Haier's Growth in Europe

Oct 31, 2024

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Early entry and preliminary exploration:

As early as 1990, Haier shipped 20,000 refrigerators to the German market. This was the first order in the history of Haier refrigerator exports and also the beginning of Haier's entry into Europe. However, in the initial stage, as a Chinese brand, Haier faced many challenges in Europe. European consumers had low awareness of Chinese brands, and the market competition was fierce. European local brands as well as brands from Japan and South Korea occupied a large market share locally. But with strict control over product quality and continuous technological innovation, Haier gradually gained a firm foothold in the European market.

Advancement of localization strategy:

Localized R & D: Haier has established multiple R & D centers in Europe, such as the R & D center in Nuremberg, Germany. The staff of these R & D centers are experts from different fields around the world. They deeply understand the needs and usage habits of European consumers and develop products that meet the needs of the local market. For example, in response to the demand of European users for ice, Haier has launched a "clean ice-making" refrigerator. By innovating a triple refrigeration system, it ensures the purity of the ice-making space, and the purity of ice making is 10 times higher than that of ordinary refrigerators.

Localized manufacturing: Haier has established production bases in Europe and realized localized manufacturing. This can not only reduce production costs and improve product competitiveness, but also better meet the needs of the local market and shorten the product delivery cycle. For example, Haier's European dryer and refrigerator interconnected factories have been opened and put into production in Europe one after another, providing strong localized support for Haier's development in Europe.

Localized marketing: Haier deeply understands the cultural differences and market characteristics of various places in Europe and formulates targeted marketing strategies. In the European market, there are numerous home appliance brands. Haier has improved the brand's popularity and reputation by establishing good cooperative relationships with local distributors and retailers and actively participating in various industry exhibitions and promotional activities. For example, at the International Consumer Electronics and Home Appliances Expo (IFA), Haier's black technology home products and smart living scenes have received rave reviews from tourists and experts.

Brand building and market share improvement:

Increased brand awareness: Through years of efforts, Haier's brand awareness in Europe has continuously increased. Its high-quality and beautifully designed products have been recognized by European consumers and become one of the most popular brands in MediaMarkt, Europe's largest electronic retail channel. The market share has increased year after year. According to relevant data, in 2022, Haier occupied 8.4% of the market share in the European market and ranked among the top.

Multi-brand strategy: Haier continuously improves its brand system through mergers and acquisitions, bringing more choices to users with different usage needs. For example, after acquiring the Italian brand Candy, it not only achieved a turnaround in just one year but also became the number one share in the market for connected home appliances today. Candy has also become a "capable general" for Haier to further expand the European market.

Product innovation and intelligent development:

Product innovation: Haier continuously launches innovative products to meet the needs of European consumers for high-quality and intelligent home appliances. For example, Haier's i-pro7 washing machine has an "air wash" function that can take care of clothing fabrics. Moreover, its ABT double spray antibacterial technology can effectively remove detergent and stains remaining on the porthole and sealing ring, with an antibacterial rate of 99.8%, meeting the health laundry needs of users in special periods.

Intelligent development: Haier's smart home appliance products are also popular in the European market. Haier's smart refrigerators, washing machines, air conditioners and other products can be interconnected through the Internet, providing users with a convenient and comfortable smart living experience. In the context of the energy crisis, Haier also cooperates with power suppliers and others to connect products to the smart grid, making it convenient for consumers to use home appliances such as washing machines when electricity prices are low to help consumers save costs.

Future development prospects:

The CEO of Haier Europe once said that he hopes to rank among the top three in the European market share by 2026. To achieve this goal, Haier will continue to increase R & D investment in Europe, launch more innovative products that meet the needs of the local market; strengthen cooperation with local enterprises and expand sales channels; further enhance the brand image and improve the brand's influence and competitiveness.

 

In short, the development of Haier in Europe is a process of continuous exploration and innovation. Through localization strategies, brand building, product innovation and other measures, Haier has achieved remarkable results in the European market and become an outstanding representative of Chinese home appliance enterprises in Europe.