Yoshiaki Ito
Nobody makes money in appliances.
This kept running in the mind of Yoshiaki Ito when he accepted the post of president and CEO of Haier group less than two years ago.
Take the refrigerator as an example. Before a consumer purchases one, the first question asked is: “Will this last? My old ref lasted 20 years.”
How could a company make money out of a single product, which consumers want to last for decades?
This, among others, was a problem that Ito faced as head of one of the most prominent appliance brands. Formerly known as Sanyo, Haier has been in the business of making appliances for 30 years.
“What we need is an aggressive plan. We’re not No. 1 and we’re not even No. 3 yet. So we have to come up with new products that are high-value, but with higher margins,” says Ito, who heads Haier in Japan and Southeast Asian countries.
Among these products is the smallest Haier washing machine, which only uses five cubic centimeter (cc) of water. Lightweight and portable, this washing machine can remove stains with just enough strength so as not to damage the cloth. The battery-operated washing machine vibrates 700 times to stamp out stains.
This kind of innovation is what Ito has in mind when he devices plans to change the appliance business.
He says one has to make the most of the engineering process. One must “go crazy” to think of something that will shake the foundations of the way a company does business, he says.
“It is time to step out of the box-type thinking,” he adds.
Research and development normally takes 36 months to come up with a new product, says Ito. “But since we’re living in the Internet era, the whole cycle can be shortened to two weeks,” he adds.
He dreams that products will be tailor-fit to the needs of Southeast Asian countries. Television and refrigerators are among Haier’s bestsellers in this side of Asia.
He looks at the Philippines as “a very unique country,” whose people can readily accept the innovations the company can offer. He says the Philippines has a high literacy rate compared to other Asean countries. For Ito, there is huge potential in the Philippines because of its relatively young labor force.
Ito is among the youngest CEOs in Asia. Being on the job for barely two years, he plans to aggressively step up his game in the entire Asian region.
One of his core beliefs is that one should shake current fundamentals.
“Change the industry standards and expect the unexpected. In this era when innovation rules, other platforms should be explored. Crush and demolish industry standards and bring nothing but change,” he says.
For Ito, this is the only way to ensure the appliance business will remain relevant in this fast-changing world. “There has to be a lot of changes in perception and paradigm shifts,” he adds.
For the Philippines, he aims to double Haier’s production and sales in just three years. He believes this can be done through innovation and timing.
“We will increase the output of innovation and change the mentality of people,” he says.
Haier is a leading first-class brand of innovative home appliance products and services that creates value for consumers beyond their expectations.
Their mission is all about inspiring Filipino homes to live life in a higher standard with more energy-efficient, user-friendly and environment-friendly home appliances.