1. Hong Kong - Our Platform to Go Global The Hong Kong Experience in Haier’s Global Branding Strategies

2. (A) Brand Development Strategies of Haier ● Award the Medal of Quality for the first time ● Acquired and revitalised businesses with Haier corporate culture 1984.12– 1991.12(7 Years) 1991.12 – 1998.12(7 Years) ● The “three 1/3” strategy, and strategic prioritisation Going International Diversification Brand Building Since 2006 ● To create value and win international recognition Global Branding 1998.12 – 2005.12 (7 Years)

3. Strategies of Overseas Expansion Going Out （ 1984- 2000 ） Going In （ 2001 － 2005 ） Going Up （ 2006 －） “Gap-closing” Strategy “Differentiating” Strategy “Localisation” Strategy Products are exported and sold in local markets Selling mainstream products through mainstream marketing channels Localised brand-building strategy

4. (B) Development of Haier (Hong Kong) In April 2006 ， the Haier Flagship Store, housing the Haire Star-Grade Service Center and Haire Star-Grade Merchandise Shop, was opened in Hong Kong, serving as an window of communication between Haier and Hong Kong customers. Haier International Co. Ltd was founded in April 2005. Haier’s 32-inch LCD TV and 1P Split Type Air-conditioner topped the Hong Kong market in sales volume for the respective product categories. Haier became a mainstream brand name in Hong Kong

5. (C) Role and Functions of Haier (Hong Kong) HK European Union North America South America East Asia Australia Africa Southeast Asia -Trading ： Providing services to the major clients in Europe and North America -Branding ： Achieving radiating effect from Hong Kong to Southeast Asia

6. (D) Hong Kong Advantages Facilitating Development of Haier (Hong Kong) 1. Market Environment  Well-developed legal system, established and transparent market access and regulation mechanisms, to protect the legitimate rights of all market players  Free trade policy, absence of restriction on import and export, cost- effectiveness, and high efficiency.  For home appliances, international attesting certificates and test reports such as 3C, CE and CB are recognised ， facilitating introduction of new products into the market in a short time and at low cost The favourable market environment has facilitated the prompt development of Haier (Hong Kong) and the success of products of Haier brand

7. Hong Kong Advantages Facilitating Development of Haier (Hong Kong) 2. Trading Environment  Free flow of capital, information and goods  Access to a large community of European and American buyers  Access to quality providers of professional and business services The free trading environment enables Haier (Hong Kong) to develop its robust platform to serve clients all over the world

8. Hong Kong Advantages Facilitating Development of Haier (Hong Kong) 3. Policy factors  The HKSAR government provides efficient and professional services to investors in tackling various kinds of problems  An efficient and corruption-free civil service  An developed legal system to clearly define and protect the lawful rights of individuals and players of economic activities Quality and efficient service from the public sector enables Haier (Hong Kong) to grow to success

9. Hong Kong Advantages Facilitating Development of Haier (Hong Kong) 4. People Factors  Availability of talented people for enterprises seeking international development  Expertise in handling international business, making Hong Kong the centre of coordination, management and control of business in Asia-Pacific region and other parts of the world The wealth of talent provides Haier (Hong Kong) with the human resources valuable to its global strategies

10. 2006.9.8