Comprehensive Study on Haier’s Retail Operations
and Business Strategy.
Chapter: 01 Introduction
PART :A Overview of retail industry
Retail industry refers to the sector of the economy that involves the sale
of goods and services directly to consumers for personal use. It acts as the final
link in the supply chain, connecting manufacturers or wholesalers to the end
users.
FIGURE NO 1.1
❖ Key Features of the Retail Industry:
➢ Direct to Consumer: Goods are sold in small quantities to individuals
rather than businesses.
➢ Wide Range of Products: Includes food, clothing, electronics, furniture,
and more.
➢ Various Formats: Includes physical stores (supermarkets, malls), online
platforms (e-commerce), and hybrid models (Omni channel retail).
➢ Customer-Centric: Focuses heavily on customer service, experience, and
satisfaction.
Examples
➢ Brick-and-Mortar: Reliance Retail, DMart, Big Bazaar
➢ E-commerce: Amazon, Flipkart, Mitra
In essence, the retail industry plays a crucial role in the economy by generating
employment, facilitating consumption, and contributing to GDP.
❖ How to Retail industry works
The retail industry works as the final step in the supply chain, delivering goods
and services directly to consumers. Here's a simplified breakdown of how it
functions:
1. Supply Chain Flow
o Manufacturers: Produce goods (e.g., clothes, electronics).
o Wholesalers/Distributors: Buy in bulk from manufacturers and sell in large
quantities to retailers.
o Retailers: Buy smaller quantities from wholesalers or directly from
manufacturers and sell to customers in small units.
2. Retail Operations
o Inventory Management: Retailers stock a variety of products based on
consumer demand.
o Pricing Strategy: Set prices that cover costs and attract customers while
maintaining profit margins.
o Merchandising: Display products attractively to influence buying decisions.
o Customer Service: Provide assistance, returns, and engagement to build
loyalty
Sales Channels:
o Offline: Supermarkets, malls, department stores.
o Online: E-commerce websites, mobile apps.
o Omni channel: Integration of both offline and online for a seamless
customer experience.
3. Revenue Generation
o Retailers earn profit by buying at wholesale prices and selling at marked-
up retail prices.
o They may also earn through in-store promotions, brand partnerships, or
advertising space in physical or digital stores.
4. Technology in Retail
o Modern retail relies heavily on:
o Point-of-Sale (POS) systems
o Customer Relationship Management (CRM) tools
o Inventory tracking software
o E-commerce platforms
o Data analytics for demand forecasting
Example:
When you buy a mobile phone from a retail store like Croma or online from
Flipkart:
1. The phone was made by a company like Samsung.
2. It was sold to a wholesaler or directly to Flipkart/Croma.
3. They listed it in-store or online.
4. You buy it, and the retailer earns a profit from the markup.
Let me know if you want a diagram or flowchart to visualize this better.
❖ Advantages of the Retail Industry (Detailed)
▪ Convenience to Consumer
Retail outlets, both physical and online, make shopping more accessible
and efficient. Consumers can purchase products anytime (via e-commerce) or in
person, saving time and effort. The proximity of local retail stores adds further
ease, especially for daily-use items.
▪ Employment Generation
The retail industry is labor-intensive and creates millions of jobs across
various levels—store managers, sales associates, cashiers, delivery personnel,
inventory handlers, and customer service executives. This employment is critical
in both urban and rural areas and includes skilled, semi-skilled, and unskilled
workers.
▪ Contribution to Economic Growth
. The retail sector significantly boosts a country’s GDP by promoting trade
and consumption. It acts as a major engine for growth by stimulating production,
improving logistics and transportation networks, and encouraging investment in
infrastructure and real estate
▪ Wider Consumer Choice and Price Competition
Retail businesses offer a wide range of products and brands, allowing
consumers to compare features, prices, and quality. Healthy competition among
retailers leads to better services, discounts, and innovation in customer
experience.
