The foundation stone of the Egyptian Ecological Park was successfully laid! Haier Zhijia’s global layout presses the “accelerator key”
On the morning of March 15 local time, Haier Egypt Ecological Park held a groundbreaking ceremony in the Tenth of Ramadan City. It is understood that the Haier Egypt Ecological Park has a total investment of US$160 million and covers an area of 200,000 square meters. The first phase of the foundation-laying project mainly produces three types of products: air conditioners, washing machines, and televisions, and will be put into operation in the first half of 2024. After the completion of the second phase of the project, the total design capacity of the project will exceed 1 million units.
The foundation laying of the Egyptian Ecological Park is a testimony to the localization and globalization of Haier Smart Home, and it is also another milestone in the globalization of Haier’s ecological brand strategy.
The localization of the “Trinity” makes Haier “born in the world and grows in the world”
Egypt is located on the Maritime Silk Road in Northeast Africa, with a total population of 104 million. It is the double throat of land and sea transportation between Asia, Africa and Europe, and its geographical location is very important. It can be said that whoever can successfully gain a firm foothold in the Egyptian market will be able to take the lead in the entire African, Middle East, and European markets.
But before that, the huge Egyptian home appliance market mainly relied on imports to meet user needs. Noticing the contradiction between the huge business opportunities in the Egyptian market and the weak localization, Haier Zhijia established a trading company in Egypt in 2019. Over the past few years, Haier has become the fastest-growing brand in the Egyptian home appliance market. The success in the Egyptian market has further strengthened Haier’s “trinity” strategy of localized R&D, localized manufacturing and localized marketing in Egypt. The successful foundation laying of the Haier Egypt Ecological Park brought Haier Zhijia’s “Trinity” localization strategy in Egypt to a new height.
In fact, the localization results in the Egyptian market are just an excellent profile of Haier Zhijia’s global localization strategy. Haier Zhijia always believes that to succeed in the global market, it is essential to understand local culture, customer preferences and market conditions. In Africa, Haier Smart Home has specially launched a generator-specific air conditioner—GenPAL—in response to the local high temperature and severe power shortage. With its super energy-saving features, this air conditioner has become a “popular product” in the African market once it was launched.
According to different markets, produce differentiated and localized products to win the favor of consumers. This is the most solid step in the localization of Haier smart home products. However, excellent localized products are only the foundation. To achieve greater benefits from localization, brand localization under the high-end brand creation strategy is the core of this foundation.
When other home appliance companies are only satisfied with earning foreign exchange through export, Haier Zhijia has already realized that the future of pure export products and OEM processing is not bright. Only by exporting the brand, integrating the brand into the local economic life, participating in the local market competition as an independent brand, driving the local economic development and creating social benefits can it be rooted in the local area for a long time and realize all-round localization.
To sum up, “brand creation” is the core of this strategy. “Creating Brands” creates not only a single brand of Haier, but a series of brands under Haier Zhijia’s fine layout. AQUA, Candy, GEA… These brands have already integrated into the lives of local people with their localized and high-end products, and have become the leading brands in the home appliance market in various regions with a growth rate far exceeding other brands , truly realized the brand’s strategic goal of “born in the world and grown in the world”.
The globalization of eco-brands enables Haier to “build globally, for the world”
After realizing the localization of products and brands, Haier Zhijia has continuously improved the global supply chain system and accelerated its global layout. Previously, Haier Smart Home has established 10+N R&D centers, 33 industrial parks, 133 manufacturing centers and more than 230,000 sales networks in the global market. Its products are distributed in nearly 200 countries and regions, serving 1 billion user families around the world. .
In fact, the localization strategy of Haier Zhijia is the concrete embodiment of its ecological brand globalization strategy in various places. Just like the products produced by Haier Egypt Ecological Park, it is positioned in Haier’s Middle East and Africa regional supply chain, which not only meets the needs of the Egyptian local market, but also benefits from Haier’s forward-looking layout several years in advance, with Egypt as the fulcrum, connecting Africa, the Middle East, and Europe The regional supply chain network has matured, which has greatly reduced Haier’s logistics costs in this region.
It is worth noting that Egypt joined the WTO in 1995, and the existence of many regional agreements allows Egypt to export to many countries to enjoy zero-tariff and low-tariff policies. In this way, in addition to being sold in the Egyptian market, the “Made in Egypt” Haier products can also cover the surrounding African, Middle East, and European markets with zero tariffs, providing more users with smart home solutions and further releasing market demand.
In addition to the Egyptian Ecological Park, Haier Smart Home has also established multiple industrial parks in Indonesia, Pakistan, the United States and other countries. These industrial parks not only helped Haier to expand its global influence, but also opened up the connection between these areas and neighboring areas, enhancing Haier’s strategic radiation.
Today’s Haier Smart Home no longer relies on the sales advantages of a single product or a single country, but has created a comprehensive blooming of regions, products, and brands, and realized “made in the world, made for the world”.
The latest data released by the world research organization Euromonitor International shows that in 2022, Haier will be the world’s largest brand of large household appliances in terms of retail sales, achieving 14 consecutive championships in the world. Behind this top achievement in the world is the success of Haier’s “Trinity” localization strategy and ecological brand globalization brand strategy. One by one, like the Egyptian ecological parks, the deep roots and little accumulation have brought Haier’s continuous efforts on a global scale.
“Excellence is a habit.” For Haier Zhijia, maintaining the number one position in the world obviously cannot meet Haier’s strategic demands. It is Haier’s goal to continuously improve itself, iterate itself, revolutionize itself, and achieve market leadership from local to global with each passing day. Only in this way can we drive the continuous growth of Haier Zhijia’s global performance, and bring more returns to users and investors who trust Haier.