Haier

{{Short description|Chinese consumer electronics and appliance company}}

{{Infobox company

| name = Haier Group Corporation

| native_name = 海尔集团公司

| native_name_lang = zh

| logo = Haier logo.svg

| logo_size = 220px

| image = HaierHQ.jpg

| image_size = 240px

| image_caption = Headquarters in Qingdao, Shandong

| type = Public

| traded_as = {{Unbulleted list|{{SSE|600690}}|{{SEHK|6690}}|{{fwb|690D}}}} Dow Jones China 88 Index component
CSI A100

| key_people = {{ubl|Zhang Ruimin (chairman & CEO)|Liang Haishan (rotating president)|Zhou Yunjie (rotating president)}}

| industry = {{ubl|Home appliances|Consumer electronics}}

| products = {{ubl|Major appliances
Small appliances|Commercial heating and cooling systems|Consumer electronics}}

| revenue = {{increase}} {{CNY|227.5 billion|link=yes}} (2021) (Haier Smart Home)

| operating_income = {{increase}} {{CNY|15.91 billion}} (2021) (Haier Smart Home)

| net_income = {{increase}} {{CNY|13.21 billion}} (2021) (Haier Smart Home)

| assets = {{increase}} {{CNY|217.5 billion}} (2021) (Haier Smart Home)

| equity = {{increase}} {{CNY|81.0 billion}} (2021) (Haier Smart Home)

| num_employees = 109,586 (2021) (Haier Smart Home)

| subsid = {{ubl|Haier Smart Home Company (35%), owner of GE Appliances (U.S.)|Hotpoint (U.S.)|Hoover (Europe)|Candy|Fisher & Paykel|Evo (Russia)}}

| foundation = {{Start date and age|df=y|1984|4|28}}

| founder = Zhang Ruimin

| location =

| location_city = Qingdao, Shandong

| location_country = China

| area_served = Worldwide

| homepage = {{url|https://www.haier.com/|haier.com}}

| footnotes = {{Cite web | url=https://smart-home.haier.com/en/gpxx/iv/P020240430516036471343.pdf | title=Haier Smart Home Company 2023 Annual Report}}

}}

{{Infobox Chinese

| t = 海爾

| s = 海尔

| p = Hǎi'ěr

| order = st

}}

File:HaierStoreNanchang.jpg]]

File:HaierPhone.jpg 2015]]

Haier Group Corporation ({{IPAc-en|ˈ|h|aɪ|.|ər}}){{cite book | last1=Yi | first1=Jeannie Jinsheng | last2=Ye | first2=Shawn Xian |year=2003 | title=The Haier Way: The Making of a Chinese Business Leader and a Global Brand | location=Dumont, New Jersey | publisher=Homa & Sekey | page=2 | isbn=1-931907-01-3}} is a Chinese multinational home appliances and consumer electronics company headquartered in Qingdao, Shandong. Its Haier Smart Home Company affiliate, of which it owns 35%, designs, develops, manufactures and sells home appliances including refrigerators, air conditioners, washing machines, dryers, and microwave ovens under the brand names Haier, Casarte, Leader, GE Appliances, Fisher & Paykel, Aqua, Candy and Evo. Its Haier Electronics Group affiliate manufactures consumer electronics such as mobile phones, computers, and televisions. Its ThundeRobot brand, founded in 2014,{{Cite web |title=ThundeRobot {{!}} About Us- |url=https://www.thunderobot.com/global/about.html |access-date=2025-03-04 |website=www.thunderobot.com}} is focused on gaming computers and accessories. Haier Smart Home Company is ranked 407th on the Fortune 500.{{Cite web | url=https://fortune.com/company/qingdao-haier/ | title=Haier Smart Home | work=Fortune | url-access=subscription}}

