Chapter 12 Zhang Ruimin's Discussion on the Internationalization of Chinese Enterprises

Review background: Zhang Ruimin's thinking about internationalization in 2005 was profound and urgent. In 2004, the 20th anniversary of Haier's establishment, Haier held a grand celebration on December 26, the anniversary of its establishment.All the attendees could feel that 2004 will be a watershed in the history of Haier's development. In that year, Haier's global turnover reached 100 billion yuan. The theme of the Entrepreneurship Day Symposium was "20 years, 100 billion yuan, the world's Haier", and the moderator was Zhou Yunjie, vice president of Haier Group.He said: "20 years represent the journey of Haier from small to large and from large to strong, and 100 billion represents Haier's harvest today. Haier in the world is the goal of Haier people."

It is a clear signal to deepen the "internationalization" strategy and achieve the "Haier of the world". Zhang Ruimin gave a speech at this seminar. He said at the beginning: "Haier, 20 years, 100 billion Haier in the world, why use this title? Because it expresses Haier's past, present and future more accurately. 20 years is The road that Haier has traveled, 100 billion is the level that Haier has reached now, and the Haier of the world is the goal that Haier must strive for in the future.” Haier began to implement the internationalization strategy in 1998. To be more precise, Haier's internationalization strategy stage was 1998-2005, and Haier started the globalization strategy stage in 2006.The characteristics of Haier's internationalization are: its products are sold in batches to major economic regions and cities around the world, and it has its own overseas dealer network and after-sales service network. The Haier brand has already gained a certain degree of popularity, credibility and reputation.

Thinking all the way, looking back on the road we have traveled, Zhang Ruimin said at the seminar in 2004 that it is the same in terms of internationalization. Enter.For example, the strategy of "going out" is divided into three steps: "going out", "going in" and "going up". "Going out" is only to export products overseas; Locally recognized products must enter local chain stores, be designed locally, and serve local users; "going up" means becoming a local famous brand.To use a metaphor, "going out" means studying abroad, "going in" is equivalent to getting a green card, and "going up" means becoming a local celebrity.Therefore, there is a key breakthrough at each stage when we are doing it. "Going out" relies on forming a column instead of a horizontal line. In the United States, breakthroughs are made by small refrigerators, followed by washing machines and air conditioners, and finally the overall advancement: "Going in" is a breakthrough in building a factory in the United States. If the factory is successfully built in the United States, it will not be a problem to build a factory in a developed country. If the factory is successfully built in Pakistan, it will not be a problem to build a factory in a developing country.So there is always one key point, relying on it to break through and pull, "go up" is our final goal. The so-called world famous brand is not so abstract, it means to become a famous brand in every country. In fact, some famous brands in Europe are doing very well. , but only in Europe.

Think all the way and practice the road ahead. In 2005, Zhang Ruimin's brainstorming on the internationalization of enterprises continued and deepened. This article was written in the fall of 2005."Going out" of Chinese enterprises was a hot topic that year. After more than half a year of internationalization practice, Zhang Ruimin's international thinking has gradually matured. Shortly thereafter, on the 21st anniversary of Haier’s founding, Haier launched its globalization strategy. It can be said that this thinking is also the prototype of Haier’s globalization strategy.

Zhang Ruimin said at the 21st anniversary entrepreneurship seminar: "We have done a lot of exploration before, and our last stage is called the internationalization strategy stage. There are many similarities between the internationalization strategy and the globalization brand strategy, but there are essential differences. : The stage of internationalization strategy is to radiate to the world based on China, but the stage of globalization brand strategy is to form its own brand locally. Therefore, this point is very different. The stage of internationalization strategy is mainly export, but now It is to create your own brand in localization."

With global economic integration, Chinese enterprises are facing the new proposition of "going out", but the difficulties encountered in going out are also testing the wisdom and perseverance of Chinese enterprises. As one of the first batch of national enterprises to go global after China’s reform and opening up, Haier started to go global in the early 1990s. In 15 years, Haier’s internationalization has entered the track of a virtuous circle. How does Haier do it? A few days ago, at the "International Forum for Chinese Enterprises Going Global", Zhang Ruimin, CEO of Haier Group, expressed his experience: Haier's success lies in combining three "going global" strategies on the basis of innovation and brand creation.

