Chinese Company Haier Smart Home, the owner of the Fisher & Paykel brand is one of the world’s leading appliance brands ahead of the likes of LG Electronics, Miele, Samsung and, many of the European and US appliance brands such as Whirlpool, now they are using the Fisher & Paykel brand to grow global share in the premium appliance market.
Last year the business generated over A$51 billion in revenue globally.
Founded in 1984, as Qingdao Haier, the business changed direction in 2020 to become Haier Smart Home and among the portfolio of brands the Company owns today is Haier, Casarte, Leader, GE Appliances, Candy, Fisher & Paykel and AQUA.
This year the business delivered 7.5% year over year global growth, despite their Australian operation revenues falling 15.5% due to what the business describes as “Weak momentum and intensified price competition in Australia and New Zealand”.
The local operation as of June 30th, 2023, delivered revenues of A$630M Vs A$745 for the same prior period.
Management claim that by leveraging long term commitment to technologically advanced the group has been able to launch several cutting-edge products.
In Australia the Group launched the FPA60 built-in refrigerator and the H20 dish washer as part of their modern kitchen solution packages.
Haier also also introduced the industry’s first and only one-side T door refrigerator with large fridge and smaller freezer space. This new unit attracted wide interest from leading retailers immediately after the launch in Australia.
In addition, the local business introduced new technology to facilitate end-to-end order tracking, a move that increased the Companies operational efficiency.
One of the growth brands in the premium end of the appliance market is Fisher & Paykel who are also delivering an integrated appliance solution in a market where few brands are delivering integrated appliances up against a move by Samsung and LG who are struggling to sell their Bespoke offering with floor staff struggling between selling a design offering Vs an appliance.
Haier bought a fifth of Fisher & Paykel in 2009, at a time when it was $500 million in debt.
Haier’s bid was launched in September of that year with the business getting access to the Companies unique dish drawer dishwashers which are still very popular today.
The revised offer at the time of $1.28 per share was good enough to secure over 90 per cent ownership, triggering a compulsory acquisition under New Zealand’s laws.
This year Haier Smart Home, moved to accelerate Fisher & Paykel’s development into the luxury home appliance market in China.
Leveraging a strong user base, and an extensive distribution network, the Group was able to set up experience stores in prestigious shopping malls while collaborating with leading Asian architects and designers to provide what the Company calls “affluent individuals with social kitchens and luxury laundry solutions.”
In recent years, the company has undergone a major restructuring process to adapt to the newest trend in the appliance industry.
In 2019, Qingdao Haier became Haier Smart Home, then, in 2020, Haier Smart Home incorporated Haier Electronics Group.
It was a direct result of a major strategy shift among Chinese household manufacturers, which was to pivot away from cheap, basic appliances to smart products and this is where the Fisher & Paykel brand is helping the business to push into a more premium appliance market.
Late last month Hair claimed that their latest profit growth exceeded revenue growth, which is particularly evident in the 6.1% increase in Q3 single-quarter revenue and the 12.9% growth in net attributable profit.
The business has coined two words “premiumisation and internationalisation” as spearheading a move to grow the business outside of China during the next 12 months, including in Australia where the Fisher + Paykel brand is already a key brand at the likes of Winnings and the new Signature appliance stores.
Despite China’s home appliance market contracting by 5.2% YoY in 2022, they claim that a robust rebound emerged in 2023 and that this is helping the business going into 2024.
One standout in their latest financials was their share of the refrigerator market increased to 45.4%, while their share of the washing machines rose to 47.6%, strengthening the company’s market position in key categories where replacement is driving sales during the inflation led downturn.
in the highly competitive global market, Haier Smart Home has made a significant impact with the business starting to take share in Europe from multiple brands.
The Haier Smart Home operation in Australia saw a 5% growth in dual-branded market share, along with a 4% increase in dual-branded high-end T-door refrigerator sales in the retail channels.
