Haier 2009 Annual Report Download - page 13
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海爾電器集團有限公司 11
3.
Outlook (Cont’d)
3. Continue to take advantage of the opportunities arising from the
growth in China’s 3rd and 4th tier markets and further establish
the distribution network throughout these markets.
We will make aggressive efforts to develop the personalized products
targeted at the rural market at large in the 3rd and 4th tier markets
to better fulfill customers’ needs, since the market potential of
white goods products in the 3rd and 4th tier markets is still great.
By drawing support from some favourable national policies like the
“Rural Area Subsidized Electrical Appliances Purchase Policy” and
“Home Appliances Replacement Policy”, the Group will increase
investment based on the existing distribution network to further
extend network coverage and penetrate into the 3rd and 4th tier
markets for providing efficient distribution and support services to
a wide range of Haier’s franchised stores and retail dealers, and
then delivering competitive white goods products to end-users
through retail partners.
Given China’s 3rd and 4th tier markets are widely, geographically
distributed with differentiated regional features, the Group will
expand the marketing network deep into rural villages by innovative
means such as the establishment of two outlets in one town and
the establishment of village-level agent service stations to meet
the needs of end customers swiftly and improve response speed.
If the Group is able to establish such a service network further
into counties, towns, villages based on existing 3rd and 4th tier
market network, the Group will leverage on its economies of
scale to introduce more and more producers to this network and
further provide logistics and distribution services to producers of
other brands of home appliances and consumer electronics. The
distribution network business of the 3rd and 4th tier markets has
to be set up by integrating internal and external resources with a
cooperation-competition mindset and focusing on the creation of
customers’ long term loyalty and the customer value through service
innovation. Although it is a huge challenge, it is a new source of
business growth for the Group, and it deserves our investment
given the huge potential.