Founded in 1984, the Haier Group has been dedicated to innovation and creating a world famous brand over the past 26 years. Originally a small collective plant on the verge of bankruptcy, it has now grown into an international group which has more than 70,000 employees around the globe and realizes a turnover of 135.7 billion yuan in 2010. Haier has risen to be the world’s No.1 brand of consumer appliances. In addition, it was selected as one of the world's Top 10 innovative companies issued by USA Newsweek’s website.
Haier aims to create a world famous brand in the age of the Internet, which features satisfying the personalized needs of users in a short time. What such a business needs is large-scale customization rather than massive production. Taking this opportunity provided by the Internet, Haier addressed this challenge and actively explored and practiced the “Win-win Mode of Individual-Goal Combination”. Through “Inverted Triangle” organizational innovation and “End to End” ZZJYT construction, it realized the transformation from “selling products” to “selling services” and fostered differentiated and sustainable competitive advantages.
Trend-leading R&D advantages ---- The Haier’s patent applications total over 10,000- ranking first among Chinese home appliance firms. Haier takes the lead to make breakthroughs in international standards. It participated in the drafting of 61 international standards, 27 of which have been issued and implemented. The company boosts the export of the entire industry chain through standard output.
Zero-distance virtual and practical network combination ---- Haier has enormous marketing network advantages in China. In full combination with the Internet, it developed the competitiveness of catering to the demand of consumers in the quickest time via “zero-distance virtual and practical network combination”. “Virtual network” refers to the Internet, which forms customer loyalty through online communities; “Practical network” refers to the marketing network, logistic network and service network, which helps realize the quickest delivery. Therefore, a lot of world-noted brands commission Haier to manage part or all of their sales in China. In the meantime, Haier utilizes their channels overseas to sell its products. With resource exchanges, Haier speeds up the pace of entering the world market.
Zero inventory with on demand manufacturing and delivery ---- Giving up the traditional product-oriented development pattern, Haier adopts the user-oriented large-scale customization of “on demand manufacturing and delivery”, realizing “zero inventory” and “zero accounts receivable”. On the basis on working capital zero loans, Haier’s cash conversion cycle reaches minus 10 days.
In future developments, to meet demand in the era of the Internet, Haier will place emphasis on U-Home integration, try to control the say on patent standards, further improve global marketing networks and create more user resources. Meanwhile, the company will integrate worldwide R&D, production and sale resources with the “3 in 1” localized mode so as to create an international brand.
While devoted to its development, Haier actively fulfils its social responsibilities, assisting in the building of 145 hope primary schools and producing the 212-episode children’s science cartoon Haier Brothers. Haier was the sole consumer appliance sponsor for the Beijing 2008 Olympic Games.
Located in Qingdao Hi-tech Park, Haier Industrial Park (HIP) is the headquarters of Haier Group. The construction of HIP is an important step taken by Haier to make the transition from the previous Brand Building Strategy to the Diversification Strategy. Haier laid a solid foundation for quality management during the implementation of the Brand Building strategy in which refrigerator was its sole product. In 1992, fueled by Deng Xiaoping’s speech during his visit to Southern China, Haier expanded its product offerings to include other home appliances thanks to its “Step by Step” approach. With the “activating shock fish” policy (acquiring ailing companies for business expansion), coupled with its culture, management model and low-cost expansion strategy, Haier quickly established itself as an international company.
The construction of HIP was part of the implemental requirement of Haier’s Diversification Strategy. The previous scattered distribution of its plants was no longer able to meet the demand for mass and modernized production. Therefore, In 1992, the 735-Mu Haier Industrial Park broke ground and was completed in 1995 with a total investment of RMB 2.5 billion. All projects in the park have been completed and put into production. HIP is the largest production base and R&D Center for home appliances in China; the headquarters of Haier, situated within the park, is the control center of Haier Group, whereas the Haier Academia Sinica, also in the park, is a national technology center. The park also serves as a base for the production of Mitsubishi Heavy Industries-Haier commercial air conditioners, Haier house hold air conditioners, Haier tumbling-box washing machines, Haier impeller type washing machines, commercial display cabinets by Haier’s joint venture with Carrier, as well as biomedical and healthcare products. At the same time, the park is also China's largest base for the production of the supporting component precision sheet metal, which boasts an annual production capacity of 18,000 tons of injection molded parts, 60,000 tons of sheet metal parts, 1200 standard sets of precision molds and 5 million electronic controllers.
