Haier Smart Home’s new brand innovation achievements: No. 1 in both the United States and Japan

The United States and Japan are known as the “Everest” of the global home appliance market. Being able to take the lead in these two markets is the best proof of the strength of the home appliance brand.

On March 13, at the AWE Ecological Conference, Haier Smart Home announced that it has become the number one home appliance brand in the United States for two consecutive years and ranks first in sales in the Japanese white goods market.Haier Smart Home has conquered the US and Japanese markets, proving the effectiveness of the three-in-one localization, high-end brand creation strategy and Rendanheyi management model it has been pursuing. It also means that Haier Smart Home’s 30-year global layout has entered the harvest period. , this will also promote the continued growth of Haier Smart Home’s revenue and profits.

　　Reach the top of the US and Japanese home appliance markets

At present, Chinese brands have taken an absolute lead in the domestic home appliance market, but Korean and German brands have always been strong rivals of Chinese brands in the global market, especially in the high-end market, where they have always had an absolute advantage.

Haier Smart Home is the first company to export its own brands, and has been working hard to build high-end brands. Even in 2023, when the global home appliance market has declined overall, Haier Smart Home still adheres to the high-end brand creation strategy and launches products to meet the needs of users in different countries and regions around the world. Differentiated products have achieved dazzling results in the US and Japanese markets.

According to data released by GfK, the Haier and AQUA brands continue to be in the top 10 in white goods share in Japan. Among them, the combined share of ice-cold washing white goods is 17.5%, ranking No. 1. Refrigerators still have the No. 1 share in 2023 after 22 years; Freezers accounted for 48%, accounting for half of the country, ranking No. 1; washing machines jumped to No. 3 with a growth rate of 5 times the industry; IoT community washing industry accounted for 70%, ranking No. 1.

In the U.S. market, GE Appliances has become the largest major appliance company in the United States for two consecutive years. Among them, the high-end washing machine brand Combo sells for US$2,486, and the overall sales volume in the United States in 2023 will increase by 22.5% year-on-year; the share of refrigerators in the United States has been TOP1 for two consecutive years; the dual-brand air conditioner market share of Haier & GE Appliances in the United States is TOP2.

At present, the global market is considered to be the biggest opportunity for Chinese companies. Haier Smart Home’s ranking first in the two high-end home appliance markets in the United States and Japan is exciting for Chinese companies that are striving to promote globalization.

　　What did Haier Smart Home do right?

Haier Smart Home has achieved first place in the United States and Japan through its own brand Haier and the acquired GE Appliances and AQUA. Moreover, it only took Haier Smart Home 2 years to turn GE Appliances, which had been losing money for many years, into a profit. It only took 8 months for Japan’s Sanyo Home Appliances to turn around its losses.

At the AWE Ecological Conference, representatives from the United States and Japan shared their successful experiences. They agreed:The success of Haier Smart Home is due to the localization of the Trinity and the Rendanheyi model that allows enterprises to achieve zero distance from users, thereby achieving innovation that adapts to local conditions.

It is reported that before being acquired by Haier Smart Home, GE Appliances in the United States, like many American companies, neglected users and employees. So, how to change the problem of employees being disconnected from customers and users?

In this regard, the representative from the United States said that innovation is a topic that every company is talking about. The core of GE Appliances’ innovation is co-creation, that is, working with users and customers to jointly propose solutions, and the premise of all this is to achieve zero distance from users. .By introducing the Rendanheyi management model, GE Appliances has unified employee value with customer and user value, unleashed the potential of thousands of makers, achieved differentiated innovation based on user needs, and set the goal of doubling business .

By being close to users, GE Appliances discovered the washing and drying needs of local users and launched a large drum washing machine that can wash and dry for 2 hours without transferring the load. It is highly sought after by American users, and many users buy 2 units at a time. Annual sales exceeded 120,000 units, driving Haier’s overall share of the local large drum washing machine market to rapidly increase from only 4% to 19%.

