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Vol. 3, #9, November 2013, No. 33
Midea Mascot
Midea Chile Taps into The Animal Kingdom to Prepare for Its Brand Launch.
Advances Newsletter, November, 2013
2
ADVANCES Newsletter
Contents
Midea Advances Newsletter is published monthly
by the International Strategy Department of
Midea Group. We welcome all comments,
suggestions and contribution of articles, as well as
requests for subscription to our newsletter. You
can reach us by email at: [email protected]
Address:
ADVANCES, International Strategy Department
Midea HQ
No. 6 Midea Road
Beijiao, Shunde, Foshan, Guangdong
P.R.C. 528311
Tel: +86-757-2360 4714
Web: www.midea.com
Managing Editor:
Mandy Wang
Regular Correspondents:
Anggie Cai
Alex Cheng
Himani Joshi
Blinda Li
Amber Liu
Crystal Lun
Tony Miao
Sue Ou
Sandra Sun
Yongen Wang
James Yu
Daniel Zhang
Peck Zhao
NEWSLINE
Midea RAC Appears in
Energy-Efficiency Star
Approval Catalogue PAGE 4
MCJV Brazil Launches New
Midea Campaign PAGE 3
Midea Strategic
Transformation Shows Initial
Results PAGE 4
Midea Six Sigma & ACE:
The “Win-Win-Win” Approach PAGE 7
Midea Singapore Well-
Positioned For Long-Term
Growth PAGE 6
MDV ELITE CAMP (8th Semi-
nar, Nov.) PAGE 11
PAGE 18
FEATURE
SNAPSHOT
PEOPLE
German Quality Meets
Chinese Dynamism PAGE 15-17
Midea Front-load Washer
Receives Good Design
Excellence Award in South
Korea PAGE 9
Midea Laundry Division
Rewards Significant
Contributions and Backbone
Elites of the Magic Water
Cube Project Receive Prize of
RMB 500,000 PAGE 8
RAC Works with the United
Nations for a New Refrigerant PAGE 10
GMCC Taking Leadership
Role in R290 Alternative De-
velopment PAGE 10
Innovative and Surprising PAGE 14
Philippines Media Visit
Midea PAGE 8
Midea Ranked 5th Most Val-
uable Chinese Brand, Little
Swan Also Listed in Top 100 PAGE 12
Midea CAC Kicks Off 19th
Global Technical Training PAGE 13
GMCC Wins Top Prize for
Technical Development at
China Household Electrical
Appliances Conference PAGE 5
New Washers Debut at the
Wuxi Home Fair PAGE 5
Advances Newsletter, November, 2013
3
MCJV Brazil Launches New Midea
Campaign By James Yu
A pproaching the summer, which is also the peak sea-
son for the residential AC business, Midea Carrier JV Brazil re-
cently launched a new brand campaign with the theme of “Viva
mais cade monmento” (“Live more for
every moment”). Since October 20th,
this campaign has been shown nation-
wide across major ad channels such as
print, radio and cable TV.
After defining the key value and
the position to be aimed for in the mar-
ket by a brand research study some
months ago, MCJV Brazil established a
new brand book for Midea and commu-
nications material for the country, con-
sisting of new advertisements and pro-
motional materials, which convey the
warmness and comfort felt by family
members when using Midea products.
The idea of the brand is also expressed
through these, the idea that one can find
happiness, and enjoy every moment of
daily life more than ever before. The
campaign’s first step on October 20th
was its publication in the magazine Veja , the
most popular magazine in Brazil, followed by a
placement during one of the most popular
morning news shows, and throughout the fa-
vorite channels on cable TV.
Consult the attached schedule, and tune in to
see and hear the new campaign!
Midea on the Radio
Between 7:00 and 7:30am, the newspaper First
Time (Radio Bandeirantes) publishes Midea
brand ads in its daily newsletters. Ads on Band-
News FM can also be heard between 6:00am
and 7:00pm, up until December 8th.
Midea on TV
Cable TV ads will also air during primetime
hours on Fridays. Up until December 6th, mil-
lions of viewers will see these ads on stations
such as TNT, Fox, and Mega Pix SporTV.
NEWSLINE
Advances Newsletter, November, 2013
4
Midea Strategic Transformation Shows Initial
Results By Mandy Wang
I n covering the recent Midea expansion into the Philip-
pines, a local newspaper there, The Philippine Star, published a
full-page article titled, “How China’s Midea went from appliance
maker to global player”, giving a broad overview of the compa-
ny’s growth both here in China, and worldwide.