▪ Encourages Entrepreneurship
The retail sector is a fertile ground for entrepreneurs. From opening a
small grocery shop to launching an online boutique, individuals can start
businesses with minimal investment. Franchises and retail chains also empower
individuals to own and operate outlets under established brand names.
▪ Efficient Supply Chain Integration
Retailers play a key role in ensuring that products reach the end
consumer efficiently. They manage inventory, forecast demand, and collect
feedback, which helps manufacturers improve product quality and design. This
smooth flow enhances customer satisfaction and reduces waste.
▪ Boosts Rural and Urban Development
Retail development often drives infrastructure upgrades in underdeveloped areas.
Here are the key strategies used in the retail industry to attract customers, boost
sales, and stay competitive:
▪ Supports Digital and Technological Growth
Modern retail integrates technology through POS systems, mobile apps, online
stores, and data analytics. This drives innovation in customer service, inventory
management, targeted marketing, and personalized experiences.
Conclusion
The retail industry is much more than a channel for selling goods—it is a powerful
pillar of the economy. It connects producers to consumers, creates jobs, fosters
entrepreneurship, and enhances the quality of life by offering convenience and
choice. With its ability to adapt to technological advancements and evolving
consumer preferences, the retail sector continues to be a driving force economic
progress and social development. As it expands both offline and online, it holds
immense potential to contribute further to sustainable and inclusive growth.
❖ Disadvantages of the Retail Industry
• High Competition
The retail industry is highly competitive, especially with the rise of e-
commerce. Traditional brick-and-mortar stores struggle to keep up with large
online platforms like Amazon or Flipkart. This often results in price wars, reduced
profit margins, and pressure to constantly innovate.
• Thin Profit Margins
Due to heavy competition and high operational costs (rent, staff,
utilities, inventory management), many retailers operate on thin margins.
Discounts and promotional offers further reduce profitability, especially for small
businesses.
• Inventory and Supply Chain Challenges
Retailers must maintain the right inventory levels. Overstocking leads
to waste or markdowns, while understocking results in missed sales and
dissatisfied customers. Managing logistics and demand forecasting is complex
and costly.
• Changing Consumer Preferences
Consumer behavior is constantly evolving due to trends, technology, or
economic changes. Retailers must adapt quickly to stay relevant. Failure to meet
new expectations—such as faster delivery, personalized experiences, or eco-
friendly packaging—can lead to loss of customers.
• Dependence on Seasonal Sales
Many retail businesses rely heavily on seasonal events like festivals, holidays, or
back-to-school seasons. Off-season periods often bring slow sales, which can
affect cash flow and profitability
• Impact of Economic Fluctuations
The retail sector is sensitive to economic conditions. Inflation, recession, or job
loss reduces consumer spending, which directly impacts sales. Small retailers are
especially vulnerable to such downturns.
• Security and Theft Risks
Retailers often face losses due to shoplifting, employee theft, or cyberattacks
(especially for online stores). Managing these risks requires investments in security
systems, which increase operating costs.
• Environmental Impact
The retail industry contributes to environmental concerns through over-
packaging, excessive plastic use, energy consumption, and waste generation.
Sustainable practices are not always easy to implement, especially for smaller
retailers.
• Technology Dependence
While technology can boost efficiency, it also creates dependency. System failures,
cybersecurity threats, or lack of tech literacy can disrupt operations, especially for
e-commerce-based businesses.
Conclusion
While the retail industry plays a crucial role in economic development and
customer convenience, it is not without its challenges. High competition, low
margins, shifting consumer expectations, and economic sensitivity make the
industry complex and unpredictable. Small retailers, in particular, face difficulties
in staying profitable and relevant. Additionally, environmental and technological
concerns add to the pressure.
To overcome these disadvantages, retailers must embrace innovation,
prioritize customer satisfaction, adopt sustainable practices, and maintain
operational efficiency. With strategic planning and adaptability, even the smallest
retailers can survive and thrive in the fast-changing retail landscape
❖ Strategies used in retail industry
1.Omni channel Retailing
o Definition: Integrating offline (physical stores) and online (e-commerce,
apps) channels to offer a seamless shopping experience.
o Example: A customer orders online and picks up the product in-store (click
and collect).
