Qingdao Haier Ltd.

I. Facutal Summary

Qingdao Haier Ltd., was founded in 1984 with headquarters in Qingdao, Shandong Province, PRC. In 1984, Haier produced only a single model of refrigerator, today it is China's leading producer, and the world's fourth-largest producer of home appliances in over 15,100 different specifications under 96 categories. Haier products are now sold in over 100 countries around the globe. It has over 240 subsidiary companies, over 110 design centers, plants and trading companies and over 50,000 employees throughout the world. Haierâ??s product categories range from refrigerators, refrigerating cabinets, air conditioners, washing machines, televisions, mobile phones, home theatre systems, computers, water heaters, DVD players and integrated furniture, among which 9 are ranked market leaders in China, and 3 are ranked among the top 3 worldwide in their respective industries.

Haier Group has evolved to be a multinational company with an emphasis on technology, industry, trading and finance.

Since China's WTO entry, the Chinese household electrical appliances industry, as well as other industries, is facing the reality of a globalizing world economy and multi-global challenges, such as the environmental challenge, the competi-tive challenge , the collaborative challenge, the organizational challenge, the worldwide learning challenge and the management challenge.

Haier has advanced through the 'brand building,' 'diversification,' and 'internationalization' stages, and since 2005 has embarked on the fourth stage: "Global Branding." Haier has enjoyed a growing international reputation over the past 24 years. Inspection and Quarantine has named Haier refrigerators and washing machines as among China's "Top Global Brands."

The global revenue of Haier for 2005 was RMB 103.4 billion, that is.... dollars.

Haier has gained increased reputation as a national brand in China. Since 2002, Haier has consecutively been ranked first in the row of China's most valuable brands for manufacture of 18 products, including refrigerators, air conditioners, washing machines, televisions, water heaters, personal computers, mobile phones and kitchen appliances. On August 30, 2005, Haier was ranked 1st of China's Top 10 Global Brands by the Financial Times.

Haier's global branding strategy aims at positioning the company as a local brand in different world markets in conjunction with enhanced product competitiveness and strong corporate operations. Haier's international business framework encompasses a global network of design, procurement, production, distribution and after-sale services. Today, Haier has established 15 industrial complexes, 30 overseas production factories and bases, 8 design centers and over 58,000 sales agents worldwide.

In China, Haier's 4 leading product categories - refrigerators, refrigerating cabinets, air conditioners and washing machines - have over 30% market share. In overseas markets, Haier products are available in 12 of the top 15 chain stores in Europe and 10 leading chain stores in the USA. Haier is now approaching its goal of being "local" in American and European markets via localized design, manufacturing and sales processes. In addition, Haier has set up production facilities and plants in the USA, Italy, Pakistan, Jordan and Nigeria.

Haier's "OEC", "Market-chain" and "Individual-goal combination" management performances have been recognized worldwide. Haier's experiences have also been introduced into case studies of business mergers, and to financial management and corporate cultures of many foreign educational institutes, including Harvard University, University of Southern California, Lausanne Management College, the European Business College and Kobe University. Haier's Market-Chain Management practice has also been recommended to the EU for Case Studies and "Individual-goal combination" management concept has been recognized by worldwide management researchers as an feasible solution of commercial over stocks and accounts overdue.

Facing the fierce global market competition, Haier launches the Global Brand Building Strategy and updates spirit "Create resources, worldwide prestige" and work style "Individual-goal combination, swift action and success" with an aim to gain global recognition and sustainable development. Haier's global branding strategy aims at positioning the company as a local brand in different world markets in conjunction with enhanced product competitiveness and strong corporate operations. Haier's international business