The article names Midea as a role model for Chinese busi-
nesses to go expand outside of the country, rather than narrow-
ly focusing solely on China’s considerable market. While other
companies based in South Korea and Japan had no choice but
to go outside of their home markets, only a relatively
small number of Chinese brands have followed Midea’s
strategy of addressing the global market in parallel with
their domestic business efforts: Huawei, Tsingtao, and
Lenovo are a few such brands that have found real trac-
tion worldwide.
From its humble beginnings in 1968, Midea has
become a global conglomerate with annual revenue of
more than 100 billion RMB in 2012. In explaining all
achievements of Midea, the author, Wilson Lee Flores,
concludes with 10 essential key reason Midea’s success: 1.
Positive brand image building; 2. Visionary leadership; 3.
Integrated manufacturing facilities; 4. Professional man-
agement; 5. Success in the domestic market; 6. Active
global expansion; 7. Strong international partners; 8.
Carefully planned M&A; 9. Significant reinvestment in
R&D; 10. Active corporate social responsibility.
NEWSLINE
Midea RAC Appears in Energy-Efficiency
Star Approval Catalogue By Crystal Lun
T o promote high efficiency products and direct the
transformation of production and consumption, the MIIT
(Ministry of Industry and Information Technology of The Peo-
ple’s Republic of China) started an energy efficiency evaluation
in 2012 for products that participate in the Project
for Energy Saving & Benefit to People.
The evaluation focuses on performance in
terms of energy efficiency, and aims to provide con-
sumers a guideline for products that are economical
and environmentally friendly. The high visibility of
the Energy-Efficiency Star logo allows consumers to
recognize approved products quickly and easily.
The 2013 Catalogue of Energy-Efficiency Star products
was recently released, and covers 11 categories of household
appliances, among which Midea has 3 air conditioners, including
a split model and two inverter floor-standing models.
The Energy-Efficiency Star approval is valid for 2
years, while the MIIT works jointly with relevant de-
partments to study further and establish proper incen-
tives for government procurement, bulk company
purchases, daily consumption, and to raise awareness
and popularity of energy efficient products.
Advances Newsletter, November, 2013
5
GMCC Wins Top Prize for Technical Devel-
opment at China Household Electrical
Appliances Conference By Hailong Tang
O n Halloween, the last day of
last month, the China Household Electri-
cal Appliances Conference, one of the
most significant events in China’s house-
hold electrical appliances industry, was
held in the city of Wuxi. The China
Household Electrical Appliance Technolo-
gy Conference is a professional platform
where edge-cutting technologies are show-
cased and cooperation and partnership is
built. During the show, Midea’s motor
division, GMCC, relying on its strength in
innovation, was awarded First Prize in
Technological Development for its
“Application of Gas Injection Compressor
Technology”.
The gas injection rotary compressor using this new tech-
nology was released back in September by GMCC, marking a
key technical breakthrough in compres-
sor development. The gas injection tech-
nology allows heating under low temper-
atures, however, due to physical limits,
there is still great difficulty in applying
the gas injection technology to rotary-
style compressors. In fact, GMCC start-
ed studying these structural limits in
2009, applying the gas injection technol-
ogy to inverter rotary compressors, and
ultimately, it was the independently de-
veloped “Flexible Check Valve Technol-
ogy” which solved the problem of gas
injection valve reliability when applied in
rotary compressors. Currently GMCC
has applied for 9 patents connected to
this research, and two inventory patents
have been applied for by way of PTC international application.
NEWSLINE
New Washers Debut at the Wuxi Home Fair
By Blinda Li
T his past October 11th, the Wuxi Home Expo/Wuxi
Autumn Fair officially opened at the Wuxi
Taihu Lake International Expo Center,
where the Laundry Division unveiled 30
washers for their debut to the public. Af-
ter the opening ceremony, Du Tonghe,
Vice President of the China Light Industry
Association and Xu Rongyun, Director of
the Jiangsu Light Industry Association,
among others, came to the Midea booth,
asking about the company’s recent
achievements in innovation, encouraging it to push forward in
growing its brand globally.
This exhibition carried a theme of
"quality living, tasteful living", built on
a trade service platform linking real
estate, home decoration/furnishing
and home appliance industries, in or-
der to promote consumption for con-
venient and effective new consump-
tion patterns.
Advances Newsletter, November, 2013
6
Midea Singapore Well-Positioned For
Long-Term Growth By Alex Cheng
M idea Singapore received tremendous feedback on
its new product range during the 2nd Annual Midea Dealer Ap-
preciation Night, held last month on October 31st, Halloween
Night, at the newly-renovated Parkroyal Hotel on Beach Road.
