Midea Has Been Making a Splash

Transcription

Advances Newsletter, July, 2015
Vol. 5, #6, July 2015, No. 50
Midea Has Been Making a Splash...
... with FINA, Fiji’s Prime Minister, the Fortune 500, and Forbes Magazine
1
www.midea.com
ADVANCES Newsletter
Contents
NEWSLINE
Fortune 500 Places Midea
above the Competition
PAGE 3
Splash of the Titans PAGE 4
Midea America ’Doubles in
Size’ PAGE 5
Forbes Asian Businessman of
the Year Comes to HQ PAGE 6
Fiji Prime Minister Visits R & D
Center PAGE 7
Water Wars PAGE 8
Becoming a ‘12-Month
Brand’ in India PAGE 9
Top Korean Trainer Comes to
Midea College Page 10
Group Headquarters Gets Its
Own ‘Airport Terminal’ PAGE 10
Language
There Is Such a Thing as a
Free Lunch PAGE 11
Don’t Shoot the Interpreter
Malaysia Press Conference
and Dealer Meeting Page 12
Divisions and Departments
Mark Children’s Day PAGE 1213
PAGE 21
Big Picture
The Rise and Rise of Spanish
PAGE 22
Idea
Japanese Expert Looks to
Rugby for Wisdom Page 14
Idea of the Month:
Politeness PAGE 23
International HQ ’Reaches for
the Top’ Page 15-17
Appliances Fair Held in
Philippines Page 18
People
Perfect Chemistry PAGE 24
Belarus Factory Makes Its
First Water Heaters Page 19
Our Very Own Silicon Valley
Page 20
RAC and Xiaomi Team up for
i-Youth Seminar Page 20
Midea Advances Newsletter is published monthly
by Midea International Business. We welcome all
comments, suggestions and contributions of
articles, as well as requests for subscription to our
newsletter. You can reach us by email at:
[email protected]
MIBC
The Coming Together of
Countries PAGE 25-26
Managing Editor:
Kevin McGeary
Regular Correspondents:
John Baker
Berta Lorente
Liu Lu
Wang Wei
Chen Minshan
Mo Xuan
Wei Xin
Zhang Xuefei
Address:
ADVANCES, International Strategy Department
Midea HQ
No. 6 Midea Road
Beijiao, Shunde, Foshan, Guangdong
P.R.C. 528311
Tel: +86-757-23271418
Web: www.midea.com/global
2
NEWSLINE
Fortune 500 Places Midea above the
Competition
By Kevin McGeary
T
he Fortune list of China‘s 500 biggest companies has placed Midea in 32nd place, up three places
from last year and higher than any other appliances
manufacturer. Gree was in 34th place, TCL in 55th and
Haier in 66th on the list that was published at the beginning of July.
This is the latest major international media to
publish encouraging news about Midea Group‘s breakneck growth. The group has come from benig worth
US$1 million in 1990 to US$23 billion last year.
The top three remained unchanged. Sinopec was
in first place, with revenue of US$ 451 billion. PetroChina was in second place and China State Construction Engineering was in third.
Industrial and Commercial Bank of China (ICBC)
was highest in terms of profit with US$44.4 billion,
even higher than Apple, America‘s most profitable
company.
The total revenue of the 500 companies amounts
to about US$4.9 trillion, a 5% increase compared to last
year. The companies account for nearly half of China‘s
GDP.
Midea Group leapfrogged its competitors into 32nd place.
Fortune's report said companies in the Internet
industry are rising at the fastest pace. The revenue growth
rate of listed online enterprises is on average nearly 40 percompanies.
cent, higher than the average 5 percent growth of all listed
Among the 53 new entrants on the list this
year, commercial property developer Dalian Wanda Group Holdings Ltd was
ranked 51. Alibaba Group, also making its
first appearance on the list, was 81st, 26
places behind its competitor JD.com.
China International Capital Corporation
Ltd, which assisted Fortune in compiling
the list, said the rankings proved that despite a slowdown in economic growth,
emerging industries such as Internetrelated service providers and the pharmaceutical sector are expanding quickly.
This is a positive addition to entering the Forbes 500 in May
3
NEWSLINE
Splash of the Titans
By Advances
M
idea is set to make a splash in the world‗s largest
country and it began doing so with the help of the one organization that knows how. FINA, the world water sports governing
body, joined Midea at a press conference in Moscow on July 16
in which the brand was formally launched in Russia.
On the eve of the 16th FINA Championship Games in the
historical Russian city of Kazan, Alexey Obukhov, General
Manager of Midea Russia, outlined his plans for at the luxurious
Lotte Hotel in central Moscow. Other speakers included Midea
HQ‘s Manager of PR and Digital Marketing, Matthew Smith,
FINA‘s Executive Director, Cornel Marculescu, and the multiple Olympic medal-winning Russian diver, Gleb Galperin.
The theme of the event was chosen to highlight the powerful nature of each of the parties involved: Midea, as one of the
world‘s largest producers of home appliances, and their global
partner, FINA, as the world‘s one and only organizing authority
for aquatic sports, both coming together in a country with a
hugely fertile market.
Before the beginning of the press conference, reporters
from over 30 news organizations and a handful of VIP dealers
mingled, with many taking notice of the large ―presswall‖ outside of the venue entrance, depicting a muscular swimmer
breaching the surface of the water, looking like a Greek God
and spanning the shape of Russia‘s geographic border.
The first of the speakers, Matthew Smith, Midea HQ‘s PR
and Digital Marketing Manager, gave an introduction to the
company, describing its status as a major household name in
China and its recent but rapid growth in other major markets
such as Brazil, India, and the United States.
Speaking next, Cornel Marculescu, the Executive Director
of FINA,
mentioned
about
FINA‘s
relationship with
Midea,
describing
the natural
fit for the
partnership, which began in 2011, and was renewed last year.
Mr. Marculescu was followed by Gleb Galperin, a Russian medalist in diving from the 2008 Beijing Olympics, who described
his experience as an athlete and the great progress that FINA
has made in promoting this sport across the world.
