Haier Profits

14 August 2008
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Qingdao - With the sailing race underway in this coastal Olympic host city, there is an undercurrent battle on for Olympic benefits between its two most respected commercial brands. Qingdao is often referred to as China’s brand capital. It is home to one of China’s most famous beers – Tsingtao – a lucky by-product of the country’s reviled period of colonial history. It is also the birthplace of China’s largest and now internationally recongised household appliance maker – Haier.

Both brands are sponsors of the Beijing games. As such Tsingtao has secured the right to sell its beer in designated Olympic facilities while Haier’s “green” products like solar-powered air conditioners have been installed in all main Olympic venues.

With more than a hundred years of history, Tsingtao is easily China’s oldest beer brand. It traces its origins back to the beginning of the 20th century when Qingdao was a colonial port administered by Germany and its masters introduced German beer-making techniques by building a brewery. Well aware of its “colonial” and aging image, Tsingtao has tried to capitalise on the appeal of the Olympics as a celebration of youthful sport to revamp the brand. “We don’t want our brand to be seen by young people as ‘my dad’s beer’,” says Yuan Xu, marketing president of the company.

For Haier, Beijing Olympics’ official claim to “greening the environment” has provided a stage to showcase its cutting-edge energy-saving products. Company leaders seem to be pleased. ”Olympic exposure has helped us push forward our goal of becoming a ‘globalised local brand’, “says Liang Haishan, vice-president of Haier Group.

There are those too that seem to have been left out from the bandwagon of Olympic economy.  “I used to make 800 yuan (117 US dollars) a day but now because of visa restrictions and security my clients are fewer. I can only manage to make half the money,” says Xiao Jiang who sells sea shell trinkets and souvenirs at one of the stalls lining up Qingdao’s main promenade.

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