The evening event was well-attended by all the movers and
shakers from the local electronics retail industry. The event was
organized to recognize and honor the best performing dealers in
Singapore, and to showcase the latest product models set to
debut in 2014. Appearances were made by special guests from
Midea HQ, including Justin Liu, Midea MID’s Managing Direc-
tor for ASEAN, and Arthur Huang, Vice President of Corporate
Marketing.
Speaking at the end of the evening, Wesley Lim, Country
General Manager for Singapore, who has been at subsidiary’s
helm since its inception three years ago, remarked, “For such a
new brand, we are most encouraged by the very positive feed-
back and response from our dealers tonight. It proves the tire-
less effort we have invested in building our channels, stringent
product selection, and strong support from our head office,
have finally be-
gun to pay off.
We will continue
to fine-tune our
formula to deliv-
er optimal results
for the brand
and our custom-
ers going as we
move forward.”
The latest
models set to
debut in 2014
include the Oasis
model air condi-
tioner, with Wi-
Fi control via
Android or iPh-
one smart
phones, the Water Magic Cube model washing machine, with
iAdd automatic dispens-
ing technology and One
Touch Smart Wash fea-
tures, and a range of
award-winning small
appliances including
Midea’s micro-
computerized rice cook-
er, slim-profile induction
cooker, and the all-new
DC motor standing fan
with wheel button re-
mote.
NEWSLINE
Advances Newsletter, November, 2013
7
Midea Six Sigma & ACE:
The “Win-Win-Win” Approach By Sherry Liu
O f course, we are all familiar with the idea of a so-
called “win-win” scenario. But what entails a “win-win-win”
situation? This involves a positive outcome for Midea custom-
ers, for Midea as a company, and for everyone in the company
as Midea employees. As part of the Global Operations Excel-
lence Initiative started by MID Oper-
ations Management, this thinking is
now coming into action with Midea’s
globally launched Six Sigma Initiative.
The aim of the team is to facilitate
Midea’s overseas strategy, by achiev-
ing the highest process efficiency in
all business areas. Six Sigma is a set of
strategies, techniques, and tools for
process improvement with core char-
acteristics to help improve customer
satisfaction and reduce cost of re-
sources. Six Sigma has successfully been successfully implement-
ed for many years by many world-famous companies, such as
General Electric, Ford, Siemens, Samsung, and Motorola, the
company which originally conceived the Six Sigma program.
For the past two months, MID team leaders have been
involved in Midea HQ’s Six Sigma Green Belt training seminars,
organized across the company’s functional departments, divi-
sions and selected launch subsidiaries. The goal: to build a pro-
fessional team with intimate
knowledge of Six Sigma
methods and tools within the
company, to lay a solid foun-
dation for a new efficiency-
driven culture. It has been
expressed by many that, after
participating in this training,
they have not only improved
their knowledge about Six
Sigma concepts and tools, but
also have been inspired to
learn more about how to apply these tools, and how to analyze
the results of such implementation.
After successful completion of the internal training sched-
ule, Six Sigma project selection is planned for December 2013.
The first phase of Six Sigma project execution and implementa-
tion in MID functional departments, Vietnam, and FMCC, is
scheduled for December 2013 and Q1 2014. However, MID’s
Six Sigma long-term implementation plan is built on three phas-
es: The tools & methods introduction be known as Phase I
through 2013 and 2014, value generation in 2015 and 2016 will
make up Phase II, and Phase III will consist of the final work-
ing culture transformation from 2017
and beyond. Ultimately, the Six Sigma
initiative will be rolled out across all
global subsidiaries of MID.
A similar program at Midea’s
JV partner UTC, called “Achieving
Competitive Excellence” (ACE), has
already been implemented successfully
at Midea/UTC JVs like Midea-Carrier
ABC and Miraco. ACE is a compre-
hensive approach to create new levels
of customer satisfaction and business
performance. ACE and Six Sigma are both for management
improvement by using similar tools (like 5S, Lean, TPM, Value
Stream) but with different criteria, approaches and techniques.
As the SGMC (Midea Carrier Management System developed
from ACE tools concepts) has already generated projects that
provided improvements for quality, safety, 5S, and approxi-
mately USD$500,000 savings per year since the inception of
Midea-Carrier Brazil, this success story can inspire everyone at
Midea to build a Six
Sigma culture
throughout the rest
of the company.
Because of the suc-
cess of ACE, MID’s
plan to rollout out
Midea’s own Six
Sigma program
across the company
will involve a coex-
istence of Midea Six
Sigma and ACE within MID for approximately 3 years, based
on different subsidiaries’ situations. Once Midea Six Sigma cul-
ture has matured sufficiently, these two programs may be
merged.