Features of the Haier Industrial Park may be characterized in three words: i.e. High-tech Product, Modern Management, Environmental Friendliness.
Products produced in Haier Industrial Park have always been setting the trend for the R&D and technological application in connection with home appliances in China; these products include air conditioners with energy-saving inverter and VRV technology, and oxygen-rich air conditioners with ventilation and antibacterial and anti virus functions; Little Wonder Child washing machines, ultra-thin tumbling-box washing machines, “Tongxinxi” washing machines, and washing machines that do not require detergent and dual power washing machines, the world’s fourth type of washing machines; internet home appliances that use the latest wireless network communication technology, and sterile home appliances that use nano materials.
Based on the success of OEC (Overall Every Control and Clear) management approach, Haier vigorously pushes forward the “recreation of business process for market chain business”, revising the traditional organizational structure to establish an order information processing system that integrates logistics, businesses and cash flow. As a result, thanks to the narrowing distance between producers and consumers, the management standard of Haier’s manufacturing system is brought to the leading edge of the world.
Haier Industrial Park also leads the nation in greening-related indicators. The park offers spacious atmosphere. With wobbling willows on both banks of the Ruyi lake and anchors boats on the water and the fountain and garden in the Haier Cultural Square, it gives one the feeling of being in the garden; the roads are wide and straight and the plants are pleasantly and orderly distributed; emission of the "three wastes" (waste gas, waste water and waste residues) is in strict accordance with national standard and a role model for other industrial parks.
Built in line with international advanced standard, the Haier Industrial Park was recognized by Qingdao Municipal Government as the only demonstration industrial park in Qingdao.Address: No. 1 Haier Road, Qingdao
Haier Information Industrial Park
Adjacent to Haier Industrial Park, the 500-Mu Haier Information Industrial Park (HIIP) started construction in 1998. Its construction is an important step taken by Haier Group to expand from the white home appliances to the field of information technology. Involving a total investment of RMB 1billion, the park is home to Haier Logistics 3-D Database, Production Base for Information Home Appliances, Production Base for Communications Products, Manufacturing Plant for advanced tooling and electronic control modules and Haier University etc.
Haier Group was the first domestic home appliance maker to introduce logistics management in its manufacturing system. The logistics system proved to be an important factor in the recreation and innovation in Haier’s market chain process. As a result, Haier established a world-leading logistics system, allowing the various steps of the manufacturing process ranging from raw material procurement, inspection and assembly to product roll-out and transportation to be completed under a uniform control and collaboration system, based on flawless price rate procurement. The logistics system broke the closed procurement model, attracting world-leading sub-suppliers with the capacity of engaging in the early-stage design of complete sets, so that the objective of procurement shifts from serving inventory to serving orders. The three JITs, namely, JIT procurement, JIT feeding and JIT delivery were used to meet the new goal of ZERO inventory by beating space with time. The following statistics fully demonstrates the benefits from Haier’s construction of the logistics system: stagnant supplies reduced by 90%, storage area reduced by 200,000 square meters, stock funds reduced by 63%, the cycle for making orders reduced to one hour, from 7 days previously, and delivery of feeding reduced to four hours through Kanban management.
In 1997, Haier Group successfully entered the IT home appliances field and released a series of unique information appliances including color TV sets and PCs etc.. Haier Information Industrial Park has become an important R&D and manufacturing base for information home appliances. Within a short few years, Haier has developed a number of hi-tech color TV products, such as Meigaomei and Patron, which are very popular with the consumers. Now Haier is focusing its R&D efforts on plasma, LCD and other high-end TV products.
Haier’s mobile phone project: given that Haier Group is a GSM and CDMA mobile phone manufacturer designated by the Ministry of Information Industry, entering the communications sector was a major strategy for the adjustment of its product lineup. Revolutionary products Haier have rolled out, including the phones with call firewall function and phone pen phone, were immediately embraced by the market, setting an example in meeting the needs of individual users. Its success has boosted Haier’s share in the mobile phone market, which has been maintaining a strong momentum. To meet market demand, a world-class communications industry base project with more powerful production capacity was completed in construction and put into production in May 2003.
