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Haier America Overview

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1 HAIER AMERICA WHO WE ARE & WHAT WE STAND FOR 2014
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  • 1

    HAIER AMERICA WHO WE ARE & WHAT WE STAND FOR 2014

  • 2

    THE BASICS

    Founded in Qingdao China in 1984, Haier has experienced rapid growth from a simple refrigerator factory into a leading multinational consumer electronics and home appliances company.

    At Haier, weve fashioned ourselves into a global company that maintains a solid focus on local management and production.

    Offices in all major areas of operation, including regional headquarters in Paris, New York, and Qingdao, keep our operations streamlined yet tailored to the demands of the local market.

  • 3

    For the fifth year in a row, Haier ranked #1 in Euromonitor Internationals Global Major Appliances Brands ranking by brand share (by global brand name). Euromonitor is the global leader in consumer market strategy research.

    In addition to the overall ranking, Haier was awarded the top spot in four separate product categories:

    Wine Cellars* Home Laundry* Refrigeration Appliances* Freezers**

    #1 APPLIANCE BRAND

    * Fifth consecutive year awarded top spot

    ** First year awarded top spot

    ****with 9.7% retail volume share in 2013. Source Euromonitor International Limited; retail volume sales in units based on 2013 data.

  • 4

    Founded in Qingdao, China, with a focus on commitment to quality.

    Achieved the U.S. UL Certification, giving a jumpstart to Haiers global strategy.

    Invested in America with the opening of a factory in South Carolina.

    Launched 1st Room Air Conditioner.

    The South Carolina government renamed a road Haier Boulevard in appreciation of the companys contribution to the local economy.

    Transformed the iconic Greenwich Savings Bank building into its North American Headquarters.

    First full size refrigerator rolled off the line in Camden, SC.

    Achieved #1 market share in compact refrigerators.

    NOTABLE MILESTONES

    1984

    1990

    1999

    2000

    2001

    2002

    2003

    2005

  • 5

    NOTABLE MILESTONES

    2008

    2009

    2010

    2011

    2011

    2012

    2013

    Recognized for key achievements and contributions to reducing the environmental impact of the 2008 Olympic Games in Beijing.

    Euromonitor International recognized Haier as the #1 major appliance brand in the world (by global brand name).

    Launched full Energy Star qualified stainless steel tub Dishwasher line.

    Haier Volunteers program launched with Food Bank for New York City.

    Smarter Life Better Planet corporate social responsibility program launched.

    Haier acquired Fisher & Paykel. Haier acquired SANYO Electrics refrigerator, washing machine and other consumer electric appliances business in Japan, Indonesia, Malaysia, the Philippines and Vietnam.

    Established a Research & Development Center in Camden, South Carolina, reinforcing its commitment to offering home solutions specifically tailored to the North and South American market.

  • 6

    In 2013 Haier underwent a substantial transformation changing their organization structure and approach to doing business in America.

    A new regime of All-Stars has been put in place to win!

    A NEW TEAM!

    Adrian Micu joined Haier America as President and CEO in February of 2014 and is responsible for overseeing the companys businesses in North and South America. Mr. Micu has over twenty-five years of experience with executive-level engineering, technology and product development within the appliance industry. Most recently, he held the position of Vice President of Engineering with the Whirlpool Corporation where he led the engineering organization for entire company. Rian Cain joined Haier America in May of 2013 as the Senior Vice President of Sales and Marketing, Home Appliances and Home Comfort and leads all product marketing, sales and branding initiatives for both divisions.

  • 7

    For the first 12 years Haier has gone to market as a joint venture between a private group and Haier. The agreement ended in August of 2013 and a NEW Haier regime has begun in America.

    New Head Quarters in NJ 1. Interactive Customer Evaluation Room 2. Future Technology Show Room 3. H/O Efficiency Lighting 4. Product Analysis Area 5. General Assembly Conference Room 6. Photo Studio

    A NEW HISTORY IN AMERICA

  • 8

    Haier America USA Factory , Camden SC.

