Haier VS Hisense (who rules the white good market)
White goods are domestic appliances that are used for routine housekeeping; they range from electronic appliances to manual handled tools. They could be your fridge, microwave, blender, grater, mixer and the like.
Today we look at two domestic appliance giants Haier (also known as Haier Themocool) and Hisense, they are both Chinese owned enterprises and were both founded in the Chinese province of Qingdao, Shandong Province. They are what you could call ethnic brothers.
Haier Thermocool was incorporated 35(1984) years, although its etymology goes as far back as the 1920’s when it was still Qingdao Co ( a Chinese refrigerator manufacturing facility). So you could say Haier goes way back.
Due to inefficiency the Chinese state-owned-enterprise; Qingdao went bankrupt and was later managed privately but is still partly owned by the Chinese government. They made international integration with German manufacturing company Liebherr. They began producing refrigerators as Qingdao-Liebherr. The company started with producing Refrigerators.
Hisense, on the other hand, is another of the Chinese State-owned-enterprises that has two publicly traded subsidiaries; it was founded in 1969 which is 49 years ago. It has more than 20 manufacturing facilities globally with more than 80% in China and 5% in Africa.
It started out producing televisions and it works mostly as an Original Electronics Manufacturer (OEM) which means they manufacture machines and machine parts for other electronics companies without having an affiliation with the finished product.
HAIER VS HISENSE: PRODUCTS
Haier majors in refrigerators and other major appliances, small appliances, commercial heating systems, and consumer electronics. Hisense majors in televisions and produced the first transparent television in 2014. They also major in white goods, set-top boxes, digital TV broadcasting equipment, laptops, mobile phones, wireless modules, wireless PC cards and optical components for the telecommunications and data communications industries.
They proffer services which include; property management, information technology services, product design, mold design, pattern making as well as mold processing and manufacturing.
Hisense has a larger range of services for the market; let’s see if they have had a larger control of the market.
HAIER VS HISENSE: MARKET REACH
Haier owns 10.2% of the white goods market according to Euromonitor in 2014, Haier also has a few subsidiaries and acquisitions one of which is General electric appliance division and it acquired Fisher and Paykel in 2012.
Hisense’s impact on the market does not have a specific figure but their reach can be deduced from the acquisitions and partnerships. Hisense has made a number of acquisitions including tech giant: Toshiba, Savor and Ronshen, they have also made partnerships with Sharp and Kelon. Hisense has 40 subsidiaries worldwide with its most popular being Hisense-Hitachi which is known for producing air-conditioners.
Although it may look like Hisense has an army of brand names to take over the white goods market, they are nowhere close to gaining over Haier.
HAIER VS HISENSE: CONSUMER PREFERENCE
There is no clear data to show which product consumers prefer, so having conducted a survey by looking at which product any store(online or physical would likely buy), Haier Thermocool took the baton. The reason being they are of high quality according to popular opinion. That’s only for Nigeria, you can be sure to get the same response from other African countries.
Both brands mentioned today are not just limited to the white goods market, they are both now in the mobile tech industry and produce remarkable smartphones and also laptops. They both invest immensely in technology.
Haier has been one company that has integrated the internet of things to its appliances and has collaborated with Stanford Artificial Intelligence Laboratory to manufacture smart-home products.
Hisense on the other collaborated with companies and technology transfers from brands like Toshiba, NEC and QUALCOMM all in the bid to make products smarter.