2. Customer-Centric Approach
o Focuses on understanding customer needs, preferences, and behaviors.
o Use of personalized marketing, loyalty programs, and responsive customer
service to build long-term relationships.
3. Visual Merchandising and Store Layout
o Attractive displays, well-organized store design, and clear signage enhance
the shopping experience and encourage impulse buying.
o In e-commerce, this translates to a user-friendly website or app with clear
product images and descriptions.
4. Competitive Pricing Strategies
o Offering discounts, seasonal sales, bundle offers, or price matching to
attract cost-conscious customers.
o Examples include EDLP (Everyday Low Pricing) or High-Low Pricing
strategies.
5. Inventory and Supply Chain Management
o Using technology and data to maintain optimal stock levels, reduce
wastage, and ensure timely replenishment.
o Efficient supply chains reduce costs and improve customer satisfaction
through faster delivery.
6. Use of Technology and Data Analytics
o AI and analytics help in demand forecasting, dynamic pricing, product
recommendations, and fraud detection.
o Retailers also use CRM software to track customer interactions and
behavior
7. Loyalty and Membership Programs
o Offering points, cashback, or exclusive offers to repeat customers.
o Encourages brand loyalty and increases customer lifetime value.
8. Sustainability and Ethical Practices
o Adopting eco-friendly packaging, sourcing products responsibly, and
reducing carbon footprint appeals to environmentally conscious
consumers.
o Some retailers promote "green" or "organic" product lines.
9. Localization and Personalization
o Customizing products, promotions, and services based on regional or local
customer preferences.
o Helps in connecting better with customers from diverse backgrounds or
geographies.
10. Strong Branding and Marketing
o Creating a strong brand identity through consistent messaging, visual
design, and storytelling.
o Digital marketing, influencer partnerships, and social media campaigns are
widely used to engage modern consumers.
Conclusion
To succeed in today’s dynamic retail environment, businesses must go beyond
simply selling products. Successful retailers use a combination of customer-
focused strategies, data-driven insights, technology integration, and sustainable
practices. These strategies not only improve sales and customer loyalty but also
build long-term competitive advantage in an increasingly digital and demanding
marketplace.
PART :B Overview of Haier company
Company name : Haier company home appliances
Founder : Zhang Ruimin
Company type : Retail industry
Haier home appliances Indian limited wholly owned subsidiary of China
Haier group commenced operations in Indian in 2004. Headquartered in New
Delhi. the company as established itself as a permanent player in the Indian home
appliances market offering year device range of products including refrigerators,
washing machine, air conditions, televisions and water heaters.
Harrier India has developed on entrances distribution network,
comprising over 20000 dealers nationwide including approximately 2000 direct
dealer and 18000 indirect dealers. The company emphasis innovations as
evidenced by the recent lunch of the gravity series air conditioners, which features
AI approved climate control and a unique fabric finish with a focus expanding its
product portfolio and distribution channels. Haier Indian aims to achieve USD 2
billion in sales within the next 3 to 4 years supported by the significant
investments in manufacturing capacity and infrastructure.
❖ Haier home appliances private limited company
FIGURE NO 1.2
In 2007 Haier India initiated local manufacturing with a refrigerator factory. in this
facility was later expand into the company first industrial Park in India. in
aggregated in annual production capacity of 1.8 millions refrigerators and 0.5
millions units each of washing machines air conditions LED TV and water heaters.
❖ Inception of the Haier company
Arrear appliance Indian private limited a subsidiary of aerial
Singapore investment holding private limited was established in 2003 and
comments its commercial operations in January 2004 the company has
headquartered in New Delhi and as expanded it opportunities acroases major
Indian writes including Mumbai, Bangalore Chennai and Kolkata.