Alexey Obukhov, then made a presentation illustrating
Midea‘s operational footprint in the world and the wide-ranging
global product portfolio, before describing Midea‘s local initial
post-launch product offering. During the question and answer
period, there were queries from the media about Midea‘s future
plans in Russia, which were described by Mr. Obukhov as small
to start with plans to expand into additional product categories,
shown to the media during his presentation.
By the end of the press conference, everyone from Midea,
FINA, and the news media gathered together in front of the
presswall for a final group photo, before a lunch outside the
venue where everyone mingled about with renewed conversation about the event.
About FINA
Founded in 1908, FINA or Fédération Internationale de
Natation (trans: International Swimming Federation) is the International Federation (IF) recognized by the International
Olympic Committee (IOC) for administering international competition in Aquatics. It is one of several IFs which administer a
given sport/discipline for the IOC and/or international community. It is based in Lausanne, Switzerland.
4
NEWSLINE
Midea America ‘Doubles in Size’
Via NJBiz
M
idea America & Canada Corporation (MACC)
negotiated a new office lease in Parsippany, New Jersey, USA
with international corporate real estate advisory firm Cresa on
July 8. Midea will occupy a space of just under two square
kilometres at Five Sylvan Way, double the size of its previous
office.
Five Sylvan Way is one of 15 class A office properties
located at Mack-Cali Business Campus. Considered one of
New Jersey‘s top corporate addresses, Mack-Cali Business
Campus offers an award-winning office environment situated
on a beautiful 600-acre site in Morris County—home to numerous Fortune 500 companies. Tenants take advantage of a
host of campus
amenities including hotels, restaurants, banking,
and a child care
center, as well as
nearby shopping,
restaurants, and
business services.
Edward English,
vice
president,
along
with
Thomas
Giannone and Ronald
Ganter, managing
principals,
represented
Midea in the
transaction. The
Staff at MACC demonstrate the power
Landlord, Mackof a Midea fan in a recent photo
Cali, was representcompetition
ed in-house by
Diane Chayes, senior vice president of leasing, and Brian Decillis, assistant vice president of leasing.
―Midea is doubling in size,‖ English said in a prepared
statement. ―Because we work exclusively as tenant representatives with no conflicts of interest, we were able to work equally as aggressively with their current landlord‘s portfolio as well
Five Sylvan Way
as potential new landlords. The value that Cresa was able to
bring to the transaction was that we mitigated the financial impacts of doubling in size, while still working to give our client
the logistical benefits of their expansion.‖
Earlier this year, Midea opened a research and development centre in Louisville, Kentucky, which also serves as a
statement of intent for the company‘s plans in the United
States.
About Cresa
Founded in 1993, Cresa is an international commercial
real estate firm headquartered in Boston, Massachusetts. Cresa
represents tenants and provides real estate services, including
corporate services; strategic planning; transaction management;
project management; facilities management; workforce and location planning; portfolio/lease administration; capital markets;
supply chain management; sustainability; and sublease and distribution.
Parsippany, New Jersey
5
NEWSLINE
Forbes Asian Businessman of the Year
Comes to HQ
By Liu Lu
L
ei Jun, founder and President of Xiaomi and
Forbes Asian Businessman of the Year 2014, came to Shunde
on July 28 to share with Midea his experiences of phenomenal
success. Group President Paul Fang and Chief Financial Officer Monica
Yuan attended the event.
Things
he
talked about
included Xiaomi becoming
the first Chinese company
to raise the
manufacturing of patch
boards to the
level of an art
form; manufacturing
power banks
as powerful as
those of Tesla
Receiving rice cooker from Midea President
and selling 15
Paul Fang
million units in
one year; plus making air purifiers that can use Internet of
Things technology to change their cores every six months.
He stressed that the starting point of all corporate think-
Lei has been described by Reuters as “China’s Steve Jobs’ and
he dresses in a similar way.
ing should be consumer desire. The function room was packed
with Midea employees eager to hear some of his wisdom.
About Lei Jun
Born in 1969 in Hubei, China, Lei gained a bachelor‘s
degree in Computer Science at Wuhan University in 1991. He
was President and
CEO of
Kingsoft
before
resigning
in 2007.
He
owns
77.8% of
Xiaomi, a
$45 billion company that A Xiaomi power bank
has a partnership with Midea. In July this year, Forbes ranked Lei Jun
number 87 on their list of global billionaires. His wealth is estimated to be well over US$10 billion.
A Xiaomi air purifier
6
Newsline
Fiji Prime Minister Visits R & D Center
By Advances
F
ijian Prime Minister Josaia Voreqe (Frank) Bainimarama visited the research and development center of
Midea‘s Refrigeration Division during an official visit on July
21. The visit to Foshan was the final phase of a China tour
that earlier took in Beijing and Fujian Province and involved
high level talks with President Xi Jinping and Premier Li
Keqiang.
Along with Midea Group Vice President Dr. Andy Gu ,
Foshan Deputy Mayor Mai Jiehua and Liang Zicai of the
Shunde District Standing Committee acted as guides to the
leader
of the
Pacific
Island
nation.
As well
as
Midea‘s
innovative
refrigeration
Receiving an introduction to Midea Refrigeration
technoloDivision’s Patented Technology
gy, topics
discussed included Midea‘s progress in Oceania and the company‘s future in Fiji, one of the strongest economies in the
region.
Last year, US$7 million in trade was done between Foshan and Fiji, according to state media, year-on-year growth of
2.3 percent.
This is likely
to increase
as there is
much
demand in Fiji
for plastic
goods,
home appliances and
furniture, all
of which are made in large quantities in Foshan.
About Frank Bainimarama
Born in 1954, Frank Bainarama is a former naval officer
who has been Fiji‘s Prime Minister since 2007. He was the
Commander of the Fijian Military Forces from 1999 to 2014.
Bainarama caused a stir on social media when he wore his
national attire to meet President Xi
While serving as Prime Minister, he has temporarily held various ministerial portfolios: Information, Home Affairs, Immigration, Public Service, Indigenous and Multi-Ethnic Affairs,
Finance, and Foreign Affairs.