    Currently building Highly rated Top Mount Refrigeration

    US MANUFACTURING

  • 9

    So theres a little background about our trajectory as a company.

    But what we really want to talk about today what we love sharing is our company culture, our sense of purpose, and what makes us different.

    NOW, LETS GET TO THE GOOD STUFF

  • 10

    At Haier, were living proof that great leadership makes extraordinary things possible.

    But dont take it from us.

    Fortune magazine profiled our CEO, Zhang Ruimin, in their Worlds 50 Greatest Leaders issue, and heres what they wrote.

    His radical management innovations have transformed Haier from a small, failing state-owned refrigerator maker into the worlds largest appliance brand.

    He groups employees into small, self-managing teams that choose their own managers, compete for internal talent, and can earn big bonusesunusual in the West and unheard of in China.

    POWER & POTENTIAL

  • 11

    Radical. Innovations. Transformed. Choose. Compete. Earn. Unusual. Unheard of. Worlds largest brand.

    Sounds exciting, doesnt it? It is.

    POWER & POTENTIAL

  • 12

    There is incredible power and potential in refusal.

    At Haier, we adamantly refuse to lean on the way its always been done in the past.

    Because you cant generate groundbreaking ideas without breaking current thought patterns.

    And you cant have a breakthrough without breaking down old assumptions.

    POWER & POTENTIAL

  • 13

    This is from Time Magazines article Zhang Ruimins Haier Power, which everyone involved in any business should read:

    Enshrined in the cavernous showroom of Haier Groups headquarters is a simple sledgehammer. It might seem to have no reason to be there

    But the blunt instrument was once wielded by Haiers long-serving CEO Zhang Ruimin, 65, to make a point.

    OUR STORY

  • 14

    Thirty years ago, the city government of Qingdao placed Zhang in charge of a dysfunctional, near bankrupt refrigerator manufacturer. The communist-era dinosaur was a managers nightmare. Workers were sluggish, careless and so undisciplined that Zhang had to stop them from urinating on the factory floor.

    When a disgruntled customer returned a faulty fridge to the plant one day in 1985, Zhang inspected the factorys inventory and discovered that many of those were broken too. Frustrated, he lined up 76 flawed appliances on the shop floor and handed the workers sledgehammers.

    Destroy them! he commanded.

    OUR STORY

  • 15

    Soon the factory was littered with fragments of plastic and metal. Zhang grabbed a sledgehammerone of which is now displayed in the showroomand smashed it into a fridge to make his message clear: workers must shatter their old ways.

    OUR STORY

  • 16

    The point is, you cant build something great without first breaking ground. We got to #1 by pioneering an imaginative, innovative mix of building and breaking. And we highly recommend it.

    OUR STORY

  • 17

    At Haier, we always put customers first. And to us, customers first is much more than a catchy tagline. Its absolutely everything. We believe deeply in the radical notion that truly great customer experiences happen when we take our cues directly from customer feedback.

    We listen. We problem-solve. We invent. We listen more. That responsiveness, plus the extensive range and scope of Haier products, lets us do what only a handful of companies can we innovate and execute in fresh, unexpected ways creating complete home solutions.

    OUR PHILOSOPHY

  • 18

    To put it another way, heres another anecdote from Time Magazine:

    In 1996, for example, a farmer complained that his washing machine kept backing up. When the repairman reported the device was being used to scrub sweet potatoes as well as clothes

    OUR PHILOSOPHY

  • 19

    Zhang ordered engineers to design special machines with buffers in the drain to protect vegetables and wilder drain pipes that wouldnt clog with dirt. By 2013, nearly one out of every 3 major household appliances bought by a Chinese consumer was a Haier.

    Obviously, at Haier, we dont do business as usual.

