The Shanghai Hitachi Household Electrical Appliances Co., Ltd. was founded on April 4th 1994. Its main precuts are household room air conditioners; Shanghai Hitachi Jiomitzu Electrical Machine Co., Ltd. was founded on November 24th 1995, which mainly produces household washing machines. On April 1st 2002, the two companies formally combined to form the new Shanghai Hitachi Household Electrical Appliances Co., Ltd. Having experienced a ten-year development, the company has gradually taken the first place of the household electrical appliance industry in China, and the “Hitachi” brand has also been spread into people’s minds. Through the ten years, Hitachi air conditioner and washing machine have been rewarded “The Brand of Good Sales in Shanghai”. In 2003, the company won the copper medal of “Shanghai Foreign Economy and Trade Contribution Award” by earning a foreign exchange of $64.66 million. It is also among the first 100 enterprises of best export sale in 2003 and the first 50 foreign-ventured enterprises of best export sale in 2003. The success of Shanghai Hitachi Household Electrical Appliances Co. Ltd., which was earlier called “Shanghai Hitachi phenomenon”, is the successful result of challenge in both its outlook and awareness and its management method when we look into it.

During the ten years, the competition of domestic household electrical appliance market has been getting extremely intense. Shanghai Hitachi has been raising its market occupation rate from the early period with many opponents to its brand effect nowadays. With the spirit of the enterprise: harmony, honest and exploration, it grasps the opportunity to add fuel to the development of Shanghai Hitachi and set up the resounding brand “Shanghai Hitachi” under the guidance of “Getting upper hand by velocity, being technically advanced, putting quality in the first place, expanding inside and outside and building up both the career and the human spirits”.

Getting upper hand by velocity

Shanghai Hitachi was faced with severe market competition when it was just founded. As to air conditioner industry, there were about 400-500 enterprises all over the country, nearly 25 of which were large national enterprises of certain manufacture scales. Along with the foreign venture capitals’ pouring into China, Shanghai Hitachi was on the verge with great pressure and challenge. However, the company got upper hand by velocity with an urgent attitude of “always being ready to fight”.

During the first two years of its establishment, Shanghai Hitachi vaulted into one of the ten largest air conditioner producers; in 1994, the first “Hitachi Top Cool” air conditioner was produced officially and put into the market in advance a month after the SHHA was established; after several months of its putting into production, the company was awarded the CCIB, CCEE label and entitled “Enterprises with Advanced Technology in Shanghai”. In 1996, the sale of the air conditioners was 7 times as much as that of the early period of its establishment. This three-year period is likely to be just a turning point for other enterprises, while it laid the base of success for SHHA.

In April, 1997, SHHA produced the first direct current air conditioner with variable rotational speeds ahead of its opponents, which was another “miracle” in the history of SHHA’s development. In Apr, 1999, the Hitachi customer service center was formed, which again indicates the advanced conception of Hitachi. The company was able to exploit a few new products, while it develops more than 80 kinds of products including air conditioners and washing machines.  SHHA has been enjoying an amazing speed of development, which has won the time as well as the market.

Being technically advanced

The label of Hitachi is widely known, which looks like a machine part and is quite similar to a tortoise. These two images just indicate the features of the Hitachi company: Admiring technology and a tireless pursuing spirit which a tortoise has. As a matter of fact, “technological Hitachi” is the image that Hitachi sets up for itself. 

The technology of Hitachi household electrical appliances realized the reform with the character of the times from the initial approximate control to the direct current with variable rotational speeds technology, PAM technology, from the initial automatic washing machine, “cleaned within two steps” to “clean at will” and the humane “AIR JET” soaking and air-dry washing machine of Hitachi.

Because of the delicate classification of the market, the competition becomes more and more severe. Faced with a new turn of industry competition, Shanghai Hitachi keeps on developing new products to satisfy people’s more and more fastidious needs.  To meet customers’ requirements in such aspects as energy saving, health and modern outlook, the company presents to the public the AIR INTERIOR --- new life style series air conditioners. The utilization of a planar shell design in the separated air conditioner and the ion-generating function as well as the automatic cleaning function met the modern shopping idea of the customers.

Through the ten years, there have been 14 Hitachi household electrical products that were glorified more than 35 awards including the “Shanghai Outstanding New Products”, the “Energy Saving Products”, the  “Shanghai Science and Technology Advance Award”, the “Recommended Product for the Construction of Well-being Neighborhood”

Putting quality in the first place

What should modernized scientific management take as its center? The answer is, undoubtedly, quality. Advertisements of high prices might have shaking effect, but only temporarily. What makes the position of SHHA’s brand permanent is quality. 