According to Euromonitor International, Haier was the number one brand globally in major appliances for 10 consecutive years from 2009 to 2018.{{Cite press release | url=https://www.haier.com/my/about-haier/news/20190604_74036.shtml | title=Haier ranks first in volume sales of major appliances brands in the world in 2018 | website=haier.com | date=10 January 2019}} The Haier brand was also recognized by BrandZ in 2019 as the most valuable IoT ecosystem brand in the world, with a brand value of $16.3 billion.{{cite press release | url=https://www.businesswire.com/news/home/20190612005291/en/Haier-Ranked-In-BrandZ-Top-100-Most-Valuable-Brands | title=Haier Ranked In BrandZ Top 100 Most Valuable Brands | publisher=Business Wire | date=12 June 2019}}{{Cite news | url=https://www.chinadaily.com.cn/a/201906/12/WS5d005c34a310176577230b23.html | title=Haier ranked in BrandZ top 100 most valuable brands | work=China Daily | date=12 June 2019}}

Haier Group has two publicly traded affiliates that trade on three stock exchanges: Haier Smart Home (海尔智家) ({{SSE|600690}} as well as "D-share" listing of Haier Smart Home in China Europe International Exchange of Frankfurt; ex-Qingdao Haier Co., Ltd.) and Haier Electronics Group Co., Ltd. ({{SEHK|1169}}).{{cite news | url=https://www.reuters.com/article/us-qingdao-haier-germany/qingdao-haier-shareholders-back-frankfurt-listing-idUSKBN1HZ0C1 | title=Qingdao Haier shareholders back Frankfurt listing | first=Douglas | last=Busvine | work=Reuters | date=28 April 2018}} In 1993, it listed its Qingdao Haier Refrigerator Co. subsidiary on the Shanghai Stock Exchange, raising CN¥370 million. In 2005, Haier entered the Hong Kong Stock Exchange through a "backdoor listing" by acquiring a controlling stake in a publicly listed joint venture Haier-CCT Holdings Ltd. ({{sehk|1169}}).

History

The origins of Haier date back to a refrigerator factory built in Qingdao to supply the Chinese market in the 1920s. After the 1949 establishment of the People's Republic of China, the factory was then taken over and turned into a state-owned enterprise.

By the 1980s, the factory had a debt of over CN¥1.4 million and suffered from dilapidated infrastructure, poor management, and lack of quality controls, resulting from the planned economic system and relevant policies.{{Cite web | url=http://en.people.cn/english/200108/08/print20010808_76828.html | title=Haier Rises Through Reform and Opening Up | work=People's Daily | date=8 August 2001 |archive-url=https://web.archive.org/web/20150101215459/http://en.people.cn/200108/06/eng20010806_76638.html |archive-date=1 January 2015 | url-status=live}} Production had slowed, rarely surpassing 80 refrigerators a month, and the factory was close to bankruptcy. The Qingdao government hired a young assistant city-manager, Zhang Ruimin, responsible for a number of city-owned appliance companies. Zhang was appointed the managing director of the factory in 1984.

=Founding=

Haier was founded as Qingdao Refrigerator Co. in 1984. With China opening up to world markets, foreign corporations began searching for partnerships in China. One of these, Germany's refrigerator company Liebherr, entered into a joint-venture contract with Qingdao Refrigerator Co., offering technology and equipment to its Chinese counterpart. Refrigerators were to be manufactured under the name of Qindao-Liebherr ({{zh|t=琴島-利勃海爾|s=琴岛—利勃海尔|p=Qíndǎo—lìbó hǎi'ěr}}). The current brand "Haier" came from the last two syllables of the Chinese transliteration of Liebherr ({{zh|p=lìbó hǎi'ěr|c=}}).{{cite web | url=https://www.wipo.int/web/ip-advantage/w/stories/branding-for-a-global-transformation | title=Branding for a Global Transformation | work=World Intellectual Property Organization}}{{cite web |url=http://www.sohu.com/a/129334417_467215 |date=2017-03-19 |title=Hǎi'ěr rúhé chéngwéi qǐyè "chuàngxīn jiàokēshū"? |script-title=zh:海尔如何成为企业"创新教科书"？ |trans-title=How Haier became an “innovation textbook” for enterprises |website=Lishi Business Network |publisher=Sohu |language=zh}}