Zhang Ruimin said: "Haier employs three 'going out' tactics: the first is product going out, the second is brand going out, and the third is talent going out, and the strategic basis for these three tactics is Innovation and brand creation, the three keys to "going global" for Haier are brand going global and continuous innovation capabilities: at the same time, the three "going global" are interlocking and complementary: product going global is the brand going global. The basis for going global, and talent going global is a guarantee for brands going global.”

"Chinese enterprises must have product innovation to go global, and what is more important to ensure product innovation is to have the company's innovative culture and innovative ideas. This is even more critical. Having innovative culture and ideas is like planting innovation for this enterprise Genes can generate innovative talents, innovative management models and innovative technical products.” Going global is the first step of Haier's internationalization. Without innovative products, the company will have no competitive weapon. Such a chess game is easy to lose.Zhang Ruimin said: "China's home appliance companies all rely on the introduction of technology to develop. If you introduce a technology and then use the products produced by the imported technology to compete abroad, why do you compete? It is product innovation, that is, product differentiation! If you You can't compete like everyone else."

To be able to innovate products, we must first be able to thoroughly digest the imported technology.Zhang Ruimin said: "The technology introduced by Chinese enterprises is not well digested. According to statistics, the ratio between the imported technology and the digested and absorbed technology is 1:0.07, that is to say, only 7 cents of the funds for the introduction of 1 yuan technology are used for absorption and digestion. money, while the ratio in Japan is 1:50. Chinese home appliance companies tend to fall into such a cycle: the introduction is lagging behind, and if they cannot digest it, they will fall behind again, and if there is no way, they will import again.”

How did Haier do it?Zhang Ruimin said: "In the early days, Haier determined the strategic goal of importing the first refrigerator, digesting the second refrigerator domestically, exporting the third refrigerator, and producing the fourth refrigerator locally abroad." Absorb and produce in the country, and then export products with different technologies through innovation to form competitiveness, and finally localize production in the exporting country. "In this way, it is actually very important to have independent intellectual property rights," Zhang Ruimin further elaborated, "Haier has applied for more than 5,400 patents, and the number of invention patents has gradually increased to 618 in recent years. The most important thing is that Haier participated in the formulation and revision of 86 domestic technical standards, and at the same time, two standards have entered the international standard proposal. One is the anti-electric wall technology for electric water heaters. The international standard review needs to pass five steps, and now it has passed four steps , can basically be used as an international standard; another is the dual-power technology of washing machines. There are three types of washing machines in the world, namely the pulsator type in Asia, the drum type in Europe, and the stirring type in the United States. The fourth method is China Haier's dual-power washing machine has the function of not using washing powder, which has also entered the international standard review process. Not long ago, this washing machine product was very popular when it was launched in the European market."

