Haier’s “Person‑Enterprise‑One” Model Drives Omnichannel Transformation in Consumer Goods
Haier Smart Home Co Ltd, a Chinese conglomerate that began as a modest refrigerator manufacturer, has emerged as a benchmark for integrated retail and manufacturing strategies in the consumer‑goods sector. Zhang Ruimin’s keynote at the 9th annual “Person‑Enterprise‑One” forum in Beijing—his first public address in several years—offered a concise blueprint for how the company’s radical organisational redesign and customer‑centric ethos can be applied across the industry.
1. The Strategic Core of the “Person‑Enterprise‑One” Model
Zhang Ruimin’s speech underscored that the “Person‑Enterprise‑One” paradigm, first articulated in 2005, is not merely a management theory but a market‑creating engine. The model is built on three pillars:
- Direct employee–customer interaction – Employees are encouraged to engage with consumers in real time, gathering feedback, customizing solutions, and fostering trust.
- Empowerment as small entrepreneurs – By dismantling more than 10,000 middle‑management roles, Haier has flattened its hierarchy. Front‑line staff now possess decision‑making authority, reducing bottlenecks and accelerating product iteration.
- Value co‑creation – The company’s goal is to deliver tangible benefits to customers while enabling employees to achieve personal and professional growth.
The immediate effect of this restructuring is a more agile supply chain. Orders can be processed in real time, and product development cycles have shrunk from 12–18 months to 6–8 months in many product lines.
2. Market Dynamics: Omnichannel Retail and Consumer Behaviour Shifts
The consumer‑goods landscape is witnessing a decisive shift from siloed retail to seamless omnichannel ecosystems. Market data from 2023–2024 shows that:
| Segment | Omnichannel Share Increase | Key Driver |
|---|---|---|
| Appliances | +12% | Integration of AR try‑on tools and AI‑based recommendation engines |
| Home‑automation | +18% | Demand for cross‑device connectivity and voice‑assistant integration |
| Health & Wellness | +10% | Rising consumer focus on preventive health and remote monitoring |
Haier’s expansion into healthcare and automotive, coupled with its smart‑home investments, positions the company to capitalize on these trends. The company’s high‑end brands, such as Casarte, serve as flagship platforms for showcasing integrated experiences, while acquisitions of Global Edison and Sanyo enrich its product portfolio with proven technologies and established distribution networks.
3. Supply‑Chain Innovations and Networked Organisation
By eliminating traditional hierarchical layers, Haier has transformed its supply chain into a collaborative network. Key innovations include:
- Digital twin manufacturing – Real‑time simulation of production processes allows for predictive maintenance and reduced downtime.
- Blockchain‑based logistics – Immutable tracking of components from supplier to consumer enhances transparency and accelerates recalls when necessary.
- Co‑development hubs – Joint research centres with partner brands foster rapid prototyping and shared intellectual property rights.
These mechanisms not only reduce costs but also enable rapid responsiveness to local market nuances, a crucial advantage in the highly segmented consumer‑goods arena.
4. Revenue Trajectory and Long‑Term Transformation
Haier’s 2025 revenue reached $39.75 billion, catapulting the company into the Fortune Global 500’s top 400. While short‑term gains stem from high‑margin product launches and streamlined operations, the underlying driver is a sustainable ecosystem model:
- Customer‑centric product development ensures that new offerings meet evolving preferences, such as eco‑friendly appliances and AI‑driven home automation.
- Employee entrepreneurship leads to continuous innovation, with a steady pipeline of patents in IoT, robotics, and energy‑management technologies.
- Strategic acquisitions broaden market reach and mitigate risk by diversifying product categories and geographic footprints.
Industry analysts project that by 2030, companies adopting similar flat‑structure, employee‑empowered models could see a 25–30% acceleration in product‑market fit and a 15% reduction in time‑to‑market compared to legacy organisations.
5. Implications for the Broader Consumer‑Goods Sector
Haier’s trajectory illustrates a broader paradigm shift: value creation through co‑innovation rather than hierarchical control. The following cross‑sector patterns emerge:
| Sector | Parallel Trend | Strategic Insight |
|---|---|---|
| Automotive | Connected vehicles and shared mobility | Leverage IoT platforms for real‑time service updates |
| Healthcare | Remote patient monitoring | Integrate appliance data with health‑tech ecosystems |
| Retail | Augmented reality shopping | Deploy AI‑driven personalization across physical and digital touchpoints |
Companies that adopt a “Person‑Enterprise‑One” mindset—blurring the line between employee and customer, and empowering frontline workers—can create a virtuous cycle of innovation and customer loyalty. The model demonstrates that flattened hierarchies do not compromise control; they enhance agility and resilience.
6. Conclusion
Zhang Ruimin’s speech served not only as a celebration of Haier’s accomplishments but also as a call to action for the consumer‑goods industry. By harnessing direct customer engagement, employee empowerment, and integrated supply‑chain technology, Haier exemplifies how a firm can pivot from traditional manufacturing to a customer‑centric, networked ecosystem. The resulting synergy between short‑term revenue growth and long‑term structural transformation offers a roadmap for competitors seeking sustainable advantage in an era defined by rapid technological change and shifting consumer expectations.