Episode18:China Giants Going Global, Haier & TCL

Early Globalization and Strategic Acquisitions: Both Haier and TCL made the decision to globalize early on, investing in manufacturing facilities in countries outside of China even when it was more expensive to do so. They also leveraged strategic acquisitions to gain expertise, distribution networks, and brand recognition. Haier, for example, acquired well-known brands like GE Appliances in the US, Sanyo in Japan, and Candy in Italy. This combination of early globalization and strategic acquisitions allowed them to rapidly establish a strong global presence. Focus on Localized Production and Targeted Marketing: Haier and TCL carefully choose factory locations based on factors like market size, labor costs, supply chain efficiency, and trade policies. This localized production approach allows them to be closer to their customers, reduce shipping costs, and mitigate potential trade risks. They also engage in targeted marketing efforts, such as sponsoring major sporting events like the French Open (Haier) and Copa America (TCL) to connect with global audiences and build brand awareness. Embracing Digital Transformation for Efficiency and Agility: Both companies heavily utilize technology to manage their global operations effectively. Haier has implemented a sophisticated digital platform that provides real-time visibility into its entire supply chain, enabling efficient inventory management, production adjustments, and cost reduction. TCL has invested in a digital collaborative platform that connects teams across departments, regions, and cultures, fostering communication and breaking down silos in their global organization. They also utilize automation, robotics, and AI-powered systems to improve efficiency and adapt quickly to changing market demands.

There are no comments yet.

Please log in to write the first comment.