Haier Europe: Bringing RenDanHeyi for All

The case focuses on Haier Europe, a branch of Haier Smart Home and part of the Chinese Haier Group, and how it applies RenDanHeYi, a unique management model that explains the group’s extraordinary rate of growth amidst fierce competition, with an intense focus on the local customer and keeping costs low. The challenge is to implement the system in Europe following the acquisition of Candy, in a post-Covid environment marked by soaring inflation, conflict in Ukraine, and mounting pressure on the home appliances industry to become more environmentally sustainable.

This case examines how Haier, one of the most important multinationals from emerging markets, became a leading global player in the home appliances industry. It serves as a unique window through which to observe its innovative management model – RenDanHeYi – and how the leadership team of Haier Europe translated the system (conceived in China’s cultural and institutional environment) to a European setting. The case describes the initial successful adaptation and provides the opportunity for students to discuss the main challenges ahead on the journey to implement RenDanHeYi in Europe.