News and Announcements


Nov 19

2017

Haier eyes Internet of Things to transform GE Appliances


Chinese home appliance manufacturer Haier is seeking to speed up the turnaround at its recently acquired GE Appliances, deploying a strategy that will leverage the development of a data platform and the connectivity of appliances based on the internet of things, company chairman Zhang Ruimin said, “We are targeting double the revenue and profit in the next five years” he said.

Zhang, a delegate to the 19th party congress, shared his views with the Post on the sidelines of the meeting under way in Beijing.

Haier acquired the home appliance unit from General Electric for US$5.6 billion in June last year.

The US corporation had been seeking a buyer for the struggling business amid profit growth in the low single digits. GE had initiated proceedings to spin off the appliance unit eight years before the sale to Haier.

Zhang, 68, said a strategy to help turn the business around had begun to find traction, as profit growth for the first nine months of 2017 had risen to 10 per cent on year.

He said profit would continue to improve amid a push to embrace the internet of things.

“Imagine by touching the screen on your fridge, you can buy things from online shops,” said Zhang, who transformed an ailing fridge factory in Qingdao into Haier, one of China’s biggest white goods makers.

He added that consumers would also be able to use smart phones apps to find out useful information when more appliances are web-enabled.

“By using apps on your cellphone, you can check which laundry room close to you has washing machines available,” he said.

Zhang said a one-time purchase of an appliance actually opened the door for more consumption on the platform built by Haier.

For example, the smart laundry room model, which makes use of big data, has been successful on the Japanese market.

“We learned from GE, particularly its famous ‘six sigma’ quality control discipline in the 1990s,” Zhang said.

“But I believe the key to success in business is always quickly switching to the right track. Haier is on the right track now, with our grip on the internet, and we will bring the know-how to GE.”

Zhang has applied his out-of-the-box thinking to Haier’s own human resources, breaking the giant company with 60,000 employees into more than 1,000 business units that act like customer-focused start-ups.

“In the past, different departments like research and development, production, and sales work were in a linear relationship. But we have broken that structure, and created many small, nimble work units, which can better respond to consumers’ demand.”

To achieve that, Haier eliminated a middle management team of more than 12,000.

“In the past, different departments like research and development, production, and sales work were in a linear relationship. But we have broken that structure, and created many small, nimble work units, which can better respond to consumers’ demand.”

To achieve that, Haier eliminated a middle management team of more than 12,000.

“In the past, different departments like research and development, production, and sales work were in a linear relationship. But we have broken that structure, and created many small, nimble work units, which can better respond to consumers’ demand.”

To achieve that, Haier eliminated a middle management team of more than 12,000.

Among other incentives, the company offers financial rewards for employees who pitch winning ideas for new products and services.

The payments are determined by the market performance of the products.

Zhang said the model would be introduced to GE, even as the adoption would be gradual because of different rules and the influence of trade unions.

Zhang described GE’s management system as “comprehensive and rigid”, adding that they need to embrace the changes, otherwise they will not survive”.

“The times are different. We are in the internet age,” he said.

Zhang said he was optimistic about the European market and had potential merge and acquisition targets under consideration, but the priority for now was to “establish GE Appliances”.

“Many people are watching us. I was told by a Harvard Business School dean that they have hope for us and expect GE Appliance to become a role model for large US companies seeking transformation,” he said.

Haier’s profits rose 12.8 per cent in 2016 on year to 20.3 billion yuan (HK$23.8 billion) while revenue increased 6.8 per cent to 201.6 billion yuan. Transaction volume on business-to-business and consumer-oriented internet platforms rose 73 per cent to 272.7 billion yuan.

In 2011, Haier bought Panasonic Corp’s Sanyo Electric washing machine and refrigerator units in Japan and Southeast Asia for US$130 million.

A year later, it took full control of New Zealand’s biggest white goods maker, Fisher & paykel Appliances Holdings, in a deal worth US$766 million.

Haier holds 1.1 per cent of the US appliance market while GE Appliances claims nearly 14 per cent of the same market, US media CNET reported last June.

Haier is the World number one brand and manufacturer of freezer for the 8th consecutive year supplying both inverter and semi-inverter product line. Haier group is now the owner of G.E. Appliance, Sanyo, Fisher and Fykel, Cassarte etc. covering the worlds market with high-end quality and design.

