Haier India Bets High On Premiumisation, AI Integration & IPL Engagement

Celebrating two decades in India, Haier Appliances reaffirms its commitment to customer-inspired innovation with a focus on 'Make in India' and 'Made for India.' The company introduced a new product lineup featuring smart QLED TVs, Super Heavy-Duty air conditioners, Kinouchi Black Edition Air Conditioners, Vogue Refrigerator Series, Wifi Convertible Refrigerators, and Commercial Refrigeration on the occasion.

Aligned with its new vision, 'More Creation, More Possibilities,' Haier's expansion, particularly in manufacturing capacities across Greater Noida and Pune, highlights its focus on the consumer durables sector and its commitment to the 'Make in India' initiative. 

As part of the celebration, NS Satish, President of Haier Appliances India, and Priyanka Sethi, Head of Marketing at Haier Appliances India engaged in an exclusive conversation with BW Marketing World, exploring the brand's journey, strategies and future plans.

Excerpts:

How has Haier India adapted to and capitalised on changing consumer needs during this period?

Satish: We are never focused on only business. We are focused on how we create value in the entire ecosystem. This includes employees, trade partners, and consumers. We foster a startup culture, emphasizing the thin line between passion and paranoia. We believe that satisfied customers become brand ambassadors, crucial in our high involvement category where the product lifecycle is about six to seven years. 

Our growth, 25 per cent CAGR in the last seven years, reaching from a 1400 crore company to 7000 crores, is a result of the complete ecosystem which we have, working closely with suppliers to ensure efficiency and profitability. The product has to be a hero; if your product is not a hero, nothing can be done and no amount of marketing can compensate. 

To top it up, the differentiated marketing which we have used across the platform, whether it is digital, IPL or entertainment is the icing on the cake, which we have done to ensure these things translate to a good business.

Consumer preferences have evolved over the years. How have you observed this shift?

Satish: In the initial years, consumers were less informed and if they only wanted to buy a refrigerator, dealers had a choice to sell what they wanted. Next transition, as education levels rose, customers began researching and expressing preferences for specific brands. In recent years, consumers have been more decisive, specifying the brand and even negotiating prices. This transition reflects a higher level of consumer awareness and involvement in the purchasing process.

How do you inculcate the utilisation of AI in Haier's marketing mix?

Sethi: I think there is no way that marketers can survive without AI being the buzzword these days. It is a crucial aspect of our marketing strategy.

In fact, we did the AI Diwali video launched last year, which garnered 28 million views on YouTube and Instagram combined. We have never seen any AI content giving that kind of viewership, showing the receptivity towards AI content is huge. Going forward, we as a brand are going to experiment more when it comes to creativity using AI.

Looking at expansion plans, how does Haier envision growth in the coming years?

Satish: Expansion for us encompasses multiple aspects. In terms of manufacturing, our capacity is sufficient for the next two years. We are focusing on localisation, working with local vendors to create an Asian-centric approach. Other one is working with the vendors and local suppliers.

The second expansion is in terms of the product. We are delving deeper into existing categories rather than adding new ones. For example, enhancing features in products like the Robo Cleaner which previously had basic features but now we have Robo Cleaner with memory and navigation facility.

In terms of the channel, we aim to deepen our presence in existing channels rather than expanding the number of billing points. This approach ensures we grow more efficiently and sustainably.

We are seeing the market in two different ways. One is the tail end because of the low penetration. They are first-time buyers and their needs are different. Other ones are those who are changing because of the technology. That's in the top-end bracket there. 

We foresee a future where premiumisation and volume growth will coexist. The market is robust, and consumers are evolving. Earlier the consumer was 'save now, enjoy later'; now it is 'spend now, we'll see later'.

So the changes will trigger many conceptions.

Haier emphasises the experiential aspect of marketing. How does this philosophy contribute to customer satisfaction?

Sethi: At the core, we believe that if consumers are really interacting with the products, we can give them the actual experience of the product. The experiential approach is vital in our high-involvement category. We invest in creating a tangible experience for consumers, showcasing innovations like woke refrigerators and Insta-switch jackets. The focus extends to presales, where shop floor demonstrations and trained promoters aim to provide the right experience to the consumers so that they come back and they are having that faith in the product and the brand.

Satish: Our product category involves investments from consumers and a positive experience is crucial. A brand which can give a good experience on the shop floor, explain the features and brand which can ensure the products which they sold, people use those features both while selling and while after selling. Our team of 8,000 brand ambassadors and 5,000 engineers ensures providing a seamless experience to the customers.

Looking ahead, what are Haier's plans for events like IPL?

Sethi: We have activations planned for the IPL, building on the success of past campaigns like the 'Do-do Diwali' during the World Cup as cricket is such a huge fever and religion in India. It's almost as celebratory as Diwali. So, like the World Cup, IPL is also on the charts and we aim to make festivities grander through offers and experiences.

With the increasing prominence of digital media, how does Haier allocate its marketing budget between traditional and digital platforms?

Sethi: Currently, 60 per cent of our marketing budget is allocated to digital platforms. We are going to be a digital-first company. The remaining 40 per cent encompasses traditional channels, including experiential marketing.

Finally, how does Haier envision its future by the end of this financial year?

Satish: Our vision is two-fold. Firstly, we aim to be known as a brand that serves consumers by providing quality products. Secondly, we envision a company where employees and trade partners work in a healthy and happy environment and reach a turnover of eight and a half thousand crore which we have planned. 

Sethi: As a brand, we are future-ready, transitioning from an electronics company to a complete home range solutions provider. We are a brand that believes in more creation, more possibilities. So from just being a brand, we are an ecosystem brand, ready to meet evolving consumer needs in home appliances.