Home appliances are intimately connected to everyday life and represent a shining testament to China's manufacturing prowess going global. Haier, born alongside the shores of the Yellow Sea, stands as a classic example of a Chinese brand making its mark on the world stage.
In recent coverage, Hunan Television's series "Riding the Winds" focuses on Made-in-China, showcasing how enterprises like Haier and other leading Chinese manufacturers have honed their craft in the tides of the market, breaking through in industry transformations. Committed to technological independence and strength, they pursue high-quality development with determination and unwavering effort on their journey of relentless advancement.
A Mighty Hammer Forging a Global Brand
Back in the 1980s, television sets, refrigerators, and washing machines were dubbed the "three essentials" of Chinese households. The demand for refrigerators soared, leading to the emergence of over 200 refrigerator factories nationwide. In the industry, there was even a saying that "even refrigerators made of paper could be sold."
In 1984, the predecessor of Haier, the Qingdao Refrigerator Factory, was established. Zhang Ruimin, the head of the enterprise, traveled to Germany to sign a contract with Liebherr, importing technology and equipment to produce Asia's first batch of "4-star" refrigerators. However, a year later, some customers complained about quality issues with the refrigerators and demanded refunds. Zhang Ruimin immediately led a team to inspect the warehouse and found 76 refrigerators in stock. Although their cooling function was normal, they had scratches on the exterior.
Facing the dilemma of what to do with this batch of defective refrigerators, Zhang Ruimin made an "unconventional" decision: he called for a company-wide meeting and had the person responsible for the incident personally smash all 76 refrigerators. Han Zhendong, who was the head of the Quality Inspection Department at the time, still vividly remembers Zhang Ruimin's words, "Our goal is to create a global brand. Can these defective refrigerators be considered a brand? If we allow them to be sold in the market today, tomorrow there will be 760, and the day after tomorrow, 7600!"
And so, Zhang Ruimin wielded the first hammer, smashing all 76 refrigerators. This single act embedded a profound sense of quality consciousness and brand awareness into Haier's DNA. Three years later, Haier proudly claimed the first quality gold medal in the Chinese refrigerator industry.
After nearly 40 years of development, according to the authoritative research institution Euromonitor International, Haier, the global giant in household appliances, topped the charts in terms of retail sales volume for the year 2023. This marks the 15th consecutive year that Haier has claimed the throne as the world's leading home appliance brand. Notably, Haier's refrigerators, washing machines, freezers, and wine cabinets have once again secured the global number one position.
A Technological Testament Leading the Way Quality forms the cornerstone of any brand, while technological innovation lies at the heart of product competitiveness. Behind Haier's 15-year reign as global champion is its unwavering commitment to original technological breakthroughs, continuously delivering new technologies that reshape user lifestyles and driving ongoing industry evolution.
In the realm of high-speed twin-tub washing machines, a vertically positioned coin remains motionless; even when stacking multiple machines like a game of "Tetris," the machines in operation remain steadfast, ensuring stable performance... In 2015, Haier unveiled the world's first twin-tub washing machine — the Casarte Twin Tub Washing Machine. Leveraging differentiating advantages such as "exceptional stability and minimal noise," it swiftly ignited the market.
The Casarte Twin Washing Machine has revolutionized not just its appearance but also its functionality. Through its patented Twin Star Smart Balancing System, intelligent algorithms, and FPA direct drive motor, it tackles the challenges faced by twin washing machines during simultaneous operation, ensuring smoother and quieter operation. Today, after seven rounds of technological iteration, the Twin Washing Machine, based on the foundation of "zone washing," incorporates the original "breathable window" technology. This innovation allows the Casarte Twin Washing Machine to complete an air exchange every two minutes, solving the century-old problem of drum odor that has plagued the global drum washing machine industry.
Beyond the Twin Washing Machine, Haier has innovated with Magnetic Control Fresh Preservation Technology, which uses magnetic fields to immobilize the movement of food molecules, thus extending the freshness cycle by slowing down food metabolism. Drawing inspiration from the "variable lane" principle, Haier has developed Variable Diversion Technology, disrupting the design of refrigeration systems while significantly improving cooling and heating efficiency... Currently, Haier boasts over 200 original technologies imitated by the industry, leading and participating in more than 106 international standards, making it the enterprise with the most international standard experts and participation in the Chinese home appliance industry.
"Haier's success is inseparable from leading original technology," said Jiang Feng, Executive Director of the China Household Electrical Appliances Association. In order to continue breaking through with original innovative technologies, Haier has established an offline "10+N" open innovation system and the online HOPE innovation ecosystem worldwide, connecting over 1 million R&D resources and a community of over 250,000 experts globally, forming a collaborative, win-win, and shared technological innovation ecosystem.
