Localisation, digitisation, and consumer education will define Haier's 2024

The Indian consumer appliances market saw its premium segment failing to garner significant attention in 2023 as the purchasing power in the mid-economy went downhill. This trend emerged against the backdrop of economic challenges, suggesting that consumers were exercising prudence in their spending habits, particularly in the mid-tier economic strata.

Reflecting on this scenario, Priyanka Sethi, head of marketing, Haier India, underscores the brand's initial optimism, grounded in the expansive product reach tailored for Indian consumers, “We were quite hopeful because we were backing on the product reach that we have for the Indian consumers. On the back of our two manufacturing units in Greater Noida and Pune, we were more than optimistic about the fact that we will be providing the required product innovation in the Indian market."

She further adds, "The product strategy, the pricing strategy, and the marketing strategy that we have combines sports with entertainment, therefore we call it Sport-O-Tainment.”

The two major sporting events of the year, the Indian Premier League and the ICC Men's Cricket World Cup, brought Haier back into the game. “IPL gave us fantastic results during summer and the World Cup, coinciding with the festive season, levelled up, and since the tournament was held in India, it gave us a better visibility as well,” she adds.

According to Sethi, households with connected TVs in India predominantly fall within the premium demographic. Having successfully secured sponsorships for both the IPL and the World Cup, Haier narrowed its focus exclusively to the premium segment. The decision to leverage connected TV advertising during the IPL and the World Cup aligned seamlessly with Haier's objective of reaching this audience.

Talking about mobile as a medium, Sethi states, “Whenever we have done mobile marketing, we have been sure that we reach out to the premium cohort of people. How did we do that? We kept a target of handsets over Rs 25,000 in all our marketing campaigns throughout. So, that is how we reached the premium viewers.”

Forecast 2024

Sethi states that by wielding the influence of being one of the world's leading brands, a company gets a lot of exposure to global marketing and brand messaging, which gives it the opportunity to harmonise its global identity with the nuances of localised market strategies, ensuring a comprehensive and culturally resonant consumer experience. According to Sethi, maintaining this equilibrium in the current market is not only feasible but also essential.

In 2024, she shares that Haier’s focus on its target audience will span from the mid-premium to the high-end premium segment. In line with this approach, she underscores the critical importance of premiumisation for the brand's sustained success. “When I say premiumisation, then the target audience sitting in metro and tier-1 cities becomes important for me.”

“The localisation flavour we want to bring in with the globalisation flavour that we already have makes us look more premium and stronger in the market. Having said that, there have been no challenges when it comes to festivities or local campaigns. We adapt and localise our messaging because the global messaging that we have helps us build that kind of premiumisation for the brand,” she notes.

To illustrate her point, Sethi talks about Haier’s AI-generated Diwali campaign called #दोदोDiwaliCampaign which was rolled out during Diwali, coinciding with the World Cup fever among Indians. “Diwali is an essential time for consumer durable sales. We understand that we should communicate to our consumers then. We were also betting on the World Cup because we were one of the sponsors. The campaign reflects on how we celebrated both festivals for Indians this time and it is not only Diwali that everyone will be celebrating but also the mad fever of cricket,” she explains.

In an era increasingly dominated by AI and digital-focused products, Sethi emphasises the critical importance of educating consumers about brand innovations and the strategic utilisation of technology. According to her, a brand's ability to comprehend and effectively communicate with customers is pivotal, aiding in the comprehension of a product's utility.

Sethi also notes that beyond mere awareness, consumers should also be educated on how to efficiently use a product, as often, individuals invest in expensive products without fully understanding their enhanced functionalities. “Haier’s sales team are Haier’s advocates. When they go to install appliances, they emphasise educating the buyers as to how the functionality of this particular appliance can be put to the best use to provide the convenience they look for,” she adds.

Haier is set to embrace a digital-first approach in the coming year. Sethi affirms that the groundwork for this digital transition has already commenced. However, she anticipates that the upcoming year will see a better version of the same. “If you look at this year's strategy, both IPL as well as the World Cup investment were digital-first. We were present on CTV and mobile. That is why 2024 holds even greater promise for us, as we are set to expand our investments in various AI-related initiatives that were initiated this year.”

She asserts, “You will see Haier all over the place. There will be no place where you will not see the brand and that is the assurance I can give you right before the beginning of 2024. We are still in contemplation, but we will be targeting the premium audience in these key assets.”

With influencer marketing on the rise, she also claims that it is going to be a key strategy for Haier. There will be campaigns around influencer marketing and the company will also pay closer attention to e-commerce platforms.

In 2023, there was a remarkable surge in the adoption of connected TV, marking a pronounced shift in emphasis from the mid-premium to the high-premium segment, particularly evident in metropolitan and Tier-1 cities. The count of households utilising connected TV escalated from 25 million in 2022 to 32 million. In contrast, the overall number of TV households increased modestly, from 800 million in 2019 to 890 million.

On the other hand, the OTT space which was negligible in 2019 has grown to about 450 million in 2023. Talking about ROI, Sethi notes, “When I see that these numbers are growing in the online space, I think the bet that we placed this year of investing our money only in CTV and mobile has given us the right ROI.”

So how does Haier intend to sustain its longstanding position as a leading brand in the consumer durable space amidst all the ongoing shifts and changes in the market landscape?

Sethi elucidates, “Customer-inspired innovations, as the globalisation is hinting towards us, is being governed by global guidelines."