On 22 September 2014, he was sworn-in again as the
Prime Minister of Fiji by the President, Ratu Epeli Nailatikau
after his Fiji First Party won the general elections.
With Premier Li Keqiang
7
NEWSLINE
Water Wars
By Advances
M
idea Water Heater Division held a swimming
competition at the Jiangshan Wutian swimming pool in Shunde on July 24. The twelve teams held games such as a tug-ofwar and ―fruit wars‖ in which they raced to gather balls into a
basin. Of course the most important thing was the photo opportunities.
Fruit wars
The winning team
8
NEWSLINE
Becoming a ‘12-Month Brand’ in India
By Advances
C
arrier-Midea India will expand its portfolio of
home appliances under the Midea brand to establish it as a ‗12
-month brand‘ in the world‘s second most populous country.
Midea entered the country in 2012 with air conditioning
products. Residential air conditioners and light commercial air
conditioners still account for most of its business in India.
Last year it launched microwave ovens and water dispensers.
―AC sales are seasonal and largely active between January and June. During the remaining part of the year, the brand
channel, market size of the product and future potential while
selecting the products. Currently, the distribution channel that we have for ACs largely supports large appliances and consumer durables,‖ he added.
An entire range of products will also increase the visibility of the brand within retail stores for 12 months of the
year. Currently, Carrier Midea‘s products are available
across 3,500 retail outlets in India. Of late, Carrier Midea
has been focussing more on retail distribution. ―Seven
to eight years back retail contribution was just 40 per
cent and now it has moved up to 68 per cent, Apart
from retail, the company also has been eyeing institutional sales by providing ACs and home appliances to
developers for large residential projects. The slow pace
in the construction business has affected institutional
business.
The company will be spending US$7.1 million on marketing the Midea brand, which will include both above-the-line and
below-the-line activities.
The top brass of both companies hold a press conference
is not too visible. We want Midea to be a 12-month brand. So
we are introducing an entire range of home appliances, choosing the products relevant for the
Indian market from the global portfolio. It will consist of large appliances, kitchen appliances and a few
niche products not currently available in India,‖ said Sanjay Mahajan,
vice president of sales and marketing.
The company will be launching
six products ahead of September.
Home appliances will be positioned
in the mid-segment in terms of pric- In India Midea sponsors Royal Challengers Bangalore, one of the world’s most glamorous cricket teams
ing. ―We will look at the distribution
9
NEWSLINE
Top Korean Trainer Comes to Midea College
By Wang Wei
D
to have succeeded in his
three goals of
increased
faith between
teammates;
creating
an
open
and
respectful atmosphere; leaving people desiring to grow and
learn more.
He also encouraged participants to evangelize his teachings about leadership not just to colleagues and underlings but
to family and friends. The training involved mingling, pair and
group work.
Global Coaching Company is the largest coaching company in Korea, a major player in the training industry. The Global
Coaching Company has top class coaching staff and its more
than 30 administration staff provide world class coaching services. Paul has written more than 12 books in leadership and
coaching.
r. Paul Jeong, president at Global Consulting and
Coaching came to Midea College on July 10-11 to offer management workshops for executives. Holding a doctorate in coaching
research at Regent University, Jeong is one of the top people in
the world at what he does, with over twenty years‘ experience
and memberships of the International Coach Federation and the
International Coaches Association.
Particularly expert in Asian-American relations and the
Asian
market
system overall,
Dr. Jeong spent
the
sessions
emphasizing self
-discovery and
group coordination skills. At
the end of the
two-day session,
he was adjudged
Group Headquarters Gets Its Own ‘Airport
Terminal’
By Chen Minshan
M
zone door 5
and B zone
door 5. It is
free to take
the bus from
the
Midea
headquarters
to the airport
and costs 46 The Volvo shuttle bus
Yuan (US$7.40)
to come the other way.
You can receive your boarding pass at the terminal before
taking the bus. Free parking is also provided beside the headquarter complex.
idea Group‘s global headquarters got its own
―airport terminal‖ on July 1, from which shuttle buses will run
to Guangzhou Baiyun Airport every 30 minutes from 5 a.m. to 8
p.m. The Shunde City Terminal Beijiao New Town Station is
located in D zone of the group headquarters and all Midea employees can use it to purchase domestic or international plane
tickets, check in and take
the shuttle bus.
The bus takes passengers
from The Shunde City
Terminal Beijiao New
Town Station to Guangzhou Baiyun Airport A
10
NEWSLINE
There Is Such a Thing as a Free Lunch
By Mo Xuan
M
idea Small Appliances Division sponsored philanthropic activities by outstanding high school students in the
impoverished mountain region of Xinfeng County, Shaoguan
in South China‘s Guangdong Province on July 10. The volunteers, students who excelled in the Gaokao, China‘s muchfeared college entrance examination, held educational activities with local children and cooked a ―free lunch‖.
The event began at 10:30 a.m. in a classroom on the
second floor of Weixin Primary School where the students
in Foshan. In a brief speech, he told the students: ―Improve
yourself by seeing and understanding as much of the world as
possible.‖
After IH rice cookers were presented to the volunteers
and new sports achievement was presented to the school, the
principal of Weixin Primary school said: ―Thank you Midea for
supporting our school. This year our new sports ground has
been completed, so it is the perfect time to try out our new
equipment. Also, in a place like this, it is very rare for our students to get the chance to talk to those who have excelled in the
Gaokao, so thank you.‖
gave speeches and teachers and children were free to ask
questions. At 11 a.m. the volunteers held a session on how to
be a top student, how to get into a good university and how
to fulfill dreams.
The first speaker was Li Jun who now studies sciences
When it was time for lunch, the volunteers led cooking
activities with the students. The food tasted all the better because they had made it with their own hands.
Midea likes being part of the local community, donating
several million US dollars in Beijiao, the founder‘s home town,
every year. Charitable activities in other countries will increase
as the company grows around the world.
