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Haier Kitchen Appliances Grew in 2018 Amidst A Dip In The Chinese Market

Haier Kitchen Appliances

After more than a decade of growth and prosperity in the kitchen appliance industry, there was a turning point in 2018. Due to the impact of real estate control policies, the kitchen appliance market declined all over in China.

In sharp contrast with the industry, Haier Kitchen Appliance has eliminated the anti-dry gas stoves through the layout of high-end complete sets of programs, achieving a cumulative market growth of 49.05% in 2018. It is the only growing and fast-growing brand of mainstream kitchen appliances.

Industry analysts believe that although the growth rate of the kitchen appliance industry is slowing down, it is still a new growth engine and development momentum of the home appliance industry. The branding, high-end and technology of this industry are also accelerating.

At the same time, the competition in the entire industry has shifted from a single product competition to a comprehensive game of products, services, and packaged solutions. The reason why Haier Kitchen Appliance can achieve contrarian growth is closely related to many factors such as forward-looking strategic layout, original technology product development, and global brand resource integration.


The global kitchen appliance change – Haier’s Breakthrough

Haier Kitchen Appliances Change
[BlueTechnology – Haier Kitchen Appliances Change]
In 2018, China’s kitchen and electric appliance industry were affected by real estate regulation and control policies, and the overall situation was cold. According to the total data of Aowei.com, the retail sales of kitchen appliances in 2018 decreased by 6.4% year-on-year.

Haier Kitchen Appliance achieved a contrarian growth of 49.05% through the layout of high-end sets. According to statistics from Zhongyikang, Haier is the only growing brand among the mainstream brands of kitchen appliances. In the first quarter of 2019, Haier’s kitchen appliances continued to grow. The cumulative growth in the first quarter was 27.3%, which lengthened its difference with the industry growth scissors.

“The market is in a cold period, which is the industry reshuffle period.” Looking back on this year, not only has the domestic kitchen electricity market changed but from a macro perspective, the global kitchen appliance market is undergoing a “smooth and silent” transformation: the European kitchen appliance represented by Germany is a big one. The phenomenon is being subverted.

From a global perspective, emerging markets represented by China are rapidly rising. With the advantage of consumer groups, the advantage of consumption power, consumers pursue high quality of life, which is a typical feature of the Chinese kitchen appliance market. In this context, the kitchen appliance industry is thick and thin hair. Therefore, China has its advantages in terms of demand, sales volume and future market expectations.

In terms of market performance, GE Appliances has ranked first in North America for 10 consecutive years; Haier Kitchen has achieved 104% growth in Southeast Asia in 2018 and 100% in Europe; in the first quarter of 2019, Haier Kitchen in Russia, the market achieved a growth of 199% and became the fastest growing brand in the high-end market.

At present, Haier has built a global kitchen appliance brand matrix to take advantage of its latecomer. For example, Haier Kitchen Appliance has integrated the six brands of GE Appliances, New Zealand’s Fisher & Paykel, Casa Di and Italy Candy to form a kitchen appliance aircraft carrier matrix.

Haier Kitchen Appliance has been able to rely on the global brand resources to develop smart products and achieve large-scale on-demand customization of kitchen scenes. Based on the brand positioning of global kitchen experts, we use global resources to meet the needs of global users.


Future kitchen lifestyle Change – Haier is subversive

Future Kitchen Lifestyle
[BlueTechnology – Future Kitchen Lifestyle]
Original technology is the vitality of products, and the world’s kitchen appliance rights are gradually growing. In fact, it is also the performance of the rise of China’s kitchen power technology. Taking Haier’s original “firewall” and “smoke-proof wall” technology as an example, in order to solve the problems of kitchen fire hazards caused by forgetting to turn off the fire, Haier Kitchen Electric has developed Haier anti-dry burning with automatic flameout protection and “firewall” function. The gas stove can also detect and control the oil temperature in the pot at any time to protect the user’s cooking health. As a result, Haier anti-dry gas stoves increased by 94% against the trend in 2018;

Chinese-style kitchens often face problems such as burning smoke and running cigarettes, which has caused many family chefs to complain. Haier kitchen appliance power insight into the pain points of users, research and development of “smoke-proof wall” hood, in addition to having a large suction, the front of the hood can also “call” the wind, build a healthy “smoke-proof wall” to avoid running smoke. Therefore, in 2018, Haier achieved a retail sales of 105% in the 4000+yuan price range hood market.

