Haier we go

The Pioneer, New Delhi, November 24, 2005: A home appliances major forays into the mobile telephony segment and brings out products that cater exclusively to the Indian taste, says Team Viva

Haier, the second largest home appliances brand in the world, recently forayed into mobile phone market in India with seven GSM state-of-the-art mobile phones. The range of phones include entry level cost effective phones like Z 100 and a handset that comes with FM radio to high end models like the P 7 which is said to be the world's first pen phone with 300K pixel camera and a dicta phone.

"We hope to make a significant presence in the Indian mobile telephony segment by the end of year. We hope that our phones, with their unique features which have made them popular worldwide, will be welcomed by the Indian consumers. Introduction of mobile phones also reflects Haier India's commitment to provide best and latest technologies to Indian consumers," says Praveen Valecha, senior GM, Haier Telecom.

"We have a vast range of mobile phone models and these are suited for the Indian market as they cater to the requirement of all segments. Our range, comprising over sixty models, is designed to meet individual customer requirements," he adds.

The company officials stated that their aim was to be among the top four players who constitute 90 per cent of the market today. The base line for Haier mobile phones is coined as 'Talk your talk'. The company also enjoys strategic alliances for component sourcing with Intel, Fujitsu and other world leaders.

Talking about the marketing strategy, Valecha said: "we have taken an initiative to offer a comprehensive range of products. Our products suit the pocket of every customer. All our phones from black-and-white to camera phones will attract the customers. Apart from that we are also tying up with one of the operators, Tata or Reliance, and soon we will work out a possibility."

Haier is aware of the importance of brand communication. "We profiled the brand in such a way that it became associated with a certain premium," says Valecha. Haier believes that they have brought many features into the market which were alien to the Indian users before. This, they feel, will work for them.

The seven cost-efficient mobile phones include the Haier P7, 'Talk of the town', which is the world's first Pen mobile phone with a 300K Pixel camera and Dicta Phone priced at Rs 14,940. The Z1100, priced at Rs 9,099 comes loaded with an MP3 player, an FM radio and stereo speakers with a Gen X look, the Z1100 has 32 MB flash memory and a colour screen, no wonder it is called the 'Rock Talk'.

The V100 mobile, 'Picture Talk' is a smart, attractive camera phone with a 110K-pixel camera and a 65K colour screen. The mobile is a GPRS handset with MMS and voice recognition technology, priced at Rs 7,614. Haier Z300 is an attractive colour display phone with 12 days stand by time, a WAP browser and extremely good looks is priced at just Rs 4,950, rightly called the 'Colour Talk'.

The Z3000 mobile is another colourful phone from Haier also called the 'Radio Talk' with incoming flash light & FM radio, a 65K colour screen and stylish design. The phone comes in a Triband of 900/1800/1900 along with GPRS and incoming firewall and daily persona Biorhythm. The Z3000 is priced just at Rs 5,990. The 'Non-Stop Talk' by Haier Z100 is an amazing phone with a standby time of 18 days and also has an FM radio. The mobile has stylish design with white LED and has a large screen with colour background. The Z100 comes in for Rs 2,990.

Another first by Haier is the 'Flash Talk' V200 mobile phone priced at Rs 9,495 is the world's slimmest camera phone with continuous flash. It measures only 12mm and has a 300K-pixel camera with video recorder and in-built speaker. With lithium polymer battery the phone has MMS+GPRS class 10 facility, a 65K colour screen and large memory.

When asked about the competition posed by LG, Samsung and Nokia, Valecha said: "The market is expanding and is yet to reach full maturity. So there is always a huge opportunity for new players."

Haier believes that real success is the retail success, "so we are talking to some 10,000 retailer associations." For advertising, Haier is more focussed on TV though it is not sidelining the print ads. But they haven't roped in any celebrity as of now. "We are doing model-focussed marketing," informs Valecha.

Aiming Higher

Business India, October 10-23, 2005: T. K. Banerjee is not afraid to be in a competitive market. "Here it is brand name and positioning that matters," he says. The president and chief executive officer of Haier India - a 100 per cent subsidiary of the Haier group - spends time these days monitoring growth closely. He. Wants to maneuver all the positioning it will take to build his brand, and make the Chinese consumer durable company a leader in five years' time.

You can expect that of Banerjee. A finance and marketing person, he spent several years working with consumer durables company IFB and). K. Tyres, before the offer from Haier came along. His experience, he L.says, tells him to control expenses now, and consolidate; while also to increase focus on building a brand name.

Banerjee may be right, for Haier came to India only in late 2003. For the first seven months it confined itself to the northern region, testing the market and conducting research on consumer preferences. Then came the launches - Colour TVS, DVDS and Banerjee: slow and steady home theatres, refrigerators, and cell Phones, ovens, washing machines, air conditioners and clothe dryers. By October he plans to launch high-end televisions - plasma and LCD (liquid crystal display) models. One year into business, and turnover will touch Rs300 crore. The number of exclusive 'Planet Haier' showrooms across the country touched 15 in) , and its network has stretched to 3,800 retailers and dealers.

But it will take more time for business to pick up. Banerjee won't tell past investment figures - "they're still small," he says. Nor is he planning any more soon. It would mean risking investment in capacity and ending up a loss leader, he says. While all plans for advertising and marketing will continue, expansion - of a manufacturing facility in India - is on hold. Banerjee won't tell past investment figures "they're still small, /I 11e says” Many companies in this sector are bleeding because of over-capacity," he says. "You need to achieve a certain volume before you get into manufacturing," he says.

Meanwhile tie-ups with Whirlpool and Voltas have been formed, from whom Haier sources low-end refrigerators. Televisions are also outsourced, but only at plants where management has a strong Haier presence. The company's pride of place is in its technology- and innovation driven products. Like a washing machine, that needs no powder for washing; or a refrigerator, which has the freezer placed below. "We found that Indian women have back problems and they have to bend each time to access the' vegetable tray," he says.

An R&D centre is also planned along with the manufacturing facility - at a cost of Rs30 crore – but only when volume touches one million units. That is expected when Haier enters its third year of operations.

Haier plans $100-million capex

The Economic Times, February 19,2005: The $12,5-billion Chinese consumer major Haier group is chalking out an ambitious plan for India and initial estimates peg around $100 million worth investments into the country in another three years. These investments envisage a new manufacturing plant though the company has not firmed up its plant yet.

T.K. Banerjee, president and CEO, Haier India, total ET that the company has drawn out big plans for the country and soon several another products categories would be launched in India, including information technology products. He added that haier would soon begin discussion with telecom companies in the CDMA segment for handset deals as the parent company has emerged as one of the leading players in the segment.