The quality of every part of the product must be ensured so that the product would be standard. SHHA is quite strict to its part products. All cooperation factories must be confirmed by the company. Only when it is secured that their producing capabilities and production qualifies can meet the requirements of SHHA can they be the part suppliers of SHHA. The strict control of parts laid a base for higher quality and lower cost.

In the workshop of SHHA, there are such words: Never take, make or send out anything that is unqualified. That is to say, never take unqualified parts, never take the unqualified products sent by the last working procedure, never produce unqualified products and never send unqualified products to the next working procedure. The workers on the scene supervise each other to prevent substandard operation or products from appearing. 

Within ten years the company have been entitled CCEE, CCIB, ISO9001 qualification system recognition, electromagnetic compatibility recognition and the product free from examination and so on. The special conception of quality management helped to form the quality activities like “999”, “picking up the lost spike”, which other enterprises don’t organize.  

All staff of the company take quality as the lead of all kinds of works.  The outstanding quality of Hitachi products is realized by all and the producing costs are reduced, which is most directly reflected in prices pf the products.  Consumers today can pursue Hitachi products of the same quality or even better ones at much lower prices, which is also the best reward a enterprise can give to its customers.   

By the end of 1970’s, Crosby (American) presented his famous theory “Quality is free”. American companies of that time spend about 15%-20% of their sale amount on testing, examination, changing their designs, fixing service after sold, dealing with returned merchandises and other costs related to qualify. If we do things right at the first time, those time, money and energy drained on the remedy work can be saved, SHHA reduces cost in an unique way through reducing the parts cost and strengthening the quality management to save the extra drain.

In the dictionary of SHHA, qualify means every thing.

Expanding inside and outside

With a background of severe competition, SHHA reorganizes its managing strategy every year basing on “how to meet various requirements and exceptions of customers continually”. Last year, the mechanism of the business headquarters was reorganized; four main business control departments were set up to enhance the flexible response ability and the efficiency of making decisions. The disposition of human and material resources were adjusted according to the actual needs of large areas. The salesmen of air conditioners and washing machines are professionally in common use. As to selling strategy, the company outlines policies such as making flexible changes according to the character of the area, paying attention to the primary selling and strengthening approaches of great- quantity businesses.           

Until now, Hitachi products have scattered over 27 provinces and municipalities directly under the Central Government. Its market occupation rate reaches 20% in Shanghai, 10% in Beijing and Guangzhou, and 8% in large retail shops all over the country.

While spreading on the market within the country, Hitachi products have been going outside lots by lots. Since the company practiced exportation in 1997, its export exchange earning has always been raising dramatically every year.  In 2002, more than 330 thousand of washing machines were exported, which produced an exportation amount of 40 million U.S.D. This has never happened in the history of the company. The achievement was also a positive contribution to the export business of the electricity group, which is in advance to many other enterprises attached to the electricity group. In 2003, the exportation quantity was as much as 410 thousand, which raised 25% compared with that of 2002. At present, Hitachi air conditioners and washing machines have been sold in countries as far as Japan, Hongkong, Singapore, The Philippines, India, Canada, America, Mexico, Panama, Argentina and Brazil.

Building up both the career and the human spirits

People of talent are the most priceless fortune of an enterprise. The goal of an enterprise will finally be attached to every person, and only those high-quality people can produce high-quality products. Under the more and more severe market competition today, owning large number of high-quality people is the key point to master the rule of the market in addition to outstanding products and services.

There is a training center in SHHA, where various kinds of multilevel and multiform trainings towards company staff are held every year. The training covers a wide range of enterprise management including manufacture, special technique, quality management, selling knowledge, business management and IT. Besides the various kinds of training within the company, it sends some professional management technical workers to study overseas. Through continuous practice, the employees really learn and understand the advanced management methods and technique. The trained people of the company is 2.3 thousand per year, and the each worker receives training almost twice a year.

The household electrical appliance industry of China has been developing quickly, which spent ten years to achieve what the Japanese counterparts had spent several decades on. To adapt the vigor of China’s high-speed development, SHHA has gradually been changing its employees with talents into younger ones. Among the medium and high-standard leaders, the youngest lead is only 30.

If Hitachi were an incoming famous brand, SHHA would be the fruits of this worldwide wonderful flower grown on China’s land. The ten years’ hard work saw the construction and creation of SHHA. We know our responsibility is vital. The glories of the past do not ensure the future, however, we will make endless efforts to win such glories, just like what we did in the past. We believe that strong men will always stand on the tips of the tide, and the winner will always keep himself to the best, the SHHA will always be the best.

Opened to the world and opened to the future, it is the unchangeable ambition and goal of SHHA to create living space of high quality for human being and make life more wonderful.