With an annual production capacity of 1,200 standard molds, Haier Mould is one of the domestic manufacturing companies with the capability to manufacture molds for home alliances. The company has in place a C3P design center, the most advanced 3-D position measurement devices as well as manufacturing and processing equipment, and a large number of skilled and experienced designing and processing professionals to ensure timely and accurate completion of the development and manufacturing of home appliance molds and the continuous and quick launch of Haier's constantly innovative products.
Haier Electronic Control Module Manufacturing Co., Ltd, having an annual production capacity of 1.5 million sets, produces electronic control circuit parts for Haier’s home appliances. The company has advanced frequency conversion control circuit design technology and circuit board processing and production line, which play a key role in ensuring excellent performance of Haier’s home appliances.
Also in the park there are Haier University, which is designed to improve the quality of Haier’s leadership and their knowledge base, foster professionals for international market exploration, and build a bridge for the exchanges between research institutions at home and abroad. The university boasts a lush wood of bamboo and clear pond, reminiscent of elegant and fresh gardens of South China style with green tiles, porch and carved eaves and bracket. One can feel a strong cultural atmosphere everywhere in the university. As an important cultural attraction of Haier, Haier University will be a talent base serving Haier Group’s pursuit for establishing a global foothold.
The Haier Information Industrial Park is a hi-tech industrial development base represented by information product; its construction and use will allow Haier Group to successfully venture into the information technology sector and inject it with a new revenue stream.Address: NO.1 Haier Road, Hi-tech Zone Qingdao China
Haier QETDZ Industrial Park
Situated in the Qingdao Economic and Technological Development Zone, the 1,500-Mu Haier QETDZ Industrial Park is positioned as a production base for export-oriented home appliances.
Haier QETDZ Industrial Park is an important measure taken in carrying out the "Three One-third" Globalization Strategy (i.e. one third of the products are manufactured and sold in China, one third are manufactured in China and sold overseas, and one third are manufactured and sold overseas). Its features may be summarized as “speedy, large-scale and high economic gains”.
In early 1999, Haier Group embarked on building this park in Qingdao Economic and Technological Development Zone, using an advanced project management model integrating scientific planning, strict construction, and timely production to ensure quick results. Within less than 10 months, the four projects of the first phase was put into production by the end of 1999, a strong evidence of the high efficiency of Haier’s project implementation.
Currently the projects put into production include:
Commercial Air-Conditioner Project: produce world-leading MRV intelligent fluorine-free VRV Central Air-conditioning System.
Special Refrigerator Project: produce trend-setting large-capacity internet refrigerators.
Special Freezer Project: produce low-temperature fluorine-free freezers for home and medical use.
Integrated Kitchen Project: produce integrated kitchens using a wide array of new materials and technologies.
Microwave Oven Project: serve as a base for the production of export-oriented microwave ovens.
Comprehensive Technical Improvement for Water Heater Project: serve as a base for the production of electric proof wall heaters.
Dishwasher Project: produce small export-oriented home appliances such as dishwashers and gas stoves.
Color Steel Plate Project: produce color coating steel plates for home appliances and building materials, filling the gap in steel processing in China.
Robot Project: a high-tech industry supported and fostered by government policies and a production base for industrial intelligent machineries.
Logistics Center: provide businesses in the park with logistics management technology such as cutting-edge highly automation and dimensional warehouse. Named “China's Logistics Demonstration Base” by Chinese Federation of Logistics and Purchasing, it is the first and the only logistics demonstration base in China.
