cases
rP os t
HKU978
NIKHIL CELLY
op yo HAIER IN INDIA: BUILDING PRESENCE IN A
MASS MARKET BEYOND CHINA
In a short 25 years, Haier Inc had emerged from being a small refrigerator factory in northeast
China to becoming the world’s biggest appliance seller by retail volume. It had exported to developed markets in the 1990s, set up factories overseas and created a global retail chain that made it an unmatched success in China. This company that made its name by exporting refrigerators all over the world was now going full swing to take its internationalisation to the next level. It believed it was time to spread its footprint in the developing world⎯this time
India.
tC
Against the backdrop of a rapidly expanding Indian economy and a market already packed with multinationals, Haier was launched in India in 2004. T. K. Banerjee, an industry veteran appointed president of its Indian operations, hit the ground running with aggressive plans. He wanted Haier to become a top-three home appliance brand in India. To achieve this, he pushed for a localisation strategy comparable to those Haier adopted in other markets. He developed a local sales network, launched media campaigns, acquired a manufacturing facility and rolled out products he thought appealing to locals.
Do
No
But year after year, Haier India’s performance was disappointing. Turnover expanded by a mere 7.7% over five years, with virtually zero growth in certain periods. It was clear that the investments were not paying off and the operations needed an overhaul. In 2009, the company appointed Eric Braganza as the new president. He spotted problem areas and almost immediately revamped operations, from conducting changes in human resources to putting out a new sales strategy. With the new direction, sales figures started to look better and the market responded positively. But the question remained for Braganza and the company: Was this the right path for Haier? Could the
HKU978
NIKHIL CELLY
op yo HAIER IN INDIA: BUILDING PRESENCE IN A
MASS MARKET BEYOND CHINA
In a short 25 years, Haier Inc had emerged from being a small refrigerator factory in northeast
China to becoming the world’s biggest appliance seller by retail volume. It had exported to developed markets in the 1990s, set up factories overseas and created a global retail chain that made it an unmatched success in China. This company that made its name by exporting refrigerators all over the world was now going full swing to take its internationalisation to the next level. It believed it was time to spread its footprint in the developing world⎯this time
India.
tC
Against the backdrop of a rapidly expanding Indian economy and a market already packed with multinationals, Haier was launched in India in 2004. T. K. Banerjee, an industry veteran appointed president of its Indian operations, hit the ground running with aggressive plans. He wanted Haier to become a top-three home appliance brand in India. To achieve this, he pushed for a localisation strategy comparable to those Haier adopted in other markets. He developed a local sales network, launched media campaigns, acquired a manufacturing facility and rolled out products he thought appealing to locals.
Do
No
But year after year, Haier India’s performance was disappointing. Turnover expanded by a mere 7.7% over five years, with virtually zero growth in certain periods. It was clear that the investments were not paying off and the operations needed an overhaul. In 2009, the company appointed Eric Braganza as the new president. He spotted problem areas and almost immediately revamped operations, from conducting changes in human resources to putting out a new sales strategy. With the new direction, sales figures started to look better and the market responded positively. But the question remained for Braganza and the company: Was this the right path for Haier? Could the