    OUR PHILOSOPHY CONTINUED

  • 20

    Meaningful Innovation

    Relationships

    & Ideals

    WHAT WE STAND FOR

  • 21

    Meaningful Innovation

    We believeas demonstratedthat meaningful innovation stems directly from responding to customers needs. Company-wide, our culture is proudly focused on practical, actionable solutions, executed beautifully. Offering an astonishingly wide selection of productsconstantly updated for increasingly greater convenience and efficiencythats what Haier stands for in the market.

    WHAT WE STAND FOR

  • 22

    Relationships

    We bring smart solutions to the marketplace and to consumers, but we cant do it alone. Our approach to partnerships is based on fluid communication and smart lateral thinking. We dont care where the next great idea comes fromas long as it makes life better, smarter and easier for our customer.

    WHAT WE STAND FOR

  • 23

    Haier focuses on understanding consumer drivers, decisions and uses of products and services through their entire life-cycle, rather than just at the point-of sale. We see the world as the interconnected whole that it is, where value increasingly comes from integrated solutions, rather than individual products or services.

    This is why weve worked to establish ourselves as sincerely consumer-focused, taking a stand for smarter spending, and offering a wide array of options that work together to meet evolving consumer needs.

    THE VALUE OF 360 THINKING

  • 24

    Haier has enjoyed consistent growth over the last two decades. But we dont declare victory and coast from here on out.

    We are continually re-examining our business models to ensure that we sustain this trend and leverage our position as a leading global presence.

    Since our entrance into the global market, Haier has been committed to providing our customers with products that empower them to live a modern, affordable, and sustainable lifestyle.

    $29.5 BILLION IN WORLDWIDE SALES 2013

  • 25

    GLOBAL LEADERS, LOCAL PARTNERS A key ingredient in our formula for success has been winning big, by thinking small.

    Because nobody knows the unique needs and conditions of a region better than the people who live there.

    Because they alone have the direct experience and deeper, personal understanding we rely onexpertise that lets us offer the best service and products optimally suited to each particular environment.

    Because we know it works, we place a great deal of trust and invest in our local managers and salespeople.

  • 26

    By nurturing local talent and cultivating a knowledgeable, local sales force for our exceptionally wide and inclusive product assortment, weve built a network 133,000 retailers strong in 100 countries across the world.

    And, of course, we have the means and exciting, ambitious plans for serving customers everywhere else, too.

    GLOBAL LEADERS, LOCAL PARTNERS

  • 27

    FOSTERING DIALOGUE, CREATING CHANGE According to Forbes Magazine:

    80% of consumers think it's important for companies to make them aware of their efforts to address societal issues.

    71% would help a brand promote their products if there's a good cause behind them.

    And 62% say they use social media to address or engage with companies around Corporate Social Responsibility.

  • 28

    FOSTERING DIALOGUE, CREATING CHANGE Because nothing is more important than demonstrating to our customers that we listen, we support, and we respect their opinions, we never miss an opportunity to align ourselves with the cause of Corporate Social Responsibility.

    Haier lavishes a great deal of attention on giving back, because we believe its imperative that consumers understand where we stand on issues that affect people, planet and product.

  • 29

    FOSTERING DIALOGUE, CREATING CHANGE Food Bank for NYC

    This volunteer program was designed to provide employees with the chance to dedicate part of the workday to lending a hand at a volunteer-driven organization that is having an undeniably positive impact. Employees embraced the opportunity to get closer to the local community as well as strengthen ties among colleagues. Haier looks forward to continuing and expanding this relationship in the coming year.

  • 30

    FOSTERING DIALOGUE, CREATING CHANGE SmarterLifeBetterPlanet.com

    Through the umbrella program of Smarter Life, Better Planet, Haier addresses many initiatives as they relate to corporate social responsibility and sustainability.

    SmarterLifeBetterPlanet.com is the campaigns online home, providing regular content on topics ranging from sustainability to work/life balance, and cultivating a virtual community that tracks and supports the Inspiring visionaries, organizations, and ideas paving the way for the world of tomorrow. Along with associated social media pages, the site provides a hub where people interested in making things happen in their communities can connect with other like-minded individuals.