After the above mentioned project was quickly put into production, Haier QETDZ Industrial Park was able to take advantages of the economies of scale to generate increased sales revenue year by year. Its sales revenue reached 27.5 billion in 2007. Meanwhile, the construction of Haier QETDZ Industrial Park also ensured the quick and stable growth of the group’s earnings in foreign exchanges from exports, which grew to USD 2.16 billion in 2007, from only USD 130 million in 1999. The park is playing an increasingly important role as a production base for export-oriented products. Haier Group has worked to build the park into China’s largest production base for export-oriented home appliances and to get Haier one step closer to its goal of becoming one of the world’s top 500 companies.Address: Qianwangang Road, Qingdao Economic and Technological Development Zone,
Haier QETDZ International Industrial Park
The 1,000-mu Haier QETDZ International Industrial Park, located in Qingdao Economic and Technological Development Zone, started construction in June 2000. The park serves as a base for the research and production of component parts by Haier’s sub-suppliers. It is planned majorly to provide Haier with all kinds of advanced frequency conversion motors, precision injection molding and sheet metals, etc. to meet the group’s increasing need in development and production of high-tech products such as intelligent home appliances and information technology products etc..
Enterprises having settled in the park include:
Haier Parkway (Qingdao) Co., Ltd.: a base for the production of world-leading precision injection moldings, sheet metals products and computer boards.
Qingdao Haier Hongji Precision Products Co., Ltd.: a base for the production of high-quality pipe fittings for home appliances and common refrigeration parts.
Haishimao Electronic Plastic Products Co., Ltd. (Qingdao): a base for the production of world-leading precision injection moldings.
Qingdao Sanyo Electric Co., Ltd.: a base for the production of precision variable frequency fluorine-free motors.
Businesses which settled in the park join Haier in the early-stage development of products, giving rise to huge market outlook for sub-suppliers. As a result, a growing number of international sub-suppliers are expressing interest in partnering with Haier. These partnerships have ensured a win-win situation for both Haier Group and international sub-suppliers, and increased the quality and Haier’s sub-suppliers and speedy roll-out of their products. It optimizes Haier’s sub-supplier system, achieves quick design and distribution of high-tech spare parts and provides substantial support for Haier’s high-tech products.
The construction of Haier QETDZ International Industrial Park achieved three “standard alignments”, namely, research of sub-suppliers' products aligns with global standard, products’ technological advances align with global standard and product support aligns with global standard.Address: Qianwangang Road, Qingdao Economic and Technological Development Zone
Haier QETDZ New Industrial Park
The Haier QETDZ New Industrial Park is located in the west of Haier Broadway, Qingdao Economic and Technological Development Zone, connected by a bridge to the Haier QETDZ Industrial Park and Haier QETDZ International Industrial Park and it is the supporting park of Hai'er's international sub-suppliers.
Involving a total investment of RMB 1.5 billion, the 1000-mu Haier QETDZ New Industrial Park includes 18 projects expected to be planed and constructed. The project having been put into production for the moment is Haier Fengcai Packaging specializing in the production of new environmental-friendly packaging materials. Other projects under construction include 13 projects, which will specialize in supporting products including compressors and spare parts processing, refrigerator evaporators, condensers, electronic components, SKD assembly, PC boards, raw material processing, glass wares and packaging, etc.; four other projects are expected to start construction soon, including non-ferrous metal processing, metal surface treatment, air-conditioning evaporator and condenser, etc.. All the 18 projects are anticipated to be completed and put into operation in late 2005.
Following the introduction of sub-suppliers’ supporting projects, the park will have the production scale of producing 10 million compressors and 5 industrial chains from refrigerators and air conditioners → compressors → motors→ pressers→ steel plates processing. The operation of these projects will facilitate the formation of a complete multi-layer industrial chain in which complete home appliance manufacturing and core component processing play the leading role.
Address: Qianwangang Road, Qingdao Economic and Technological Development Zone
Haier (Jiaozhou) International Industrial Park
Located in the Jiaozhou Economic and Technological Development Zone, the 1000-mu Haier (Jiaozhou) International Industrial Park began construction in July 2000. The park is another of Haier Group’s international supporting industrial parks for sub-suppliers. The park is designed to provide Haier with supporting products such as precision injection moldings, information home appliances fuzzy control systems, variable frequency controllers, various electrical appliances and motor products, electronic components and new engineering plastics, etc.
Businesses having settled in the park include:
Haier Jinhua Plastic Co., Ltd.: with the annual production capacity of 15 million sets of plastic parts.
Haier Century (Qingdao) Precision Products Co., Ltd.: a joint venture between Haier and Hong Kong’s Ocean Precision Industry Co., Ltd that mainly produces precision molds and sheet metal products, with an annual production capacity of 3.9 million precision molds and sheet metals.