In addition to the changes brought by kitchen appliances, Haier’s core strength lies in breaking the smart kitchen appliances and becoming an important force in the global kitchen appliance industry with high-end package and brand ecology.

In 2018, the first annual global conference of Haier Kitchen Appliance has revealed the future strategy of Haier Kitchen Appliance. Haier Kitchen Appliance has launched the wisdom package strategy with the keywords of “interconnected”, “full process” and “big ecology”, indicating the future development direction of kitchen appliances. The main landing performance is that for the industry “small set”, Haier integrates 11 categories of kitchen appliances such as hood, gas stove, oven, disinfection cabinet, dishwasher and wine cabinet, and integrates all kitchen appliances into one system.

However, the smart kitchen cooking scene built by Haier Kitchen Appliance is far more than this. When other brands are still self-transfusion and self-innovation, Haier also creates a synergy effect on the global scale by integrating the world’s top technology and brand, by going out and introducing, creating a synergy for consumers. Breaking the edge line, forming a synergy effect on a global scale, creating a brand ecological cluster for consumers, realizing the online purchase of ingredients in the cooking process, and the materials purchased can trace the information of the place of origin, etc. This is also the essence of Haier kitchen electric subversion.


Kitchen Appliance brand globalization – Haier is the leader

Kitchen Appliance Brand Globalisation
[BlueTechnology – Kitchen Appliance Brand Globalisation]
With the rise of Chinese kitchen appliances, “globalization” has become a common problem for kitchen appliances brands. Unlike the industry, Haier kitchen appliances globalization carries brand ecology, high-end sets, and the world’s six major brand genes.

It is reported that each brand has clear positioning and user portraits, for example, New Zealand’s Fisher & Paykel positioning social kitchen, the United States GE Appliances positioning professional kitchen, Casa Di positioning art kitchen, Haier kitchen Appliance positioning smart kitchen-  the commander in line with the internet era to develop a stylish kitchen. In addition, Italy Candy provides users with an IoT kitchen.

Haier Appliance currently has the US-Louisville R&D Center, the Italian-Bassano R&D Center, the Nuremberg R&D Center in Germany, the Queretaro R&D Center in Mexico, the Dunedin R&D Center in New Zealand and the Qingdao R&D Center in China.

From the point of view of the manufacturing base, Haier’s chefs now have a manufacturing base in Mexico’s Fisher & Paykel, a GE Appliances manufacturing base in the United States, an Elba manufacturing base in Italy, a Guohaier kitchen appliance manufacturing base, and a Fisher & Paykel manufacturing base. Ability to tailor kitchen appliances to global users.

In addition to the products, Haier Wisdom’s large kitchen appliances have been extended to the service sector. Haier Kitchen Appliance can provide users with systematic sales service, freeing users from running around, purchasing all kitchen appliances in one stop, communicating with users one-stop to complete the overall kitchen space design, and completing all after-sales service of kitchen appliances in one stop.

From the perspective of global standards, Haier Kitchen has more than 6,000 patent inventions, and the world’s first “General Technical Conditions for Smart Kitchens” was born in Haier. In addition, Haier Kitchen Appliance also led the preparation of the world’s first “light wave pasteurized utensils disinfection cabinet” standard, “anti-dry home gas stove” standards.

Regardless of Haier’s R&D and manufacturing layout, or the formulation of standards, it analyzes the fundamentals of its contrarian growth. Thanks to the guidance of the “all in one (one person all solution)”  model, Haier insists on strategic planning and product layout from the perspective of users. For example, the anti-dry gas stove visited 20 countries in Haier global laboratory engineers. Based on the investigation of the kitchen environment and cooking habits of 2 million users, the product functions are continuously improved and finally iterated.

On the whole, in the current context, China’s home appliance industry is unlikely to replicate the past high-speed growth market, but instead, it is slowing down overall. But kitchen appliances are an exception. Supported by many factors such as core technology, brand ecology, and high-end complete sets, Haier’s global kitchen appliance map is leading the future development direction.

[Blue Technology] Luo Shi

Comments (1)

  1. […] Haier, the White Electronics major in the Japanese market, has entered the difficult Japanese market with AQUA, a sub-brand of Haier. Haier and AQUA took the first step in Japan with their own brand very early and now they are very popular in the second step of taking a smart piece in Japan. […]

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