  • 31

    FOSTERING DIALOGUE, CREATING CHANGE NPCA

    Haier is a proud sponsor of the National Parks Conservation Association, the leading voice of Americas national parks since 1919. NPCA represents more than 500,000 members and supporters whose help is critical to protecting some of the most prized sites of natural beauty and environmental resources in North America.

  • 32

    SO, WHATS NEXT FOR HAIER AMERICA? Were intensifying our focus on the U.S. market in 2014-15 and beyond.

    Our Vision: To be a leading provider of innovative Home Solutions for consumers in North America.

    Our Mission: Partnering with our customers to create every option they need and want, for every appliance and electronics product that touches their life, at every stage.

  • 33

    STAGES OF LIFE Creating a brand that can serve and support our customers through every stage of life.

    That idea is what unites everything we do with a sense of purpose thats greater (and more permanent) than any individual product.

    From dorm refrigerators and compact laundry products for starter apartments, all the way up to our deluxe built-in refrigerators and large flat panel televisions, Haier provides for all the unique challenges and rewards of modern life.

    And more than that, we dont dictate. We listen.

  • 34

    STAGES OF LIFE

    Because each living space has its own character and its own limitations. Because every customer has individual needs and desires that are always evolving. We offer more than the basics.

    Solutions that make life better and easier is our brand promise, and this means something different for every single customer.

  • 35

    STAGES OF LIFE

    Customer-focused design means going beyond profilingwe strive to offer maximum potential for every consumer to customize their own experience. Our goal is a perfect fit for everyone.

    This could mean the extra storage and practicality of a deep chest freezer. The convenience of a beverage center. Or the space-saving design of an under-counter drawer refrigerator.

    Our products connect with peoples lives so many times a day. In so many ways. We care deeply about giving them a reason to believe at every touch-point.

  • 36

    APRIL 2014 HAIER IN THE MEDIA

    April 14, 2014 Zhang Ruimin, chairman and CEO of Chinese appliance giant Haier, was named by Fortune magazine as one of The Worlds 50 Greatest Leaders. Zhang ranks No. 22 in the list of leading figures from business, politics, and society, who the magazine credits with energizing their followers and making the world better. Fortune credited Zhang Ruimins radical management innovations with transforming Haier into a global appliance giant. It pointed out that the company groups employees into small, self-managing teams that choose their own managers, compete for internal talent, and can earn big bonuses. Under Zhang Ruimins leadership Haier created a management system that puts customer needs at the heart of the product development process. Haier encourages staff to track evolving market trends and form autonomous project teams to address emerging opportunities. Each new project or market opportunity leads to the formation of a dedicated small team functioning as an independent company. The system is designed to foster internal entrepreneurship and innovation, and to make Haier more efficient and nimble.

  • 37

    CONSUMER SEGMENTS

  • 38

    A NEW GO TO MARKET FOCUS

    Haier Dorm Living: Showing a compact refrigerator, beer Keg dispenser, Counter top microwave and 21 LCD TV

    Haier First Apartment: Displaying 18 Cf top mount, non-branded microwave entry level dishwasher and compact laundry

    Haier Starter Home: 21 CF Top mount refrigerator, combinaHon washer/Dryer wine unit, SS Microwave, ss dishwasher and 42 TV

    Haier Step Up Home: 36 counter depth SS RFrench Door, SS Dishwasher, 24 under counter refrigerator, 24 Beverage Center, Microwave and cooktop(

  • 39

    Haier Segment Specific Brand Messages

    22-30:

    Apartment Single or married Space a premium Adding a bit more style Quick and easy

    28-35:

    First Home/condo Single or married Basic entertaining cool to comfortable Starting to be about me

    35-55:

    Step Up Home It IS about me Entertaining Design/Needs/Finish Size up OR size down

    18-23:

