Haierelectornicsandconsumerdurablegoods 150416094127 Conversion Gate02

7/23/2019 Haierelectornicsandconsumerdurablegoods 150416094127 Conversion Gate02

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Report on

Electronics and consumer durable goods (Haier)

Submitted by

Mohammed Naseer Khan(12261111!)



Summary:-

"he consumer durables section consists o# Re#rigerators$ %ashing Machine$ &ir 'onditioners$

"eleisions$ %ine 'ellars$ and Microae *ens etc+ "he segments , had to do research on ere

re#rigerators and ashing machine+ &s being a competitie analysis$ , had to go through all the companiescompeting Haier i+e+ -.$ Samsung$ .odre/$ %hirlpool and 0ideocon in re#rigerators segment and -.$

Samsung$ %hirlpool$ .odre/$ 0ideocon$ , and *nida in ashing machines segment+

"he #irst and most important thing hich Haier needs to do is to$ it as #ound in customer surey that still

63 o# people sureyed ere not aare o# Haier$ een dealers ho are in consumer durable business

#rom more than past 24 years are not aare o# Haier$ #or the brand hich is only haing capability to

compete against the Korean giants -. and Samsung needs to push the products be#ore a customer enters

inside a store+

Haier needs to increase the number o# "- (belo the line) actiities to generate common aareness and

isibility at grassroots leel$ because it can be understood #rom the #igures o# their competitors "-

actiities that Haier "- actiities is not up to the that mar5 in comparison to other competitors+

,n &hmadabad mar5et dealers dont ant to put direct push e##ort on brands thats hy unli5e other cities

mar5et here i# a dealer deals in -. they pre#er not to deals ith its direct competitor Samsung$ but in

.u/arat eery dealer is haing collection o# brands$ they ant to be ready #or eerything li5e hateer

customer demands they can easily #ind out in their store+ 'urrently Haier is aailable ith most o# the

ma/or dealers in &hmadabad$ Haier needs to #ocus on those dealers also here it ill not #ace directcompetition ith -. and Samsung $ a small and dedicated brand dealer ill or5 not only #or margins

but they also can see the #uture opportunities in #orm o# Haier+

.ood thing about Haier is that they got someho success in positioning themseles as a 7uality brand the

customer surey and the dealers surey tells the story about it+ 8eople perceied Haier as a good product

7uality brand+ ,# this can be associated ith better pricing also there ill be immense possibilities #or

Haier+ Need to create a alue #or money brand image hich can gie good product 7uality at a##ordable

prices+



Introduction:-

"he continuous in#lo o# disposable income and the adancement o# technology$ the need #or the aried

consumer durable goods are increasing+ "his in turn is leading to a strong competition among the di##erent

consumer durable brands aailable in the nation as ell as the price gap beteen the same consumer

goods o# di##erent companies are narroing don+ 9ay by day these goods are becoming cheaper+ "he

rural and urban mar5et o# consumer durables has been groing at a rate o# around 1: 3 on an aerage+

Growth prospects:-

,ndia is li5ely to emerge as the orlds largest middle class consumer mar5et ith an aggregated

consumer spend o# nearly ;S< 1= trillion by 24=4$ as per a report by 9eloitte titled >,ndia matters?%inning in groth mar5ets>+ uelled by rising incomes and groing a##ordability$ the consumer durables

mar5et is e@pected to e@pand at a compound annual groth rate ('&.R) o# 1+A per cent to ;S< 12+:

billion in B 241: #rom ;S< !+= billion in B 2412+ ;rban mar5ets account #or the ma/or share (6: per

cent) o# total reenues in the ,ndian consumer durables sector+ ,n rural mar5ets$ durables$ such as

re#rigerators$ and consumer electronic goods are li5ely to itness groing demand in the coming years+



rom ;S< 2+1 billion in B 2414$ the rural mar5et is e@pected to gro at a '&.R o# 2: per cent to touch

;S< 6+ billion in B 241:+

Some of the top consumer durables brands in India are:

• -.

• No5ia

• 8hilips

• Samsung

• Sony

• %hirlpool

• lue Star

• 'arrier



• .odre/ ,ndia

• Hitachi ,ndia -imited

• Sharp ,ndia -imited

• "ata

• "oshiba ,ndia 8riate -imited

• 0ideocon

• 0oltas

About Consumer Durables:-

'onsumer durables re#er to those consumer goods that do not 7uic5ly ear out and yields utility oer a

long period o# time+ Some o# the popular and common e@amples o# these 5inds o# items are electronic

goods$ 5itchen appliances$ home #urnishings and leisure e7uipments etc+ 'onsumer durables can be

broadly categoriCed into the #olloing = heads?

