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from China to the World

from China to the World. Jean-Guillaume HERVÉ & Élodie TRY. Summary. I/ Presentation of Haier 1. Customers 2. Suppliers 3. Competitors 4. Key success factors. II/ Haier ’ s international strategy 1. First steps out of China 2. Europe 3. US 4. Recommendations 5. Conclusion.

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from China to the World

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  1. from China to the World Jean-Guillaume HERVÉ & Élodie TRY

  2. Summary • I/ Presentation of Haier • 1. Customers • 2. Suppliers • 3. Competitors • 4. Key success factors • II/ Haier’s international strategy • 1. First steps out of China • 2. Europe • 3. US • 4. Recommendations • 5. Conclusion

  3. Presentation of Haier DIDIE Founded in 1984 (Zhang Ruimin) Household appliances market Chinese producer 2009’s turnover: RMB124 billion 240 subsidiaries a top-leading company 30 design centers Plants all around the world > 50 000 employees

  4. Customers From 160 countries over the world

  5. 44 out of Fortune 500 businesses 840 suppliers (71% international) Active involvement (design, development) Win-win strategic partnerships Suppliers DIDIE

  6. Competitors JG Source: Euromonitor International

  7. Key success factors Consumer satisfaction Quality control Adaptation DIDIE Efficient distribution Technology Efficient supply chain

  8. From niche products to mass-market Staff with local Growth slowdown in China (nineties)... ... leads to hunt new growth areas! Will to focus on difficult markets Haier’s international strategy DIDIE

  9. First steps out of China • JVs to explore foreign markets • Contract manufacturer for multinational brands JG • 1995: first chinese company to engage in FDI (plant in Indonesia) • From 1997 to 2005: Europe, USA, Middle East, Africa, New Zealand...

  10. Implementation in Europe • 1997: implantation in Europe (plant in Belgrade) • from «Liebherr» to «Haier» • Headquarters: Italy then France • Distribution centers: Italy, Spain, UK, Netherlands JG • Huge market size • Think global, sell local • Distribution channels • Consumers preferences: very different.

  11. Implementation in the US Localization strategy: - design center in Los Angeles - marketing center in New York - products factory in Camden, South Carolina Chinese products made in America by Americans! DIDIE Focus on niches: - compact refrigerator - wine storage - ... Partnerships with U.S. retailers (Wal-Mart, Lowe’s, Best Buy...)

  12. Recommendations • Build brand equity • Strenghten public awareness • Communicate on the new «made in China» JG • Image of high-quality & • ecological-friendly products • International rankings

  13. Conclusion First chinese brand Household appliances moving abroad DIDIE Europe USA Localized strategies High-quality Design Focus on consumer needs « made in China »

  14. Thank you for your attention ! JG

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