Haier CDMA plans

Haier launches 7 mobiles

The Statesman, February 17, 2005: Haier, the global home appliances brand, entered the country's mobile telephone segment with the unveiling of its initial range of seven mobile phones here today. The mobile phones are priced between Rs 3,654 and Rs 14,940 to cater to the needs of consumers. Speaking on the occasion, Mr T K Banerjee, President and CEO, Haier India, said: We hope to have a significant presence in the Indian mobile telephony segment by the end of the year. With their unique Features which have made them popular worldwide, the models are expected to be widely welcomed by the Indian consumers.

Haier forays into Indian mobile market

The Economic Times, February 9, 2005: Aiming to sell half-a-million mobile sets within a year, Haier on Tuesday announced its foray into the Indian mobile handset market with the launch of its seven GSM mobile sets. “With the launch of our seven state of the art mobile sets comprising entry-level as well as high end models, we have set a target to sell five lakh GSM mobile sets with a turnover of Rs 250 crore in one year,” said T K Banerjee, president and CEO of Haier Appliances (India) Pvt Ltd.

Haier India enters mobile phone segment

exchange4media News Service, February 9, 2005: Haier India, a hundred per cent subsidiary of Haier Group - China, has entered the mobile phone segment with seven models of GSM phones. The range include entry-level cost effective phones and high-end models that are priced between Rs 3,654 and Rs 14,940. "We are targeting a volume of half a million handsets in the first year," said president and CEO T K Banerjee said.

On the strategy, he said, "We are launching it in two phases this month. Today onwards the phones would be available in North India and by the second week the phones will reach East, West and South India." The phones will be distributed through its national distributor, Trust Telecom, he said, adding, "We are setting up nationwide after sales service network and are looking at expanding it even further." The seven models that have been launched are V100, V200, Z100, Z300, Z1100, Z3000 and P7.

Asked if the company is also planning to introduce the CDMA models, he said, "Haier has a product range of GSM and CDMA, as of now we are entering categories that sell the most." Interestingly, the phones are priced slightly higher than the prices offered by competitors in the market. On this, Banerjee said, "We are offering premium quality and the prices are in line with the quality being offered."

The advertisements are also in place. Asked on the promotional strategy, Pranay Dhabai, Director, Haier India, said, "We have a few commercials lined up for the GSM which will be on air from mid-February. As the products will be rolled out across the country, the commercials will also be visible." G3, an offshoot of Grey Worldwide, has made the commercials for Haier India's GSM range of phones.

Haier launch

Business Standard, February 9, 2005: China's largest appliance maker Haier launched its mobile phones in India on Tuesday and hopes to sell 500,000 units in the first year of operations, a company official said. "With the launch of our mobile sets, comprising entry-level as well as high end models, we have set a target to sell five lakh GSM mobile sets, with a tumoverof Rs 250 crore in one year," said TK Banerjee, president and chief executive officer (CEO) of Haier Appliances (India) Pvt Ud.

Haier enters mobile market; targets 60 pc growth

Business Line, New Delhi , February 8: China's largest appliances maker, Haier, on Tuesday announced its foray into the fast growing Indian mobile handset market with the launch of its seven GSM mobile sets here. "With the launch of our seven mobile sets comprising entry-level as well as high end models, we have set a target to sell five lakh GSM mobile sets with a turnover of Rs 250 crore in one year," Mr T.K. Banerjee, President & CEO of Haier Appliances (India) Pvt Ltd, said while addressing a press conference.

Haier India, a 100 per cent subsidiary of Haier Group, plans to achieve a growth of almost 60 per cent in the mobile handset segment. "We have set a challenging task for ourselves to achieve a 60 per cent growth in our mobile telephony segment with an intention to occupy a slot in the top three mobile handset companies," said Mr Banerjee.

Haier India, which entered the domestic market a year ago, has launched its GSM mobile sets first for the North Indian market and will subsequently enter the southern, eastern and western markets. The new offerings are priced between Rs 3,654 and Rs 14,950. The company is also planning to launch its CDMA handsets in the country and is in talks with a few telecom operators for the same. The company intends to set up a consumer electronics manufacturing unit in India with an investment of about $5 million, to strengthen its presence in the country.

"We will finalise the location for our proposed plant by May-June, where we would initially manufacture colour televisions," Mr Banerjee said. The new plant would initially cater to the Indian market and "we will gradually expand the reach to South East Asian countries," he said. The company also said that it is exploring benefits arising from the Free Trade Agreement with Thailand as it has a manufacturing unit it the country. Haier India is currently doing a monthly business of about Rs 25 crore and is targeting to grow by 60 per cent next year.

Haier enters mobile handset market

The Hindu, New Delhi, February 9, 2005: Haier, a leading home appliances brand, today announced its foray into the Indian mobile handset market with the launch of its seven GSM mobile sets here with a sale target of half a million mobile sets within a year.

"With the launch of our seven state of the art mobile sets comprising entry level as well high end models, we have set a target to sell five lakh GSM mobile sets with a turnover of Rs. 250 croes in one year," said T. K. Banerjee, President and Chief Executive Officer of Haier Appliances (India) Pvt. Ltd., while addressing reporters. A 100 per cent subsidiary of Haier Group, day Haier India plans to achieve a of growth of almost 60 per cent in the Indian mobile handset segment. The company is aiming at a slot in top three mobile handset companies. Mr. Banerjee elaborated. Haier India. which entered into the Indian market a year ago has launched its GSM mobile sets first for the North Indian market today, would enter southern. eastern and western markets within few days. Priced between Rs. 3.654 and Rs. Rs. 14,940 per set, the mobile sets would be distributed through its national distributor, Trust Telecom, which has a nationwide after sales service network.

Haier makes entry into the giant Indian mobile telephone segment

Haier launches Mobile Handsets for its Indian Customers with seven state- of- the- art models

New Delhi, February 8, 2005 : Haier, the world’s second largest home appliances brand entered into the country’s mobile telephony segment with the unveiling of its initial range of seven state of the art mobile phones at a glittering ceremony here today. The range includes entry-level cost effective phones like the Z 100 offering amazing standby time of 18 days and model comes with a free head set with FM Radio and is affordably priced at Rs. 3654, to high end models like The P7, the world’s first Pen Phone with 300K Pixel camera and Dicta Phone priced at Rs. 14940.

Speaking on the occasion, Mr. T. K Banerjee, President and CEO said, “It is our pleasure to be a part of the rapidly growing Indian Cellular industry. We hope to have a significant presence in the Indian mobile telephony segment by the end of the year. We hope that our phones with their unique features which have made them popular worldwide, will also be widely welcomed by the Indian Consumers. Introduction of Mobile phones also reflect Haier India’s commitment to provide best and latest technology to Indian consumers”

Mr. Pranay Dhabhai, Director, Haier India, said that “Haier has a vast range of mobile phone models and these launched seven models are most suited for the Indian market as they cater to the requirements of all segments and user needs. Our entire range of mobile phones, comprising over sixty models, is designed to meet individual customer requirements. In fact, our unique products are an innovative blend of technology and research relevant to individual needs.”