NEWSLINE
Advances Newsletter, November, 2013
8
Philippines Media Visit Midea
By Yongen Wang
A group of reporters from the Philippines media paid
a 3 day visit to Midea Group, from November 6th-8th. Their
tour included Midea’s headquarters building, the Refrigeration
R&D Institute, and the company’s microwave oven factory. The
journalists took many photos and interviewed several personnel
to support the stories they would be writing about Midea back
home. The visiting journalists were mostly from commercial and
lifestyle segments of the media, asking about the company’s
growing scale and high-end manufacturing ability.
In addition to other journalists, a popular Philippines tele-
vision show known as Rated-K came to the company’s head
office especially for filming. Not only did they report on Midea’s
air conditioning laboratories and the vertical integration of the
company, they also recorded specific demonstrations of Midea’s
newest products. On top of everything, Rated-K actually record-
ed themselves cooking food on camera using Midea’s products,
which will air with the rest of their program in the Philippines.
Journalists indicated that their written reports would be
published throughout November and December, and that the
Rated-K television episode featuring Midea would be broadcast-
ed in November.
NEWSLINE
By Blinda Li
Laundry Division Rewards Significant Contribu-
tions and Backbone Elites of the Magic Water
Cube Project Receive Prize of RMB 500,000
T o help cultivate the culture of continuously recogniz-
ing employee talent and technological achievement, the Laundry
Division has allocated a special fund of 500,000 RMB to reward
the top performing teams in the Magic Water Cube Project.
Laundry Division’s award policy aims to inspire its staff
and core R&D teams, to encourage a pursuit of excellence and
bold innovation, which would help to facilitate competitive
product development. In light of the division’s orientation to
team cohesiveness, entire teams will evenly split the Magic Wa-
ter Cube Project prize.
Since being launched into markets in 2004, the devel-
opment of the Magic Water Cube washing machine has focused
on resolving the common irritation of tangled clothing, for
which it has received a warm reception consumers. Since 2011,
a new generation of Magic Water Cube washers have been in-
troduced. For 2013, 22 separate models of the Magic Water
Cube series, including 8 newly introduced models, have been on
sale. As of this
past Septem-
ber, more than
450,000 Magic
Water Cube
washers had
been sold, with
revenue total-
ing 822 million
RMB.
Advances Newsletter, November, 2013
9
Midea Front-load Washer Receives Good
Design Excellence Award in South Korea By Blinda Li
I n the recent announcement of South Korea’s Good
Design awards list, Midea’s new roller washing machine stood
out in the shortlist of 83 products, in addition to winning the
“GD Excellence Award” for outstanding appearance and user-
friendly product experience.
Midea’s new roller washing machine is a strategic product
for the Laundry Division, and has received "Best Independent
Innovation Design Award" at the 2013 Innovation Festival, and
"2013 Annual Industrial Design Innovation Award" from the
Chinese Home Appliance Innovation Awards Show at IFA in
Berlin. The Good Design award from the renowned South Ko-
rean Institute of Design Promotion is the third honor taken
home by this model in 2013, indicating the recognition by indus-
try experts of the technical and design achievements made by
Midea’s Laundry Division.
Midea’s new roller washing machine is an image-making
product for Midea’s high-end roller lineup, targeting high-end
segment consumers aged between 20-45, who look for both
fashionable design and healthy living.
The industrial design of the washer follows the positioning
of Midea washing machines, with a rich and full overall shape,
large digital display, large-window door, and user-friendly user
interface, all combining to product a product which is equally
attractive and feature-rich.
In terms of performance features, the new model is
equipped with an iAdd automatic delivery system: the use of
converter technology allows the system to judge the amount of
detergent and fabric softener, while intelligently adjusting speed
and water levels according to the quantity of clothing, so as to
save water and power, while keeping machine noise to a rela-
tively quiet minimum.
The new washer uses colored steel plating, solving cost
pressures through the clever design, appearing stylish yet re-
maining durable, The upper and color tones have also brought a
new visual experience for the consumer, enhancing product
quality and market competitiveness.
The Good Design award was established by the South
Korean government in 1985, through the Korean Institute of
Design Promotion, to honor products launched or to be
launched, in domestic or foreign markets, with sound overall
design quality and competitive style and functions. In addition
to local brands, such as Korean firms Samsung and LG, Euro-
pean firms Siemens, Bosch, Philips, and Electrolux are also reg-
istered for consideration regarding this award.
