Appliances Giant Haier Reaps the Benefits in Moving towards Internet
New Delhi, 26 November, 2014, Haier, one of the largest Home Appliances & Consumer Electronics brands worldwide and world’s No.1* brand in major appliances, today announced that the brand has delivered its first order during this year’s “11.11” shopping carnival to the customer’s home in Jining, Shandong Province. The entire process right from placing the order to delivering it took just 20min. Within 24 hours, Haier’s total online sales for the whole day were RMB790 million, of which RMB324 million were from its flagship store on Alibaba.com alone. These numbers were driven by the consumption wave in the Internet economy, and by taking advantage of this trend, Haier Group has used the e-commerce platform to the full.
Alibaba became the second-largest Internet company in the world next only to Google the same day of its IPO on the New York Stock Exchange, using the huge financial numbers to prove that the Internet economy is reshaping both the macroscopic and the microscopic economic landscape like a tsunami. Of course, it seems that this was what expected by Haier, which had signed the strategic partnership agreement with Alibaba a year ago.
Haier’s Internet strategy was launched in 2012. Two years later today, its Online Factories are already able to connect customer’s orders with its production lines directly, and customers are also able to view both the manufacturing and the delivery process of products in real time. In terms of products, Leader, a brand of the Haier Group, has realized customization through the Internet: it can provide tailor-made products for customers based on their feedback during online transactions. On the other hand, in terms of transportation where speed is a matter of life and death for e-tailers, Haier now has 9 shipping & delivery bases, 90 logistic centers and 2 million square meters of warehouses across China to cover every town in the country.
China’s e-tailers have reached more than 200 countries across the globe, “wireless”, “platform-based” and “global” are the keywords for the Internet economy today. Haier has a huge global customer base and a sophisticated ecosystem, and the 5 R&D centers, 24 industrial parks and 143330 retail outlets across the five continents can provide a powerful support for the group’s transition toward the Internet.
The 22nd APEC Economic Leaders' Meeting closed on the same day of the “11.11” shopping carnival. China as a major country in the region with a global influence plays a more and more important role in the international economic system. This trend is very obviously demonstrated in the global operations of Chinese companies including Xiaomi, Huawei, Alibaba and Haier. Haier’s transformation will not just be limited to China, as global enterprises and scholars are also very interested in its business model. In the Internet era, Haier’s innovative model and corporate culture will unprecedentedly revolutionize the appliances industry and the e-commerce industry.