Haier mobile phones will be available across India and are being launched All Over India in a span of a fortnight. This will be distributed through its national distributor “Trust Telecom” who in turn has set up a complete Distribution network. In order to provide complete satisfaction to its valued customers, nationwide after sales service network has already been set up, which will be expanded by adding more service centers in near future.

The seven models introduced by Haier are:

1. V 100: Rs. 7614/- · 110 Pixel Camera· 65K Colour Screen· MMS· GPRS· Voice Recognition: voice dail, voice memo, voice command.· Accessories included: Headset, Neckstrap.

2. V 200: Rs. 9495/- · World’s slimmest (12mm) GSM handset· 300K Pixel Camera· Continuous Flash+ Video Recorder· In-built speaker· MMS + GPRS class 10· Large memory: - Phone book – 500X3 - SMS –300 - Picture – 2MB· Lithium Polymer Battery· 65K Colour Screen· Accessories included: - Headset - PC syncs Data Cable - Neck Strap

3. Z 100: Rs. 3654/- · 18 Days Stand by Time· Stylish Design with white LED· Large Screen· Accessories included: - FM radio Headset - Neck Strap

4. Z 300: Rs. 4950/- · Colour Screen· Large Screen· Good Looks· 12 Days Standby Time.· WAP Browser.· EMS· Accessories included:- FM Radio Headset - Neck Strap

5. Z 1100: Rs. 9099/- · MP3 Player· FM Radio· Stereo Speaker· Gen X looks· 32 MB Flash memory· Colour screen· Accessories included:- PC Sync Data Cable- Headset - Neck Strap

6. Z 3000: Rs. 6480/- · FM Radio· Stylish Design· 65K Colour Screen· Triband- 900/1800/1900· GPRS· Incoming Firewall· Daily Personal Bio-Rhythm· Incoming Colour Flashing· Accessories included- Extra Battery- Headset- Neck Strap - Desktop Charger

7. P 7: Rs./ 14940/- · P 7 – World’s First Pen Phone with Camera and Dictaphone.· 300K Pixel camera· Dictaphone· In-built Speaker· Triband- 900/1800/1900· MMS+ GPRS class 12· Privacy Firewall· 40 Polyphonic· 65K Colour Screen· Accessories included- Car charger- Headset- Neck Strap.

About Haier

The Haier group was set up in 1984 in Qingdao of China and in just two decades as per Euromonitor Statistics of 2003, Haier was ranked as the 2nd largest Home Appliances brand in the world. The group has emerged as a top multinational, manufacturing a wide range of home appliances and consumer electronics products with manufacturing facilities spread over 13 countries including USA, Europe, Middle East, Africa, South Asia other than its robust presence in China. The company has its marketing and sales network in 166 countries around the world and in 2004; the group turnover aggregated US$ 12.1 billion. The product range comprises of over 15,100 models in 96 categories.

Haier India is a 100 per cent subsidiary of the Haier Group.

Haier has a state of the art manufacturing facility for both, GSM and CDMA mobile phone handsets with technology partnership with leading technology providers and has a present production capacity of 15 million handsets per year.

Continuous innovation is the soul of Haier’s corporate culture and on an average Haier develops 1.3 new products per day through its 18 Research & Development and design centers across the world.

It's a matter of confidence

As such, I have always believed that continuous learning is closely linked to humility, willingness to accept challenges, ability to listen and learn and an honest introspection. I wasn’t an extraordinary student, but I managed to get a sound academic degree in Physics followed by a professional course in CA.

With no formal education in marketing, my foray into the world of ‘sales and marketing’ was possible due to my desire for learning and perfecting the process of communication.

This coupled with my risk-taking abilities have helped me in establishing myself in my professional life. If any one has influenced me as a person — it was my mother. If I have managed to accomplish any leadership style by way of getting the best out of people, I owe it to her.

An extremely compassionate and generous lady, she has taught me not to hold grudges even against someone who has betrayed my trust. Self-confidence has been her greatest gift to me. She made me believe that confidence gives the courage and conviction to undertake greater challenges and achieve far more than what I would have ever thought possible.

My father taught me, through his own experience, the value of hard work and integrity. A firm believer in the benefits of sports in the all-round development of man, he taught me at a young age that sports instils ethics, discipline and good values.

It was with his encouragement that I began playing tennis and golf, albeit late in life. Armed with my parents’ lessons, right from my childhood, I have had faith in seamless execution of processes, which were out-of-the-box and have also faced my teachers’ wrath on occasions.

The two business leaders who have influenced me tremendously are late NP Godrej in my earlier years and later Jack Welch. NP Godrej was a visionary whose depth of knowledge, care for people and more importantly, social responsibility made me consider him as my idol.

Welch, the legendary chairman of General Electronics, US, is in my opinion one of the greatest business leaders who revolutionised the art of management. I strongly believe in his ideas of a boundary-less organisation thereby inculcating a culture of openness, trust, sharing of ideas and finally delegation of powers to people down the line. In fact, today, I feel my biggest strength is managing the people process.

It was, indeed, a major risk for me when I took up my present assignment. After all, Haier is a Chinese brand without any previous successful role models from the same country. The other challenge was its price positioning.

But I reckoned that it’s also one of the most respectable brands worldwide and is also the second-largest home appliance brand in the world. Its impeccable commitment to “new product introduction” through its worldwide development centres underlines the brand’s commitment to consumers. All this gave me tremendous opportunity as well as formidable challenges. Again it was leveraging in the people process.

A small team of myself, my fellow colleague (who is also a director of Haier India) and creative wizards from our advertising agency spent days deliberating the creative pursuit which would hold the brand in right esteem. The outcome was amazing!

Likewise, it was our operating managers’ decision that price positioning should be at an appropriate level to ensure Haier’s best value-for-money proposition. We worked out a unique business model for our business partners so as to ensure better returns on their investment.

I have always maintained that we must respect our competitors and should learn continuously to strengthen our processes to overcome seemingly weak areas, if any. The fundamentals shaping my leadership style have started with people. I have always been a team man. It’s all about finding and building great people — I call it a confluence of several rivers bringing together a wealth of knowledge and work practices, many of which I advise them to even unlearn.

It’s our endeavour to ingrain team performance at the core of employees’ hearts. As I always state to my people “after all, it’s a start-up business and you’ll be the beneficiaries of its success”.

Welcome to India

January 15, 2005: India offers a vibrant market with 54 per cent of the population below 25 years of age. These young people work harder, earn more, spend more and demand more from the market, making India a dynamic and aspirational society. Can global brands afford to miss out on the opportunity? Obviously not, if the march of international brands into India is any indication.