11
Newsline
Malaysia Press Conference and Dealer
Meeting
By Advances
M
idea Malaysia held a press conference at the
First World Hotel in Genting Highland, Kuala Lumpur on
June 30. At the same time it held a national dealer conference. The meeting saw more than 650 distributors attend
and was the first of its kind since Midea Malaysia's conception in 2008. More than US$8 million worth of orders were
placed in one day.
The conference was the first time many of them got
the chance to see Midea's entire product range. New products that have particular potential in the country include the
Mission series split air conditioner, the Vandelo series washing machines, the IH rice cookers, and the DC inverter fan
lineup, and the slim-profile instant water heater.
The team that organized the conference
Thomas Hollefeld, representing the Midea Group International Headquarters, gave a talk introducing some of Midea's
strengths and its plans to grow the brand around the world.
After that, the two men unveiled the new product: The Marine
series top load washing machine.
In the afternoon, Jackie Huang and Mark Tam of Midea
Malaysia told the dealers who were gathered about Midea's
strategy, its products, and their selling points in the local market.
They also announced the schedule of promotional activities for
the next six months. Distributors were then free to check out
A model poses next to a range of fans
In the morning was the press release for the new products.
Midea Malaysia CEO Ng Kong Chin gave a speech, talking
about Midea's eight-year history in the country. "Introducing a
new brand into Malaysia is not easy. Introducing a Chinese
brand is even more difficult," he told the conference.
"After eight years of hard work, Midea-brand air conditioners have a market share of 8 percent, Midea brand washing
machines have a market share of 12 percent. We will keep working and investing until Midea becomes one of the top three
brands in the industry," said Ng Kong Chin.
The function room at the First World Hotel
12
NEWSLINE
Malaysia Press Conference and Dealer
Meeting (Cont.)
By Advances
the product range and receive introductions and demonstrations from experts.
At the after-party, there were performances and lucky
draws. Ng Kong Chin also handed out honorary certificates and
souvenirs to the more than 20 distributors who have sold more
than RM 1 million (US$266,916) worth of Midea products.
This event showed the media and dealers a new vigor from
Midea. With the vastly expanded product portfolio featuring
unique technology combined with high quality, the stage has
been set for Midea to reach new heights in Malaysia.
Range of washing machines on display
Ng Kong Chin and Thomas Hollefeld present the new washing
machine
Range of refrigerators on display
Prize winners
Distributors receive their certificates
13
NEWSLINE
Japanese Expert Looks to Rugby for Wisdom
By Kevin McGeary
M
sponsibility is complicated. It is important to always remember
how our jobs relate to each other and to take advantage of our
strength in numbers. In this sense, the game of rugby has a lot
of wisdom to offer," said Miyaguchi, citing a sport in which
Japan will be World Cup host in 2019.
"Unlike in similar sports such as American
football, players are not allowed to pass the
ball forward, therefore their teammates must
stay behind the ball, always be aware of what
is going on in front of them, be prepared to
receive a pass and carry the ball toward the
destination. A good player will trust their
teammates to be there and know when to
make use of them," said Miyaguchi, drawing a
comparison between the sport and his own
job in the Small Appliances Division.
Other life lessons that rugby is said to contain include: be
patient, opportunities will come; play with passion; the real
world comes without padding; and true accomplishment does
not require mass hysteria for validation.
iyaguchi Junichi has been working with rice cookers for 40 years. After spending much of his career with Toshiba, he is now a senior specialist in the Research & Development
(R & D) team in Midea‘s Small Appliances Division.
He has been a key player in the success of the Midea induction heating (IH)
rice cooker, which has been a star product
since it was launched in Tokyo in April.
On MIP, Midea‘s internal website, he has
espoused some ideas about the game of
rugby and how many of its disciplines are
transferrable to business in general and
Midea in particular.
"The purpose of a business is to
bring something of value to society," said Miyaguchi, adding that
the role of the Small Appliances Division is to improve the living standard of the consumer and invest a decent amount of its
profit into continuing this process.
"Midea is a huge company in which the delegation of re-
Midea-Japan Celebrates 14th Birthday
By Wei Xin
M
ca and Western Europe, Japan – one of the most advanced societies in the world – is somewhere Midea has
grand long-term ambitions. The office will
this year go from having eight employees to
having 20.
Midea-Japan excels in the fields of compressors and inverters and is largely staffed by
highly trained tech professionals. Based in
Osaka, it is making gains in the Asian country‘s air conditioning industry. Midea-Japan
this year moved into a new office to help
the group break into a market where standards are sky high but are dizzyingly exciting growth opportunities.
idea-Japan celebrated 14
years of operations at the beginning of
July. In 2001, when Midea‘s Japan office was first established, the group‘s
revenue outside China was US$1 billion, this has since increased to over
US$8billion so it is time to get excited
about the future.
Fourteen years ago, Midea‘s brand
awareness was comparatively weak in
China and non-existent outside. To
enter Japan, home of the world‘s leading appliances brands, represented a brave step. Along with the countries of North Ameri-
14
Newsline
International HQ 'Reaches for the Top'
By Kevin McGeary
T
he recently established Midea International Headquarters organized a day of sports activities for staff at Guangzhou University on July 4. The event, titled Reach for the Top,
enabled the more than 120 attendees to get used to working
with each other.
Staff were divided into six teams: pink, yellow, sky blue,
royal blue, purple and orange, each of which had a name and a
catchy slogan that it would chant. The activities themselves tested speed, teamwork and logic and were of varying degrees of
elaborateness and silliness.
Men had to carry women along the surface
The teams, led by banner bearers, enter the arena
Upon reaching the end, the women had to skip ten times.
Warming up
Activity 1: Running Man
The first activity was inspired by the smash hit TV show
―Running Man.‖ It involved piggy-back riding, running barefooted and skipping across a spiky surface while carrying a beach
ball together without using hands.
They then had to carry a ball back across without using
hands.
15
Newsline
International HQ 'Reaches for the
Top' (Cont.)
By Kevin McGeary
Activity 4: Hanoi Tower
This activity is a kind of relay race that involves swapping
the rings from pillar-to-pillar in a certain order. It requires as
much logical thinking as completing a Rubix cube.