In 2007 hare India begin local with its first plant in Ranjangan Pune
this facilities was late expanded into an industrial Park in aggregated in 2017
with an annual production capacity of 1.8 million refrigerators and 0.5 million
unit is washing machines air conditioners and LED TV and water heaters in
2022 the company plant in greater Noida further enhancing its production
capabilities
❖ Nature of Haier
Haier Appliances (India) Private Limited is the Indian subsidiary of the
global Haier Group, a leading provider of consumer electronics and home
appliances. Established in 2003, Haier India operates as a private limited, non-
government company headquartered in New Delhi. It is a wholly owned
subsidiary of Haier Singapore Investment Holding Pte. Ltd.
• Nature of Business:
Haier India specializes in the manufacturing, marketing, and
distribution of a wide range of consumer electronics and durable goods. Its
product portfolio includes refrigerators, washing machines, air conditioners,
televisions, and water heaters, among others. The company has a significant
manufacturing presence in Greater Noida, Uttar Pradesh, and maintains a vast
network of over 30,000 sales touch points across India.
• Business Strategy and Growth:
Haier India focuses on innovation, customer-centricity, and
localization. The company has invested heavily in expanding its manufacturing
capabilities and localizing component production, with plans to invest ₹1,500
crore by 2025 for backward integration. In 2024, Haier India achieved a 33%
revenue growth, reaching a milestone of becoming a USD 1 billion company.
• Corporate Identity:
➢ Legal Status: Private Limited Company
➢ Incorporation Date: February 24, 2003
➢ Registered Office: New Delhi, India
➢ Loo pIndustry: Consumer Electronics & Durables
➢ Parent Company: Haier Singapore Investment Holding Pte. Ltd.
➢ Manufacturing Facility: Greater Noida, Uttar Pradesh
Haier India's commitment to innovation and customer satisfaction has
solidified its position as a key player in the Indian consumer electronics market.
❖ Mission and visions of Haier
FIGURE NO 1.3
Haier Appliances India Private Limited, a subsidiary of Haier Singapore
Investment Holding Pte. Ltd., operates with a mission centered on innovation,
customer-centricity, and a commitment to the Indian market. Established in 2003
and headquartered in Greater Noida, Haier India emphasizes its "Make in India,
Made for India" philosophy, aiming to deliver products tailored to the unique
needs of Indian consumers .
Mission and Vision Highlights:
➢ Customer-Inspired Innovation:
Haier India is dedicated to creating innovative products that align with the
evolving demands of its customers, ensuring relevance and satisfaction.
➢ "More Creation, More Possibilities": This guiding principle reflects Haier's
commitment to co-creating infinite possibilities for a better life with global
users and fostering industrial development with ecological partners.
➢ Smart Home Solutions: The company focuses on developing AI and IoT-
enabled appliances, enhancing convenience and efficiency in modern
Indian households.
➢ Local Manufacturing Commitment: With manufacturing facilities in Pune
and Greater Noida, Haier India underscores its dedication to producing
locally, reinforcing its "Made in India, Made for India" mission .
Through these initiatives, Haier India strives to enhance the quality of life for its
customers by delivering technologically advanced, reliable, and locally relevant
home appliances.
❖ Goals of Haier company
Haier Appliances India Private Limited, a subsidiary of the global Haier
Group, has outlined a strategic vision centered on innovation, customer-centricity,
and sustainable growth. Established in 2004, Haier India has evolved into a
significant player in the Indian home appliance market, emphasizing its "Made in
India, Made for India" philosophy.
🎯 Strategic Goals of Haier India
1. Revenue Growth and Market Leadership
Haier India aims to surpass $2 billion in annual sales and secure a position among
the top three home appliance brands in the country by 2025.
2. Expansion of Product Portfolio
The company has broadened its offerings from 5 to 11 product categories over
two decades, including refrigerators, air conditioners, LED TVs, washing machines,
kitchen appliances, and commercial solutions.
3. Investment in Local Manufacturing
Haier has committed over ₹34 billion to enhance its manufacturing capabilities in
India, with facilities in Greater Noida and Pune producing approximately 9 million
units annually.