NEWSLINE
Advances Newsletter, November, 2013
10
GMCC Taking Leadership Role in R290
Alternative Development By Crystal Lun
T he search for an environmentally-friendly refrigerant
substitution is heating up in the refrigeration industry. On Octo-
ber 30th, the International Workshop on HCFC-22 Alternatives
was held in Wuxi, Jiangsu, and sponsored by FECO (Foreign
Economic Cooperation Office of the Chinese Ministry of Envi-
ronmental Protection), UNEP (United Nations Environment
Programme), and CHEAA (China Household Electrical Appli-
ances Association).
This year is the deadline for the usage of the HCFC-22
refrigerant in the room air conditioning industry, and the focus
of this conference was on the topic of a viable replacement.
GMCC, representative for the compressor industry, presented
its own work on alternative refrigerants, and provided its sug-
gested direction for the industry.
GMCC is adopting the new refrigerant as an alternative,
while making efforts to improve product safety and perfor-
mance, and expanding the scope for application, serving as a
demonstration for the industry.
NEWSLINE
RAC Works with the United Nations for a
New Refrigerant By Crystal Lun
I n order to promote the development in the Middle
East air conditioning industry while reducing greenhouse gas
emissions effectively, business representatives from the United
Nations Industrial Development Organization (UNIDO), the
United Nations Environment Programme (UNEP), and a six-
country joint Middle East team visited Midea, accompanied by
the officials from the State Environmental Protection Depart-
ment’s International Cooperation Center.
HCFC usage is due to cease in Middle Eastern markets
soon, and it is important to decide on alternatives. Therefore,
visiting guests and experts from Midea together discussed the
situation and future development of new refrigerant technology
in the context of global household air conditioning.
In 2011, Midea acquired special funding from the United
Nations Multilateral Fund for the reform of R290, bearing the
responsibility for new refrigerant R&D and marketing. The visit
is one step in the scope of the project, with the purpose of pro-
moting development of new refrigerant technology through
Midea’s leading example.
Advances Newsletter, November, 2013
11
MDV ELITE CAMP (8th Seminar, Nov.) By Angie Cai
M idea CAC recently held its 8th Elite Camp in late
November, hosting distributors from around the world. The
seminar elaborated on CAC’s products and services, and offered
information of HVAC market trends, while encouraging and
enjoying highly interactive discussion between hosts and at-
tendees. The visiting distribu-
tors had three fully-scheduled
days in China: lectures and dis-
cussion for the first two days,
and a day of touring the city
before leaving.
The main focus rested on
new products such as the V4
Plus R-series (Three Pipe Heat
Recovery VRF), which boasts
numerous competitive ad-
vantages, such as simultaneous
cooling and heating, providing a
comfortable environment to users. It also enjoys greater energy
efficiency than traditional iterations. Compared with the tradi-
tional 2-pipe system, this the Three Pipe system uses up to 50%
less energy. Finally, the integrated central control provides per-
fect air conditioning solutions for large-scale buildings.
This year, Midea CAC’s submitted bid for the Brazil
World Cup Stadium Beira Rio in Porto Alegre was selected
ahead of fierce competition. The product secured for this mas-
sive project was none other than the Midea V4 Plus R-series
heat recovery system, which will
offer a pleasant air conditioned
environment for football fanatics
present for the game.
Since its establishment in 1999,
Midea CAC has always been de-
voted to technological innovation.
Last year, the division launched its
dual-stage Full Falling Film Cen-
trifugal Chiller, with a COP of up
to 7 under AHRI conditions and
up to 11.6 under IPLV. Several
key components in the FFFCC: a
dual-stage compressor, full failing film evaporator, aerodynamic
impeller, and a two-stage economizer, which all contribute to
system efficiency.
NEWSLINE
By Crystal Lun
Midea RAC’s Bid for University Project is
Successful
I n October, Huazhong Agricultural University, in Wu-
han, Hubei, selected Midea RAC’s bid to provide nearly ten
thousand sets of air conditioners. Up to now, Midea has sup-
plied up to 100,000 air conditioners to different colleges and
universities, including Wuhan University, Huazhong University
of Science and Technology, Hubei University of Technology,
Wuhan Institute of Bioengineering, Zhongnan University of
Economics and Law, South-Central University for Nationalities,
and China University of Geosciences.
Wuhan University and Huazhong University of Science
and Technology have considered bids for air conditioning for
many years now. In particular, Wuhan University purchased
nearly 20,000 units this year, the largest order from any universi-
ty in Hubei. This is the 8th year of cooperation with Midea, and
bid parameters rise yearly, presenting Midea the opportunity to
showcase its strength and influence in the field of refrigeration
and air conditioning.
