Haier's 'Zero Distance' Model Drives Innovation and Customer Value

Haier's bold business model shift puts power in the hands of those facing customers, driving agility and value creation. Its AI integration is a key driver of success.

, and Administrator

2025 October 2 . 6:20 AM

1 min read

In the image we can see there are buildings and there are trees in the area. On top of the building... — In the image we can see there are buildings and there are trees in the area. On top of the building there is a banner on which it's written "Braggs Factory".

Haier's 'Zero Distance' Model Drives Innovation and Customer Value

Haier, the Chinese multinational renowned for home appliances, has revolutionized its business model with remarkable success. The company has embraced the 'zero distance' principle, empowering teams to own outcomes and eliminating layers of approval. This approach, coupled with the integration of AI and the RenDanHeiYi model, has led to rapid innovation and customer value creation.

Haier's transformation began with breaking itself into thousands of micro-enterprises, each with direct user contact and decision-making rights. This structure has accelerated innovation and swift responses to customer needs. The company's 'zero distance' principle removes approval layers, placing power in the hands of those facing the customer. This has been adopted by various firms, demonstrating collaboration and customer value creation.

Haier links pay and internal transfer pricing tightly to user value delivered, aligning micro-enterprise interests with consumers. This value-sharing ethos ensures no party benefits at the expense of another, creating a virtuous cycle of better outcomes driving better rewards. Haier treats AI not just as an efficiency tool, but as an engine for new value creation. Its AI infrastructure serves as connective tissue, enabling real-time co-creation of solutions in an open marketplace.

Haier's approach, led by the RenDanHeiYi principle, has made it a benchmark in China and a global reference case. Over two decades, this model has proven to be a robust engine for agility, collaboration, and value creation. As global supply chains fragment and AI adoption accelerates, Haier's transformation offers a compelling example of how traditional organizational structures can adapt to rapidly shifting markets.