Activity 2: Ride the Dragon across the River
The second activity required synchronicity and speed as
teams raced an inflatable dragon, taking the form of a giant centipede, across an imaginary river.
Activity 3: The Moon Orbiting the Planet
Teams had to bounce a beach ball on a cloth to a finish
line and back without touching it or letting it drop.
Activity 5: The Magic Carpet
This activity involved passing ball along a sheet while running to a destination and back again. The players holding the ball
are unable to run with it, players are also of course forbidden
from touching it.
16
Newsline
International HQ 'Reaches for the
Top' (Cont.)
By Kevin McGeary
Activity 6: Bouncy Castle Assault Course
The assault course for the last activity may have looked as
if it was made for children but it contained walls to climb,
hoops to crawl through and fences to jump.
The winning team with their gold medals and trophy
Presentation Ceremony
The overall standings were decided by a points system
similar to a decathlon. With characteristic showmanship, the
announcer declared that team 3 Dancing with Fire was the winner, with team 2 ―Oh My God‖ finishing as runner-up.
The teams pose together
Participants leave their footprints on a commemorative
poster
The results are read out
17
Newsline
Appliance Fair Held in Philippines
Paolo Concepcion
C
oncepcion Midea Inc. (CMI) held its first Midea
Appliance Fair in the Concepcion Industrial Corporation (CIC)
Canteen from July 13-16. Through this event, more than 500
CIC employees were able to learn more about Midea and its
product range in the Philippines. They were also given the
chance to purchase products at discounted prices.
On the first day of the exhibit, a program was held to
introduce Midea and its various product lines. Heating, ventilation and air conditioning (HVAC) products were presented by
Product Management Officer Jo Anne Salazar. In the washing
machine section, the topic of One Peso Wash and Water Magic
Cube were highlighted by Product Management Officer, Kriza
Portillo. The One-Peso Wash simply means that its Quick
Wash cycle would only cost One Peso (US$0.02) in electricity.
This is important for the Filipino market as electricity costs in
the
Philippines are very
high.
Refrigerators
and
Small Appliances
were
presented
with cooking
demonstrations by Assistant Product
Manager Bea
Santos. After
each presentation,
a
short game
was done to
engage employees
in
the program.
The exhibits
were left in
place for several days so CIC employees could check out the
products for themselves. More cooking demos were done to
entice attendees on the ―never knew before‖ usage of the digital multi-cooker/pressure cooker.
On the first day of the event, 62 Midea products were
bought by CIC employees. Sales were also strong among CIC
employees as the demonstrations left them liking what they
saw.
The event, which also contained lucky draws, was a pilot
run to see how locals would react. It also received positive
reviews from Raul Joseph A. Concepcion CEO of CIC. Furthermore, this presents a learning opportunity for the marketing team as they try to penetrate various offices in the metro
and duplicate this efforts toward strengthening the brand
name of Midea in the Philippines.
18
Newsline
Belarus Factory Makes Its First Water
Heaters
M
idea‘s Belarus factory has begun producing the first Midea-branded water heaters to be manufactured in Europe. The water heaters will be distributed throughout Europe and the former Soviet bloc.
The Belarusian capital of Minsk has a strong
manufacturing tradition and Midea has the experience, resources and know-how to make water heaters
fit for the target markets. Research and development
engineer Zhong Guorong went to Minsk to lead a
two-day training session in products, quality, manufacturing and after-sales service.
Engineers filmed themselves going through the
largest household appliances and consumer electronics producers in the
former Soviet bloc. The companies
that are part of Horizont Group now
render a wide variety of services starting from commercial property development, engineering, designing, construction and management to logistics,
catering, medical care, recreation and
social service.
key processes step-by-step for future reference. Quality control
engineer Mu Jie led tests to make sure that each worker knew
what they were doing.
By the end of the training session, the first water heater
had been completed. The factory will help Midea's local joint
venture with Horizont achieve its potential.
The Horizont-Midea joint venture was set up in 2007.
Belarus holds 70% in the company. The Chinese share is 30%.
Highlights in its history include an official visit from Belarus
President Alexander Lukashnko in 2010.
About Horizont
Founded in 1950, Horizont Group today is one of the The presidential visit in 2010
19
NEWSLINE
Our Very Own Silicon Valley
By Kevin McGeary
T
to benefit areas
such as Africa,
India and Western China.
―Silicon
Valley‖ has become a catch-all
term for a global
hub where an
industry‘s leading ideas and What the Silicon Valley will look like
cutting-edge products originate. A 2012 article in Harvard Business Review called for
the creation of a Life Sciences Silicon Valley. This year, Christian
Science Monitor published a piece listing non-American companies that were beating Silicon Valley at its own game, citing Xiaomi‘s competition with Apple and Indian e-commerce company
Flipkart‘s battle with Amazon.
Like the original Silicon Valley, the eastern area of Midea
Industrial City will bring together research, applied sciences and
some of the world‘s leading minds in the field to ultimately
bring the optimum experience to the consumer.
he eastern area of Midea Industrial City in Shunde
has been named Midea‘s own ―Silicon Valley‖ after it was established to complement the neighboring M-Smart Headquarters
and Central Research and Development Institute. The valley,
which already employs 130 people, will bring together various
strands of what the company is trying to achieve in areas such as
manufacturing and consumer research.
Silicon Valley, in its original sense, is a nickname for the
southern portion of the San Francisco Bay Area in the United
States where many of the world‘s leading tech companies and a
large ecosystem of start-ups are based. Midea‘s Silicon Valley is
currently being used to research water management and waste
management
technology and
how
such
technology can
be incorporated
RAC and Xiaomi Hold i-Youth Seminar
By Kevin McGeary
S
ers is how can they maximize convenience to the user and give
them the best possible experience in the brave new internet age.
The particular purpose of the event was to promote the i-Youth
Smart Air Conditioner, which can be controlled through a number of platforms and
Xiaomi products including bracelets.
