Haier: Taking A Brand Name Higher

It's "High-er," explains Michael Jemal, for what one assumes is the umpteenth time. "As in higher and higher." To Jemal, president of giant Chinese appliance maker Haier Group's American operations, the pronunciation is vital. In China as well as the U.S., Haier tends to come out more like "hair." And studies show most Americans associate Chinese brands with shoddy quality.

That's a perception Jemal is fighting mightily in his bid to make Haier the next premier name in white goods. Haier follows a playbook borrowed from the Japanese and Koreans: First, build a huge base at home that gives you economy of scale and a market where you can test products and perfect your manufacturing. Then go on the offensive overseas and race up the value chain.