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Advances Newsletter, August-September, 2015 1 Vol. 5, #7, August-September 2015, No. 51 A Beautiful Brand Sponsoring China’s most glamorous sports stars and models

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Page 1: A Beautiful Brand - Mideaimg1.midea.com/global/about_midea/publications/201509/P... · A Beautiful Brand Sponsoring China’s most glamorous sports stars and models. Advances Newsletter,

Advances Newsletter, August-September, 2015

1

Vol. 5, #7, August-September 2015, No. 51

A Beautiful Brand

Sponsoring China’s most glamorous sports stars and models

Page 2: A Beautiful Brand - Mideaimg1.midea.com/global/about_midea/publications/201509/P... · A Beautiful Brand Sponsoring China’s most glamorous sports stars and models. Advances Newsletter,

Advances Newsletter, August-September, 2015

2

ADVANCES Newsletter

Contents

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]

Address:

ADVANCES, International Strategy Department

Midea HQ

No. 6 Midea Road

Beijiao, Shunde, Foshan, Guangdong

P.R.C. 528311

Web: www.midea.com/global

Quote of the Month:

“It does not matter

how slowly you go as

long as you don’t

stop.”

Confucius

NEWSLINE

First Half Revenue at $13

Billion PAGE 3

American Design

Excellence Award PAGE 3

Most Populous Country’s

Most Beautiful People PAGE 4

www.midea.com

India’s Ancient Wisdom and

Me PAGE 19-20

People

Idea

Idea of the Month:

Storytelling PAGE 18

Team Building at the Beach PAGE 8

A Little Notebook of Words:

Friend or Foe PAGE 17

Language

Ambassador to Germany

Attends Exhibition PAGE 7

JVs Signed with Japanese

Robot Giant PAGE 5

An Ambassador’s Reception

in The Philippines PAGE 6

Named in Top 10 “Made in

Vietnam” Brands PAGE 11

CAC Holds Elite Chile Camp

PAGE 11

MACC Holds Annual Sales

Meeting Page 12

Happy Valentine’s Day from

New York City Page 13

Water Heating Retains

Malaysia Certificate Page 13

CAC in National Bank of

Portugal HQ Page 14

Philippines Golf Tournament Page 14 FINA Games

The Coming Together of

Countries PAGE 21

CAC Shines at African

Games & Georgia Youth

Olympics PAGE 9

Water Purifier Wins National

Award PAGE 10

Kitchen Appliances Division

Wins Two Wal-Mart Awards PAGE 10

Charitable Activities in Egypt Page 15

LittleSwan Profit up 36% Year-

on-Year Page 15

India Football Championship

Builds Bridges PAGE 16

Midea Trophy for World

Record Breakers PAGE 22

Page 3: A Beautiful Brand - Mideaimg1.midea.com/global/about_midea/publications/201509/P... · A Beautiful Brand Sponsoring China’s most glamorous sports stars and models. Advances Newsletter,

Advances Newsletter, August-September, 2015

3

First Half Revenue at $13 Billion

Via MIP

T he first half of 2015

was rewarding in terms of

achievements for Midea Group.

It entered the Forbes 500, was

China’s highest appliances man-

ufacturer in the Fortune 500,

and had its brand name appear

on an LED screen in New York

City’s iconic Time Square. The

latest quarterly report has re-

vealed that it was also rewarding

in dollars and cents.

Midea Group’s revenue for

the first half of 2015 was US$13

billion, a year-on-year increase of

7 percent. The holding compa-

ny’s profit was US$1.3 billion, a

year-on-year increase of 26 per-

cent. Earnings per share were at US$0.31, a year-on-year in-

crease of 25.48 percent.

Domestic sales accounted for

US$7.76 billion for revenue, a

year-on-year increase of 10 per-

cent. Overseas sales accounted

for US$4.29 billion. Midea also

did US $1.1 billion in e-

commerce, the highest in the

industry.

Earlier this year, group president

Paul Fang urged employees to

“take centre stage” as Midea

makes the notoriously tough

transition from original equip-

ment manufacturer to a global

brand. At this rate, 2015 will

surpass the previous year as the

most lucrative in Midea Group’s

history. This would be quite an

achievement considering the turbulent global economy.

NEWSLINE

By Kevin McGeary

American Design

Excellence Award

A Midea water heater

won gold at the American Interna-

tional Design Excellence Awards

(IDEA), one of the world’s big four

design awards. The water heater

joined 28 other products in over-

coming 1700 competitors in collect-

ing the award.