The installation of Liebherr's equipment and technology was accompanied by new quality control and management processes. By 1986, Qingdao Refrigerator had returned to profitability and grew in sales at an average of 83 percent annually. Between 1984 and 2000, sales grew from CNY ¥3.5 million to ¥40.5 billion.{{cite web |url=http://www.fundinguniverse.com/company-histories/Haier-Group-Corporation-Company-History.html |title=History of Haier Group Corporation – FundingUniverse|access-date = 15 January 2016}}

In 1988, the municipal government asked Haier to take over some of the city's other ailing appliance manufacturers. The company assumed control of Qingdao Electroplating Company (manufacturing microwave ovens). In 1991, the company changed its name to "Qingdao Haier Group" and acquired Qingdao Air Conditioner Plant and Qingdao Freezer. The company's name was simplified to its current name "Haier" in 1992. In 1995, the company took over Qingdao Red Star Electronics Co., a washing machine manufacturer, along with five of its subsidiaries. Haier acquired seven companies between 1995 and 1997, and began exporting to foreign markets.{{Cite web |title=Chinese Champions - Patente Made in China |url=http://www.chinese-champions.de/wordpress/wp-content/uploads/Studie_Chinese_Champions.pdf |url-status=dead |archive-url=https://web.archive.org/web/20131207222721/http://www.chinese-champions.de/wordpress/wp-content/uploads/Studie_Chinese_Champions.pdf |archive-date=2013-12-07 |access-date=2024-01-30 |website=Chinese Champions |pages=19–23 |language=de}}

=International expansion=

In Southeast Asia, Haier opened production facilities in Indonesia in 1996 and the Philippines in 1997 and failed in an attempt to enter the Thai market due to the presence of local competitors.

Haier entered the US market in 1999.{{Cite book |url=http://www.icmrindia.org/casestudies/catalogue/Business%20Strategy1/BSTR072.htm |title=Haier Group's Strategies in the US Market |publisher=IBS Center for Management Research |year=2003 |type=Case study |url-access=subscription}} In the US it focused upon two niche markets in compact refrigerators and electric wine cellars. Haier began to manufacture full-sized refrigerators for North American market. This would bring it into direct competition with established American companies GE, Whirlpool, Frigidaire, and Maytag. As part of its strategy, Haier built a production facility in the United States at Camden, South Carolina, opened in 2000. By 2002, US revenues reached USD $200 million, still small compared to its overall revenue of $7 billion. Also in 2002, Haier moved into the Greenwich Savings Bank Building in midtown Manhattan. Formerly the headquarters for the Greenwich Savings Bank, the {{convert|52000|sqft|m2|adj=on}} building was built in 1924 in the neo-classical style.

Production facilities were constructed in Pakistan in 2002 (see Haier Pakistan) and Jordan in 2003. In Africa, Haier has plants in five countries: Tunisia, Nigeria, Egypt, Algeria and South Africa.{{cite web |last= |date=2005-06-28 |title="We will be volunteer 'spokespersons' for Haier," African party officials say |url=http://english.people.com.cn/200506/28/eng20050628_192698.html |url-status=dead |archive-url=https://web.archive.org/web/20170802082150/http://en.people.cn/200506/28/eng20050628_192698.html |archive-date=2 August 2017 |access-date=2024-01-30 |website=People's Daily Online }} The company also purchased a Meneghetti's factory in Italy and began placing its products in European retail chains, either under its own brand or under OEM agreements with foreign partners.

Haier Appliances (India) P. Ltd initiated its commercial operations in January 2004. Its headquarters is in New Delhi, and in 2015 it had 33 operations, including those in Mumbai, Bangalore, Chennai, and Kolkata. It was listed among the top 20 most trusted brands in India by The Brand Trust Report, a study conducted by Trust Research Advisory.