Soaring Haier
"India, being an emerging market with a huge growth potentials, is certainly an important and strategic destination," said TK Banerjee, president and chief executive officer, Haier Appliances (India) -- 100 per cent subsidiary of the Haier Group. He was explaining the reason for the $9.7 billion Chinese company to set foot in India in December 2003. (The company initiated nationwide operations in July 2004 before which it was concentrating on the north).

The company is expecting a turnover of Rs 300 crore and a share of 3-5 per cent in various durables categories by the end of its first year India (that is, financial year ending June 30, 2005). Banerjee claims, " In the months October-December 2004, the company has crossed the targeted average monthly turnover of Rs 1crore."

Strom From The East

It’s not just the cut-throat competition and the increasingly demanding consumers: Haier also has its heritage to contend with. Here’s how the world’s No 2 appliance company plans to take on the Indian durables market. If one were to spend a few hours with T.K. Banerjee, president & CEO, Haier Appliances India, he could take the entire time to talk about Haier’s global footprint and its formidable position worldwide, without once touching on the brand’s origins in China. Barring those in the durables industry, very few are aware of Haier’s Chinese parentage -- and that’s not because of general ignorance, but its vital part of the brand’s strategy.

There are more worries than just fierce competition even for a late entrant like Haier, a $9.2-billion giant, to get a toehold in an already crowded market. Almost the entire industry is unanimous that its image as a Chinese manufacturer will be a challenge -- its country cousin like Konka and TCL entered, and left India, making no impression, but leaving some unpleasant memories. Other cheap Chinese product have flooded the Indian market over the last few years, leaving Haier with little chance for a premium positioning. Trade circles have similar apprehensions, and fighting this image is taking most of Banerjee’s time.

Every bid of media communication that the brand has used since its launch two months ago, gives the impression that Haier is anything but Chinese. “The name suggests a European origin, and I was clueless about it being Chinese,” admits the country head of a global direct marketing major in India. “it has been a conscious decision to make its brand’s link with China a non-issue in the minds of Indian consumers,” says a former company executive. So the brief for Haier has been clear: play up the company’s global achievements and stunning success in the US. Banerjee says that this route is the best one for the company to take, and insists,“We are not ashamed of our parentage ”

For Haier itself, this is a second entry into the Indian market. Earlier, it marketed its products in India through a Delhi- based distributor Anirudh Appliances. After the alliance fell through some two years ago, the company decided to make a fresh beginning and has set up a 100% subsidiary with an initial investment of Rs 30 crore. It's currently courcing low-end products from Indian manufacturers and importing its high-and range from facilities in Malaysia, but it insists that a manufacturing facility in India is on the cards. Meanwhile, Banerjee is focusing on three tasks: Building brand salience while playing down the 'cheapness' associated with a Chinese origin, creating a clearly differentiated proposition for consumers, and making inroads into the trade to ramp up presence across the country. Industry sources say that Banerjee, a former Godrej executive, is using his tremendous report with dealers and distributors, and if anything can help Haier; it's his clout with trade. "He has managed to rope in some really large counters in Delhi and surrounding areas into the Haier fold," says an executive in a rival Indian company. Although many large distributors and retailers are yet to stock Haier products, all were present at its launch. And that's what makes Banerjee bullish.

But rivals don't look convinced. The absence of manufacturing facilities reflect an unsure start and shaky commitment, they say. And there's little clarity on when and how the company is going to invest. "When you don't invest in a manufacturing facility, the impression it gives is that you're keeping the exit doors open, " says a senior executive at a competitor. There are others who say that the company's entry is a trading-based one, unlikely to work in a market which is already seeing tough competition. Banerjee dismisses this as rivals trying to undermine Haier's prospects. "There are some people within the industry, who have certain issues with Haier's entry," he says, insisting that investments' will be ramped up, and Haier will not' " only set up a manufacturing unit, but also make it a supply hub for markets in the sub-continent, South Africa and the Middle East. Haier's long-term plans are certainly ambitious it is projecting India as the next largest market, after China, with at least 10% of its global turnover coming from India in five years time. "The parent sees immense potential in India and is willing to back its operations with large investments," he says. In the first phase, the brand has been launched in the north through multibrand dealers.

The range includes washing machines, refrigerators, colour televisions, microwave ovens and air conditioners. The company is sourcing its low-end range from BPL and Voltas, and is also talking with Whirlpool, Godrej and others for similar tie-ups. The high-end products like the 488- 700-litte and bottom mounted refrigerators are being imported from factories in China, Malaysiai and Thailand. In the coming month the company will enter into manufacturing contract agreements with manufacturers in different regions which can allow it sales tax advantages in various markets. Banerjee says Haier's earlier short stint was an interesting test marketing exercise and gave a good perspective on the Indian market. "The market structures are constantly changing," he says "existing players are going down and new players are emerging and then going down. That shows, there's enough room for the right kind of format," On paper, Haier's blueprint aims to break through the clutter and shake the Korean dominance off the market, Banerjee claims that the trade has already evinced a great deal of interest and the company will leverage that to achieve its objectives. He says, most big distributors and dealers, have at some point in time, visited China as part of incentive tours, "They have been exposed to Haier's size and strength, during those trips and want to associate themselves with the brand," he adds.

Yet, Haier is having to do some rigorous 'trade marketing' to woo them before it could reach out to end consumers. For instance, the company has already started bundling offers for the trade, Some of these are being passed on to consumers. According to rivals, the company has consciously chosen not to advertise as that could cause image dissonance, but Banerjee insists that such a move is purely tactical and he is doing much more to generate trust amongst the trade. "My pitch is simple", he says. "Haier is promising 100% investment back without any pressures or dumping which is so very common in this industry." Encour- aging dealers to lift only 15 days stocks and promising a better return on capital employed, he hopes, will let the the trade increase comfort levels. "The whole effort is to build a strong foundation for creating a network to support Haier in the future," says Banerjee. Dealers are responding well, claims Banerjee, as he believes that a1l dealers are interested in strong alternatives to companies they are dealing with: “From a dealer’s perspective, he is uncertain how long he will be able to associate with existing brands.”

But that’s only the first step communicating the brand’s offering to consumers is still to follow. “Haier is at the stage where it is building primary sales, but the real challenge will be generating actual sales to end consumers,” says the head of a rival company. In India, Haier’s clear that it will target niche segments. For instance, it has a 2.3 kg washing machine, targeted at small washing jobs, priced at Rs 6,990, and a bottom mounted refrigerator priced Rs 42,900, which are not offered by nay other brand. Although globally, Haier is a big name in appliances, with this segment contributing 70% to overall turnover, in India it wants a strong showing in CTV’s also. That’s where the company has an image building product company has an image building product and TV sets offer a foothold into households. Haier expects the ratio between CTVs and appliances to be equal in India over the next few years.