At nearly the same time, in Hangzhou, Zhejiang, Midea’s
bid won a project at the Zhejiang University of Technology, to
supply over 10,000 air conditioners for Zhejiang University,
Hangzhou Normal University, Zhejiang University, and
Zhejiang University. In addition to these project wins, Midea
was rated the best supplier of air conditioning equipment for
Jinan University in Guangzhou just a few months ago, for the
3rd consecutive year.
The products supplied through these projects are used in
the basic facilities for the student dormitories to create a com-
fortable learning environment for students.
Advances Newsletter, November, 2013
12
Midea Ranked 5th Most Valuable Chinese
Brand, Little Swan Also Listed in Top 100 By Blinda Li
T his past October, the rankings of the top 100 most
valuable Chinese brands were unveiled in Paris, France. Midea
was placed at 5th, with a value of 65.3 billion RMB (an increase
of 4.2 billion over last year). Midea’s Little Swan brand also
made the list, with a value of 19.3 billion RMB. In contrast to
the dim economic climate all over the world, the value of these
hundred brands has been increasing at an annual rate of 21%.
As the leader in the Chinese home appliance industry,
Midea Group has been developing steadily. Midea has been
building its corporate brand, strengthening itself through strate-
gic transformation, and focusing on innovation through product
R&D funded by significant reinvestment of profits. A strong
brand in its own
right, Little Swan
has been a well-
known develop-
er of washing
machines with
35 years of expe-
rience, with a
focus on quality
and customer
satisfaction. It
launched the
world's first in-
ternet-capable
washing ma-
chine, and the
world’s first heat
pump dryer.
In Septem-
ber 2013, Midea
completed its
corporate con-
solidation and
subsequent public listing. In future, Midea Group will strength-
en its efforts towards innovation, and actively promote structur-
al adjustment to build a more customer-oriented company, with
the goal of becoming not only a top brand in China, but a top
brand in the world.
Established in 1995, the Most Valuable Chinese Brand’s
research focuses on China-originated leading brands in the con-
sumer market. It has been China's earliest and longest-lasting
professional organization for brand value comparisons, which is
also carried out by the RREEF Global Ranking Information
Group and Beijing Famous-Brand Evaluation Co. Ltd. The
purpose of their research is to study the development of brand
values and to encourage Chinese companies to grow their own
brands. It has become an important reference for anyone in the
world to learn more about the progress of Chinese brands, both
inside China and abroad.
NEWSLINE
Advances Newsletter, November, 2013
13
Midea CAC Kicks Off 19th Global
Technical Training By Amber Liu
M idea CAC division held the 19th of its twice-yearly
Global Technical Training this past month, here in Midea head-
quarters, where over 130 engineers traveled to from their home
countries.
As in previous sessions, the training was divided into two
parts: part one lasted two days, focusing on new products intro-
duced in 2013, and their main selling points over the competi-
tion. The most popular product for attendees was the V4 Plus R
series VRF, a DC inverter heat recovery model, which boasts a
maximum of 64hp when combined to its maximum, SCHE
(50/50 simultaneous cooling and heating efficiency) with a range
of 7+ (W/W), and several overall technical improvements.
Part two
lasted three
days, and fo-
cused on instal-
lation training
for VRF and
chiller models,
with equal parts
theory and
practical appli-
cation to im-
prove attendee
expertise with
installing the
newest CAC
products.
Aside
from training,
attendees were
given tours of the CAC showroom, Midea’s VRF factory and
the research labs, giving them a better familiarity about the prod-
uct manufacturing process, system leakage checks, 100% run-
ning tests for each VRF unit, and other product trial tests like
harsh environment simulation, long-term system runs, safety
tests, noise level tests and transportation tests. All of these help
to build attendees’ confidence and trust in China-made products.
The tour for guests also included Midea’s own CAC con-
figuration at the HQ building. The headquarters, with an area of
97,000m2 and height of 129m, first opened in 2010. Its climate
is handled by a water-cooled centrifugal chiller, a water-cooled
screw chiller, an air-cooled scroll chiller and a V4 Plus VRF,
which handles all four main sections of the entire HQ. Consid-
ering the scale of the building and the mixture of products
which power it, this part of the tour is usually a unique experi-
ence for visitors.
The Global Technical Training sessions provide a com-
mon platform for Midea’s distributors, technicians and engi-
neers worldwide to better understand Midea CAC products, and
serve to strengthen the relationships between Midea and all
participants. The next session is scheduled for April next year,
and CAC wel-
comes its distribu-
tors to join, wheth-
er they are new-
comers or previous
attendees.
NEWSLINE
Advances Newsletter, November, 2013
14
Innovative and Surprising
By James Yu
I t is not common to open a newspaper or a magazine
and find a panda bear seating on the couch drinking a bamboo
sour or an elk enjoying the comfort of an air conditioning unit.