4. Customer-Centric Innovation
The company focuses on developing products tailored to Indian consumers, such
as bottom-mounted refrigerators, zero water pressure washing machines, and
anti-smog air conditioners.
5. Enhanced Retail Presence
Haier India has expanded its retail ecosystem to over 30,000 sales touch points
nationwide, ensuring accessibility and customer engagement across various
channels.
6. Sustainability and Eco-Friendly Practices
Aligning with global sustainability goals, Haier India emphasizes eco-friendly
manufacturing processes and products that minimize environmental impact.
❖ Objectives of Haier
➢ Customer centric innovation:
To development and deliver products that are download
to Indian consumer needs combining global technology with local
insights
➢ Market leadership :
To become one of the top three home appliances brands in
India by expanding expand its portfolio on market share
➢ Manufacturing excellence:
To strength local manufacturing capabilities and achieves
background integration by investing in India production facilities.
➢ Sustainable growth:
To achieve consistence double digit growth in revenue while
reducing environment impact throw the energy efficient technology.
➢ Digital transformation:
To enhance customer experience through smart appliances
and AI divine Home solutions
❖ Key Qualities of Haier
• Innovation-driver : Know for launching India's first bottom muted
refrigerator and self cleaning air conditioners, hair focuses having or
RD.
• Customer-centric approach : offers localised solutions such as
longer refrigerator compartments for Indian cooking needs or
washing machines for specific fabric type.
• Quality assurance: products go through strength quality checks and
the brand is offer price for its durability and reability.
• Wrong distribution and service network: with over 30000 sales
touch points on a robots after sales service network ensure research
and support.
• Eligibility and adaptability: Quality response to market trends and
consumer behavior such as rising demand for smart appliances and
energy efficiency.
❖ The products product of Haier
➢ Refrigerator
➢ Air conditioners
➢ Washing machine
➢ TVs
➢ Water heaters
➢ Microsoft ovens
➢ Kitchen appliances
➢ Small appliances
➢ Other appliances
➢ Refrigerator of Haier
FIGURE NO 1.4
❖ Key Features and Benefits:
• Convertible Refrigeration:
Some models, like the HRB 683 series, feature convertible refrigeration,
allowing users to switch a section from refrigerator to freezer and
back. This provides flexible storage options for different needs, according
to Haier.
• Multi-Climate Zones:
Certain Haier refrigerators offer sections with multiple climate settings,
enabling users to store different items like dairy and fruits at optimal
temperatures.
• Adaptive Cooling Technology:
Haier refrigerators employ adaptive cooling systems that adjust to usage
patterns to maintain ideal humidity and temperature levels, helping to
preserve food freshness.
• Energy Efficiency:
Haier refrigerators are designed with energy-saving features like LED
lighting and efficient compressors, contributing to reduced electricity
consumption and environmental impact.
• Eco-Friendly Refrigerants:
Haier utilizes eco-friendly refrigerants, minimizing their contribution to
global warming, according to Haier.
➢ Washing machine of Haier
FIGURE NO 1.5
❖ Key Features and Technologies:
o Super Drum Technology:
A proprietary drum design that minimizes friction and fabric damage,
ensuring gentler washes.
o Pillow Shape Drum:
A drum design with strategically placed holes that facilitate a gentle
tumbling action, reducing abrasion on clothes.
o Smart Dual Spray Mechanism:
A feature that eliminates lint and allergens from the lid and gasket
during the rinsing cycle, resulting in cleaner clothes.
o Stain-Removing Technology:
Advanced features that help remove stubborn stains without the
need for pre-treatment.
o Various Washing Programs:
Options for delicate fabrics, heavy-duty washes, and quick refreshes.
o Energy-Efficient Features:
Designed to minimize water and electricity consumption, making
them environmentally and economically sustainable.
o Smart Connectivity:
Some models offer Wi-Fi connectivity, allowing for remote operation and
monitoring via a smartphone app.
