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Qingdao Haier (SSE: 600690)


Qingdao Haier Co., Ltd. was established on April 28, 1989. Haier is a company limited by shares established by raising funds from targeted sources based on a reorganization of the original Qingdao refrigerator factory. On November 19, 1993, Qingdao Haier Co., Ltd., was listed on the Shanghai Stock Exchange, raising funds of 369 million yuan. Stock name: Qingdao Haier. Stock code: 600690.As of June 30, 2013, Qingdao Haier has a total capital stock of 2,695,909,540 shares, total assets of 54,179,000,000 yuan, and net assets of 12,281,000,000 yuan.

Results from the authoritative market research organization Euromonitor International's global market household appliances survey showed Haier's retail volume share for major household appliances in 2012 was 8.6%, No.1 for the fourth consecutive year. According to brand retail volume statistics, Haier's refrigerators, washing machines, wine coolers, and freezers continued to rank No.1 in global market shares. Haier's refrigerators boasted a global market share of 14.8% in 2012, the fifth time they achieved the world No.1 ranking. Haier's washing machines had a global market share of 11.8% in 2012, the fourth time they reached world No.1 ranking. Haier's wine coolers boasted a global market share of 15.3%, the third time they ranked world No.1. Haier's freezers' global market share was 18.6% in 2012, the second time they reached world No.1.

At the outset, the company has driven consistent, healthy development through its innovative system focused on user needs, transforming from a small, insolvent, collective factory on the verge of collapse into the world's largest manufacturer of household electrical appliances. The brand has continued to innovate, building a competitive company able to adapt to changing times in terms of brand, establishment of network channels, and research and development in technology and business models, achieving sustainable development throughout the cycle.

1) Brand competitiveness: Haier is the World No.1 brand for major appliances. According to brand statistics, Haier has been the household electrical appliances brand with the highest sales volumes for several consecutive years (data source: Euromonitor International).Haier has promoted a multi-brand strategy, based on the integration of household appliances and diversification of consumer needs, building a multi-level brand system.

2) Technological competitiveness: In the Internet Age, Haier has created an open, independent, innovative system to support the brand and market expansion. As of the end of 2012, Haier filed 13,952 domestic patent applications, of which 4716 were invention patents, securing the top ranking among Chinese household electrical appliance enterprises. Of these patents, 1634 were filed in 2012, of which 541 were invention patents. As of 2011, Haier had submitted 77 international standard proposals, of which 27 have been implemented, making Haier the Chinese enterprise with the most patent applications and international standard submissions. Haier is growing into the industry leader and rule-maker in global appliances.

3) Product competitiveness: In line with its product-led strategies and goal of adapting to the times, Haier has transitioned from selling products to providing consumers with complete smart appliance solutions. Product production lines cover refrigerators, freezers, washing machines, air conditioners, water heaters, kitchen appliances, small household appliances and U-home smart home solutions, enabling Haier to provide consumers with complete smart appliance solutions. Haier's refrigerators, freezers, washing machines, and heaters rank first in market share, with the market share for air conditioners ranking among the top three in the industry.

4) Network competitiveness: building competitive advantages in physical and virtual network integration, driven by end-to-end, interactive user experience. Haier's physical networks, including marketing networks, logistics networks and service networks, cover the majority of cities, communities, and rural markets across China. Haier has established over 8000 county-level stores and 30,000 township networks across China, along with over 90 distribution centers and more than 2000 second-tier distribution stations, guaranteeing delivery to a county within 24 hours and delivery to a specific town within 48 hours, achieving delivery on demand and the integration of delivery and installation. With over 15,000 service providers distributed across China, fast delivery on demand is guaranteed, providing users with complete, timely, one-stop services right to the door. Haier's advantages in terms of the integration of physical and virtual networks has helped the company achieve zero distance to user.

5) Cultural competitiveness: The company has consistently promoted an entrepreneurial, innovative spirit, continuing to devote itself to adapting to the times. Haier has successively implemented its Brand Building Strategy, Diversification Strategy, Internationalization Strategy, and Global Brand Strategy. Today, the company has adapted to explosion of the Internet by entering the network development strategy stage, using the advantages of the Internet to integrate global resources with innovation and entrepreneurship. Haier's management model has also developed, from OEC management methods, OEC management model, and market chain management to an individual-goal combination, win-win management model. The implementation of the win-win model of individual-goal combination has further improved the speed at which Haier responds to the user needs in the Internet age.

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