This partnership, which was established in
late 2014, is aimed at keeping both companies at the forefront of ―smart home‖
technology as the Internet of Things revolutionizes people‘s relationship with their home appliances. iYouth is one of the partnership‘s biggest success stories so far.
enior representatives of Midea Residential Air Conditioning (RAC) got together with counterparts at Xiaomi to hold
the i-Youth Seminar in Beijing on June
30. Head of RAC Wu Wenxin and
Xiaomi Vice President Huang Jiangji
talked about how a manufacturing
giant can work with an internet pioneer to lead the way in smart home
technology. Themes discussed included ―The Fast Track to Success‖ and ―Made in China 2025.‖
2015 is a particularly competitive year in the Chinese residential air conditioning industry, so the question to manufactur-
20
Language
Don’t Shoot the Interpreter
By John Baker
though, that he/she may also secretly wish that he/she was the
powerful businessperson making big decisions on behalf of a
large corporation, rather than being the ‗middle-man‘?
So don‘t be jealous of someone who speaks more languages than you. We don‘t need to have hang-ups about the
fact that we don‘t speak all the languages in the world. Nobody does. There‘ll always be situations when you meet people who speak languages that you don‘t speak. Don‘t bother
envying them, as it‘ll lead to you worry about learning a lanome people make a living out of their language skills:
guage, which will get in the way of learning in a natural way.
doing international trade, working in multi-national corporaAs children, we don‘t have any hang-ups about language learntions and, of course, being professional interpreters.
ing, we just relax and get on with it. As adults, we should do
When you start learning a
the same.
language, it is easy to assume that
The first few months of learning a
the days when you‘ll be able to
language are usually the time when
speak the language well are a
people have the most doubts
long, long way off. If that‘s the
about whether or not they‘ll be
case, it‘s easy to start envying
able to achieve their target. The
people who speak several lansame may be true of any project or
guages.
undertaking, but somehow lanI‘ve spoken to quite a few
guage study is one aspect of life
professional interpreters and
that has a peculiar ability to cast
some of their comments about
fear into people‘s hearts.
their work surprised me. On
As I‘ve said in previous articles,
reflection though, they make
that fear most likely arises from
perfect sense. If you‘ve ever
previous attempts to learn a lanthought of interpreters as holdguage (using a method totally unNobody’s
life
is
enviable
in
extreme
close-up
ing a certain amount of power, or
suited to the task), and the common
subconsciously been jealous of
myth that language learning is diffitheir language skills, take a moment to put yourself in their
cult. Whilst learning a language is something that can‘t be
position.
rushed – we weren‘t in a rush to learn our mother tongue – it‘s
During business negotiations, it‘s easy for an interpreter
certainly not something that has to be difficult.
to worry that both sides will think he/she is trying to get the
To embark on a project in the right frame of mind, it
other side to give him/her a secret cut or commission – doing
helps to eradicate anything that‘s giving you negative feelings
a secret deal with the one side that the other side can‘t underabout the endeavor. Unlike other negative emotions such as
stand. When he/she asks questions to try to fully understand
fear or anger envy serves no purpose, so do not envy other
the situation before translating, sometimes the parties to the
people‘s language skills or pay no attention to those who envy
negotiation start to think that the interpreter is trying to take
yours.
over the conversation.
Instead of being jealous of each other, let‘s relax. After
If you‘ve ever relied on an interpreter for help, you may
all, tension, fear and worries are one of the biggest barriers to
wish you had his/her language skills. Have you ever thought
learning.
This is part of a series about language learning. The author graduated from Cambridge University with a Master's degree in Engineering
and spent several years working in financial services in London before
moving to China.
He is currently based at the Midea Group headquarters, working
in Midea International Business’Strategy & Human Resources team.
S
21
Big Picture
The Rise and Rise of Spanish
By Berta Lorente
L
Crown of Castile in the center and south of the peninsula. In
the 16th century, due to the colonization of America, Spanish
spread throughout much of the Americas and has been ever
present since.
The Spanish language is present on six continents. As well
as being the official language of over 20 countries, it has a degree of formality in the United States, the Philippines and Oceania. About 400 million Spanish speakers worldwide, 95% of
the total, are in the Americas, specifically in Latin America and
some US states.
Similar to British and American English, Spanish is spoken in different ways throughout the world. It is especially diverse in the way it is written. Two of the most common differences, the use of "you" in Spain, which is used to address the
third person singular, while Hispanic Americans,
use it to mean "you" informally. Nouns can also
be different, the word for computer in Spain is
"ordenador", while in Latin America it is
"computadora".
In the 21th century, Spanish has around 470
million people who speak it as a first or second
language, second only to Mandarin. It is the
third most spoken language in the world and has over 20 million students.
The language will continue to expand. It is anticipated
that by the 2050s, 10% of the world‘s population will speak it,
according to the Cervantes Institute. In a highly competitive job
market, an increasing number of people are realizing the usefulness of a language that is spoken in so many countries that are
playing a bigger role in the global economy, according to Luis
anguages, like empires, inevitably rise and fall. Reasons why they rise are similar: resilience, luck and necessity.
English, today the most studied language in the world, started
life as a minor Germanic dialect around 500 AD. Latin, the
standard language of science until the 18th century, later became
the subject of the children‘s rhyme: ‗Latin is a language, as dead
as it can be, it killed the ancient Romans, and now it‘s killing me‘
If you go to Yangshuo, a popular tourist destination in
south China, there is a good chance you will hear Japanese, Russian, German and Korean travelers communicate in English.
This suggests English is and will remain the language of the
world, but it is not the only one that is growing.
Of any language today, Spanish is the third most spoken
and second most studied. Like English, it
came from humble beginnings. Derived
mostly from Latin and is the official language of Spain, nineteen countries in the
Americas, and Equatorial Guinea, a small
oil rich country on the west coast of Africa.
Spanish is also known as Castilian,
as it has its origin in the region of Castile in Spain. It evolved
from several dialects which were descended from Latin in the
Iberian Peninsula after the fall of the Roman Empire in the 5th
century. The Moorish invasion of the 8th century meant Spanish
also became highly influenced by Arabic.
In the Christian kingdoms of subsequent years, there were
several Romanesque forms: Catalan, Navarre-Aragon, The Castilian, Asturian-Leon and Galician-Portuguese. At the end of the
11th century it began a process of linguistic leveling which resulted in the formation of what is now known as the Spanish
language.