Emerson Electric (China) Co., Ltd.: provide Haier Group with high-quality and high performance electrical products, with production capacity of up to 3 million motors.
Haier New Material Co., Ltd.: specialize in research, development, production, sales, technology transfer and technical services related to engineering plastics, specialty plastics, nano-materials, bio-materials, electronic materials, etc.
Haiyongli Digital Network Co., Ltd.: a joint venture between Haier and Australia’s Asia-Pacific International Group that produces computer control panels for household appliances, with an annual production capacity of 10 million computer control panels.
Qingdao Yixing Plastic Raw Material Co., Ltd.: a joint venture between Haier and Hong Kong’s Yixing Plastic Raw Material Co., Ltd that produces a variety of engineering plastics and color masterbatchs, with production capacity of 2,100 tons
Hairun Electronics Co., Ltd.: a joint venture between Haier and Hong Kong’s Derun Co., Ltd that produces accessories including a range of electronic connectors and power cords for home appliances, with an annual production capacity of 10 million sets of electronic connectors and 10 million power cords.
Qingdao Holford Rubber Products Co., Ltd.: a joint venture between Haier and Thailand’s Lulaifu Co., Ltd that produces rubbers, with annual production capacity of 6,000 tons.
An approach featuring integrated planning and unified management is adopted in the park, which is equipped with excellent public utilities such as water, electricity and gas and property management services. The Haier (Jiaozhou) International Industrial Park has also gained substantial support from local government authorities in charge . Meanwhile, it offers a strong boost to the local economy, creating a large number of job opportunities for the local market, which is an embodiment of Haier’s commitment to giving back to the society.Address: Jiaozhou Economic and Technological Development Zone
Haier (Hefei) Industrial Park
Located in Hefei Economic and Technical Development Zone, the 798 Mu Haier (Hefei) Industrial Park began construction in March 2000, and has now been completed and put into production. Projects within the park include:
Digital TV Project: specialize in the production of international advanced flat-screen digital TV sets.
Fluorine -free Green Air Conditioner Project: specialize in the production of fluorine-free environmentally-friendly air-conditioners.
Personalized Washing Machine Project: specialize in the production of personalized washing machines to meet the individual needs of different consumers.
Hefei Haier Special Steel Plate Project: specialize in the production of color steel plates for home appliances and building materials, and scale feeders; it also provides processing services based on customer demands and color plates for washing machines, air conditioners and color TV sets.
Huadong packaging project: specialize in the development and production of foam and foam products, supporting the production of Haier air conditioners, washing machines and TV sets in Hefei.
Haijing Packing Project: specialize in carton production, providing Haier air conditioners, washing machines and TV sets in Hefei with carton packaging products.
Tian Da Plastic, Sheet Metal Project: provide Haier Group and local businesses with advanced plastic molds and precision machining parts; its construction is expected to enhance the supporting standard of the group’s products with local businesses.
Hai Yi Plastic Project: an annual output of 3.2 million sets of plastic fittings.
Haier (Hefei) Industrial Park is Haier Group’s largest B2B manufacturing base in Midwest China. Through a cutting-edge e-commerce network platform, the manufacturing companies in the park are able to make procurement, manufacturing and sales plans in accordance with orders, hitting the target of “three zeros” – zero distance from consumers, zero inventory and zero capital share.Address: Haier Industrial Park, Fanhua Avenue, Hefei Economic and Technological Development Zone
Dalian Haier Industrial Park
Located in Dalian Export Processing Zone, the 380-Mu Dalian Haier Industrial Park started construction in September 2001 and was put into production by the end of 2001.
It took only a little more than three months for the Dalian Haier Industrial Park to complete the cycle from groundbreaking to production, leading the world in the speed of construction and development. Covering a construction area of nearly 100 thousand square meters, the park boasts an annual production capacity of 1 million refrigerators, 1 million sets of air-conditioners and 3 million sheet metals and molding component parts.
It took Haier Group a decade to hit its first 1 million unit mark in refrigerator output and seven years for air-conditioner output. In contrast, it only took Haier Group three months to build a production assembly line of the same scale. The speedy construction benefits from the boost of the large volume of export orders.
