Hong Kong - Our Platform to Go Global

The Hong Kong Experience in Haier’s Global Branding Strategies

(A) Brand Development Strategies of Haier

● Award the Medal of Quality for the first time

● Acquired and revitalised businesses with Haier corporate cul

ture

1984 .12– 1991 .12(7 Years)

1991.12 – 1998 .12(7 Years)

● The “three 1/3” strategy, and strategic priorit

isation

Going

International

Diversification

Brand Building

Since 2006

● To create value and win international recognition

Global Branding

1998.12 – 2005.12 (7 Years)

Strategies of Overseas ExpansionGoing Out

（ 1984- 2000 ）Going In

（ 2001 － 2005 ）Going Up

（ 2006 －）

“Gap-closing” Strategy

“Differentiating” Strategy

“Localisation”

Strategy

Products are exported and sold in local markets

Selling mainstream products through mainstream marketing channels

Localised brand-building strategy

(B) Development of Haier (Hong Kong)

In April 2006 ， the Haier Flagship Store, housing the Haire Star-Grade Service Center and Haire Star-Grade Merchandise Shop, was opened in Hong Kong, serving as an window of communication between Haier and Hong Kong customers.

• Haier International Co. Ltd was founded in April 2005.• Haier’s 32-inch LCD TV and 1P Split Type Air-conditioner topped the Hong Kong market in sales volume for the respective product categories. • Haier became a mainstream brand name in Hong Kong

(C) Role and Functions of Haier (Hong Kong)

HK

European Union

North America

South America

East Asia

Australia

AfricaSoutheast

Asia

-Trading： Providing services to the major clients in Europe and North America

-Branding ： Achieving radiating effect from Hong Kong to Southeast Asia

(D) Hong Kong Advantages Facilitating Development of Haier (Hong Kong)

1. Market Environment Well-developed legal system, established and transparent market acce

ss and regulation mechanisms, to protect the legitimate rights of all market players

Free trade policy, absence of restriction on import and export, cost-effectiveness, and high efficiency.

For home appliances, international attesting certificates and test reports such as 3C, CE and CB are recognised， facilitating introduction of new products into the market in a short time and at low cost

The favourable market environment has facilitated the prompt development of Haier (Hong Kong) and the success of products of Haier brand

Hong Kong Advantages Facilitating Development of Haier (Hong Kong)

2. Trading Environment Free flow of capital, information and goods Access to a large community of European and

American buyers Access to quality providers of professional and

business services

The free trading environment enables Haier (Hong Kong) to develop its robust platform to serve clients all over the world

Hong Kong Advantages Facilitating Development of Haier (Hong Kong)

3. Policy factors The HKSAR government provides efficient and professio

nal services to investors in tackling various kinds of problems

An efficient and corruption-free civil service An developed legal system to clearly define and protect

the lawful rights of individuals and players of economic activities

Quality and efficient service from the public sector enables Haier (Hong Kong) to grow to success

Hong Kong Advantages Facilitating Development of Haier (Hong Kong)

4. People Factors Availability of talented people for enterprises seeking

international development Expertise in handling international business, making

Hong Kong the centre of coordination, management and control of business in Asia-Pacific region and other parts of the world

The wealth of talent provides Haier (Hong Kong) with the human resources valuable to its global strategies

2006.9.8