The company knows that a price plank will not work, since it's likely to reinforce the image of a cheap Chinese product. "Haier is a premium brand, however, on the basis of additional features it will be a value-for-money brand," says Banerjee. For instance,. If Haier prices its semi-automatic washing machine at Rs 6,200 against the industry average of Rs 6,000, it also offers an all-plastic body, which Banerjee says others don't. Overall, Haier wants to build its brand on the platform of technology and innovation. Products like the bottom-mounted refrigerator that the company sells is based on the insight that consumers use the freezer less often and its placement at the top means a person has to bend down every time he wants to use the food storage compartment. Putting the freezer at the bottom makes it easier on the consumer.

Similarly, it has products like a TV that shuts off if someone gets within a preset range-a help for households with children who may sit too close to the set -and ACs that focus on the part of the room where someone is sitting. But competition says there are still snafus: The chief of one home appliance MNC says the bottom-mounted refrigerator is just not ‘tropicalised', and Haier's CTVs had snags on the first day of launch. There are few distributors who have already started complaining about non- availability of certain models which have been shown to them in the catalogue.

According to Banerjee, Haier has the ability to develop 1.3 new models every day and has some 13,000 models in 38 product categories. "Haier is a brand which has given global players a run for their money and there's no reason we can't create that position in India, where consumer insights play an even more crucial role," he says. Even though the sceptics are at work, there are some who would reserve their verdict, given Haier's global credentials. They believe Haier reminds them of LG and Samsung of 1995. Although those were different times, Haier is a player of a different stripe as well.

'A season of achievements'

Exchange4Media, January 5, 2005: For TK Banerjee, president and CEO, Haier India, this has been a season of achievements. In December, the Chinese home appliances and consumer electronics major completed its first year in the India market and has been on track with the set target.

A Chartered Accountant by profession and a fellow member of the Institute of Chartered Accountants of India, Banerjee has held various important corporate positions. He has served as Marketing Director of JK Industries, and Managing Director of IFB. He had a very successful career in Godrej Group for 21 years and at the time of leaving in 1998, he was Executive Vice-President and Business Head for Refrigerators at Godrej GE Appliances, a joint venture between the Godrej Group and General Electric Corporation.

Banerjee has a lot of extra-curricular interests, and his best relaxation is playing golf or tennis over the weekend. He is also very fond of travelling and has the distinction of covering almost two-thirds of the world across continents either for business or for pleasure.

In conversation with Malini Menon of exchange4media, Banerjee speaks of the ‘Indian experience’ with Haier and the ambitious plans ahead, which include a manufacturing unit and R&D centre and, of course, the group’s plans to enter into the mobile handsets market. Excerpts:

"We have stuck to our premium pricing strategy. We are not interested in the numbers game and are more bothered about how consumers perceive us. We have not compromised on quality despite pressures in the marketplace. Our brand message is ‘Inspired Living’. We also did a very simple brand communication -- that Haier is a global player. We are not ashamed of the fact that we are born in China. In fact, our strength lies in the fact that we have conquered the world. "
-- TK Banerjee, President and CEO, Haier India

Q. This has been Haier’s first year in India. Tell us about your marketing experience.
Ans: It has been pretty exciting. Indian consumers are a fascinating class. You will see certain behavioural patterns in India that are unheard of in the rest of the world. For instance, if an Indian consumer goes to buy a TV set, his or her main focus is the level of sound that the TV set produces! Probably, the emphasis is certainly not on the gizmos, which consumers across the world would be looking into. Then again, in India 80 per cent of refrigerators sold are direct cool, whereas in the rest of the world direct cool fridges are a thing of the past. These are very interesting aspects that we noticed. Moreover, bringing a brand to India that has so much of cultural diversity was itself a very challenging task.

In terms of sales, it has certainly picked up. In the first seven months of 2004, we were primarily focussed on the northern region. This was a strategic decision because as a brand coming from China with very little exposure to the Indian market, we wanted to be very sure that the brand communication, product offering and marketing strategy were properly appreciated. Therefore, we wanted a solid footprint first in the northern region. Once we consolidated in the north, we moved south in the next few months.

So, from August onwards, we have spread to the rest of the country. And we are on the right track and have succeeded in reaching our target of Rs 300 crore. Over the last five months, we have made our presence felt all over the country. We have more than 2,000 dealers as of now across the country. We will be expanding our dealer base to cover the class one and class two towns next year.

Q. What is that one marketing strategy that really clicked for you?
Ans: One unique initiative that we have taken is to offer a comprehensive range of products. When we started, it was with appliances. We have a very large market here and the products had to be such that they suited the pocket of every customer. Secondly, we began with a cash-and-carry policy with dealers and distributors. It’s a business model that ensured the best return on investment as it did not involve dumping, a practice that is very common in the industry.

Thirdly, our brand communication was very tactical. It helped us to position our brand with a value-added status. We profiled the brand in such a way that the brand became associated with a certain premiumness.

Another important factor behind our quick market acceptance is that we were able to roll out a very good range of products with excellent quality and features. We brought in certain unique features, which the Indian consumer was not used to. We were the first to introduce a bottom-mounted refrigerator, where the refrigerator is on the top and the freezer is at the bottom. W coined the punchline ‘Jhukna mat’ (do not bend). This is a highly featured product and has definitely enhanced Haier’s image. It may not have sold in lakhs but has certainly brought us in good light. Also, we are the first to launch a non-detergent washing machine where the washing takes place through ion action.

Q. Can you specify the product bouquet and the categories that you have entered the market with?
Ans: In appliances, we have 17 models of refrigerators – from 60 litres to 689 litres. We have washing machines from 6 kg semi-automatic right up to 9 kg semi-automatic. Then we have a fully automatic range starting from 2.3 kg, which is primarily for single member households, say bachelors or single girls. All together we have 15 models of washing machines, which include the recent addition of the non-detergent washing machine. In the AC category, we hve introduced very high-end split Acs. Next year we will come in with a very strong range of window ACs. We have offered eight models of airconditioners and nine models of microwaves. Then we have dryers and dish washers. We also introduced TVs in October. A range of 16 models varying from 14 inches to 46 inches plasma is available. We have a range of five DVD players, two of which are home theatres.

Q. Considering that LG and Samsung have already penetrated most parts of the country, how do plan to deal with the competition?
Ans: Let me put it this way. The market is expanding and it is yet to reach full maturity. So there is always a huge opportunity for new players. For example, in any category, let’s say consumer electronics, the market leader three years back has gone into oblivion and there is a new market leader now. It all depends on how well you drive your business, how well you understand the consumers and accordingly introduce value-added services for them. The opportunities are still there. The TV market has grown to nine million and refrigerators to four million. Therefore, there is no reason why a global leader with proven technological strengths cannot find a footprint.