    College or apartment Space a premium Cold and cool

    Haier Products

    MULTIPLE SEGMENT OPPORTUNITIES

  • 40

    MULTIPLE BRANDING / SELLING OPPORTUNITIES PRODUCTS

    22-30:

    Apartment Single or married Space a premium Adding a bit more style Quick and easy

    28-35:

    First Home/condo Single or married Basic entertaining cool to comfortable Starting to be about me

    35-55:

    Step Up Home It IS about me Entertaining Design/Needs/Finish Size up OR size down

    18-23:

    College or apartment Space a premium Cold and cool

    Apartment size fridge Step up compact Countertop Wine Window OR Portable AC OTR or CT MWO Dishwasher Portable laundry

    All Full Size Kitchen Products

    Step up Wine units Dehumidifiers Step up Portable AC Stack or top load laundry Must be family look

    Full size UPGRADE appliances

    The BEST laundry for ME Must be family look Wine storage for the

    enthusiast

    Compact fridge Window AC Countertop MWO Keg unit

    Each segment needs a great customer experience to build a lifelong brand relationship and spill over into the NEXT customer segment. I know that Brand I like that Brand I WANT that Brand.

  • 41

    MULTIPLE BRANDING / SELLING OPPORTUNITIES TARGET MARKETING / MESSAGING

    22-30:

    Apartment Single or married Space a premium Adding a bit more style Quick and easy

    28-35:

    First Home/condo Single or married Basic entertaining cool to comfortable Starting to be about me

    35-55:

    Step Up Home It IS about me Entertaining Design/Needs/Finish Size up OR size down

    18-23:

    College or apartment Space a premium Cold and cool

    Smarter life Better Planet blog forum

    Apartment Therapy and BH&G

    Small space living forums (Huffington Post)

    Email marketing programs targeting past purchasers

    Social Media Campaigns

    PR and Media outreach Home Reporters for daily and national newspapers

    On line This Old House Classics, Do it yourself Network, about.com, Caf Mom

    Paid search campaigns Targeted email campaign

    highlighting expanded Haier line

    Social Media campaigns including Pinterest, Youtube, Facebook and Twitter

    Smarter Life Better Planet Forum

    PR and Media Outreach Targeting marketing for

    past purchasers

    Target Mom buying for BTS

    Deal sites, blogs and matte releases

    Satellite Media Tours Oncampus.com Social Media campaigns

    thru Haier channels (Youtube, Facebook, Twitter, etc)

    Each segment needs a great customer experience to build a lifelong brand relationship and spill over into the NEXT customer segment. I know that Brand I like that Brand I WANT that Brand.

  • 42

    POSITIONING Being perceived as a great value provider within select segments is key.

    Haier America is competitive with the core of the Mass segment here in the US: GE, Whirlpool and Frigidaire. Popular price points, good value for the money and features consumers need. Solid fit and finish, and good styling. Kitchen products coordinated in style and finish.

    Haier Mass Premium, or Hero Products, compete with brands like Samsung, LG, KitchenAid, Frigidaire Gallery and GE Profile. Higher price points, innovative new features with value-added benefits, and beautiful, updated styling define our products for this segment.

  • 43

    POSITIONING

    Premium represents a smaller share of the market, but stronger profitability. And more importantly, this segment delivers a great experience and great value to the consumer. New, aspirational Haier branding is underway for this segment.

    Moving forward, our strategy is to reduce our need for Opening Price Point products. We seek to fade out Haiers association with these products and offerings to strengthen our Mass and Mass Premium positioning, and to compete in 75-85% of the US Appliance Market by price point/positioning.

  • 44

    Refrigeration Appliances Haier is the number one brand of Refrigeration Appliances in the world with 16.8% retail volume share in 2013, up 2 points from 2012.

    Haier is the number one manufacturer of Refrigeration Appliances in the world with 19.8% retail volume share in 2013, up 3.2 points from 2012.

    Freezers Haier is the number one brand of Freezers in the world with 19.9% retail volume share in 2013, up 1.3 points from 2012.

