Li Huagang of Haier Group insists on creating global high end brands and making Chinese brands shine

Mondo Technology Updated on 2024-01-31

On December 29th, the "Dream Connects the World - World Brand Road New Year's Eve Speech" was held in Beijing, and representatives of nine Chinese brand enterprises, including China Energy, CRRC and Haier Group, took the stage one after another to share their struggles, experiences and successful experiences from "trendsetters" to "leaders" when brands go overseas.

The event was hosted by the China Brand Construction Promotion Association and the Silk Road Planning and Research Center, and undertaken by the China National Brand Network, with the theme of "promoting Chinese brands to the world and allowing brands to contribute to a better life for mankind", which built an important platform for Chinese brands to enhance their influence and also reflected the momentum of the rapid rise of Chinese brands.

Li Huagang, Senior Vice President of Haier Group and Chairman and President of Haier Smart Home Co., Ltd., delivered a speech on "Climbing the World Brand Heights", in which he proposed that "Haier's world brand road is the road to global brand creation, the road to scientific and technological innovation, and the road to model innovation."

Global brand: It is the world's first, and it is the high-end first.

Today, when the world is facing "great changes unseen in a century", Chinese enterprises need to realize the transformation from "Chinese products" to "Chinese brands" and "Made in China" to "Made in China" as soon as possible, and accelerate towards the high-end of the global industrial chain. Li Huagang believes that since the reform and opening up for more than 40 years, Made in China has become the world's first, but Chinese brands still have a long way to go.

In 2023, the global home appliance market is sluggish, Haier leads the industry in all regions, in the United States, Haier's General Appliances became the first home appliance brand, and in Europe, Haier bucked the trend and grew by 19%, becoming the fastest growing home appliance brand. All of this comes from Haier's high-end brand creation strategy.

In China, Haier has launched the high-end brand Casarte, after more than ten years of exploration, the world's best technology, the most leading technology, the most critical core components are integrated, to create high-quality products, to create the concept of artistic life and lifestyle. In 2022, Casarte's revenue will exceed 20 billion, setting three firsts: the first in the high-end market share.

First, the unit price is the first and the growth rate is the first.

Overseas, Haier also adheres to the strategy of creating high-end brands and continuously launches high-end products that meet the needs of users. For example, in Thailand, Haier's self-cleaning air conditioner solves the problem of users cleaning the air conditioner every year, and quickly becomes the local sales championIn Japan, Haier's large refrigerator, with its ultra-thin design and small footprint, has a user purchase rate of 40%, which is four times that of mainstream Japanese brands.

Scientific and technological innovation: it is independent innovation, but also global innovation.

The landing of global high-end brands relies on Haier's insistence on breaking through original technologies through independent innovation. Haier has established a "10+N" open innovation system and HOPE innovation ecological platform around the world, linking 250,000+ experts and bringing together 1 million+ world-class resources, turning the world into Haier's R&D department.

At present, Haier has the world's most complete manufacturing system, the most reasonable R&D center layout and the largest sales network, with 35 industrial parks, 138 manufacturing centers and 230,000 marketing networks around the world, which can customize localized products according to the differentiated needs of users in different regions of the world.

Li Huagang took the X11 washing machine launched in the European market as an example: Affected by the energy crisis, European users need more energy-efficient washing machines, and at the same time, they can wash and dry large clothes thoroughly. In order to meet the needs of users, Haier's global R&D and manufacturing system is rapidly collaborative, with the China R&D center responsible for software and hardware design, the Australian R&D center responsible for motor upgrades, the European R&D center to solve energy-saving problems, and the American R&D center to provide fresh air technology solutions, which are finally manufactured by China's interconnected factories. This washing machine is 40% more energy-efficient than the European A-class energy efficiency standard, and also solves the problem of large clothes that cannot be baked, and once it is listed, it occupies 10% of the local high-end market share, driving the ** index to more than 130.

Li Huagang proposed, "Serving globalization with globalization, promoting globalization with localization, based on independent innovation, and achieving global synergy are the global innovation paths that Haier adheres to." ”

Model innovation: cross-cultural integration of Rendanyi to accelerate the high-quality growth of enterprises.

Haier's globalization also has a distinctive feature, that is, the globalization of people and the globalization of corporate culture.

Haier innovates the human-single-in-one model, adheres to the value of people first, and integrates people from different cultural backgrounds together, which is called salad-style cultural integration. Li Huagang said: "There are various vegetables in a salad, representing different cultures and different countries, but the salad dressing is unified, and the salad dressing is the unity of the person and the single. ”

He told the example of Haier's acquisition of General Appliances in the United States. In 2016, Haier officially merged with General Appliances, "without replacing a single piece of equipment or sending a single person, it only did one thing: introducing the Rendanyi model, stimulating the innovation vitality of all employees, and making earth-shaking changes in the entire enterprise."

Before Haier's merger, General Appliances had been losing money for 10 consecutive years, and Haier turned a profit less than two years after the merger. In the six years since the merger and acquisition, General Appliances has maintained double-digit growth and become the fastest-growing home appliance company in the U.S. market.

Why is there such a big change?Li Huagang said that the first is the simplification of the enterprise process, no longer the shareholder first, but the value of the employee first, each employee as long as they find the user needs can be established, no need to report level by level;Second, the innovation capability has been enhanced, and the global collaborative research and development can be better realized, and the speed of meeting demand is faster.

In the early days of the integration, GM's washing machine business was losing money, and there was an offer to sell the business. However, after integrating into the Rendanheyi model, they took the initiative to understand the needs of users and quickly improved the competitiveness of the enterprise. This year, General Appliances launched a large drum washing machine with a retail price of 2899 US dollars, which was not originally optimistic, but because the washing machine is integrated with washing and drying, and many indicators such as drying time and power consumption are far ahead, it is quickly sought after by American users, driving the overall share of washing machines to rise rapidly.

It is the scientific and technological innovation based on user needs that constantly activates the value of people, so that Haier's global independent brand continues to land, and creates Chinese's own world famous brand. At present, Haier has entered 200 countries and regions around the world, serving 1 billion user households, and ranking first in the retail volume of large home appliance brands in the world for 14 consecutive years.

At the end of his speech, Li Huagang said: "The power of action is the more advanced you know, and the deeper you know, the more you can do." Haier has never forgotten its original intention, forged ahead, and continued to climb to the highland of a world brand. In the future, Haier also hopes to work with more enterprises to continue to innovate and jointly promote Chinese brands to shine in the world.

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