In the research and development of this hot-selling high-end large roller, the global 10+N global R&D network built by Haier Smart Home’s global HOPE innovation ecological platform played a role in efficient delivery. The Qingdao R&D center provides software and hardware design, mold development and complete machine integration; the American R&D center provides heat exchange system design analysis, structure and complete machine review, etc.; the European R&D center provides innovative design of drying algorithms, fan design and simulation, etc.

Before Japan’s Sanyo Home Appliances was acquired by Haier Smart Home, it had been subject to the “seniority-based system” commonly used by Japanese companies, which resulted in a serious seniority situation. Young people and newcomers could not be reused, and employees lacked enthusiasm, thus alienating the market and users.

　　After Haier Smart Home acquired Sanyo Home Appliances, it realized the implementation of the Rendanheyi model through three steps of “breakup, establishment and integration”.“Broken” refers to the elimination of seniority and seniority ranking through the Rendanheyi model, so that every employee can work with the CEO spirit. “Establishment” refers to the creation of a market-leading goal awareness and a new goal system, and also the creation of a new reward distribution mechanism – more work, more gain, and no upper limit on income. “Integration” means integrating “corporate concepts and culture.” Change the single lifetime employment and implement four employment forms: managers, regular workers, contract workers, and dispatched workers. With the spirit of “rendanheyi”, the original Japanese corporate culture of loyalty to the company has been transformed into loyalty to orders and customers.

Hayakawa, a Japanese employee of Sanyo Home Appliances, said: “I have been working in this position for four years, and I feel that I have succeeded and successfully become a manager.”

Under the Rendanheyi model, employees’ enthusiasm is stimulated, and innovations adapted to local conditions begin to emerge. In Japan, considering that the local living area is generally relatively small, users prefer to buy a refrigerator with a small footprint and large capacity for daily storage of fresh food. To this end, AQUA, a subsidiary of Haier Smart Home, launched the TX series refrigerator with the thinnest design in the industry, which not only saves space, but also facilitates users to store a large amount of ingredients purchased at one time, and is recognized by the market and users. It is reported that the designated purchase rate of TX refrigerator users is 40%, which is four times higher than that of the industry.

Today, Haier Smart Home has the most complete matrix of high-end brands such as Haier, Casarte, Leader, GE Appliances, Fisher & Paykel, AQUA, and Candy, and has established 10 R&D centers, 35 industrial parks, and 124 manufacturing plants around the world. centers and a sales network of 230,000.Through the localization strategy of R&D, production and marketing and the management model of integrating Rendan and Rendan, Haier Smart Home can bring products that best meet the needs of local consumers in the global market and achieve leading results.

In the Asian market, Haier Southeast Asia has achieved high growth for three consecutive years; Haier Smart Home has ranked first in the Pakistani market for nine consecutive years, with a share exceeding 40%; in the Thai market, Haier air conditioners and refrigerators are among the top 1 in the market; in the Vietnamese market, AQUA washing machines ranked TOP1 in the market; in the Indonesian market, AQUA Indonesia outperformed the industry with a 2-fold growth rate; in the Malaysian market, against the backdrop of an overall industry decline of 25%, Haier Malaysia bucked the trend and grew by 15%, leading the industry, with air conditioners achieving 35%. % growth, TV growth 25%.

In the European market, Haier Smart Home has maintained the fastest market growth for 8 consecutive years; Haier washing machines are the TOP1 in the Italian market and the fastest growing market in Poland; Haier UK has become the Chinese company with the largest share of major appliances in the local market.

　　Conclusion

At present, globalization is an issue that Chinese enterprises have to deal with. Only by making their brands global can enterprises maintain sustained growth.More than 30 years ago, Haier Smart Home started its global brand creation journey. Through the three-in-one localization and Rendanheyi model, it successfully reached the ceiling of the home appliance market – the United States and Japan markets, and also expanded its presence in Europe, Southeast Asia, Africa, and the Middle East. and achieve leading advantages in many regions and countries around the world.

The success of Haier Smart Home’s global brand creation has set an example for the globalization of Chinese enterprises. Due to advance layout and intensive cultivation, Haier Smart Home’s global investment in R&D, manufacturing plants and marketing networks has entered the harvest period, which will inevitably promote continued growth in revenue and profits.