Surrealism and creativity raised with the arrival of Midea to
Chile.
“It is never easy to enter a market; thus, we immediately
understood that it was crucial to create a proposal that would
surprise the consumer, especially on a traditional category such
as home appliances”, remarked Benjamin Pena Isla, Mar-
keting and Business Manager of Midea Carrier Chile.
The strategic planning started with the execution
of several market researches with potential consumers,
to collect the most relevant brand building and position-
ing insights, test the response to the campaign, and un-
derstand the consumer’s behavior on this category.
Among other things, the research showed that the
enormous evolution that has been taking place on the
households and culture has not yet been reflected by
other home appliance brand, and that people want to
link this category in a fun way that could help them to
escape from the daily routine. Consequently, the need
for an advertising campaign that sought to break the
mold, oriented towards a unique well-being mood, using
visual codes that would generate major attraction in the
final consumer. Therefore, this requirement needed an
innovative creative boost, a challenge which was taken by Prox-
imity Chile, branding agency part of Omnicom Group, who
worked on a proposal that aimed at “breaking with the strong
tendency on this category to exclusively focus the communica-
tion on the daily activities or the woman’s role, using an stereo-
typed figure of life, many times typecasting the woman as the
owner and unique protagonist of the household chores”, says
Marcelo Con, the Agency’s General Creative Director. That is
why they chose to explore an alternative which went beyond
genders and stereotypes.
As a result of the above, it became clear that even though
home appliances are part of daily life routines and that currently
nobody expects much from a kettle, than to boil the water, or
from a dryer, besides drying the clothes, life deserves more. The
day-to-day activities need something incredible to create a better
life, and Midea Chile embraced the creativity to make it come
true. That’s how what needed to be done came up: to simply
surprise.
“Each ad is saying to the consumer that the really surpris-
ing objects are Midea home appliances that are arriving to Chile,
rather than the incredible characters that were created. The
campaign is receiving good feedback from consumers and also
from retailers, which have found it very innovative and attrac-
tive – shaking the current status quo on the market from the
typical home appliances advertisement”, comments Benjamin.
FEATURE
Advances Newsletter, November, 2013
15
German Quality Meets Chinese Dynamism
By Mandy Wang
Rainer Kern
Senior Manager of Operations, MID
This month, we sit down with
Rainer Kern, Senior Manager of
Operations in the Midea International
Division (MID). With his international
working background, Rainer came here
to build up a new team for the
Operations Department in MID and to
expand Midea’s business into new
areas.
ADV: Hi, Rainer. Thank you for taking this time to have a few words with me. Why don’t you start by talking about your experiences previous to joining Midea? Rainer: I build up my experience in different companies and countries. As cars were always fascinating me even from being at young age, I started my career working in fleet sales for Daimler Benz. Later on I changed to a chemical company, which is producing different kinds of coating materials and decorative products. I also worked in different countries like the United Kingdom, Thailand, and of course in Germany [laughing]. ADV: There are other good companies in China. What attracted you to Midea? Rainer: At the time, I was searching for a job in China, and Midea gave me a very interesting offer to develop the Operations Department in MID. I was asked to build up a team and to expand Midea’s business into new areas. That happened to be exactly what I was looking for, so that’s how it all came together. ADV: What do you do for your position specifically? Rainer: I am in charge of supply chain management, global purchasing, quality management, after-sales management, IT, legal, compliance, and process management. However in the near future my focus will move more to cover strategic questions for MID.
ADV: How different do you see your management style compared to other managers in Midea? Does it make things more challenging, or do you think it creates an advantage for you? Rainer: There are a lot of differences I would say. I try to employ a mixed style, to respect the Chinese business culture and expectations, which are significant to my team and other colleagues. But I also incorporate some western elements of open-mindedness and team-orientation. Because of this, my team enjoys a more cooperative environment. I truly value all of the input from my team, and in fact, I force them to give input and ideas. I really like to hear their thoughts and ideas, because I believe that everyone has creativity. Those are the biggest differences. Of course it is always a challenge when you step into a different business environment especially also in a different country. You need to first understand the culture of the company; why and how normally things are handled. But after that, you need to develop your own way. That’s basically the key point. There is no question about the challenges being faced. But when you are open-minded, I do believe that you can find your own way. ADV: What other challenges do you have in your work here, and also your life here?
