Haier Strengthens Industry-leading Position with 9.05% Revenue Growth in 2019
QINGDAO, China, May 7, 2020 /PRNewswire/ -- The world's leading home appliance brand and smart home ecosystem builder Haier Smart Home ("Haier", Shanghai: 600690), hereinafter referred to as "Haier", released both its 2019 annual report and Q1 2020 earnings on April 30.
Haier's revenue increased by 9.05% year-on-year to reach RMB 200.762 billion in 2019, contributing RMB 8.206 billion to Haier Group's net profit, representing an increase of 9.66%. Meanwhile, it achieved revenues of RMB 43.141 billion in Q1 2020, a decline of 11.09%; net profit stood at RMB 1.07 billion, down 50.16%. Despite a challenging first quarter, Haier's overall performance exceeded industry averages, demonstrating notable resilience.
In 2019, Haier recorded stellar growth despite an overall decline in the domestic appliances industry.
- As smart home scenarios developed in 2019, Haier's market share across categories steadily increased, with overall market share growing by 4.4% to 23.4%.
- Overseas, profits and market share maintained a state of growth in Q1 2020, thanks to Haier's efforts in ecosystem-building, international expansion, and premium products.
- The COVID-19 outbreak greatly affected the China market in Q1 2020. Nonetheless, Haier has maintained its leading position. As health becomes a bigger priority for consumers, healthy home appliances have experienced a surge in sales. With its focus on health, Haier has been able to resonate with consumers.
- In the high-end segment, Casarte is the clear leader with 40% of market share. In 2019, it grew by 30%, with its market share of RMB 10,000+ refrigerators and washing machines reaching 40% and 75.5%, respectively.
- In the domestic RMB 15,000+ air conditioner category, Haier's market share has reached 40%.
Premium products help profits and market share double overseas
In 2019, Haier's overseas revenues grew by 22% to RMB 94.1 billion, while pre-tax profits grew by more than 30%. This substantial growth momentum is thanks to a focus on brand creation, high-end products, and upgraded e-commerce.
Currently, Haier boasts seven global brands in its portfolio, namely GE Appliances (US), Candy (Italy), AQUA (Japan), Fisher & Paykel (Australia/New Zealand), Haier, Casarte, and Leader. It has 122 factories around the world, with 54 overseas.
Experiential cloud broadcasts lead smart home ecosystem growth
In 2019, Haier launched its IoT ecosystem and smart home experiential cloud broadcast platform, paving the way for a new era of products and industry transformation.
One such example is Haier's Internet of Clothes (IoC) ecosystem, which engages 13 industries, including clothing, home textiles, laundry detergent, and leather. Haier has been able to expand its scope from washing machines to laundry services and an intelligent cleaning experience, attracting over 5,300 domestic and foreign players to help solve user needs together. As a result, Haier's ecosystem revenues grew by 68% to RMB 4.8 billion in 2019.
In the Internet of Things era, Haier will continue to explore and enlarge the possibilities of smart homes with 5G.
For more information, visit: http://www.haier.net/en/.
SOURCE Haier Smart Home
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