In 1984, Haier Group was founded in Qingdao. At that time, Chinese household appliance industry was still in the exploration period and Haier was no exception. Shortly after Haier was established, it was just a small manufacturing company and its main business was selling refrigerators. However, through an explosive growth between 1998 and 2005, Haier’s sales network spread over 100 countries and regions by selling diversified home appliances. Haier was able to move to international markets from 1998 and 2005 because of its overseas expansion strategy, niche products strategy and the local differentiated products
One of the reasons for Haier’s success in overseas markets lied in its overseas expansion strategy. First, Haier took the “difficult …show more content…
These differentiated products reduced the influences of substitutes in markets and increased Haier’s marginal revenue. In May 2000, reputable American journal TWICE published Haier’s large-capacity refrigerator and said it was “Energy-saving Star” (Sina Finance, 2000). The product met the American new energy consumption standards and was distributed to almost all major retail chains in the US. Besides, Haier specifically designed the robe washer, a large capacity washer which can wash up to 12 robes one time, since people have the tradition of wearing full-length robes in Pakistan. As a result, Haier’s robe washer quickly gained popularity among in the local markets and became the largest selling washer in Pakistan (Beareyes, 2013). In addition, targeting Nigeria’s tropical climate, unstable voltage and frequent power outage, Haier developed the non-defrosting freezer in 100 hours of power failure. After this freezer appeared on the market, it rapidly accounted for about 55% of Nigerian freezer marker share and enabled Haier to become the leader in Nigerian freezer market (Cuidh, 2006).
Based on all the arguments mentioned above, there were three reasons contributing to Haier’s explosive growth between 1998 and 2005. Haier became the most popular household appliance brand around the world in such a short period of time could be attributed to its overseas expansion strategy, niche products strategy and the local differentiated products. Undoubtedly, the unconventional strategies Haier used to develop international markets were worth learning. In other words, breaking traditional thinking and exploring innovative strategies are the secrets to enterprise’s
One of the reasons for Haier’s success in overseas markets lied in its overseas expansion strategy. First, Haier took the “difficult …show more content…
These differentiated products reduced the influences of substitutes in markets and increased Haier’s marginal revenue. In May 2000, reputable American journal TWICE published Haier’s large-capacity refrigerator and said it was “Energy-saving Star” (Sina Finance, 2000). The product met the American new energy consumption standards and was distributed to almost all major retail chains in the US. Besides, Haier specifically designed the robe washer, a large capacity washer which can wash up to 12 robes one time, since people have the tradition of wearing full-length robes in Pakistan. As a result, Haier’s robe washer quickly gained popularity among in the local markets and became the largest selling washer in Pakistan (Beareyes, 2013). In addition, targeting Nigeria’s tropical climate, unstable voltage and frequent power outage, Haier developed the non-defrosting freezer in 100 hours of power failure. After this freezer appeared on the market, it rapidly accounted for about 55% of Nigerian freezer marker share and enabled Haier to become the leader in Nigerian freezer market (Cuidh, 2006).
Based on all the arguments mentioned above, there were three reasons contributing to Haier’s explosive growth between 1998 and 2005. Haier became the most popular household appliance brand around the world in such a short period of time could be attributed to its overseas expansion strategy, niche products strategy and the local differentiated products. Undoubtedly, the unconventional strategies Haier used to develop international markets were worth learning. In other words, breaking traditional thinking and exploring innovative strategies are the secrets to enterprise’s