Analysis of Challenges and Breakthrough Paths for Haier Smart Home's Overseas Channel Localization

Based on the information obtained, although Haier Smart Home has a huge channel resource of 230,000 sales networks worldwide, it does face multiple challenges and bottlenecks in the localization process of its overseas channels.

Haier Smart Home has established a global channel network, maintaining the first place in market share in multiple markets such as the United States, Australia-New Zealand, Japan, and Pakistan. Its market share in Australia reaches 29.5%, New Zealand 41.6%, and Pakistan 35%[0][1]. However, from the chart data of 36Kr, its overseas channel sales expenses continue to rise, but there is still room for improvement in profitability[2]. Overseas market revenue achieved double-digit growth in 2024, but improving channel operation efficiency remains a key challenge.

Consumers in different markets have significant differences in product functions, appearance design, and usage habits. Although Haier has established a ‘Trinity’ localized layout, it still needs continuous investment in precise alignment between product R&D and local needs. The successful launch of compact and efficient kitchen suites in the Southeast Asian market and differentiated high-end product portfolios in the Indian market are examples of this challenge[1][3].

Brands integrated through mergers and acquisitions, such as GE Appliances, Candy, Fisher&Paykel, and AQUA, each have independent channel systems, and multi-brand collaborative operations increase management complexity. After adding the CCR and Kwikot brands in 2024, the difficulty of channel integration further increased[3].

Although Haier has built local factories in Egypt, Thailand, Vietnam and other places to shorten delivery cycles and reduce geopolitical impacts, the diversified and balanced layout of the global supply chain requires continuous investment. How to control costs while improving response speed remains a difficulty[1][4].

Haier Smart Home is promoting the ‘Digital Retail TOC Transformation’. The HeS Smart Home Overseas Sales Integrated Digital Platform has increased the proportion of customer self-ordering by 15.4% and the average store output by 20% year-on-year[4]. However, the promotion depth of digital tools varies across markets, and there is still room for improvement in the digital empowerment of offline retail.

Haier Smart Home is strengthening its local market response capability through the construction of the ‘Four Networks Integration’ (logistics network, information network, service network, and marketing network) system, and promoting in-depth localization with countries as operational units. Its overseas revenue in the first three quarters of 2025 increased by 10.5% year-on-year, showing initial results of strategic adjustments[4]. In the future, it needs to continue to deepen the integration of the global R&D platform and localized demand insight, accelerate product iteration speed, and improve channel operation efficiency in various regional markets.

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[0] Haier Smart Home 2024 Annual Report - HKEXnews (https://www.hkexnews.hk/listedco/listconews/sehk/2025/0429/2025042903801_c.pdf)
[1] Haier Smart Home Co., Ltd. 2024 Semi-Annual Report - HKEXnews (https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0827/2024082701564_c.pdf)
[2] 36Kr - Haier Smart Home Overseas Channel Analysis Chart (https://img.36krcdn.com/hsossms/20251226/v2_5bbcef6079e747a0a06ecaa1f69ff6a3@12561242_oswg27656oswg865oswg491_img_png)
[3] Haier Smart Home Co., Ltd. 2024 Annual Report (https://smart-home.haier.com/media/vfadt23o/24年报a.pdf)
[4] Haier Smart Home 2025 Third Quarter Report (https://stockmc.xueqiu.com/202510/600690_20251031_43T6.pdf)