❖ Sales of refrigerator
FIGURE NO 1.6
❖ Service and support of consumer
➢ Demo videos
➢ Trouble shooting
➢ Manual download
➢ Warranty declaration
➢ Product refrigerator
➢ Service appointment
Meaning of home appliances:
a home appliances is a device or machines used in a home to flat form specific
task after electrical into aid in the cooking cleaning or other household duties
❖ Distribution of Haier company product
➢ Understand online distribution :-
• Haier phone online store :
Harrier India as its own online store where its sales it's product
directly to consumer you could explore the possibility of being an
authorized seller on this platform
• Online retailers :
Harrier products are also available and major online retailers like
Amazon Flipkart and home Chrome you could investigate it you can
partner with this platform to sell here products
➢ Explore partnership options :-
• Become an authorized online distributor :
Harrier might have a program of authorized online
distributor check their website or contact their customer services
to ignore about this possibility
• Partner with online retailers :
Rich out to online retailers who already sell area products
to explore the possibility of becoming a reseller or a partner
➢ Understanding the requirement :-
• Legal complaints :
Ensure you are registered as a business and meet
all legal requirements for online selling in India
• Inventory management :-
You need a system to manage your inventory and ensure
timely delivery of products
• Shipping and logistics :-
Develop a reliable shipping and logistic system to deliver
product efficiently to consumer
• Consumer service :-
Provide excellent customer service to build trust and
loyalty with customers
❖ Infrastructure of area company in India
➢ Manufacturing facilities :-
o Established in 2007 and expanded into an industrial park
in 2017 with an investment of rupees 600 crore.
o Span 40 crores with a production capacity of 1.8 million
refrigerators and 1.5 million units each of washing
machines air conditioners LED TVs and water heaters
annually.
➢ Investment and growth :-
o Harrier as invested over rupees 2500 core in India to date
with plans for additional investment to support its
explanation.
o The company reported a 36 percentage revenue growth
in 2024 reaching rupees 8900 crore and aims to surplus
rs 11500 crore in 2025.
o India rank as area 3rd largest Market globally following
China and the US.
❖ Strategies
FIGURE NO 1.7
Haier India, the Indian subsidiary of the Chinese multinational Haier
Group, has been actively pursuing strategic initiatives to strengthen
its position in the Indian market. Here are some key strategic
developments:
1. Potential Strategic Partnership with Sunil Mittal
Sunil Mittal, founder of Bharti Airtel, is reportedly in advanced
discussions to acquire a 49% stake in Haier India, valued at
approximately $2 billion. This potential investment, possibly in
collaboration with private equity firm Warburg Pinups, aims to
capitalize on the growing demand for household appliances in
India. The move signifies Mittal's interest in expanding into India's
burgeoning consumer electronics sector, reflecting broader trends
of increased consumer spending and domestic appliance adoption.
2. Manufacturing Expansion in India
Haier has established a significant manufacturing
presence in India. In 2017, the company invested in constructing
an industrial park in Pune, Maharashtra, comprising five connected
plants for producing refrigerators, washing machines, air
conditioners, water heaters, and televisions. Once fully operational,
this facility is expected to have an annual output of 3.8 million
units.
3. Emphasis on Quality and Innovation
Under the leadership of CEO Zhang Riming, Haier has emphasized
product quality and innovation. Notably, in 1985, Zhang famously
smashed 76 defective refrigerators to instill a culture of quality
among employees. This commitment to excellence has been a
cornerstone of Haier's global strategy.
4. Global Strategic Acquisitions
Haier has engaged in several strategic acquisitions to bolster its
global footprint. In June 2016, Haier acquired GE Appliances for
$5.6 billion, enhancing its presence in the U.S. market. More
recently, in October 2024, Haier acquired Carrier Commercial
Refrigeration from Carrier Global for $775 million, further
expanding its product portfolio.
These strategic initiatives underscore Haier India's commitment to
growth and innovation in the competitive Indian appliance market.
