Haier in India Essay examples

Words: 1088
Pages: 5

Case Report 1. Haier in India: building presence in mass market beyond China

1. Why did Haier enter India? What did it plan to achieve in this new market?
Haier entered the global markets and started an internationalization strategy in the 1990s. Starting from European countries including Italy, the United Kingdom, and France, it stretched over even to the Asian market and opened its first manufacturing facility in Indonesia. Although the first entrance into the Asian market was in 1996, it did not enter the Indian market until early 2004. There were many reasons why Haier didn’t, and one of them is the high tariffs and barriers that stopped it from doing so. But in 1991, after a balance of payment crisis that situated India in debt
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The next step Haier took in its strategy was to create a name brand in the host market. Under the brand message “Inspired Living”, Zhang and Banerjee tried to use the Chinese identity as strength instead of a weakness. Haier recognized the liability that came with the “Made in China” label, undertook a strategy of acquiring household brands in overseas markets to leave its “Chinese-ness” behind, and tried to appear more as a local brand. Through this strategy, Haier became the 19th most trusted brand in India and fourth in the electronics sector in 2011.
With the success of establishing its brand name in the Indian market, Haier then opted for a premium price strategy in India. Haier introduced India-centric product line-up for Indian consumers, and some other unique and innovative products. Examples of these products include detergent-free washing machines, wine cellars and mini bars sold at high prices. Haier also tried to break into the mass market segment in 2007 at the same time. But as Haier tried to target too many different markets and produce so many different products, it brought a pause resulting in sluggish revenue growth.

3. Discuss Haier’s localization model in India and other markets. Were they different? If so, why?
Haier started off with a “Three-in-One”