    Haier is the number one manufacturer of Freezers in the world with 20.5% retail volume share in 2013, up 1.7 points from 2012.

    Home Laundry Appliances Haier is the number one brand of Home Laundry in the world with 13.3% retail volume share in 2013, up 1.5 points from 2012.

    Haier is the number one manufacturer of Home Laundry in the world with 16.1% retail volume share in 2013.

    Electrical Wine Cooler/Chiller Haier is the number one brand, as well as the number one manufacturer of Electrical Wine Cooler/Chiller in the world with 15.5% retail volume share in 2013.

  • 45

    CURRENT PRODUCT

  • 46

    CUSTOMER ENGAGEMENT Part of our responsibility to consumers is providing engaging, interactive tools to drive them toward the right product for their needs. Were always developing useful content like product demos, selection guides, and installation videos full of valuable information.

    Consumers, most of whom use the internet to research products, rely heavily on these sources to make informed decisions, and weve found that our investment in these media really pays off.

    When it comes to online browsing and shopping, the richer the shopping experience, the more satisfied the customer.

  • 47

    CUSTOMER ENGAGEMENT Product Selectors

    The specially designed Haier Air Conditioner Product Selectorour largest initiative in this area to datewalks the consumer step-by-step through the process to choosing the Haier air conditioner best suited to their needs.

    Product Demos

    Interactive demos for a variety of products clearly explain key features and benefits to the consumer, along with installation tips and instructions where applicable.

  • 48

    CUSTOMER ENGAGEMENT Social Media, aka Great Ideas Worth Sharing

    Haier America has made swift progress this year in our social media engagement, and we continue to target growth in that area. To create a social media voice thats consistent with our evolving branding and advertising, we create and share content that focuses on people, planet and product to create and deepen personal brand relationships.

  • 49

    CUSTOMER ENGAGEMENT Brand Ambassadors

    Haier Brand Ambassadors find meaning and inspiration in the same things we dosustainability, community, innovation, and sharing practical solutions that make everyones lives better.

    Our Ambassador Programs mission is to deepen the connection between our brand and the people we serve. Together with our Brand Ambassadors, well use this platform to exchange ideas, to share opportunities, and to recognize and celebrate our most passionate advocates.

  • 50

    OUR SERVICE TEAM Call Center

    Haiers customer communications center is staffed with highly qualified call representatives that possess a willingness to think on their feet and provide a good experience for the customer. We work to ensure smooth communication between customer service and our engineering and technical teams in our efforts to best serve consumers who are experiencing service issues.

  • 51

    OUR SERVICE TEAM Replacement Parts

    Haier partners with leading suppliers of original replacement parts. We choose partners who have a reputation for commitment and who understand the challenges of todays service environment. We strive to build a well-connected network for the timely delivery of replacement parts to our customers.

  • 52

    OUR SERVICE TEAM Field Service

    Haier maintains a portal through which all of our independent service networks are managed. We seek to ensure best in-class service dispatch to help us assist customers all across a region while working to continually optimize our service networks to suit changing needs.

  • 53

    ENGINEERING A BETTER FUTURE With our grand tradition of breaking down tired old structures and innovating the way we work, design and engineering are also key elements in our plans for Haier Americas future.

    Weve been busy restructuring our design and production process to remove any barriers to innovation. And weve been fostering a unique company cultureespecially rare for a corporation of our scale that analyzes customer comments and acts on them without hesitation.

  • 54

    ENGINEERING A BETTER FUTURE As our CEO explained, In the past, employees would listen to their supervisors, but today they are responsible directly to their customers. We want our employees to take initiative and create value.

    While other companies have experimented with their own versions of our high-incentive, self-managed teams and non-hierarchical management style, no one has tried to do it on the scale we are.

    And according to our veteran engineer Lei Yongfeng, whose AC design set a one-day sales record in China, We have become more and more entrepreneurial. We grab every opportunity, just like it is our own business.

  • 55

    www.Haier.com

    THANK YOU


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