"If an enterprise has a product that is affirmed by international standards, and then goes abroad, its competitiveness must be very strong." Zhang Ruimin said that this is Haier's personal experience. "Innovation is the key, and this innovation should be continuous. This year Innovative products may be eliminated by others next year. To maintain continuous innovation capabilities, an enterprise needs to have an innovative culture and innovative ideas. Having an innovative culture and ideas is like planting innovative genes for the enterprise, which can generate innovative talents , innovative management models and innovative technical products. Just like the kanban management of Toyota Corporation in Japan, although the whole world is learning, no one has really learned it. Why? Because this management model has become its Corporate culture has become an idea. If learners only learn it as a management model, it can only be learned for a while, and it will not be effective for a long time. Therefore, Chinese enterprises must have product innovation when going global, and it is more important to ensure product innovation The most important point is that there must be an innovative culture and innovative ideas of the enterprise, which is even more critical." Going global of products is the foundation of going global of brands, and going global of brands is the purpose of products going global.On the basis of innovative products going global, the Haier brand going global is divided into three steps: the first step is going out, entering mainstream countries and markets abroad; the second step is going in, entering mainstream foreign channels and selling mainstream products ; The third step is to go up, that is, to truly become a local mainstream brand. Now the first step of the Haier brand going global is relatively smooth, "going global" has reached many countries such as Europe, the United States, and Japan, and there are a total of 22 overseas trading companies; "But we still have a lot of "going global" There is a big gap between them,” Zhang Ruimin said, “the competition to enter the mainstream channels of international home appliances is very fierce, and Haier has not entered much at present. Without large distribution channels, it is difficult to really sell a large number of mainstream products.” He said, ranking fourth in the United States Target's New York Air Conditioning Plaza, Haier Air Conditioning once set a record of selling 7,000 units in 7 hours, and the good effect of large distribution channels is obvious.At present, Haier's refrigerators below 200 liters occupy more than 30% of the market in the United States, becoming the first in the US market; in Japan, Haier's washing machines below 5 kg occupy the second place in the mainstream channels.Refrigerators below 500 liters are the mainstream products in the United States, and washing machines weighing 7-8 kilograms are the mainstream products in Japan. Only in this aspect can the sales be distinguished; Zhang Ruimin said, "Haier still has a very difficult road to go." It is even more difficult for "going up" to become a well-known local brand. Zhang Ruimin told such a story: Once in Germany, he asked a German wife if she knew Haier products were sold in Germany, and she said yes.Zhang Ruimin asked again, what do you think?She said it was good.When Zhang Ruimin asked her if she would buy it, she said no.Ask her why?She said I would only buy Miller, which is the best brand in Germany.Ask her why?She said that because the products produced by Miller are not called refrigerators, they are called art. Zhang Ruimin said: "A brand is so popular not only because of the good quality of the product, but also the characteristics that meet the needs of local consumers, and even the design must be in place. A product must be in the realm of 'art'. Very difficult." Regarding the brand's going global, Zhang Ruimin said that judging from the three-step trajectory and Haier's current difficulties, if there are no competitive products, the road to internationalization will be difficult.If you want to open the door of distributors with products and truly penetrate into the hearts of consumers, there is a way to get as close to consumers as possible. In other words-you are not selling a product, but selling a solution to a problem for users. In this way, users will accept and agree.Haier also does the same in foreign countries. Haier refrigerators are very popular in Pakistan because they are innovatively resistant to high pressure, and the contents of the refrigerator will not be melted for four and a half days after a power outage. This is actually a question of innovation. Zhang Ruimin believes that for Haier, if it is divided according to these three steps, Haier has only taken one and a half steps, and it may be possible to go global. There is a certain gap; it is much more difficult to go up.To go global, a brand must ultimately be supported by innovation and a strategy of creating a world-renowned brand. Continuous product innovation and rich culture and connotation are the reasons for the successful export of a brand. The third concept of Haier's internationalization is talents going out. Zhang Ruimin said that the meaning of talents going out does not mean sending Haier's current talents abroad.In fact, it is to transplant the competitive advantages and concepts of enterprises in the country to foreign countries, which is the guarantee for the company's brand to go out. "Of course, this requires enterprises to first have a competitive advantage in their own country," Zhang Ruimin said. "If an enterprise wants to go abroad, it must first gain a competitive advantage at home. If it is hard to go abroad, it is impossible to stand firm. Because companies with so many convenience resources in the country can’t become the first, or they can’t have the advantages of this product. How can they win in the fiercer and more complicated competitive environment overseas? What? It's basically impossible." If you gain a competitive advantage at home, you can transplant your domestic competitive advantages and ideas abroad.Zhang Ruimin said: "There is a saying in China that 'every row does not separate reason'. In fact, different markets have the same business philosophy. The problem is just how to meet local requirements." He gave an example: American sales manager Mike, When Haier products entered the American market, one of his tasks was to enter the top ten chain stores in the United States first. At first, he said that it was impossible, because it took a long time for Samsung to enter the top ten chain stores, and it took him a year. Time to finish, he couldn't. Later, Haier told him some innovative concepts made in China, from the perspective of innovation and concept change. Later, he accepted it and used many methods to finally break into Wal-Mart in the United States. Haier is now transplanting the common domestic management model to foreign countries.Taking the United States as an example, Haier transplanted the common concept in China and made a little modification according to the cultural characteristics of the United States. They happily accepted that concept and created local competitiveness. Zhang Ruimin said: "The domestic and foreign markets are integrated. If an enterprise has no competitive advantage in the domestic market, it will be untenable to go abroad; but if the competitive advantage it has at home is not transplanted to the foreign market, the enterprise will never be strong, and this The two complement each other." "Without Haier's domestic innovation, development and brand growth, transplanting competitive advantages and exporting ideas overseas can only be empty talk. The process of corporate internationalization and domestic development are in the same line. Continuous innovation and owning its own brand are the key foundation”, Zhang Ruimin said, “Haier’s corporate value is innovation, and creating a world famous brand is our goal. This is our unwavering goal for more than 20 years, and creating a world famous brand with an innovative spirit. The journey of Chinese enterprises’ internationalization is very difficult. We are continually working on it."