In June 2005, Haier bid to acquire Maytag Corporation, backed by private equity funds Blackstone Group and Bain Capital. The bid was for US$1.28 billion, or $16 per share, topping a previous offer of $14.26 per share made by Ripplewood Holdings.{{cite news | url=https://www.washingtonpost.com/archive/business/2005/07/20/haier-withdraws-maytag-bid/f05586dd-097d-41b8-8cee-99c3bd17a72b/ | title=Haier Withdraws Maytag Bid | first1=Peter S. | last1=Goodman | first2=Ben | last2=White | work=The Washington Post | date=July 20, 2005 | url-access=registration}} However, Maytag was bought by Michigan-based Whirlpool Corporation which offered $1.7 billion in cash and stock, or $21 per share, plus assumed debt.{{cite web|url=http://www.rtoonline.com/content/article/Aug05/MaytagAcquisitionFinal082205.asp|title=Done Deal; Whirlpool Acquires Maytag For $2.7 Billion|date=13 May 2023 }}

In 2008, Haier entered into a joint venture agreement with the government of Venezuela.{{cite web | url=https://www.elclip.org/la-fabrica-de-haier-quedo-en-blanco/?lang=en | title=Haier’s white goods factory in Venezuela draws blanks | work=Centro Latinoamericano de Investigación Periodística }}

In 2009, Haier surpassed Whirlpool to become the fourth largest refrigerator producer in terms of sales with a global market share of 6.3%.{{Cite news | url=https://www.chinadaily.com.cn/business/2009-01/19/content_7410164.htm | title=Haier leads in global refrigerator sales | first=Yu | last=Hongyan | work=China Daily | date=19 January 2009}}

In 2012, Haier Group acquired the appliance business from New Zealand-based Fisher & Paykel,{{Cite news |url=https://www.reuters.com/article/us-haier-fisherpaykel-takeover-idUSBRE8A505J20121106 |title=China's Haier to take complete control of NZ's F&P Appliances |last=Tajitsu |first=Naomi |work=Reuters | date=6 November 2012}} and Sanyo's Southeast Asian appliance manufacturing unit.{{cite web | url=https://www.haier.com/my/about-haier/news/20190604_74016.shtml |title=Haier Completes Sanyo Acquisition in Southeast Asia |date=30 March 2012 |work=Haier |access-date=December 28, 2022 |archive-date=July 5, 2022 |archive-url=https://web.archive.org/web/20220705104921/https://www.haier.com/my/about-haier/news/20190604_74016.shtml |url-status=live }}

In June 2016, Haier Group acquired GE Appliances, headquartered in Louisville, Kentucky, from General Electric for $5.6 billion.{{Cite press release | url=https://pressroom.geappliances.com/news/ge-completes-sale-of-appliances-business-to-haier | title=GE Completes Sale of Appliances Business to Haier | publisher=GE Appliances | date=6 June 2016}}{{Cite news | url=https://www.cnet.com/home/kitchen-and-household/its-official-ge-appliances-belongs-to-haier/ | title=It's official: GE Appliances belongs to Haier | first=Ashlee Clark | last=Thompson | work=CNET | date=6 June 2016}}{{Cite news | url=https://money.cnn.com/2016/01/15/investing/ge-haier-appliances-sale/index.html | last=Riley | first=Charles | title=China's Haier buys GE's appliance unit for $5.4 billion | work=CNN | date=15 January 2016}}

In October 2018, Haier acquired Italy based Candy group.{{Cite news | url=https://www.caixinglobal.com/2018-10-01/haier-washes-into-europe-with-italian-appliance-takeover-101331811.html | title=Haier Washes Into Europe With Italian Appliance Takeover | first=Fran | last=Wang | work=Caixin | date=1 October 2018}}

By 2020, Haier had been the world's number one home appliance brand for 12 consecutive years.{{Cite web|title=Haier – the number 1 global major appliance brand for 12 years running|url=https://www.ertonline.co.uk/news/haier-the-number-1-global-major-appliance-brand-for-12-years-running/|access-date=2021-11-29|website=ERT|date=14 January 2021 |language=en-GB}}

In October 2024, Haier Smart Home acquired Carrier Commercial Refrigeration from Carrier Global for $775 million.{{Cite press release | url=https://www.prnewswire.com/news-releases/haier-smart-home-successfully-completes-acquisition-of-carrier-commercial-refrigeration-302265552.html | title=Haier Smart Home Successfully Completes Acquisition of Carrier Commercial Refrigeration | publisher=PR Newswire | date=2 October 2024}}