The winning heater, the

F50LW-A model, is compact in

design. It aims at being noticeable

but harmonious with the rest of the

bathroom.

As well as this model’s triumph, the

water heating division’s F50LW-B、

F50LW-C electric water heaters and

the Msheet and Mstone gas water

heaters were finalists. The Water Heat-

ing Division has now won a total of 18

major international awards from the

top four awarding bodies, IDEA, the

German Red Dot and iF awards, and

the Japanese G-Mark Award. It has

also won the much respected Korean

GD Award.

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Advances Newsletter, August-September, 2015

4

Most Populous Country’s Most Beautiful

People By Kevin McGeary

T he top leaders of New Silk Road (NSR), China's

largest modeling agency, came to the group headquarters on

September 2 to announce Midea's sponsorship of the nation's

oldest and biggest beauty contest. Champions past and pre-

sent were invited to strut their stuff.

Midea's Chinese name literally means "beautiful" so it is

a fitting sponsor of a company that holds the key to the king-

dom of heaven in China's fashion and modeling industries.

The nationally televised contest will conclude in December,

by which time someone else will have joined NSR's vast roster

of supermodels.

NEWSLINE

Posing with M-Smart products

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Advances Newsletter, August-September, 2015

5

JVs Signed with Japanese Robot Giant

Via Drives & Controls

M idea set up two joint ventures with Japanese ro-

botics and motion controls manufacturer Yaskawa on August

4. The partners plan to invest a total of 400m yuan ($63m) in

the ventures, one of which will produce industrial robots, the

other service robots.

Yaskawa will have the majority stake (51%) in the indus-

trial robots business, while Midea will have the majority stake

(60.1%) in the service robots operation.

As Chinese wages increase and its population gets older,

the People’s Republic is turning increasingly to robots to

maintain production efficiency. It is already the world’s big-

gest market for industrial robots, with 56,000 sold in 2014.

The International Federation of Robotics (IRF) expects the

number

of robots

in use by

Chinese

industry

to more

than

double

by 2017,

by when

it will

have the

largest

installed base in the world – predicted to be around 428,000.

By adopting more automation, Midea expects the work-

force to drop to 100,000 by the time its turnover reaches

US$32bn. Yaskawa is doubling the output of robots from its

own Chinese factories, as well as setting up the joint ventures

with Midea.

Yaskawa already has two robot manufacturing plants in

China and is planning to double its output there to 600 robots

per month (about a quarter of its Japanese robot output).

Globally, robotics represented 38% of its 101m yen ($810m)

sales in the first quarter of 2015 – up from 34% the previous

year. Its largest business remains motion controls, which ac-

counted for 48% of its first-quarter sales in both 2014 and

2015.

Head of Yaskawa’s Robotics Business Division Nishikawa

Seigo told those gathered at the signing that Yaskawa is in the

top four in its industry and has been researching service robot

technology for ten years. The revolutionary LR2 Leg Rehabilita-

tion Robot has attained licensing from the The Catalog of Fed-

eral Domestic Assistance (CDFA) in the United States.

About Yaskawa

The Yaskawa Electric Corporation is a Japanese manufac-

turer of servos, motion controllers, AC motor drives, switches

and industrial robots. Their Motoman robots are heavy duty

industrial robots used in welding, packaging, assembly, coating,

cutting, material handling and general automation.

The company was founded in 1915, and its head office is

located in Kitakyushu,

Fukuoka Prefecture.

Yaskawa applied for a

trademark on the term

"Mechatronics" in

1969, it was approved

in 1972.

The company is

listed on the Tokyo and

Fukuoka Stock Ex-

change and is a constit-

uent of the Nikkei 225

stock index.

NEWSLINE

The leg rehabilitation robot

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Advances Newsletter, August-September, 2015

6

An Ambassador's Reception in The

Philippines By Kevin McGeary

C hina’s ambassador to the Philippines was present

at the 11th China Machinery and Electronic Brand Show in

Manila on August 20 where Midea’s range of washing ma-

chines stole the show. Zhao Jianhua was present at the home

of the SM Development Corporation (SMDC) where 128

companies displayed their products.

Zhao was impressed by the products, which included

the

Water

Cube

and

Crown

Series.

He

also

praised

the

Marine

and

Ateena

series for

their

apparent sensitivity to local market demand. He urged Chi-

nese companies to promote their brands more in the Asian

country.