A report card recording global brand creation
"No brand within the country's borders," "Seeking masters for chess." Haier's "going global" journey is like learning to swim in the sea, diving headfirst into the markets of developed countries in Europe and America, driving the improvement of brand competitiveness.
In 1999, Haier's first overseas industrial park was established in South Carolina, USA, and a year later, the first Haier refrigerator made in the USA rolled off the production line. In 2011, the "student" of that year arrived in the "teacher's" homeland and established a research and development center in Germany. As of now, Haier has 35 industrial parks, 143 manufacturing centers, and a sales network of 230,000, with products available in more than 200 countries and regions, serving over a billion households globally.
As one of the first Chinese enterprises to "go global," Haier adheres to a tripartite localization strategy for brand creation, serving the globe with a global outlook while pushing for globalization through localization. Its global expansion has evolved into a deep cultivation and grounding in local markets worldwide. Driven by the demands of global consumers, Haier has initiated localized innovations based on its global layout:
In the swelteringly hot climate of Southeast Asia, where air conditioners are in high use, Haier pioneered the self-cleaning air conditioner, saving users a significant amount in cleaning costs.
Facing an energy crisis in Europe, local users sought more energy-efficient washing machines. Haier, through global collaborative R&D, launched the X11 washing machine, which is 40% more energy-efficient than the European A energy efficiency standard, capturing 10% of the local high-end market share and driving the value index above 130.
In India, observing that local demand for refrigeration exceeds freezing, Haier was the first to launch a refrigerator with a 7:3 fridge to freezer ratio, dubbed the "no bending" fridge.
In Pakistan, Haier introduced a solar-powered air conditioner capable of operating at zero electricity cost during the day, effectively addressing the issue of rising electricity prices and meeting users' needs for energy efficiency and economy.
Haier has taken a "difficult but correct" path to create its own global brands, not relying on OEM or export for foreign exchange, achieving the status of the world's number one and leading in high-end markets.
In the United States, against a backdrop of stagnant industry sales and intensified competition, Haier's revenue grew by 4.07% against the trend, and GE Appliances has become a leading domestic appliance company. In Europe, where the industry saw a 4% decline, Haier's revenue grew by 23.93% against the trend, marking the fastest market growth rate for eight consecutive years. In New Zealand, Fisher & Paykel holds the number one spot in the white goods market; in Pakistan, Haier leads in market share; in Vietnam, AQUA washing machines are number one in the industry; and in Thailand, Haier's air conditioners and freezers lead the industry.
A Platform for Co-Creating a Smart Manufacturing Ecosystem
Though vast, the sea has its limits. In 2012, Haier embarked on constructing interconnected factories, moving from "going out" to "going up to the cloud," pushing the company to make significant strides in transforming into smart manufacturing. In 2017, Haier launched COSMOPlat, an industrial internet platform with Chinese independent intellectual property rights and the world's first to involve users in the entire process, leading the way in user experience. Currently, COSMOPlat has topped the national "double leap" industrial internet platform rankings for five consecutive years.
Enterprise cloud adoption is a key step in advancing new industrialization and an effective means to accelerate the development of manufacturing towards high-end, intelligent, and green production. On the enterprise side, COSMOPlat focuses on specific scenarios such as workshops, factories, and companies to develop leading global lighthouse factory solutions, "lighting up" 11 lighthouse factories.
In the realm of the cloud, Kaos is driven by user demands, supported by platforms, and centered around the intelligent digitization of various industries, offering value-added cloud collaboration services. It aims to create a globally leading industrial cloud brain solution, weaving a "transformational web" covering scenarios, enterprises, industries, and cities.
Empowered by Kaos, Qingdao Beer has established the first beacon factory in the beer and beverage industry, while Chery Automobile's production workshop has achieved the simultaneous production of electric and oil vehicles on the same assembly line. Overall, Kaos has built ecosystems for 15 industries including chemicals, molds, equipment, automobiles, stone materials, and clothing, connecting 900,000 companies and serving 160,000 of them.
In the acceleration of nurturing new quality productivity, Kaos is actively promoting the digital transformation of the entire industry chain to meet the diverse needs of "thousands of enterprises, thousands of scenarios." This aims to facilitate deep integration and enhanced efficiency across industries, providing new possibilities for industrial ecosystem construction.
Manufacturing is the foundation and cornerstone of a country's strength. Representing the real economy, the manufacturing industry is the ballast and foundation of the Chinese economy. It serves as the main battlefield for pursuing high-quality development and forming new productive forces. It is also where the vitality and confidence of the Chinese economy lie, with long-term prospects looking promising.
From importing "industrial technology" to leading with "original scientific and technological innovations," and from going "global" to building ecosystems "in the cloud," Haier has embarked on a path of importing, absorbing, innovating, and surpassing brands. As they accelerate the development of new quality productivity, Haier is forging ahead to help create a new calling card for Chinese smart manufacturing.