Technology

In 2015, Haier began investigating how the internet of things could be integrated into its devices.{{Cite web|url=https://www.cnet.com/news/haier-smart-home-vision-is-all-about-the-appliances/|title=Haier's pitch at IFA: Connect all of the things|last=Crist|first=Ry|date=3 September 2015|website=CNET}} The company cited by the Stanford Artificial Intelligence Laboratory, which found three barriers to the adoption of smart home technology: lack of unified protocols/single point of access, passive services and the lack of complete solutions. At the time Haier's core competencies lay within the large appliance sector and not the small electronics sector. Subsequently, it partnered with the then leading IoT platform IngDan ({{lang|zh|硬蛋}}) owned by Cogobuy to overcome its shortcomings.{{Cite press release |url=https://markets.businessinsider.com/news/stocks/cogobuy-partners-with-samsung-artik-enhancing-its-competitive-edge-as-a-leading-iot-innovation-platform-1002376838 |title=Cogobuy Partners with Samsung ARTIK™ Enhancing its Competitive Edge as a Leading IoT Innovation Platform | publisher=PR Newswire | via=Business Insider | date=17 September 2017}} By utilising Cogobuy's ecosystem and supply chain, Haier was able to integrate IngDan's portfolio of components, modules, and edge voice analysis into smart appliance products.{{Cite press release | url=https://markets.businessinsider.com/news/stocks/cogobuy-enters-booming-voice-controlled-home-appliances-market-1001831563 | title=Cogobuy Enters Booming Voice-Controlled Home Appliances Market | publisher=PR Newswire | via=Business Insider | date=14 March 2017 | archive-date=25 March 2019 |archive-url=https://web.archive.org/web/20190325152849/https://markets.businessinsider.com/news/stocks/cogobuy-enters-booming-voice-controlled-home-appliances-market-1001831563 |url-status=live}} Haier introduced its smart appliances across seven product lines in the major appliance industry: air, water, clothes care, security, voice control, health and information.

Company strategy

Zhang Ruimin, soon after becoming managing director in 1985, ordered his employees to destroy 76 refrigerators with sledgehammers following a customer complaint in an effort to radically change the company's culture to one that embodies quality control practices.{{Cite web|url=https://www.strategy-business.com/article/00323?gko=c8c2a|title=The Haier Road to Growth|last1=Fischer|first1=Bill|last2=Lago|first2=Umberto|date=27 April 2015|website=strategy+business|last3=Liu|first3=Fang}} At the time, Chinese brands for domestically produced consumer goods were generally regarded by overseas consumer markets as being of poor quality, even when compared subjectively with foreign brands manufactured in China.{{Cite web|url=https://www.mckinsey.com/business-functions/operations/our-insights/a-new-era-for-manufacturing-in-china|title=A new era for manufacturing in China|last1=Eloot|first1=Karel|last2=Huang|first2=Alan|date=June 2013|website=McKinsey|last3=Lehnich|first3=Martin}} The cultural transformation towards quality driven manufacturing resulted in Haier becoming the first company in China to get ISO 9001 certification.

Haier also has an environmental sustainable development strategy to improve the environment by conserving energy and recycling. In 2018, Haier got the "Greener China Business Award" due to its outstanding efforts to protect the environment.{{Cite press release |title=Haier Marks Earth Hour with Cross-Continent Interactive Performances | url=https://www.haier.com/my/about-haier/news/20190604_74018.shtml | website=www.haier.com | date=April 4, 2012}} In 2015, Haier joined WIPO GREEN as an official partner in an effort to address climate change.{{Cite web |title=WIPO Green - Partners | url=https://www3.wipo.int/wipogreen/en/network/partners.html |access-date=2022-09-19 |website=www3.wipo.int | language=en}} Haier also announced a three-year partnership with the Australian Open in November 2024.{{cite web |title=Haier Named Official Partner of the Australian Open for 2025-2027 |url=https://www.prnewswire.com/news-releases/haier-named-official-partner-of-the-australian-open-for-2025-2027-302315371.html |access-date=November 30, 2024 |date=November 25, 2024}}

