Haier to take their Brand Up Higher

First International venture for Haier Electronics Group

Ever thought of attending an interview for being the general manager of a firm after just completing 2 years of service? Well probably not! But if you do, you can be famous. People and companies both have feared the unconventional paths and avoided them in most of the situations. But Haier Electronics Group did just that by pursuing a dangerous venture of expanding their brand in the developed markets much before they entered the nearby developing countries. Being a company, originating from China, it was expected that the company will choose a nearby location for its international venture. It could have been India. With a population over 1 billion, it certainly was a lucrative option. It could have been any other country in the sub-continent, where the Chinese manufacturers could have exploited their already established brand value in China.  But instead of that, they targeted the unknown, dangerous and highly competitive market of the United States. Of course, the industry experts were skeptical about this venture and why wouldn’t they be? After all, what authority does a company from sub-continent have to compete head-on with the brands like Whirlpool, LG, Siemens, Eletrolux, Samsung and others? Moreover, the move seemed like a suicidal attempt, as the company did incur a significant cost in establishing its base in United States.

 

On the other hand, the management of Haier Electronics Group was rather cool about the move. They regarded this as a brand building strategy and were silent about their plan. The initial planning was to gain enough recognition in the markets of United States, which will eventually make their path easier in the developing markets. Already established base in countries like United States and Europe definitely has its advantages, but the path itself was a tough one. It’s like dancing on a slippery floor or walking on the ropes. Yes, the margin of error was that little for the company at that time. But, as I always say, strategic thinking and effective planning do tend to create wonders for any firm. In one word, it was “IMPOSSIBLE” for an unknown company like Haier to enter into a foreign market and start competing instantly. It would not only have been an insane idea but at the same time it would have meant a waste of million of dollars for the firm.

 

But, the management on their part had some other plans. They searched and searched and found out that there was no competition existing in the refrigerator market for students or for offices. The big producers often avoided this segment because the perceived margin of sell would be low. It was an opportunity to grab and they did it. It not only ensured sales of the product, as the number of immigrants specially people holding student visa was increasing in United States, but at the same time it also provided the brand exposure which the company was desiring for. Their innovation was unique as it specifically matched the need of the market. And this was the path, which this brand has followed to reach to the level of success that they are enjoying now. They invented a mini-fridge which doubled as a computer desk. This product was specifically targeting the college students living in dorms. They were the first mover in this niche segment and therefore earned instant success by virtue of increase in sales and popularity of the brand.

I appreciate this attempt and salute the courage showed by the company many years ago. The management realized the importance of making their brand visible to the world. The company acknowledged the credibility of increasing the brand value in a market which was as prominent as United States. Sometimes, companies need to take the different path, as some exceptional people did, due to the fact that brand for a firm is their face. The face should be a well known one, to gain people’s trust.

 

 

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