Haier

-Say NO to Detergent

Hsin-Yi Tai
Xiaofeng Wang
Haier Ad
Haier Group
build in 1984, entering US market in 1999
3rd global appliance brand
over $12 billion worldwide sales
Product line
 beginning with refrigerators
 now: general home appliances
Trends
 Global Products Global Branding
 Sponsorship of Beijing Olympics 2008
“Green Olympics, Nature Wash”
Environmental concern (legal force)
New U.S. Department of Energy Standards
 lower rinse-water temperatures
 reduce water consumption
recycling the dirty wash water into clean rinse water
more enzymatic detergents, less foaming detergents

standards will become even stricter

in 2007
Haier- Say No to Detergent
1st detergent-free top-load washing
machine was launched in Sept. 2003,
 Sales volume: 200,000
 Increase rate: 50% / month

1st detergent-free front-load washing

machine was launched in June, 2006
How it works

electrolysis technology:
acid ion: kills
bacteria

H2O OH- + H+

alkaline ion:
blasts the dirt off
fabric with millions
of tiny bubbles
Competition
Main competitor
 Whirlpool
 GE
global 2005 employment
appliance worldwide
brand rank revenues
Whirlpool 1 $14.3 billion 66,000

GE 2 $13.8 billion 68,000

Haier 3 $12 billion 30,000

Haier “nature wash” vs. GE “ecomagination”

 Front-load washer  Front-load washer

 Water savings  Water savings
 Energy savings  Energy savings

 Detergent savings
 Skin care
 Environmental friendly
strengths weaknesses
 Innovative technology  Consumers may not ready-
 Detergent saving their old habits

 Brand awareness
 Skin care
 Protecting clothing fabrics
 Appearance design
 Energy efficiency: water saving
(60%)
 Environmental protection
opportunities threats
 New market  High-competitive industry
 Market development
washers 2002 2003 2004 2005 2006  Competitor intentions
(000) 7,745 8,146 8,832 9,345 9,405

 Cooperate with Maytag

 Sponsorship of 2008 Olympics
 Match the new trend of
environmental concern
4P

Product: 32 technology patents in 10 countries

Price: around $ 650
Place:
SEARS, Lowe's, Wal-Mart, Best Buy, Target, etc.
On-line
Promotion
“nature wash”
“say NO to detergent”
Target Audience
 25-34
 Married or engaged
 Female
 College education or above
 $40,000+
growing consumer trends

 high-end
 energy efficient
 “smart”
 quiet
 large capacity laundry equipment
Survey
What characteristics do you value most about
washing machine? (Please rank in order of
importance from 1 to 5, 1 being most important
and 5 being least important)
 Price
 Energy/water saving
 Environment-friendly
 Detergent saving
 Cleanliness
Questions and Comments!!