Internationalized Strategy Bears Rich Fruits

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Last updated at: (Beijing Time) Tuesday, February 19, 2002

Internationalized Strategy Bears Rich Fruits

Setting up a factory in the United States is the need of Haier Group's implementation of an internationalized strategy. Haier's mode of overseas development is three-in-one "nativitization", i.e., designing, manufacturing and marketing are being carried out locally to realize the goal of creating local name brand through the raising of funds, the introduction of intellectual resources and the integration of culture.

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Haier Rises Through Reform and Opening Up

Haier's US factory

"Setting up a factory in the United States is the need of Haier Group's implementation of an internationalized strategy. Haier's mode of overseas development is three-in-one "nativitization", i.e., designing, manufacturing and marketing are being carried out locally to realize the goal of creating local name brand through the raising of funds, the introduction of intellectual resources and the integration of culture." Zhng Jinmin, general manager of the American Haier Factory, made the remarks during a recent interview by People's Daily correspondent Wang Rujun stationed in the United States.

Construction of the factory started in South Carolina, USA in April 1999 at a cost of US$30 million, which formally went into production in March 2000.

Currently, although it is still in its initial stage, when the correspondent saw the colossal factory buildings, the dust-free workshops, the busy working employees and sets of brand-new refrigerators, he deeply felt the Haier people are really doing something great in a solid way. This kind of successful cooperation has benefited both China and the United States.

Merging itself with the locality

"Merging itself with the locality" is a link to which the American Haier Factory attaches great importance. Zhang Jinmin said, "Our factory has created considerable job opportunities for South Carolina."

Haier International Material Circulation Center Put into Use in Qingdao

To commend Haier's contributions to the local community, an American county government conferred a 2001 "Community Contribution Prize" upon Haier. A city government named a road "Haier Avenue" of the city, setting a precedent for naming a road after a Chinese enterprise in the United States.

In 2001, in order to help local poverty-stricken families to spend a merry Christmas holiday, the Haier American Factory launched an activity of donating foodstuffs, the American workers of the factory took an active part in the event, evoking a great repercussion in the local society and received extensive attention from the local media.

Haier culture has strong appeal to local people

A man who jumped from his job in a large American company three months ago to be the manager of the Haier Factory happily told this correspondent: Compared with other American factories, Haier's working environment and pay to its employees are highly competitive.

Haier has the first-rate production lines, first-rate products and great potentials for its future development, that's why I am willing to be one member of Haier.

Foreign Managers of Haier Gathered in Qingdao

The unique "Haier culture" has a strong appeal to local personnel. Zhang Jinmin said: The American colleagues, influenced by Haier personnel stationed locally, have gradually become adapted to Haier's working environment and cultural atmosphere, both sides have harmonious exchanges, the difference of cultural background, instead of causing estrangement between the Chinese and American workers in their work, has increased their interest in mutual understanding.

Besides conducting training in production and operation among the newly recruited personnel, Haier also carries out "Haier culture" training among them, almost all new personnel show great interest in the unique "Haier culture".

The slogans, "Quick response, immediate action", previously loved by the Haier people of China, have today been accepted by the American Haier people.

In the early period after the founding of the factory, there were very few American workers who volunteered to work overtime, but now the American Haier personnel all know that "today's work must be finished on the same day".

Sometimes when it was already very late at night, the figures of busy American managerial personnel still could be seen in the workshops. July 4 is the National Day of the United States, on which the whole nation is on holiday.

But on the afternoon of the National Day last year, an American workshop chief took the initiative to go to the factory to examine equipment and raw materials, making preparations for next day's production. "This simply could not occur in other American enterprises".

Haier undergoing fierce competition

While speaking of the general situation about Haier's products on the American market, Zhang Jinmin noted that the occupation rate of Haier's small refrigerators on the American market had exceeded 20 percent, many large American retailers competed with one another to sell Haier's products.

Haier has taken up a niche on the US household electrical appliances market undergoing fierce competition. At present, the American Haier Industrial Park's first project-refrigerators factory is gaining a good development momentum, in the future the American Haier Industrial Park will be developed into a comprehensive white household appliances production base.

When asked how Haier would compete with its American counterparts, Zhang Jinmin said readily the United States is a country with a very mature market economy, to engage in frontal competition with its local opponents.

Haier, set up in the United States, needs, first of all, to be familiar with and understand the rules for international competition and enhance its own qualities, only by so doing can it effectively participate in competition. China's entry into the WTO means, for Haier, opportunities outweighing challenges.

Although currently the US economy is in the doldrums, we, the Haier people, believe "there is only slack-season thinking, and not a slack-season market". So long as the enterprise itself has good conditions, it still can, through its own efforts, tap the market potentials and gain development.

Currently, Haier has successfully entered eight among the top 10 American chain stores, the 2001 August statistics released by an American magazine show, Haier is placed sixth in global white household appliances manufacturers. "Through setting up a factory in the United States this time, Haier has initially achieved its goal of trinity localization on the American market. Relying on its experience of rapid development over the past 16 years, Haier is full of confidence in its development in the United States."

Haier Rises Through Reform and Opening Up

Sixteen years ago, the predecessor of Haier, an enterprise in the beautiful city of Qingdao, was still a small collective factory on the verge of collapse.

In 2000, Haier Group achieved a global business volume of 40.6 billion yuan, its total assets came to 16.75 billion yuan, it had set up its own production bases in Europe, America, Asia and the Middle East, and sales outlets all over the globe, it had formed the prototype of a big international corporation.

Everybody says, without Zhang Ruimin, there would have been no today's Haier. Full Story

Haier Group Ranks Second in Global Fridge Markets

With a world market share of 5.3 percent, China's Haier Group Corporation has ranked second in the global refrigerator production industry, according to a survey by the world-renowned info company Euromonitor.

In the survey listing of the top ten name brands of refrigerators, Haier's market share is only one percentage point less than that of Whirlpool, which is in first place. Full Story

By People's Daily Online

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