Haier rises to global brand in 16 years
Electronics giant sees 80% yearly growth

Haier Group, China's largest electronics producer, has become a world famous brand after 16 years of rapid development.

Based in Qingdao in East China's Shandong Province, the firm has seen a yearly increase of 80 per cent.

In 2000, sales totaled 40.6 billion yuan (US$4.9 billion), up by 51 per cent, a net increase of 13.8 billion yuan (US$1.67 billion) on previous year.

The group netted sales income of US$280 million in foreign currencies in 2000, doubled the amount of the previous year.

Authorities say the "Haier" brand name is worth 33 billion yuan (US$3.99 billion). Chief executive officer Zhang Ruimin said the firm's success is down to the marketing strategy of having a world brand and an extremely high standard of management. Last year Haier set up trade, design, production, sales and after-sales service networks in the world's major economic regions. To date, it has 56 trade centres, 15 designing centres, 7 industrial parks, 46 plants, 11,976 service centres and 53,000 sales offices, including 10 plants and 38,000 sales offices abroad.

Haier products are sold in large chain stores, including Wal-Mart, where they have to compete with other international brands.

Zhang said Haier has its unique management after learning from overseas enterprises. In 2000 Haier took the lead in China by starting the B2B service (business to business) and selling Haier products on the Internet. The total B2B orders for Haier products for 2001 have surpassed 15 million units. Now Haier is trying to make its brand a household name in the United States, Europe, the Middle East and Southeast Asian countries.

Last March, the Haier plant in South Carolina in the US began operation. According to an investigation by TWICE magazine last October, two different Haier refrigerators are among the top five of America's small refrigerators.

Haier's refrigerators use 26 per cent less energy than A grade European competitors. Its transparent wine cabinets are sold in 90 per cent of the US market.

Market expansion means a need for higher production. Haier's fifth industrial park, in Hefei, the capital of China's Anhui province went into production last December. The park will increase Haier's production capacity by 20 per cent.

The key to Haier's rapid growth relied on an internationalization strategy. Now, with the Internet economy and China's pending entry into the WTO, Haier will continue the strategy.