now , It designs , Develops , manufactures and sell products
like air conditions , heaters , kitchen appliances , washing
machines and refrigerators
the main strategy of the company is the “product quality”
because of that strategy the company was named one of
the top 10 brands in china

4. Chinese Market
Haier started to expand by using the acquisitions strategy
They acquired 18 companies with various level of success –
and this expansion allowed the company to spread the
presence to other home appliance such as air conditioners,
refrigerators and washing machines.

5. Going global
After achieving a good position on the chinses market,
company start the globalization strategy, by start opening
new market in European markets.
The reputation of Chinese product quality was bad – till they
passed the blind test which based on German standards.
Indian Market
Haier management decided to open new market in India after expanding in Europa
The new entry was very difficult because of the government regulations
Market entry was so difficult because of the competition with the
Korean giants (LG, Samsung)

6. International
Strategy
Localization strategy
•Company start doing a market researches on each market before starting on it, and the result of the research
defines the starting point on each market
Three-in-on strategy
•The company start thinking of the “Three-in-one” strategy, which allow the company to manufacture, design
and sale inside the same market, which also serve the localization strategy, so it is called “Three-In-One”
Localization”.
Customer-oriented strategy
•working on brand reputation and produce according to customer need by forcing the R&D engineers to search
for a solution for customer problems.
Strategy adopted by the company to penetrate the international market

7. Challenges
Encountered
Enhance “Made in china” reputation
Indian Market
Product diversification
After-sales reputation

8. Recommendation
s
• Haier should adapt a unified products standards for all its targeted Markets
• Support Center should be decentralized in order to gain more customer satisfaction and then acquire more
and more customers
• Advertising and brand awareness
• Distribute R&D Centers in order to create a new demand in the developed markets
• Manufacturing centers in the Developed markets will help in providing a low cost and hence a good prices,
the same as Samsung when they targeted middle east and Africa.
• Replicating the “Manufacturing Hub” in India, to reduce the delivery time and minimize the transfer cost,
the recommendation is Europe to gain the European products reputation.

9. Thank You !