Q. There is a strong perception that Chinese products are generally low-priced and of poor quality. How are you countering this notion?
Ans: Well, one of the challenges for Haier was knowledge management among consumers. I think this notion is totally unjustified and totally uncalled for. It is a misplaced notion because the same Indian consumers are purchasing any number of premium products of Chinese origin. Today, in India almost 80 per cent of mobile phones, irrespective of the brand, are manufactured in China. In fact, everybody is importing from China. Even the Koreans are importing microwaves from China. Except a couple of manufacturers, almost everybody brings split ACs from China. You look at Sony products, most of them have come from China. This is a very wrong perception about Chinese product quality and it is the handiwork of a few unscrupulous traders. They are the ones who bring in the worst products from that country to make a fast buck.

Technologically, China is among the top manufacturing countries. Today, it is China which has launched Gen-Nex Internet. What matters is who brings what to the table. In the fifth year of Haier’s US operations, it has become the third largest player in airconditioners.

Moreover, we did a very simple brand communication -- that we are a global player. Haier is a global player and we are not ashamed of the fact that we are born in China. In fact, our strength lies in the fact that we have conquered the world.

Q. You entered India as a premium brand. Was this is a tactical move to prove that Chinese products are of good quality?
Ans: Yes, that is just one of the strategies. Price is not an absolute figure; it’s something that is relative to what you offer. We are providing value for money to our customers but if you compare, then you will find us perhaps highly priced. That is something that we have been following consistently. We have refrained from lowering the quality to offer lower prices. We have stuck to our premium strategy. We are not interested in the numbers game; we are more concerned about how consumers perceive us. We have not compromised on quality, despite pressures in the marketplace. In fact, depending on the quality of the products we bring in, we might marginally go up in the price scale in certain categories. Our brand message is ‘Inspired Living’. This has been the essence of our brand communication.

Q. You have plans to enter the mobile phones market. What is the status?
Ans: We are ready. We will launch Haier handsets in mid to end-January 2005. We are working out certain logistics. We have a strong plan and are looking at selling at least half a million handsets in 2005. We would start with GSM handsets; CDMA sets would follow subsequently. The marketing strategies for the two would be different. One will work on distribution channel and the other will tap the institutional segment. We will initially launch six models and increase it gradually. Even in the entry segment, our handsets will be priced slightly more than other brands because we will be giving more features.

Q. You had said earlier that Haier plans to set up manufacturing facilities and an R&D centre in India. What s the status on this front?
Ans: We will have our own manufacturing facility in India in 2005. The manufacturing unit will primarily be for television sets and, of course, there will be an R&D centre. We have not yet zeroed in on where the facility will be located. The R&D facility will also happen next year. The manufacturing unit will start with television production at first, and then we will expand to other products in phases.

Q. This means you are also looking at indigenisation…
Ans: Yes, of course. India is basically a market for low-end products and for that indigenisation has to be to the extent of 90 per cent. In some products it will be 100 per cent. There is no need for us to make direct cool refrigerators with imported compressors. So we are looking at significant indigenisation.

Q. You have plans to make India a sourcing hub…
Ans: Yes, that is our plan and one day it will. This is our dream and we are working towards that.

Q. How are you going about your operations here? Is it third party tie-up with manufacturing units as of now?
Ans: Currently, we are using third-party facility under our direct quality control for assembling our TV sets. All our other products are being brought in from China as CBU (completely built units). Of course, for direct cool refrigerators we have manufacturing contracts with Whirlpool and Voltas. Everything else is imported as CBU. The good thing about India is that it makes very good quality TV picture tubes.

Q. Tell us about Haier’s retailing strategy?
Ans: We have a dual strategy to reach out to consumers: through a network of direct dealers and, in the smaller towns, we have distributors. Our responsibility is to take care of the in-shop branding in the retail outlets. This is a very crowded segment and the market is highly fragmented. However, it is difficult to get a good footprint in multi-brand showrooms. Therefore, we have come up with exclusive showrooms called Planet Haier where we showcase our entire range of products. In Delhi, we have five such showrooms. We hope to set up Planet Haier showrooms in Bangalore and Chennai too. In Kolkata, we have two showrooms, and a third will be set up soon. In Mumbai have one and are trying to set up a second one. Overall, we have focussed on metros this year. It is upto the consumers whether they want to buy from our showrooms or from a multi-brand showroom.

Haier to expand network in State

Decan Herald, December 15, 2004: The company, which plans to make India as a sourcing hub, plans to come up with more ‘India-centric’ products as also set up a R&D Centre in the country.

Haier Appliances India Private Limited, wholly-owned subsidiary of the $9.2 billion China headquartered home appliances and consumer durables giant — Haier Group, plans to expand its network in the State with its range of home appliances and consumer durable products.

Haier India, currently has network of 80 dealers in Bangalore city alone.
Talking to Deccan Herald, Haier India President & Chief Executive Officer T K Banerjee said it has been conscious strategy of establishing their presence in a particular city and later expanding their presence into other parts of the region.

Haier India entered in India in December 2003, but began its official operations in January 2004, in North India. The strategy was to see that their business plan is validated in one region and later move on to other areas.

Stating that the Indian consumer durables market was heavily overcrowded and there was need to create space for themselves, Mr Banerjee said, this brand positioning involved creating technologically advanced product and making it available at various price points.

For example, Haier has launched 17 different models of refrigerators from the top end to lower end wanting to be at both end of the market spectrum. Today, Haier has its presence in 60 cities across the country. Mr Banerjee said they plan come out with more “India-centric” products and establish a R&D centre in North India very soon.

The R&D centre would initially work on products like colour televisions and refrigerators which will cater to the Indian consumers. For example, research has revealed that Indians for their refrigerators require large container space and less of freezer compartment unlike the western models.

As part of their long-term plans, Haier India also plans to make India as the sourcing hub. They will be soon starting a CTV and refrigerator assembly plant and have got manufacturing contracts with Whirlpool and Voltas. Mr Banerjee said they would set up their manufacturing plant in the country, once they have built up substantial volumes.

Brand Wagon: Chinese firm eye M&As in US, Europe

The Times of India, New York/Hong Kong, October 26, 2004: Chinese companies are starting to pursue North American and European electronics and consumer brands as their government pushes them to build global sales forces for their low-cost products.

These companies are targeting businesses that have strong brands or technologies but are lagging behind larger competitors with lower manufacturing costs, bankers and lawyers said.

“They are rapidly expanding out of the area that was the first focus, which was getting a hold of natural resources and other raw materials,” said Jack Lange, a partner at law firm Paul, Weiss, Rifkind, Wharton & Garrison.

“There is the desire to get a hold of a global brand, a desire to get a global distribution network, the desire to get technology or in some cases the right to use technology,” he said.

Lange, who is based at the firm’s Hong Kong office, recently worked on two consumer electronics deals that bring low-cost Chinese manufacturing to global brands.

