Workers carrying a box containing a Haier product in Tokyo. The appliance maker expects robust sales as demand for refrigerators and washing machines grows in Japan. [Bloomberg News]
Haier Group, the world's biggest refrigerator and washing machine maker by volume, said Japanese demand will help sustain sales-growth "momentum" this year after revenue grew more than 10 percent in 2009.
The appliance maker, based in Qingdao, eastern China, forecast rising sales in Japan as consumers in the world's second-biggest economy are increasingly "putting value at the same level as branding", President of Asia Pacific operations Philip Carmichael said in an interview in Hong Kong.
Haier, with goods sold in 60 countries, bought 20 percent of New Zealand's Fisher & Paykel Appliances Holdings Ltd last year and plans more acquisitions and alliances to expand its brand. The closely held maker of freezers, air conditioners and televisions is designing a product line specifically for Japan, its third biggest market, Carmichael said.
"Haier as a Chinese company has made great inroads overseas," Jing Ulrich, Hong Kong-based chairwoman of China equities and commodities at JPMorgan Chase & Co, said in a Bloomberg TV interview. "The Haier name is becoming better known around the world day by day."
Qingdao Haier Co, the company's air-conditioner and refrigerator unit, rose 2.9 percent to close at 21.46 yuan in Shanghai trading. The stock has more than doubled in the past year.
Haier Electronics Group Co, which makes washing machines and water heaters, rose 0.8 percent to HK$4.82 in Hong Kong and has surged more than fourfold in the past 12 months.
'Very strong year'
"We had a very strong year in 2009 in Japan and we're going into quarter one now with strong momentum, new products and increased awareness," Carmichael said in Hong Kong. "I expect that momentum to continue into 2010."
Japan is the third largest market for home appliances with China being the biggest, followed by the US, Carmichael said. Haier was the world's top selling brand of refrigerators and laundry appliances by retail volume last year, according to Euromonitor International.
Refrigerator and washing machine sales by volume fell 3 percent and 7 percent respectively in the first six months of last year, according to an August report made by GfK Marketing Services Japan Ltd. Refrigerator sales by value rose 7 percent, while they fell 4 percent in the case of washing machines.
Market share
Panasonic Corp was the biggest maker of refrigerators in Japan with a 23 percent market share by volume, GfK said. Haier ranked seventh with 4 percent.
Toshiba Corp was the biggest washing-machine maker with 26 percent of the market, followed by Hitachi Ltd and Panasonic, while Haier ranked sixth with 2 percent market share, according to GfK.
Haier last year paid NZ$46 million ($33.7 million) for a 17 percent stake in Fisher & Paykel, allowing it to expand marketing and distribution rights of that company in China, and sell Haier-brand products in New Zealand and Australia.
In 2005, Haier pulled out of a bid for US appliance maker Maytag. Whirlpool Corp bought Maytag for $1.68 billion in 2006 to create the world's biggest appliance maker by sales.
Carmichael said sales would also continue to grow this year in China. "The Chinese stimulus package is driving economic activity," he said in a separate interview on Bloomberg TV.
China's makers and retailers of home appliances are benefiting from government stimulus measures aimed at boosting domestic consumption. China's 4 trillion yuan stimulus package includes cash subsidies for purchase of washing machines, refrigerators and computers.
"This is absolutely the right industry and we're quite bullish on domestic consumption stories in China," JPMorgan's Ulrich said.
