Haier: Say No To Detergent

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

alkaline ion: blasts the dirt off fabric with millions of tiny bubbles

OH-

+

H+

Competition Main competitor  Whirlpool  GE global appliance brand rank

2005 worldwide revenues

employment

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  Water savings  Energy savings

 Detergent savings  Skin care  Environmental friendly

 Front-load washer  Water savings  Energy savings

strengths

weaknesses

 Innovative technology  Detergent saving

 Consumers may not readytheir old habits

 Skin care  Protecting clothing fabrics  Energy efficiency: water saving (60%)  Environmental protection

 Brand awareness  Appearance design

opportunities

threats

 New market  Market development

 High-competitive industry

washers

2002

2003

2004

2005

2006

(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

 Competitor intentions

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!!