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[RDHY Case] Haier in Japan -- the transformation path of AQUA

In 2020, despite the impact of the epidemic, Haier has achieved double-digit growth in Japan for 19 consecutive months. Especially in the refrigerator industry, it surpassed Mitsubishi, the Japanese home appliance ace for the first time in history, and occupied the first market share, and its share continues to expand. The overall sales in Japan achieved a year-on-year increase of 113% and profits increased by 142% year-on-year. Eco-brand community also occupies 70% of the market share, ranking first in the industry and leading the market. The magic weapon behind this is "Rendanheyi".

Since the introduction of the Rendanheyi model in Japan in 2007, Haier Japan has fully stimulated the autonomy of its employees ahead of Japanese companies.

Breaking work sequence

The old Haier Japanese ministers did not create more value because of their age and experience, and their daily work was very leisurely to arrange work for his subordinates. At each meeting, it is always Abe, a 34-year-old young man, stands up and reports on his work, with several ministers over the age of 50 sitting beside him. Immediately, Haier Japan's entire team made a fundamental mechanism change: 34-year-old Abe can serve as the "Minister", that is, he is not a leader in his position, but he must be like a "Minister" in function.

Breaking equalitarianism

During the Sanyo period, the employee's salary was the standard 16-month salary mechanism, and the employee's annual bonus was mostly judged by subject factors and not connected to the market. After Haier acquired Sanyo, Haier AQUA divided the 14-month salary by 12 as the monthly basic salary to expand the incentive space for changes. The incentive amount is comprehensively calculated according to the target bet, according to the completion rate of the company, department, and individual (10%, 30%, and 60% of the three parties). Initially, the four employees who took the initiative to calculate their salaries in this way received higher salaries. Gradually, the 16-month salary is no longer the standard in Haier AQUA.

Since 2020, Haier Japan has further deepened user pay mechanism, reformed its employee compensation structure, and shortened the original semi-annual value-added sharing to monthly value-added sharing, which also overlaps with the annual sharing. This kind of instant incentive strategy played a vital role during the pandemic. Haier Japans salesperson Kojima keenly identified market opportunities after the outbreak, and quickly customized a personalized entry plan for K-channel mass merchandisers in the suburbs. Kojima successfully helped Haier Refrigerator's sales in the K channel to increase by 234% year-on-year. Even under the influence of the pandemic, Kojima's salary in the first half of the year also achieved a year-on-year increase of 126%.

Break lifelong employment

In 2019, an ordinary female employee of the logistics department Michiko Hayakawa took the initiative to challenge the former minister. Hayakawa said: "I think this minister did not as good as I do, and I might be better than him if I want to do it. I want to challenge the minister, and I want to challenge the ministers projects". In the end, the former minister was eliminated, and Hayakawa successfully grabbed the order for the logistics minister.

2 June 2021 : 09:48 am

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