As King of Castile, Alfonso X (1221-1284) fostered the
development of a cosmopolitan court that encouraged learning.
As a result of the subsequent translations of works from Arabic
and Latin into the vernacular of Castile, many intellectual changes took place, perhaps the most notable being encouragement of
the use of Castilian as a primary language of higher learning,
science, and law.
Thereafter, it spread gradually with the expansion of the
Hu (胡路平), owner of Louis International Language Academy in Foshan, Guangdong province.
Not only can Spanish help you book a hotel room in
Madrid or Buenos Aires, it can help you see into the heart of
Borges, Cervantes, Marquez and so many others. Author Rita
Mae Brown said language is the road map of a culture, and
Spanish is native to a wider variety of cultures than any other
language in the world.
The author is an intern from Spain who this summer used her time
at Midea’s international headquarters to do translations and give Spanish
classes.
22
IDEA
Idea of the Month: Politeness
By Kevin McGeary
P
you‘re about twice as likely to experience incivility in the
oliteness is the most respectable form of hypocrisy,
workplace as in the 1990s.
said American satirist Ambrose Bierce. Business etiquette, with
However, the explanation for it hasn‘t changed since
its formality, dress code and worship of status would appear to
1899. Porath‘s work shows that around 40% of us, across
back him up. Few businesses are brave enough to rebel.
multiple industries, say we‘re rude because we haven‘t the time
However, Forbes magazine argued July 10 that politeness
to be polite.
kills careers and businesses. Politeness causes people to fail to
Oliver Burkeman, writing in The Guardian on July 10,
identify weaknesses and which virtues that can spill over into
pointed out that many forms of politeness take no time at all.
vices.
It is no quicker to scowl than to smile, or to talk quietly into
The persona you have at work could be the joker or the
your phone on the train, rather than bellowing.
prankster, the person who tells it like is, or the one who is
Moreover, to judge by Porath‘s research, rudeness at
hyper-organized. These traits can all inspire positive feedback.
work is rarely a good time-saving tactic. When bosses treat
However, in excess any of those things can be weaknesses.
employees rudely, it causes productivity and creativity to
A funny person can become facetious, a prankster can
plummet, so in the end rudeness slows things down.
become sadistic, a frank person can become a
One example of something that is supposed to be
verbal bully, and an organized person can be anal.
timesaving but that has the opposite effect is
For every Dr. Jekyll quality, there may be a Mr.
acronyms. If professionals are using jargon to
Hyde characteristic underneath.
communicate with each other, then fine. But
As Forbes says, Achilles‘ heels can include:
business writing is all about knowing your
talking too much; shooting down ideas; worrying
audience, there are very few acronyms that are
about your outside interests more than work;
universally recognized: VIP, CEO, RIP to name
making sure that fools know they‘re fools; being
some.
excessively spontaneous or excessively rigid; always
Would it not just be easier and ultimately save
Christine Porath
avoiding risk, or always plunging into it.‖
confusion to write the words in full? The same goes
Success requires self-awareness and we all need to know
for the new abbreviation ―rgrds‖. It may send out the message:
how we truly come across. The best buddy road movies such as
―I am so productive I don‘t have time to write the word
―Planes, Trains and Automobiles‖ are about characters who
―regards.‖ It may also show contempt and condescension.
grow by learning how their personalities can annoy as well as
American humorist John Billings said one of the greatest
endear.
victories you can gain over someone is to beat him at
Unfortunately, to gain this self-awareness, we need to hear
politeness. Legendary soccer manager Sir Alex Ferguson is a
the truth about ourselves and that is not always possible in a
case in point.
civilized society. If everyone said to everyone else‘s face what
When he led Scottish minnows Aberdeen to the 1983
they really thought, people would only leave home to get in
European Cup Winners‘ Cup final against Real Madrid, he
fights.
presented his opposite number with a bottle of champagne to
In many ways, politeness is not conducive to running a
show how honoured he was to meet him. This only fed into
company or holding a job. Manners maketh man but time is
Real Madrid‘s misguided sense of superiority which led to their
money. ―It appears to be the case that in these modern days
defeat.
many people have no time to be polite,‖ grumbled the New
If you are a celebrity, you may not be able to sign every
York Observer in 1899.
autograph but you also don‘t have to punch paparazzi. As for
Though every older generation complains about the
the claim that politeness prevents people from learning about
decline of behavior, rudeness does appear to be increasing.
themselves, anybody who had good teachers at school knows
According to Dr. Christine Porath, professor of management at
you can criticize people without being a jerk and that not all
Georgetown University, writing recently in the New York Times,
criticism is helpful.
23
People
Perfect Chemistry
By Zhang Xuefei
C
hemistry is an
ancient science and something to which all life is related. Dr. Hong Yanzhong of
Midea Residential Air Conditioning (RAC) has been fascinated with it since Autumn
2006 when he started university. Born in Xinyang, Henan
Province on Chinese New
Year‘s Day, 1988, Dr.
Hong‘s entire adult life has
revolved around Chemistry.
His bachelor‘s degree
involved throwing himself
into every course, gaining
overall competence and appre- Dr. Hong Yanzhong
ciating the subject‘s importance to society and how
understanding Chemistry has been improving human life for
centuries. Hong‘s undergraduate
studies were broad but not deep, so
as soon as his undergraduate degree came to an end, Hong decided
to continue his studies.
As a postgraduate student, Hong
was lucky enough to study under
Jin Xianbo of Wuhan University
and Chen Zheng of Nottingham
University. Both are experts in material chemistry and physics. Hong
had the best guidance available
when doing his research on new
Dr. Chen Zheng of
energy
materials, alloy materials, and
Nottingham University
the preparation and application of
composite materials.
Hong was struck by the unassuming styles and diligent
guidance shown by the professors he was studying under. ―My
nine years as a college student were the most precious and beneficial time of my life. They enabled me to vastly expand my mind
24
and realize my potential,‖
Hong told an internal
publication.
Graduation from his doctoral program was a beginning as well as an end.
