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Home » SWOT of Brands » SWOT analysis of Haier India Ltd

SWOT analysis of Haier India Ltd

July 26, 2023 | By Hitesh Bhasin | Filed Under: SWOT of Brands

Haier India Limited a subsidiary of Haier Group entered the Indian market in 2004. The company since then has been struggling to gather momentum in the India Consumer Electronics market. The Indian consumer electronics market is estimated to be $5 billion and is growing. Haier group has failed to leverage this growth. Even though the Company is among the top ten global electronics companies but Its innovation is yet not appreciated in India. The SWOT analysis of Haier India Ltd is mentioned below.

Table of Contents

  • Here is the SWOT analysis of Haier
  • Strengths
  • Weaknesses
  • Opportunities
  • Threats

Here is the SWOT analysis of Haier

  • Haier’s  strategy has been that of a start-up firm. It never tried to cash in on its MNC appeal. As a result the spending on Brand Building and Marketing have been minimal.
  • The Company has been trying to build up its Distribution Network So as to reach tier 1,2 and 3 cities.
  • As a new entrant to the Indian market, It has practiced Penetration Pricing. Hence, its focus has been on price wars with competition.
  • As a result a Push strategy has been prevalent in Supply Chain Process. Haier has been following Economy Pricing Strategy with minimum marketing expense.
  • The company has been emphasizing on Logistics and Supply Chain to tackle Bull Whip Effect.
  • SAP enabled Data Warehousing for Efficient Business Analytics and Interpretation.
  • Diversification of the distribution Network to support the entire Product Portfolio.
  • Focus on Hi–End Products as they are Profit yielding. Setting up of HEC’s to specifically cater to HI-END product.

Strengths

  • High end products are well accepted.
  • Good market share in western India
  • Strong presence in home appliances segment
  • Big distributors are stocking many of Haier’s product

Weaknesses

  • Very weak distribution network in central India
  • Weak service agent network
  • Weak logistics as a result accumulation of trade stocks and aging stocks
  • Sales seasonality in specific segments hinders growth.

Opportunities

  • North-east a potential market is still largely untapped
  • Mobiles and cellular phone market offers new growth opportunities.
  • SPIN(Situation, Problem, Implication, Need) selling strategy for HEC’s
  • Consumer electronics segment is booming and set to grow at 14% CAGR, Haier’s product offerings catering to this segment are limited
  • Tie up with big retailers will help in growth
  • High disposable income and higher number of Nuclear Families in the  society.
Also Read  SWOT analysis of WALT DISNEY (Updated 2025)

Threats

  • Medical Freezers are not selling.
  • Product portfolio is weak.
  • Overall weak distribution network compared to competitors.
  • Only selected products are selling from the entire Product Portfolio.

Liked this post? Check out the complete series on SWOT

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About Hitesh Bhasin

Hitesh Bhasin is the Founder of Marketing91 and has over a decade of experience in the marketing field. He is an accomplished author of thousands of insightful articles, including in-depth analyses of brands and companies. Holding an MBA in Marketing, Hitesh manages several offline ventures, where he applies all the concepts of Marketing that he writes about.

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