Haier Business Analysis: Leading Global Home Appliance Company from China

Haier is one of the most successful global company from China, not only because it’s one of the earliest brand go abroad, but near 50% percent of its revenue from foreign Countries. In contrast, GREE, another home appliance in China and similiar revenue size with Haier, made only less than 10% revenue from abroad. 

Haier is a leading global home appliance manufacturer headquartered in Qingdao, China. Haier  designs, manufactures and sells a wide range of household appliances including refrigerators, freezers, washing machines, air-conditioners, water heaters, kitchen appliances and small home appliances, with a comprehensive offering of smart home appliances. In addition, Haier Smart Home operates a logistics business focused on the distribution of large format items across China. Founded in the 1980’s, Haier Smart Home listed on the Shanghai Stock Exchange in 1993 (SSE: 600690).

Haier Smart Home has successfully expanded its global footprint in recent years with the acquisition of GE Appliances, General Electric’s home appliances business, in 2016 and the transfer of Haier Group’s overseas white goods business to Haier in 2015. Since 2015, Haier has also managed and operated the New Zealand luxury home appliances brand Fisher & Paykel in trust for Haier Group and in April 2018 the Group entered into a share purchase agreement to acquire all shares of Haier NZ, the holding company of Fisher & Paykel, from Haier Group. Haier’s overseas expansion has significantly broadened its global R&D, production and marketing networks, enabling it to implement a successful localisation strategy around the design, manufacturing and sales in overseas markets. As a result, Haier has become a global enterprise with a portfolio of leading home appliance brands to meet the diverse needs of customers in more than 100 countries worldwide.

First of all, let’s have a brief overview of Haier Business. 

From Haier Non-Deal Roadshow Presentation 2019Q3

As a listed company in Chinese stock market, Haier Smart Home offers a portfolio of leading home appliance brands, such as Haier, Casarte, Leader, Candy, FPA, GEA. 

From Haier Non-Deal Roadshow Presentation 2019Q3

Haier is a very successful global company as Huawei, maybe even more successful. Because Huawei is banned out of US market due to the US government cyber security concern, especially during the Sino-US trade war. However, US is the second market place for Haier. The domestic revenue of Haier is similar to the foreign market. 

From Haier Non-Deal Roadshow Presentation 2019Q3

Haier followed the strategy of smart home leadership, all these brands portfolio offered a full product set of home appliances, such as refrigerators, washing machines, AC, water heater, kitchen appliance. 

From Haier Smart Home 2019 Interim Report

As we can see from Haier Smart Home 2019 Interim Report, each product sectors takes large market share in domestic market. 

From Haier Non-Deal Roadshow Presentation 2019Q3

In another perspective, as we can see from above graph, even as the appliances indutry was weak in the last several quarters, Haier revenue stays table growth. This shows how competitive Haier has. 

Haier is already a famous global home appliance brand, however, Haier aims to the top of the home appliance industry in the world. 

From Haier Non-Deal Roadshow Presentation 2019Q3

Haier not only has clear vision, but also has clear strategy to it’s vision. The ultimate goal is to have ecosystem leadership, and I think it’s not far from now.

From Haier Non-Deal Roadshow Presentation 2019Q3


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1 Comment

  1. Submit Your Link

    Me English no better, but had to say me like what you say. Thank you from me.


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