In the Philippines, Haier has partnered with Continental Sales, Inc. (member of the LKGGroup.com) to be its exclusive distributor for Chest Freezers, Beverage Coolers and Wine Coolers, including Haier Medical and Supermarket Equipment’s for more than 20 years.

For inquiries and more information, CSI may be reached through its sales hotlines at (02) 362-5886/87 at Metro Manila, (032) 420-3209 at Cebu, (033) 336-3155 at Iloilo, 0922-813-8803 at Luzon, 0925-898-5767 at CDO. Haier Appliances are available in all major appliance stores and major institutional clients nationwide.



haier logo

Sept 2

2017

Haier COSMOPlat Wins the 2017 Gartner Supply Chainovators Award


Phoenix, AZ, USA---On May 22 local time, Gartner, the world’s leading research and advisory company, has released the award of 2017 High-Tech Manufacturing Supply Chainnovators. With COSPOPlat, Haier becomes the first company across the Asian-Pacific region that has won the award and the very first and only one in the global manufacturing industry.

The vice president of Gartner Mr. Simon Jacobson says that Haier COSPOPlat is quite inspirational and should be an example of the global supply chain transforming. The COSPOPlat ecosystem has made Multi-win situation possible for everyone including users, companies of the full flow and Haier itself.

Gartner, Inc. (NYSE: IT) is the world's leading research and advisory company. The company helps business leaders across all major functions in every industry and enterprise size with the objective insights they need to make the right decisions. Gartner's comprehensive suite of services delivers strategic advice and proven best practices to help clients succeed in their mission-critical priorities. Gartner is headquartered in Stamford, Connecticut, U.S.A., and has more than 13,000 associates serving clients in 11,000 enterprises in 100 countries.

Haier COSMOPlat: COSMOPlat is China’s world-leading Industrial Internet platform with intellectual property rights. It builds new ecosystem of integrity industry in the era of socialnomics with core competency of user-orientation and fulfillment of user lifetime value. From user interaction, it facilitates zero-distance lifecycle interconnection between users and enterprise, thus achieving iteration of experience.

Haier is the World number one brand and manufacturer of freezer for the 8th consecutive year supplying both inverter and semi-inverter product line. Haier group is now the owner of G.E. Appliance, Sanyo, Fisher and Fykel, Cassarte etc. covering the worlds market with high-end quality and design.

In the Philippines, Haier has partnered with Continental Sales, Inc. (member of the LKGGroup.com) to be its exclusive distributor for Chest Freezers, Beverage Coolers and Wine Coolers, including Haier Medical and Supermarket Equipment’s for more than 20 years.

For inquiries and more information, CSI may be reached through its sales hotlines at (02) 362-5886/87 at Metro Manila, (032) 420-3209 at Cebu, (033) 336-3155 at Iloilo, 0922-813-8803 at Luzon, 0925-898-5767 at CDO. Haier Appliances are available in all major appliance stores and major institutional clients nationwide.



haier cosmo

Aug 12

2017

Haier, The 2017 Best Chinese Brand in the Home Appliance Category


On April 26, Interbrand, an international brand consulting firm, held the "2017 Best Chinese Brand List" conference in Shanghai, and Haier achieved with glory the top 50 of the "2017 Best Chinese Brand List". Its brand value increased by 7% compared with that of last year and ranked first in household appliance category.

Haier is the World number one brand and manufacturer of freezer for the 8th consecutive year supplying both inverter and semi-inverter product line. Haier group is now the owner of G.E. Appliance, Sanyo, Fisher and Fykel, Cassarte etc. covering the worlds market with high-end quality and design.

Haier is the World number one brand and manufacturer of freezer for the 8th consecutive year supplying both inverter and semi-inverter product line. Haier group is now the owner of G.E. Appliance, Sanyo, Fisher and Fykel, Cassarte etc. covering the worlds market with high-end quality and design.

MIn the Philippines, Haier has partnered with Continental Sales, Inc. (member of the LKGGroup.com) to be its exclusive distributor for Chest Freezers, Beverage Coolers and Wine Coolers, including Haier Medical and Supermarket Equipment’s for more than 20 years.

For inquiries and more information, CSI may be reached through its sales hotlines at (02) 362-5886/87 at Metro Manila, (032) 420-3209 at Cebu, (033) 336-3155 at Iloilo, 0922-813-8803 at Luzon, 0925-898-5767 at CDO. Haier Appliances are available in all major appliance stores and major institutional clients nationwide.



haier logo