NEW DELHI: Grey Worldwide is likely to bag the lucrative advertising account of Chinese consumer durable major, Haier Group, which is foraying into India in a big way.
Though the deal is yet to be formally inked, in-principle it has been decided that Grey Worldwide would be looking after the advertising account of Haier. The account is said to be worth approximately Rs 150 million, according to advertising industry sources. Haier, considered to be ‘the most valuable brand’ in China, is expected to launch its operations by this year-end in India.
The Chinese consumer durable major, that has a presence in China, the US and Europe, recently got its proposal cleared from the Foreign Investment Promotion Board (FIPB) for setting up a 100 per cent subsidiary in India.
Grey Worldwide refused to share information with indiantelevision.com except for the fact that the agency had discussions with the client. “We have had discussions with them. Since the operations have not started completely yet,
we can’t comment on this,” a senior executive in the agency said. While admitting that the Delhi office had made a pitch for the Haier account, Grey’s regional office in Hong Kong too did not reveal any further information.
Haier had allotted Grey an assignment in the Chinese market and, accordingly, the discussion started taking shape even in India.
Haier was incorporated in 1984 producing household refrigerators and, over the past 18 years, has grown and prospered as a transnational company. It now manufactures a wide range of household electrical appliances in 86 categories with 13,000 specifications and export products to more than 160 countries. Haier’s global sales in 2002 totaled RMB (Renmimbi – the official Chinese currency) 71.1 billion, including an overseas turnover of $1 billion.
The Chinese company’s international promotion framework encompasses globalised trading, design, production, distribution and after-sales service networks. The company now has established 18 design institutes, 10 industrial complexes (one in USA, one in Pakistan, five in Qingdao, one in Hefei, one in Dalian and one in Wuhan), 13 overseas production factories, 58,800 sales agents and 11,976 after-sales services throughout the world. Haier’s current domestic market share for refrigerators, freezers, air-conditioners and washing machines is about 30 per cent, respectively.
The products are marketed to 12 of 15 European and nine of 10 American top chain supermarkets using local facilities and labour forces for design, production and sales in the United States and some European countries.
Haier’s goal is to obtain worldwide recognition and to become a Fortune Global 500 company.