China Baidian International Speed ​​Up: Need to Strengthen Independent Brand Development

The just-concluded 2012 China (Shanghai) Home Appliances Expo is full of international flavor.

During the expo, Haier’s conference was quite “international.” Among the eight speakers, foreigners accounted for five, including the research director of market research agency Euromonitor International, Haier Global White Sales Director, and BASF Greater China. General Manager, Director of Haier Air Conditioning Japan R&D Center, New Zealand Fisher & Paykel Chief Representative in China.

According to Euromonitor's statistics, as of December 2011, Haier has been the global sales champion for large white goods such as refrigerators and washing machines for three consecutive years. LG, Whirlpool followed, the United States and Samsung tied for fourth place, Electrolux, GE tied for fifth.

In 2011, Haier Group achieved a turnover of 150.9 billion yuan, of which overseas revenue accounted for 27%. Last year, Haier acquired the white goods assets of Japan's Sanyo Electric. Zhang Tieyan, director of global brand operations of Haier Group, told China Business News that following the completion of the integration of Sanyo's white assets in Japan in February this year, Sanyo’s white assets in Southeast Asia will also be completed by March 31st.

Haier's internationalization has progressed steadily in recent years, mainly due to the integration and utilization of global R&D resources and upstream material resources. In addition to the design and R&D center of Qingdao headquarters, Haier currently has three, four, and two design R&D centers in Japan, Europe, and the Americas.

Haier's continuous introduction of new products is the improvement of its ability to control the global industrial chain. Therefore, its new inverter air conditioner is developed by the Japanese R&D team; its new refrigerator is the first to use BASF's chemical materials; its new washing machine uses the Fisher & Paykel inverter motor.

Unlike Haier, Gree has always insisted on taking the path of independent technological innovation. It has been the champion of global home air conditioner sales for seven consecutive years and is currently expanding into the central air-conditioning sector. Gree successfully developed a DC inverter centrifuge at the end of 2011, breaking the monopoly of large central air conditioners by US companies.

Dong Mingzhu, vice chairman and president of Gree Electric, revealed during the "two sessions" this year that Gree is planning to establish a factory in the United States following the establishment of a branch company in the United States last year. This month, Gree's image film debuted in Times Square, New York, the United States.

The United States is another way. He Xiangjian, chairman of Midea Group, repeatedly stressed at the internal meeting that the United States continues to accelerate the process of internationalization through mergers and acquisitions. Last year, Midea integrated air-conditioning assets of Carrier in South America and India. At present, Midea Air-conditioner has set up five major overseas production bases in Vietnam, Egypt, Brazil, Argentina, and India. The layout of emerging markets continues to improve.

To become a world-class company, not only to look at sales, but also to see the influence of global brand influence, product technology innovation, and industry standards. Compared with established multinationals, Chinese companies clearly have a long way to go.

Friedemann Stockle, research director of global white goods at GFK, a market research agency, told the newspaper that Chinese home appliance companies used to be primarily OEMs. They are now starting to develop their own brands and have developed rapidly in recent years. However, it is impossible for Chinese companies to use one product to fight different markets. Therefore, local R&D support for independent brands is very important.