TCL International Holdings, a Chinese television and cell phone vendor, formed joint ventures earlier this year with two French companies, consumer electronics manufacturer Thomson and telecommunications company Alcatel.

Those deals contrast with more traditional ones, such as the recent $5bn bid by state-owned China Minmetals for Canadian mining giant Noranda. The number of deals can only increase, industry players agree, although they differ on their estimates of the pace at which that will occur.

Companies like China’s No 1 steel maker, Baoshan Iron and Steel, or Baosteel, and top appliance maker Qingdao Haier are among those expected to buy assets overseas.

“I think (Chinese companies are) very seriously looking at North America and Europe because they think they’re the highest quality assets,” said Leon Meng, head of China M&A for JP Morgan.

Overseas merger and acquisition activity by Chinese companies is on track to surpass ’03 levels this year, according to research firm Dealogic. Through mid-October, there were 43 overseas deals, up from 39 for all of last year. The total value of the deals was $1.9bn, compared with $2.2bn for the full year of ’03.

This growth comes amid a stronger M&A market overall, as deal values have increased 78% in the Americas and 25% in Europe in the first nine months of ’04 from a year earlier, Dealogic said. Trying to stimulate overseas corporate investment, Beijing in the summer circulated a list that detailed buying opportunities like auto parts makers and software developers in the US.

Carton they are all lined up

The Times of India, October 17, 2004: Constant pressure on bottomlines, entry of new players in a largely static marketplace and swinging consumer purchase preferences -- indeed, for the Rs 20,000-crore consumer durable industry, the most critical quarter of the year in terms of sales is back.

And with all that razzmatazz that goes along: new players and offerings, freebies, exchange offers, revelry and rivalry.

But you’ll have to look closely at the developments in the market this festive season to see the changes. A few Chinese dragons have been rearing their heads over the Korean giants who have almost established their supremacy.

For those who wrote RIPs to the Chinese brands, TCL is back and Haier has finally entered with a new tag—second largest appliance maker in the world. Then there are some who are relaunching like Anchor Daewoo.

As for Indian brands, Videocon Group is kicking around with its roster of multiple branding and BPL, which was expected to hit the market this season after two years of financial crisis, is still nowhere to be seen. The Japanese are still in their ‘brand is supreme’ mode. So, from the brand perspective, Koreans will continue to rule.

Margins is a challenge that players in this industry have been grappling with for some time now. Almost all appliance makers in the country are in the red, so at least for them cutting prices is akin to suicide.

In electronics, upward price revision is something the current generation of marketers have never heard of and are unlike to do so this time.

Nevertheless, with the product priority basket of consumers swinging heavily towards new age products, including mobile phones, the challenge is to be heard in the clutter.

So, let’s start with the decibel levels. According to industry figures, all the brands combined together are estimated to spend around Rs 400-450 crore on a variety of promotional activities against last year’s Rs 250 crore.

But hang on, a big chunk of this is through imputed costs of gifts and promotions on the point of purchase and so, advertising industry doesn’t have a reason to rejoice.

Korean durable major LG Electronics alone has earmarked Rs 100 crore for gifts and promotions as against last year’s Rs 62 crore, and has launched its mega ‘Dhoom Macha De’ offer which entails assured gifts on every purchase of LG products.

Adding to the excitement of the festive mood would be LG cricket brand ambassadors who would be paying a visit to lucky LG customers.

LG’s Korean counterpart Samsung, too, has doubled its festive budget to Rs 100 crore as against last year’s Rs 50 crore and has come up with the ‘Samsung Pinning To Winning Offer’, whereby the consumer stands to win an assured gift on the purchase of any Samsung product.

Says R Zutshi, director, Samsung India Electronics, “The concept of gifting will never loses its charm. The consumer always wants to look at the extra benefit with every purchase made.” Salil Kapoor, head, marketing, LG Electronics, echoes the sentiment: “Promotions help catch the attention of customers and generate an excitement around the brand.”

Similarly, Philips India has earmarked Rs 20 crore for advertising and promotional activities this time, while Mirc Electronics, which operates under Onida and Igo brands, is giving away prizes worth crores, including 10 Mercedes-Benz, with every Onida product.

Chinese entrant Haier has set the ball rolling in its first festival period in India with its ‘Zindagi Ka Trump’ offer. It has earmarked Rs 10-12 crore for offering gifts to customers. And the list is endless.

Even Electrolux, which earlier kept itself away from mega promos, has come out with an offer, though of a different kind. It plans to spend Rs 20 crore on advertising and promotion, which is 20% more than the last year. Says Ajay Kapila, vice-chairman, sales and marketing, Electrolux India: “As a part of our ‘Great Products Dream Prices’ promotion, we will be offering our select aspirational products at breakthrough prices to our customers.”

Whirlpool India, too, has launched ‘Apni 6th Sense Aazmao, Lakshmi Ghar Laao’ promotion and set aside Rs 4 crore for promotional activities. Says Arvind Mediratta, veep, marketing, Whirlpool of India Ltd, “The homemaker stands to win either a Whirlpool appliance or even a cash prize of Rs 1 lakh.”

But does it make sense to splurge when you are in losses? Analysts say that howsoever bad the situation be, consumer promotions during the festive season is an indispensable part of October-December quarter.

“No company can withdraw entirely from mega promotions, and one would do so only at one’s own peril,” says R Venkatesan, principal economist, NCAER.

Corporates, in fact, have realised the fact that discounts, gifts and promotions go hand-in-hand with the festive season. So whether loss or profit, a substantial amount is earmarked for the festive season at the start of each year. Interestingly, some even say this expense is a kind of an investment because promotions and discount help in driving up the sales.

In fact, last quarter sales targets are the highest among most of the categories. LG Electronics, for instance, is eyeing a turnover of Rs 1,300 crore during October-November, which is 44% more than last year’s.

Samsung, too, is hoping for sales in excess of Rs 500 crore as against Rs 375 crore last year. And so are others. Says P N Dhoot of Videocon: “We expect to sell 3 lakh CTVs and 25,000 washing machines during November 9-16. Appliances may not grow that fast, yet we expect around 25-30% growth in sales.” Electrolux has targeted a 30% increase in sales compared to last year.

In fact, the durable market this year has had a poor run with almost all categories of products showing disappointing offtake. The festival season, which actually began with Onam in Kerala, however, brought some cheer, though a subdued one. But there has been some sentiment revival since then.

According to the latest IIP data, the index for consumer durable products showed a remarkable increase. This was quite expected as companies start piling up their warehouses a month or two before the onset of the season and the production figures indicate that this year again the demand will pick up.

White good companies line up Korean crackers this festival season

The Times of India, New Delhi, October 14, 2004: Forget Sivakasi, it will be Korean crackers this festival season in the consumer durable industry. While margin pressures have forced most consumer durable biggies to seek a bigger bang for their bucks during this festival period, it is the Koreans who are going to increase the decibels gap.

