From over 100 refrigerator producers in 1989, by 1996 China had just 20 major producers
remaining, with the 10 largest accounting for 80% of the market, up from 50% four years earlier.
According to a Chinese industry association, refrigerator manufacturers needed to produce more
than one million units annually to be profitable. Only three Chinese manufacturers, together
accounting for about 60% of the market, fell into this category in 1996, Haier among them.