PEOPLE
Advances Newsletter, November, 2013
16
By Mandy Wang
Rainer: The first thing is language, which I try to learn. That’s the biggest challenge. When you learn English or even Indonesian, for example, you can read it using the common alphabet. With Chinese, you have a wildly different character set; a picture-based language. It is not really a “sounding” language. It is really a truly different culture: how people work, how they think and how they act. For a foreigner starting in this company, it is a challenge because Midea started and grew up in China. It is a family-owned business. Most of my colleagues have vast experience working in Midea, having been here for 10 years, or even more. They have networks here already, so they can easily go to this or that department to ask this or that person for information or help. For a newcomer, especially one who cannot speak the main language here, it is quite challenging to communicate, to find the right people and build up such a network. ADV: Midea has recently been bringing in more foreign talent. Now that you’ve been here for more than a year, what kind of advice would you offer a new arrival from outside of China? Rainer: My advice is that when you build up a team, you keep a good mixture; include people from within Midea, but also leave room for new talent that will fit your remaining needs. On one hand, you want those with good experience from inside of Midea, and on the other hand, you also want people with new or different ideas. That’s my general advice. So mixture is a key part.
ADV: What impression did you have about Midea before you joined? How about a few months after you joined, and now, more than one year later? How do you see Midea’s growth in the white goods industry, right now and in the future? Rainer: When you walk in here, and you see the showroom for the first time, you just say “Wow. This is the LG or Samsung of China. This is totally amazing.” This was the first impression. When you start working here, of course you learn that in China, Midea is a very big and well-known company, and it is a very big driver in the white goods industry. But when you travel abroad, and you ask people about Midea, you realize Midea is still not known for its own brand. It is only well known by industry people as a big OEM player. If you do hear about Midea outside of China, it is simply that it’s a Chinese brand; it’s just not in the minds of the people. That’s definitely the shift from when I started working in this company and also changes some the first thought market approaches for MID resp. my own areas. Of course, Midea has great potential due to its very wide range of products. It covers nearly everything in the white goods market, with potential to sell everything from refrigerators to air conditioners to washing machines, and much more. Midea is unique compared to other Chinese companies as far as I can judge, in that we are much more orientated now in understanding the needs of foreign markets, and in developing specialized products for these foreign markets. This is the reason I say Midea has a very good potential to grow in markets beyond China.
PEOPLE
German Quality Meets Chinese Dynamism
Advances Newsletter, November, 2013
17
By Mandy Wang
Furthermore Midea is managing currently the transition from being a pure international OEM manufacturer, to a global ODM and OBM. This evolution is a very important growth path for Midea. If it continues to follow this way, it can be a very successful company in my own opinion. The potential is there. It is very interesting just to be here for this transition from OEM more to ODM and OBM. That’s the key aspect for Midea, and MID can drive it for the international markets. That’s a very fascinating aspect of my job here, that I can be
part of this new growth story. A D V : F o r projecting its brand outside of China, what steps do you think Midea should take, to develop its own b r a n d i n o v e r s e a s markets? Rainer: Chinese companies have developed a bad reputation from earlier efforts to go abroad, but it is very much different now, especially for Midea. Midea
has a long-term interest in growing in these countries. We are not just going there to acquire knowledge. We are looking for real cooperation in the form of our joint ventures, like those we have with Carrier. It really is cooperation based on mutual gain; both Carrier and Midea benefit. I think this has significantly changed the perception that foreigners used to have. On the other hand, Midea must also be open-minded about welcoming foreigners, to understand how to integrate them into the company: how to give them some areas to grow, how to bring them into the Midea system, and how to make it easier. Some people maybe come here for a shorter time, but if a foreigner comes, they probably expect to stay for the long term, with the ambition to grow with the company, while supporting the growth of the company. That requires Midea to form different structures to better integrate this new blood. We also need to first understand what markets are expecting from our products. That means you need to provide the right products, of the right quality, for the right price, and
also offering the right service packages. For example, we are creating a new after-sales service process, which will back up our brand promise, which my colleagues are working on currently. We are now building up a complete package and looking more into the market, to understand what the market demand is in order for us to promote Midea sales. ADV: What is the role of MID (Midea International Division) for expanding Midea and its brand overseas? Rainer: Our strategic intention for Midea is being the multi-brand production and sales channel for the overseas business. Our intention is to build up our knowledge and expertise for foreign markets. That’s our strategy and positioning for MID. I
also believe that we show and demonstrate our ability to develop and tap into new markets, and to grow existing markets. Of course, it is very hard and there is still a long way for us to go. But we have been building the foundations, implementing new management frameworks and business structures here since last year. MID is a very young division, so we still need time to grow, but we are already well on our way, and we never stop learning and being creative to find answers for future questions posed.
PEOPLE
German Quality Meets Chinese Dynamism
Advances Newsletter, November, 2013
18
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