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CONSUMER ELECTRONICS
Haier Aiming Higher

Haier is aggressively tapping the Indian consumer market with launch of its new AC and refrigerator models

CHETNA MEHRA
06 Mar 2008

China-based consumer electronics and home appliances brand, Haier, has expanded its
product portfolio with the launch of its new energy efficient range of air conditioners and
refrigerators in the Indian market. The company has introduced 16 split and nine new window
AC models along with nine models of refrigerators.

"Our new range of cooling products is specially designed for

Indian consumers and environment. We want to see Haier in
a leadership condition concerning these range of products," says Pranay Dhabhai, whole
team director and chief operating officer of Haier Appliances India. "Not only the R&D, we are
also manufacturing the white goods for Indian consumers in India in our recently acquired
manufacturing facility in Pune and two other third party manufacturers in Dehradun and
Haridwar. Haier is manufacturing its range of refrigerators in Pune. Washing machines and
colour televisions are being manufactured in Dehradun and Haridwar."

The new range of AC models starts from Rs 11,990 upto Rs 59,990, the refrigerators from Rs
7,500 to Rs 1,39,000. Haier's range of BMR refrigerators (bottom freezers) starts from Rs
15,990 and goes up to Rs 23,500. The direct cool refrigerators are priced at Rs 7,300 and
above.

"Our new range of cooling

products is specially
designed for Indian
consumers and
environment. We want
to see Haier in a leadership
condition concerning these
range of products," says
Pranay Dhabhai, whole
team director and chief
operating officer of
Haier Appliances India.
(sales and marketing) of Haier Appliances India.
Some models in the new range of ACs are equipped with unique Hi-performance digital DC
inverter technology that enables power saving by up to 51 per cent.
Haier is targeting a 7-8 per cent marketshare in refrigerators and 9-10 per cent marketshare
in ACs for the fiscal 2009. The company has 4 per cent of marketshare in ACs currently.
Haier has a very small marketshare in other consumer electronics such as television and
washing machine.
The company is pulling up its socks for a rigorous branding campaign. Haier will spend
around 10 per cent of its revenues on advertising and promotions. "In the coming two months,
we will spend around Rs 20 crore-23 crore on branding initiatives," says R. T. Rajan, director

Haier shall soon be announcing the hike in its product prices but the consumers may seek some relief, as the hike will be only
marginal. "The prices of raw material like steel and copper have risen considerably, thus, the hike in product prices was due
but with a slight cut of 2 per cent in excise duty may allow us, not to make any major shifts in the product rates."

Haier has a retail chain of 23 Planet Haier exclusive showrooms across the country and the company plans to open two
more. With a network of 4,000 outlets, consisting of dealers and direct distributors across the country, the company is aiming
at expanding for product availability consolidation in the Indian market. "We have an all India service network including 135
service centers and 17 branch offices, which work as spare parts ware house as well. The service centers are equipped with
6-7 technicians each, to address the consumer complains at the earliest," says Dhabhai.

Haier started its commercial operations in January 2004 from north India. In India the company's product range includes
refrigerators, air conditioners, washing machines, Colour Televisions including LCD and Plasma, microwave ovens, clothes
dryers, dishwashers, DVD players and home theatre systems.

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