White Goods: %hite goods mainly include air conditioners$ re#rigerators$ ashing machines$ audioe7uipments and spea5ers+

Brown Goods: "his 5ind o# consumer durables mostly include 5itchen appliances li5e chimneys$ electric

#ans$ grinders$ iron$ microae oens$ mi@ers and aried other coo5ing ranges+

Consumer Electronics: Some o# the mostly used consumer electronic goods are 909 players$ M8=

players$ mobile telephones$ telephones$ 0'9 players etc+





Consumer electronics in India:-

&ccording to a McKinsey 244: report$ hile ood and .rocery too5 the highest share o# allet$ and

electronics too5 only a mere :3$ the proportion o# spending on electronics as de#inite bound to increase

by 241: and also the groth rate #or the share o# organiCed retail in the electronics segment as set to

increase #rom 1:3 to a astounding :3 in 241:+ & graph representing the share o# allet to the share o#

organiCed retail is shon belo+



Segment Definition:-

,n general consumer electronics re#ers to a ariety o# electronic e7uipment used by priate customers+

"his industry can be diided into many segments?

1+ D"raditional 'onsumer Electronics? audio and ideo e7uipment

2+ 'omputing 9eices? 'omputers$ 'alculators$ -aptops

=+ %hite .oods? Household 9omestic &ppliances such as ashing machines$ irons$ acuum cleaners$

grinders$ etc

+ 8ersonal 'are? Hair 9ryers$ shaers$ electric toothbrushes+

,n addition to this$ the emergence o# telecommunication has lead to the conergence o# mobile technology

into the consumer electronics industry and hence this paper ill only deal ith traditional consumer



electronics$ mobile phones and computing deices hich can be termed as ron .oods as per industry

de#initions+ Hence#orth in this paper consumer electronics ill re#er to ron .oods+

COMA!" #O$I%&:-

"he Haier .roup as #ounded in 1FA ith head7uarters in Gingdao$ Shandong 8roince$ 8R'+ ,n 1FA$

Haier produced only a single model o# re#rigerator$ today it is one o# the orlds leading hite goods

home appliance manu#acturers+ ;nder the leadership o# 'hairman and 'E* hang Ruimin$ Haier

manu#actures home appliances in oer 1:$144 di##erent speci#ications under F6 categories+ Haier products

are no sold in oer 144 countries around the globe+

Haier has oer 24 subsidiary companies$ oer 114 design centers$ plants and trading companies and oer

:4$444 employees throughout the orld+ Haiers #ocused industries include technology research$

manu#acturing$ trade and #inancial serices+

"he global reenue o# Haier #or 244: as RM 14=+ billion+ Haier Electronics .roup 'o+$ -td+$ a

subsidiary o# Haier .roup$ is listed on the Main oard o# the Stoc5 E@change o# Hong Kong+ Gingdao

Haier 'o+$ -td+$ also a Haier subsidiary$ is listed on the Shanghai Stoc5 E@change+

*n 12 &ugust$ 244:$ Haier signed an agreement ith ei/ing *rganiCing 'ommittee #or the *lympic

.ames (*'*.) in Gingdao to become the o##icial sponsor o# the 244A ei/ing *lympic .ames #or

hite goods home appliances+



A'O() *AI&# I!DIA:-

Haier &ppliances (,ndia) 8riate -imited is a hollyIoned subsidiary o# Haier .roup+ Haier ,ndia as

launched in ,ndia in 9ecember 244= and by &ugust 244 had an allI,ndia promotion launched ith oer

:: products across si@ product categories II re#rigerators$ color teleision909s$ ashing machines$microae oens and dishashers+ Haier ,ndia has also launched its brand o# mobile phones in ,ndia+

"he ,ndia launch as started ith innoatie products hich ere designed 5eeping the day to day

customer needs in mind II products that ill trans#orm the customer>s eeryday liing into inspired liing+

>8roducts that ill ma5e your today better than yesterday+> Haier ,ndia launched MR technology #or the

#irst time in ,ndia+ Een the 9ouble 9rie is a nely patented technology+

"he ,ndia operations already has an established dealer netor5 o# appro@imately 1644 dealers all oer the

country$ hich is bac5ed by a strong serice and a#ter sales serice netor5+

*AI&# I!DIA +ISIO!

"o be the Most admired brand in ,ndia proiding innoatie$ state o# the art$ user #riendly products o#

lasting alue to our customers$ to ma5e their today better than yesterday+

• *er 444 Retail outlets selling Haier products

• 21 8lanet H&,ER (plus some e@clusie stores)

• 8resence in all ma/or cities

• rand recall J better than other ne brands+

• 1A ranch *##ices 2: arehouses+

• 6 9irect Serice 'enters 1=: Haier customer care centers (coering all ,ndia)

• 2@! 'all 'entre

• 8resent status o# Haier considering the time span$ is appreciated by the ,ndustry+

Swot analysis of *aier company:-



MA,O# %A"&#S I! CO!S(M&# D(#A'%&S S&GM&!)

