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How Haier broke into overseas markets

The development process of Haier Group

Qingdao Refrigerator Factory, the predecessor of Haier Group, was established in 1984 based on the introduction of German Liebherr refrigerator production technology. Before that, the refrigerator factory was a small collective factory with a loss of 1.47 million yuan. At that time, people's quality awareness was still quite indifferent.

In April 1985, the refrigerator factory publicly destroyed 76 refrigerators with serious quality problems, which greatly improved the quality awareness of workers. As a result, it won the National Quality Award in 1988 and the National Quality Award in 1990. Won the only National Quality Management Award in the refrigerator industry.

By 1991, it had been ranked first among "the most popular light industrial product refrigerators" by consumers across the country for five consecutive years. The quality and service quality have reached an unprecedented height.

In December 1991, with Qingdao Refrigerator Factory as the core enterprise and air conditioner factory and freezer factory as close-level enterprises, Haier Group Corporation was established after restructuring. Through technological development, refined management, capital operation, mergers and holdings and internationalization, Haier Group has rapidly grown into a large enterprise group that ranked 30th among the top 500 companies in the country in 1996.

In the five years from 1992 to 1996, Haier Group's sales revenue soared from 800 million yuan to 6.16 billion yuan. From January to August 1997, sales revenue reached 6.6 billion yuan.

At present, Haier Group’s products include more than 5,000 varieties of products in 13 categories including refrigerators, freezers, and air conditioners, and are exported in batches to developed countries and regions such as Europe, the United States, and Japan. The intangible assets value of Haier's trademark reached 7.7 billion in 1996, making it truly the number one brand in Chinese home appliances.

Extended information:

1. Global brand strategy development stage (2005-2012): Creating a global brand in the Internet era

Opportunities of the era: Development of the Internet

General business practices: selling products with the enterprise as the center

Haier’s innovative approach: selling services with users as the center

Haier management innovation: exploring “ Rendanhe win-win" business model

The Internet era has brought about the fragmentation of marketing. The "production-inventory-sales" model of traditional enterprises cannot meet the personalized needs of users. Enterprises must transform from "enterprise-oriented" "Selling products as the center" has been transformed into "selling services as the center", that is, the user-driven "supply on demand" model. The Internet has also brought about the integration of the global economy, and there is a logical progressive relationship between internationalization and globalization.

"Internationalization" is to use the company's own resources to create international brands, while "globalization" is to use global resources for our own use to create localized mainstream brands, which is qualitatively different. Therefore, Haier integrates global R&D, manufacturing and marketing resources to create a global brand.

At this stage, the business model Haier is exploring to create customers in the Internet era is the "win-win model of Rendanhehe".

In 2010, Zhang Ruimin communicated with the world's top management gurus Michael Porter and Gary Hamer in the United States about Haier's win-win model for people, orders, and cooperation. Two management masters spoke highly of Haier's practice of a win-win independent operation system of Rendanhehe. Gary Hamer (left) believes that the innovation of independent operation units promoted by Haier is advanced.

2. Network strategic development stage (2012-2019): Networked markets, networked enterprises

Opportunities of the era: the development of the Internet

General corporate approach: a traditional enterprise centered on itself

Haier’s innovative approach: a platform enterprise in the Internet era

Haier management innovation: continue to explore "win-win situation between Rendanhe" Business model

The arrival of the Internet era has subverted the development model of the traditional economy, and the foundation and operation of the new model are reflected in the network, and the market and enterprises are more networked.

In Haier’s view, the implementation path of the networked enterprise development strategy is mainly reflected in three aspects: no boundaries in the enterprise, no leadership in management, and no scale in the supply chain, that is, mass customization, on-demand design, and on-demand manufacturing. Made on demand, delivered on demand.

In December 2012, Dominique Turpin, dean of IMD Business School in Lausanne, Switzerland, awarded the "IMD Management Thought Leadership Award" to Zhang Ruimin in recognition of his contribution to the art and practice of modern management.

In November 2015, as the only Chinese entrepreneur invited, Zhang Ruimin gave a speech at the 7th Drucker Global Forum; he was selected into the "2015 Thinkers50 List" and won the Thinkers50 Outstanding Achievement Award. "Ideas into Practice"

On June 8, 2016, Zhang Ruimin was awarded the "Legendary Leadership Award" at the 86th Yale CEO Summit Forum, becoming the only one this year. The first Chinese business leader to win this award.

Jeffrey Sonnenfeld, senior associate dean of the Leadership Program at the Yale School of Management, commented: Zhang Ruimin is a true global business giant who has made his competitors, peers and Chinese business leaders like him are in awe. As a transformational leader, he draws on the best of Chinese and Western business practices to create his own unique model.

On September 11, 2018, the founding meeting of the Shandong Artificial Intelligence Industry Alliance was held in Yantai. With its leading exploration in smart homes, Haier has become the leading company in promoting alliance work, actively collaborates with various companies to build an artificial intelligence industry ecosystem, and was elected as the first rotating chairman unit.

On October 5, 2018, Qingdao Haier announced its plan to be listed in Frankfurt.

On July 1, 2019, the stock name of Qingdao Haier Company was changed to "Haier Smart Home", while the stock code "600690" remained unchanged.

Baidu Encyclopedia-Haier