Haier

Zhang Ruimin, CEO of the Haier Group was selected as the Cover Figure of the Am.. ¡ö Haier is among the Chinese market leaders ¡ö Haier will be the sixth largest white appliance manufacturer ¡ö Haier's growth is set to be sustained ¡ö Haier's importance lies also in that it offers insights into China's economic changes In its latest issue, Forbes, one of the world's most influential journals, published an article by a reporter Russell Flannery, entitled "China going towards the World: ambitious Haier, an international brand name created by a Chinese transnational group". An abstract from the article is below: In next two years, the Chinese household appliance market is likely to overpass America in size. One of the market leaders is the Haier Group. Last year, Haier's revenue approached US$5,000,000,000, increasing by 51% over the year 1999. Now it is the six largest white appliance producer in the world. In addition to a rising position and success, Haier also has its importance in that it offers insights into China's economic changes. As one of the important household appliance manufacturers in the world, Haier ¨C it has established subsidiary companies in 13 countries and exports to over 160 nations ¨C marks an end to the first stage of China's economic reforms after the country's closeness to the outside world. Expansion into overseas markets ¨C Haier makes up 30% plus of the American small refrigerator market ¨C is also a trial on the managerial capability of Chinese companies. Haier's growth is set to be sustained. The strategy Haier has used in overseas markets is different from other Chinese export-oriented companies. These companies tend to use price war and concentrate on contract processing; their influence on overseas markets is very small; while Haier sell products under its own brand name and it has its own production bases in different countries and regions so that its products can easily suit local needs.