• Haier

• -.

• Samsung

• *nida

• ,

• .odre/

• 0ideocon

• %hirlpool

• Sony

• Siemens



Stratigies:-

1+ "hree phases o# haiers innoation strategy

a+ rand building (1FAI1FF1)I7uality is prominent #or haier +

b+ 8roduct diersi#ication (1FF2I1FFA)Iac7uisitions o# companies ith bad management in#using li#e into

them+

c+ .lobaliCation (1FFAI244:)Iattac5ing the di##icult mar5ets #irst #olloed by relatiely ea5er ones +

rinciples followed for epansion:-

1+ est e##orts are made to #ully deelop the current industry be#ore entering segment o# relatie products+

2+ est e##orts are made to gain the leading position in the ne segment o# the industry a#ter a certain

period+

Global 'randing Strategy:-



Haiers global branding strategy aims at positioning the company as a local brand in di##erent orld

mar5ets in con/unction ith enhanced product competitieness and strong corporate operations+ Haiers

international business #rameor5 encompasses a global netor5 o# design$ procurement$ production$

distribution and a#terIsale serices+ "oday$ Haier has established 1: industrial comple@es$ =4 oerseas

production #actories and bases$ A design centers and oer :A$444 sales agents orldide+

Scope of haier:-

,n terms o# 8urchasing 8oer 8arity (888)$ ,ndia is the th largest economy in the orld and is e@pected

to oerta5e Lapan in the near #uture to become the =rd largest+ ,ndian consumer goods mar5et is e@pected

to reach <44 billion by 2414+ ,ndia has the youngest population amongst the ma/or countries+ "here are a

lot o# young people in ,ndia in di##erent income categories+ Nearly toI thirds o# its population is belo

the age o# =:$ and nearly :4 3 is belo 2:+ "here are :6 million people in middle class$ ho are earning

;S< $44I ;S< 21$A44 a year+ &nd there are 6 million rich households in ,ndia+ "he upperImiddle and

highIincome households in urban areas are e@pected to gro to =A+2 million in 244! as against 1+6

million in 2444+

Rural sector o##ers huge scope #or consumer durables industry$ as it accounts #or !43 o# the ,ndian

population+ Rural areas hae the penetration leel o# only 23 and 4+:3 #or re#rigerators and ashing

machines respectiely+ "he urban mar5et and the rural mar5et are groing at the annual rates o# !3I

143and 2:3 respectiely+ "he rural mar5et is groing #aster than the urban mar5et+ "he urban mar5et

has no largely become a product replacement mar5et+

"he bottom line is that ,ndian mar5et is changing rapidly and is shoing unprecedented business

opportunity+

.ps of haier:-



For Product:



For Price:

9irect meeting ith the dealers to 5no other companies pricing$ by collecting and &nalyCing prices #or

customers (MR8) dealers (9+8)$direct dealers$ and distributors+

For Place:

*btaining #eedbac5 #rom the e@isting dealers o# Haier and other consumer electronic dealers in the

&hmadabad mar5et through direct interies+ "o establishing and implementing processes #or obtaining

ideas$ ,n#ormation and insights #rom the dealers regarding the Haier mar5eting proposition #or

re#rigerators and ashing machine$ a#ter that ealuating the #eedbac5$

&ssessing the bene#its and any ris5s associated ith possible options$ and ma5ing

Recommendations toards enhancing the H&,ER mar5eting proposition especially place or in other

ords dealer e@pansion in &hmadabad city+

Promotion:

*bsering the number o# mar5eting actiities done by the other companies by 5eeping the record o#

actiities done by them$ and also attending the actiities to #eel the di##erence beteen the haier

mar5eting actiities/

Global resence of haier:-

O "rading 'ompanies? 6

O 9esign 'enters? AO ,ndustrial 'omple@es? 1:

O Sales Netor5? *er :A$444

#ecognition and achie0ement:

O Ran5ed A6th among the orlds :44 Most ,n#luential rands by World Brand Lab in



2446+ *nly 'hinese brand to be ran5ed in top 144 #or three consecutie years

O Ran5ed 1st among 'hinese brands ith the most potential by Glebors Global Financial

Reports o# 'anada$ 2446

O Ran5ed 1st among 'hinas "op 14 .lobal rands by the Financial Times in 244:

O Ran5ed 1st among 'hinas "op 14 .lobal rands by 'hina State ureau o# Guality and

"echnical Superision ('S"S) #or re#rigerators and ashing machines in 244:

O 'E* hang Ruimin ran5ed 26th among %orlds Most Respected usiness -eaders by the

Financial Times in 244:

O 'E* hang Ruimin ran5ed 6th among &sias 2: Most 8oer#ul 8eople in usiness by

Fortune magaCine in 244

O Receied a %orld 'limate &ard #rom the ;nited Nations 9eelopment 8rogram and "he ;S

Enironment 8rotection &dministration in 2444 Source+

artners of haier:-

Haier has established an e@tensie sales netor5 around the globe+ Key partners in perspectie

Mar5ets include?