A comparison of marketing and promotional budget for major brands reveal that while it has either stayed at the same level or inched up marginally in most cases, for Koreans, it has recorded a sharp jump.

Take LG for instance. The market leader in most categories of products has upped its total marketing budget for the three months of October-December by 60% to touch an astounding Rs 100 crore.

Samsung also has budgeted a similar figure for Oct-Nov period from a level of just Rs 50 crore last year. The company, however, has added mobile phone as a category to its overall budget.

Said Salil Kapoor, head of marketing at LG Electronics, “We have revised our sales target by a high percentage and it requires requisite marketing support.” Infact comparison of overall marketing budget (read consumer hoopla) during the quarter against the sales targets for respective companies reveal that in most cases brands are looking for more returns from the money they throw at consumers.

Among the other major players, only Videocon and Electrolux have budgeted any significant increase — 20% each — in their marketing spend for the festival period.

According to V N Dhoot, chairman and managing director of Videocon Group, “Our budget has increased from Rs 25 crore to Rs 30 crore. Contrary to perception, we have also not decreased our exposure in cricket and are spending Rs 10 crore for the four tests against Australia.

” However, if we consider the marketing budget to sales target ratio for companies then the biggest moolah is being spent by Haier which has entered the market recently and for the appliance major this year will be the first festival period. Its ratio is pegged at 25%.

The ratio for Videocon Group in this quarter stands at 4.28%, 5.1% for Mirc Electronics which operates under Onida and Igo brands, 3.3% for Godrej Appliances, 16.6% for Electrolux, 17.4% for Samsung and 7.7% for LG.

Get serious about marketing: Guru Kotler

The Times of India, Mumbai, October 12, 2004: The guru of marketing Philip Kotler feels that there is very little accountability in marketing. Addressing a seminar organised by Indiatimes in Mumbai today, Mr Kotler said marketing is more important than production and Indian companies are not paying enough attention to it.

Indian companies should take a leaf out of the book of Chinese consumer goods major Haier, he said. While most Chinese companies are playing the price game, Haier has positioned itself as a quality player, he said. “The name Haier has also helped it as it sounds German and in the US, Germany is associated with quality engineering,”
he added.

Kotler has his own four Cs ready for making India marketing savvy: capital, cost, capability and consumers. Elaborating, he said, the company needs to invest capital into infrastructure if it wants to attract more investment into the country.

India has a cost advantage on certain labour intensive products for another 50 years. India also has the engineering capability which distinguishes it with China. “ While China represents brawn, India represents the brain,” he said. Moreover, India has a consumer base for mass production and taking things global.

But in the same breath he added that all this was not possible unless and until Indian companies realised the importance of brands and markets.

Marketing is disappointing in India, he said. There is a great deal of waste in marketing, Which is why marketing budgets should be closely scrutinised and approved only if they result in gains, tangible or intangible, he said. “I remember a company spending more than $ 2m on a 30 second ad spot on the US superbowl, I am sure that the money could have been better utilised somewhere else.”

Kotler also came down heavily on the role of marketing departments in most organisations. “Most organisations feel that the role of the marketing department is to plan promotions. I once asked the vice president of marketing in an airline company whether he had any say in the inflight food service, or on the behaviour of the stewards, or on the cleanliness in aircrafts, or on the price of tickets.

He said all these things were handled by different departments.” If the marketing department is not going to be involved in the four Ps of marketing then it should not be the marketing department, he added.

The role of the marketing department is not to plan promotions, there are specialised consulting firms which can do it much better. A marketing department should also determine the pricing, product and place ( distribution), he said.

While Kotler did not have any pat answers for the various questions raised, he expressed his concern about India not creating brands. “India should not fight the price/commodity game and they should look at creating brands as the value lies in brands.” He cited the example of Starbucks and Harley Davidson. Kotler stressed the importance of building brands and talked about the methodology which can be followed for building them.

Haier India to make India sourcing hub

The Hindu, Chennai, October 10, 2004: Home appliances major Haier India Pvt Ltd has plans to set up a colour TV assembling unit near Delhi over 2-3 years as part of its strategy to make India a sourcing hub for South East Asian, West Asian and African markets.

The company is also planning to establish an R&D facility in North India early next fiscal by investing 2-3 million US dollar, T K Banerjee, president and CEO of Haier India told reporters, after launching its range of colour TVs, DVDs and home theatres here.

He said the company was looking at a capacity of one million units for the proposed colour TV assembling unit and the investment would be in the range of USD 4-6 million."We hope to start working on the project in the second half of next fiscal," he said.

Haier India to launch cell phone handsets

ChennaiOnline News Service, Chennai, October 9: Haier India Pvt Ltd will launch its cellphone handsets in India by early December, its president and CEO T K Banerjee said today.

"We are testing 80 (handset) models in different regions in India. We will launch the handsets in India by November-end or early-December," he told reporters here.

After deciding on the handset models to be introduced in India, the company will give the "green signal" for manufacturing the handsets at its units in China, Banerjee said.

To begin with, Haier India will introduce handsets for GSM service. In the next stage, Haier India plans to launch the handsets for the CDMA services, he said.

Haier India is the 100 per cent subsidiary of Haier Group, which has its base in China with a turnover of USD 9.2 billion.

Haier to bring in Thai goods

The Times of India, Ahmedabad, October 7, 2004: Forget made-in-China products, says China’s largest durables-maker Haier. The company has, instead, decided to flood the Indian market with made-in-Thailand TVs and refrigerators, thanks to the free trade agreement (FTA) India signed with Thailand recently.

Haier Appliances (India) Pvt Ltd president & CEO T K Banerjee told ET that, initially, imports from Thailand would form a big chunk of its product portfolio.

The company’s parent is finalising a $200-million investment plan for India, which includes an integrated manufacturing plant. “We will import 15% of our requirement from Thailand,” he added.

Haier to Invest in Indian Plant and R&D Center

PTI, October 6, 2004: Home appliances maker Haier India announced it would invest up to U.S. $8 million to set up a manufacturing unit and R&D center in the country.

"We have decided to invest U.S.$3 million to $4 million for the manufacturing facility and another $3 million to $4 million for an R&D center here," Haier India President and CEO T K Banerjee said.

The manufacturing unit of the Indian arm of the China-based Haier group will be operational by March next year. The company has yet to decide on the location of the R&D center.

Haier India aims to sell half a million color TVs next year and 100,000 units in the next 3 months. Apart from color TVs, the company will also sell DVDs and home theatre systems.

According to Mr. Banerjee, the company's appliances have received an enthusiastic response across India, prompting the decision to introduce color TVs.

The majority of the products would be manufactured locally through strategic partners, leveraging on Haier's global standards on design, quality control and product aesthetics, he said.