Dalian Haier Industrial Park has become yet another export product manufacturing base after Haier QETDZ Industrial Park.Address: Dalian Export Processing Zone
Haier (Wuhan) Industrial Park
Located in Wuhan Zhuankou Economic Development Zone, the 307-mu Haier (Wuhan) Industrial Park broke ground on March 19, 2002. The park primarily serves as a base for the production of 700,000 air-conditioners technological improvements project. The products here will serve the markets in center, south and southwest China etc.. The park also includes a Wuhan HMS center (Haier Market Service Center), the first of its kind for Haier Group, in an effort to further integrate Haier’s network resources in Central South China. The project was completed in late 2002.
To further enhance its edge amidst cut-throat competition, Haier Group is quick to give full play to its advantage in local production and makes extensive efforts to set a foothold in China’s strategically important areas by building production and manufacturing bases. So far, Haier Group has had established a refrigerator production base in Zunyi (Guizhou), a washing machine production base in Sunde (Guangdong), a B2B production base in Hefei (Anhui) and an export-oriented product production base in Dalian (Liaoning). Given the booming economy in Wuhan, and the advantages in geographical location and transportation, the Haier (Wuhan) Industrial Park is poised to become an important hub for the marketing and manufacturing of Haier products.Address: Checheng North Road, Wuhan Economic and Technological Development Zone
Haier (Zhangqiu) Electromotor Industrial Park
Located in Zhangqiu, Jinan, the 500-mu Haier (Zhangqiu) Electromotor Industrial Park broke ground on May 8, 2004 and was put into production on September 17 of the same year. The park covers a construction area of 60,000 square meters, hardened roads of 58,000 square meters and green areas of 60,000 square meters. With the introduction of world-leading production technologies and key motor inspection and production equipment, the park integrates the production processes and optimizes production layout to establish an automated production line covering production steps from punching, pressure matte, winding, embedding to assembly.
Haier (Zhangqiu) Electromotor Industrial Park is the only motor manufacturing base of the Haier Group; it has had a complete cover of product line ranging from washing machines, air conditioners, refrigerators and other home appliances in four categories of over 300 specifications and an annual production capacity of 15 million units of motors. Products produced within the park, in addition to supplying Haier with supporting parts, also supply home and overseas home appliance manufacturers such as Xinfei, Meiling, Kelong, Chunlan and Rongshida and Whirlpool (U.S.), Electrolux (Sweden), LG (South Korea), Samsung(South Korea) and Alpha (Italy), etc. The park has become a large-scale production and export base with the most complete product lines and the largest market share in the field of home appliances in China.Address: No. 120, Mingshui Avenue, Industrial Development Zone, Zhangqiu
Haier (Jiaonan) Industrial Park
Located in Qianwangang Road, Jiaonan, Qingdao, the Haier (Jiaonan) Industrial Park broke ground on February 28, 2005; it is the 13th of Haier Group’s global industrial park. The first phase of the project covers an area of 280 Mu, including three complete appliance projects for air conditioners, color TV sets and washing machines, as well as a VMI Supplier Management Center, precision sheet metals and injection molding projects; the park completed construction and was put into production in November 2005; the second phase of the project covers an area of 300 Mu, featuring a steam microwave oven production base, supporting projects and staff living quarters. With the implementation of Haier’s “low-cost, high-quality warranty, high-growth, high added value” strategy and the growing demand at home and abroad for Haier’s products, the Haier (Jiaonan) Industrial Park will be yet another testimony to the wisdom of Haier’s “market share leads to factories” philosophy.
Address: No. 1, Qingwangang Road, Yinzhu Town, Jiaonan
Haier Chongqing Industrial Park
Located in Area A, Gangcheng Industrial Park, Jiangbei District, Chongqing, the Haier Chongqing Industrial Park, Haier Group’s 15th and China’s 12th industrial park, is a major cooperation project between the Chongqing municipal government and Haier Group that ensures win-win for both sides.
Water heaters, air conditioners and washing machines have been put into production; the production of TV sets is anticipated to start in May 2007 and preparations for commercial air conditioning projects are currently underway.