P 'hina? Strategic alliance ith Sunning and .omes chain stores

P &merica? 'ooperation ith "*8 14 retailers$ e+g+ SE&RS$ -oe>s$ H*ME 9E8*"$ est uy$

8'IRichard$ %alIMart$ Sam>s$ 'ostco$ rand smart and "arget

P Lapan? 'ooperation ith "*8 14 retailers$ e+g+ B&M&9&$ K*L,M& and L;S'*

P Europe? 'ooperation ith KES&$ Media Mar5et and 'arre#our



Challeneges:-

1+ "he #irst and most important thing hich Haier needs to do is to$ it as #ound in 'ustomersurey that still 63 o# people sureyed ere not aare o# Haier$ een 9ealers ho are inconsumer durable business #rom more than past 24 years are not &are o# Haier+

2+ Haier needs to increase the number o# "- (belo the line) actiities to generate 'ommon aarenessand isibility at grassroots leel+

=+ ,n &hmadabad mar5et dealers dont ant to put direct push e##ort on brands thats hy unli5e othercities mar5et here i# a dealer deals in -. they pre#er not to deals ith its direct competitor Samsung$ butin .u/arat eery dealer is haing collection o# brands$ they ant to be ready #or eerything li5e hateercustomer demands they can easily #ind out in their store+ 'urrently Haier is aailable ith most o# thema/or dealers in &hmadabad$ Haier needs to #ocus on those dealers also here it ill not #ace directcompetition ith -. and Samsung $ a small and dedicated brand dealer ill or5 not only #or margins but they also can see the #uture opportunities in #orm o# Haier+



+ .ood thing about Haier is that they got someho success in positioning themseles as a 7uality brandthe customer surey and the dealers surey tells the story about it+

:+ Haier should adopt aggressie mar5eting strategies to cut don competition and isibility at mar5et place+

6+ &ppropriate product 5noledge should be gien by the company to dealers and to dealers to createaareness toards 7uality+

!+ *erall there is much scope #or Haier in .u/arat mar5et+ ut rand isibility should be increased so itcan conince dealers and customers li5e -. and Samsung are more customers drien$ here companydemand is initiated by the customers$ these company products pulls demand #rom the mar5et+

A+ 'ompany must hae to #ocus on print ads$ because here in the "0 ads$ a person can see only i# hesheopen the "0 and i# the ads is getting broadcast that time$ hereas print ads any person can see goingthrough the nes paper throughout the day+

F+ 8roducts should be more attractie re#rigerators loo5s ery simple and ordinary especially direct cool

re#rigerators Entry leel Re#rigerators can do better because o# price and 1F4 capacities+

14+ Haier presence in .u/arat mar5et is less compared to their competitors li5e -.$ hirlpool$ Samsung$.odre/ it is greater than only Electrolu@$ one thing is also eident that Haier is present in ma/or countersith -. and Samsung$ Haier also need to #ocus on those dealers ere it ill not #ace direct competitionith -. and Samsung+ 'ompetitie strategy should be li5e this here #irst Haier should ipe outsmaller brands compare to -. and Samsung because this brand also hae mar5et share larger than Haier$and Haier is not in competition o# -. and Samsung it should target on brands li5e Electrolu@ .odre/ $"'- #irst$ so it can compete the bigger brand later on+

#eferences:

1+ Mc5insey .lobal ,nstitute Q"he ird o# .oldQ? "he Rise o# ,ndias 'onsumer Mar5et$ May 244! yMc5insey 'ompany+

2+ +haierindia+com

=+ Mar5eting management by 8hilip 5otler+

+ 8ro# Malcolm Mc 9onald$ ,an 9unbar Mar5eting Mapping Segmentation 0ol 244= by the Mar5eting8rocess 'ompany+

:+ +ay5ya+com

6+ Suresh Khana Secretary .eneral 'E"M& 'ompetition ,ssue ,n 'onsumer Electronic and 9urable ,ndustry

http://www.haierindia.com/

http://www.aykya.com/

http://www.aykya.com/

http://www.haierindia.com/



!+ Haier #eatures in &sias Most &dmired 'ompanies Surey by usiness%ee5+com Ne 9elhi$ II Luly 244!+

A+ Haier e go "he 8ioneer$ Ne 9elhi$ Noember 2$ 244:

Haierelectornicsandconsumerdurablegoods 150416094127 Conversion Gate02

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