After all, learning is only
valuable if it is put to practical use.
Shortly after graduating,
he joined Midea Residential Air Conditioning
(RAC) where he strives to
apply the principle of using scientific method to
improve people‘s lives.
During his studies, he did
a work placement at RAC
where he fell in love with
the environment in which it
is encouraged to think differently.
His title is structural
development engineer and
the department he uses
focuses on research and
development for nonutilitarian ends. In this respect it is similar to still
being at university.
RAC gives Dr. Hong
the chance to get paid for
using the things he learned
at university. Having spent
so much time in full time
education, Dr. Hong is in Dr. Jin Xianbo of Wuhan
some respects a freshman in University
the college of life, but he has
found a nurturing environment at RAC.
Midea brings in top talent from the world‘s best institutions of education. It also gives them room to be the person
they want to be.
MIBC
The Coming Together of Countries
By Kevin McGeary
T
he Midea International Business Conference (MIBC)
was held July 30-31, drawing representatives of over 20 countries and regions to the Midea Group headquarters in Shunde.
Speakers included Midea International Business‘ Product Line
Manager Thomas Hollefeld, Head of Human Resources Kaiser
Chen and Peter Goldman, Vice President of international market research organization GfK.
Memorable moments included Kaiser‘s citing of a famous
Thomas
Paine
quote
about risk
being essential to
entrepreneurship
Peter Goldman of GfK
and Thomas
Hollefeld‘s confession that this was the first time in 20 years that
he had worn uniform (not since his army days).
Peter Goldman was one of the few non-Midea employees
to be invited to the conference. His speech began with the question of what the world will look like when there are 3 billion
middle class consumers, which is where our current trajectory is
leading us.
He stressed the need for risk taking in business, pointing
out that most of the Japanese and Korean companies whose
footsteps
Midea is
trying to
follow in
made
major
mistakes
along the
way. He
then
shared indepth
Thomas Hollefeld (center) about to reveal the first
analysis
uniform he has worn in 20 years.
25
of individual markets
India, Brazil and Russia.
Most speeches
were about internal
issues
including
Thomas Hollefeld‘s review of the first half of this year and laying out the plan for the second half. After stating the goal of
becoming one of the top three heating, ventilation, and air conditioning (HVAC) brands in the world, Thomas stressed the
need to be organized across the whole value chain and work in a
consumer-centred way.
Sophie Shao explained the new word she had invented
ICE, short for integrated
consumer experience. Her
speech covered matters
that will be required to
engage consumers: from
sponsorship events, to
brand slogans to social
media.
Other speakers in- Sophie Shao encouraging ICE
cluded Anthony Wong who
talked about how DHL could help companies improve efficiency and reduce operational costs. Coobie Zhang, President of
Midea International Business gave a one-hour closing speech in
which he pulled everything together and talked about the future
of the company.
In his memorable speech he called for Midea to be more
like a helicopter: firmly on the ground but able to rise up and
see the big picture. Citing a Song Dynasty poem, he also called
for Midea to be more like a duck: dwelling in a place where it
could feel the changing of the seasons before any other creature.
On the evening of July 30,
all attendees were invited to a
banquet at the Shunde Marriot
where, as well as the famous
local cuisine, guests were invited
to play games whose winners
won prizes including Midea
WIFI converters.
Coobie Zhang: “Be helicopters”
MIBC
The Coming Together of Countries (Cont.)
By Kevin McGeary
Advances solicited the feelings of attendees
from various countries.
Argentina— German B. Damiano
of Midea-Carrier ABC said the past year
has been a success. Residential air conditioning was particularly lucrative, according to Damiano.
When asked why this was, Damiano
cited good distribution, strong processes, a skilled HR team and
a strong brand. The joint-venture‘s Surrey brand is particularly
successful. ―Our biggest challenges now include increasing our
range of appliances and building brand awareness,‖ said Damiano.
Singapore—Julius Oczujda is a Human
Resources Specialist who has been with
Midea since 2013. He is currently based in
Singapore, where the Midea brand had no
presence whatsoever as recently as 2010.
―In just five years we have gone from zero
to being present everywhere where white
goods are sold and having a great deal of
visibility,‖ said Julius. When asked what
challenges Midea still faced in the city state,
he cited its brand status. ―Chinese brands
are still not as trusted as Japanese brands,‖ said Julius, adding
that in the next year the product range in Singapore would increase.
Egypt—Amr Said is Miraco managing director for Egypt and Africa. He
said that the past year had been particularly successful in terms of residential air
conditioning.
His stated goal is to make Midea
one of the biggest brands on the continent. ―It is a top company, with great
products and a good brand. In Egypt we want to help it gain its
rightful place as one of the leading brands in the industry,‖ said
Said.
26
India—Sukhwant Singh is Chief Financial
Officer of Carrier-Midea India. Up to
now, the joint venture has mostly been
involved with residential air conditioners,
but Singh said they were about to move
into other areas.
―Soon we will launch washing machines,
water heaters, water purifiers and other
products,‖ said Singh.
When asked about the sponsorship of Indian Premier
League cricket team Royal Challengers Bangalore, he said it was
great, bringing association between the Midea brand and some
of the top figures in India‘s most loved sport.
MACC—Eli Glanzberg has been President of Midea America & Canada Corporation (MACC) since January 2014. Previously
he served as vice president of the corporation and general manager of the refrigeration
and laundry division.
He said he and his colleagues enjoyed
the speeches. In terms of his own branch‘s
progress, Glanzberg said that one of the
biggest success stories of the past year was
getting big placements in Walmart.
―RAC has been pretty good for us, as has refrigeration,‖
said Glanzberg.
Germany—Michael Habla has been with Midea for seven
years. He described this year‘s MIBC as detailed and well organized, saying that the event becomes more well-structured every
year.
―Midea and its brands are still only making baby steps but it is a long long process, said Habla. He has been at the
company through a large number of
structural changes so has worked under
RAC, the now defunct Midea International Division and is now with Midea
International Business.
SNAPSHOT
Midea in Mexico
27

Midea Has Been Making a Splash

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