Haier: How to Turn a Chinese Household Name into a Global Brand

Case Solution

Emily Ho, Ali Farhoomand
University of Hong Kong ()

“We don’t need more production capacity. What we need is a higher level of design and a larger distribution network, ”said the CEO of Haier, China’s largest home appliance maker and one of the world’s fastest growing home appliance companies. Haier began its global focus in 1999 by entering the US specialty products market. In 2006, Haier announced that it would introduce a new global development strategy to increase awareness of its global brand. It hoped to sell larger and more technically sophisticated home appliances in foreign markets and differentiate itself from other Chinese suppliers of raw materials. This case study examines Haier’s roadmap to transform from a Chinese household name into a global brand and examines the effectiveness of its product design and diversification strategy in its global expansion.

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