Controversy

In 2014, Haier was accused by German media of delivering smartphones and tablets with pre-installed malware.{{cite news |author=Fuest |first=Benedikt |date=10 December 2014 |title=Vorsicht vor Smartphones mit vorinstallierter Spyware |trans-title=Beware of smartphones with pre-installed spyware |url=https://www.welt.de/wirtschaft/webwelt/article135220310/Wenn-der-Spion-in-der-Hosentasche-steckt.html |access-date=15 January 2016 |newspaper=DIE WELT |language=de |archive-date=14 February 2015 |archive-url=https://web.archive.org/web/20150214084358/http://www.welt.de:80/wirtschaft/webwelt/article135220310/Wenn-der-Spion-in-der-Hosentasche-steckt.html|url-status=live}}{{cite web |last=Kalenda |first=Florian |date=4 December 2014 |title=Lookout meldet auf Smartphones vorinstallierten Android-Trojaner |trans-title=Lookout reports Android Trojans pre-installed on smartphones |url=http://www.zdnet.de/88213109/lookout-meldet-auf-smartphones-vorinstallierten-android-trojaner/ |access-date=15 January 2016 |work=ZDNet.de |language=de |archive-date=18 March 2015 |archive-url=https://web.archive.org/web/20150318022225/http://www.zdnet.de/88213109/lookout-meldet-auf-smartphones-vorinstallierten-android-trojaner/|url-status=live}}

In 2024, Haier sent cease and desist letters to the open-source projects hOn and pyhOn, which developed an add-on for Home Assistant that allowed one to control appliances without Haier's 3rd-party cloud service.{{cite news |last=Toulas |first=Bill |date=18 January 2024 |title=Haier hits Home Assistant plugin dev with takedown notice |url=https://www.bleepingcomputer.com/news/security/haier-hits-home-assistant-plugin-dev-with-takedown-notice/ |access-date=19 January 2024 |work=BleepingComputer |language=en-us |archive-date=20 January 2024 |archive-url=https://web.archive.org/web/20240120075614/https://www.bleepingcomputer.com/news/security/haier-hits-home-assistant-plugin-dev-with-takedown-notice/|url-status=live}}{{cite web |last=Posch |first=Maya |date=19 January 2024 |title=Haier Threatens Legal Action Against Home Assistant Plugin Developer |url=https://hackaday.com/2024/01/19/haier-threatens-legal-action-against-home-assistant-plugin-developer/ |access-date=19 January 2024 |website=Hackaday|archive-date=30 January 2024 |archive-url=https://web.archive.org/web/20240130012402/https://hackaday.com/2024/01/19/haier-threatens-legal-action-against-home-assistant-plugin-developer/|url-status=live}}

Following Russia's invasion of Ukraine in 2022 and subsequent international sanctions, Haier faced criticism for its continued expansion in the Russian market. Haier announced plans to increase production in Naberezhnye Chelny, including facilities for refrigerators, washing machines, and televisions, along with the establishment of a fourth factory and plans to recruit developers in Russia for its proprietary OS for smart appliances.{{Cite web |title=Россияне массово скупают холодильники, стиральные машины и духовки - CNews |url=https://www.cnews.ru/news/top/2024-08-01_rossiyane_zapasayutsya_holodilnikami |access-date=2024-12-05 |website=CNews.ru |language=ru}} The company also plans to repurpose Candy’s factory in Kirov to further expand its manufacturing capabilities in Russia. Despite global calls for corporate responsibility, Haier has significantly increased its revenue in Russia, reportedly more than 1.5 times in 2023 compared to 2022.{{Cite web |last=Spivak |first=Vita |date=2023-05-29 |title=How Sanctions Have Changed the Face of Chinese Companies in Russia |url=https://www.themoscowtimes.com/2023/05/29/how-sanctions-have-changed-the-face-of-chinese-companies-in-russia-a81302 |access-date=2024-12-05 |website=The Moscow Times |language=en}}