Japanese and Korean companies have long since ruled

South-

east

Asia’s

home

appli-

ances

market.

Howev-

er, if the

attend-

ance

and

liveli-

ness of

this event is anything to go by, Chinese brands are rising fast.

About Zhao Jianhua

Born in 1965, Zhao Jianhua gained a Master’s in World

Economy at Nankai University and a Master’s in International

Policy

and

Practice,

Elliott

School

of Inter-

national

Affairs

at

George

Wash-

ington

Univer-

sity. He

has been

involved

with foreign relations since 1990.

Zhao has served in Thailand, Lebanon and Great Britain.

He was ambassador to Liberia from 2010 to 2013 before taking

up his current role.

NEWSLINE

Things get rowdy

Zhao Jianhua inspects products

The entire range on display

Page 7: A Beautiful Brand - Mideaimg1.midea.com/global/about_midea/publications/201509/P... · A Beautiful Brand Sponsoring China’s most glamorous sports stars and models. Advances Newsletter,

Advances Newsletter, August-September, 2015

7

Ambassador to Germany Attends Exhibition

By Advances

C hina’s Ambassador to Germany Shi Mingde visited

the Midea stand at the Internationale Funkausstellung (IFA)

Berlin, one of the world’s largest consumer electronics exhibi-

tions, on September 6. The annual show, which began on

September 4, gave Midea Group the chance to display some

of its latest products to become in the central European coun-

try.

Midea Group displayed new products including its floor

-sweeping robot, smart washing machine Beverly, the steam-

preserving refrigerator, and the children’s range of air condi-

tioners. This year, the Midea stand contained a number of

games and activities for visitors

to help leave a deeper impres-

sion in the minds of consum-

ers.

Founded in 1924, the

IFA offers the opportunity to

exhibitors to present their lat-

est products and develop-

ments. The exhibition

receives a great deal of

media attention in Ger-

many and has become an

international event. In the

course of its history, a

large number of world

innovations were first

seen at the exhibition.

This year all of the biggest

names in the consumer

electronics industry were in

attendance. While headline-

grabbing items like

Samsung’s Gear S2

smartwatch and

Sony’s 4K Xperia

Z5 Premium

smartphone won the

most attention, the

show also delivered

plenty of unexpected

and even wacky

creations. http://

www.news.com.au/

technology/

gadgets/ambient-

screen-tvs-tablets-

with-projectors-

and-cleaning-

robots-were-just-

some-of-the-

gadgets-featured-

at-this-years-

biggest-tech-

show/story-

fnda1lbo-

1227515323321

NEWSLINE

Shi Mingde with Michael Habla,

Midea’s stand

Customers behold the children’s air conditioner

Shi Mingde given a demonstration of the Beverly washing machine

Page 8: A Beautiful Brand - Mideaimg1.midea.com/global/about_midea/publications/201509/P... · A Beautiful Brand Sponsoring China’s most glamorous sports stars and models. Advances Newsletter,

Advances Newsletter, August-September, 2015

8

Team Building at the Beach

T wo-hundred and sixty employees of the international

sales division of Midea Residential Air Conditioning (RAC) de-

scended on the famous Xiaomeisha beach in the southern Chi-

nese metropolis of Shenzhen on August 22. Activities on the

white sandy beach included a warmup dance in which motiva-

tional slogans were shouted and the making and racing of small

rafts.

Shenzhen was little more than a cluster of fishing villages

when it was established as a Special Economic Zone in 1980. As

well as being as stunning as those of Sydney or Rio Di Janeiro,

its coastline has a fascinating history.

It is from there that the last emperor of the Song Dynasty met

his demise in 1279; a 40-day siege of Japanese pirates was resist-

ed in 1571; and missionaries entered to establish churches in the

nineteenth century. It is a fitting place to carry out such fierce

competitions.

NEWSLINE

By Kevin McGeary

Page 9: A Beautiful Brand - Mideaimg1.midea.com/global/about_midea/publications/201509/P... · A Beautiful Brand Sponsoring China’s most glamorous sports stars and models. Advances Newsletter,

Advances Newsletter, August-September, 2015

9

CAC Shines at African Games and Georgia

Youth Olympics

I t provided air conditioning equipment to nine stadia

at the 2014 FIFA World Cup in Brazil, the Camp Nou in Bar-

celona, and the stadium for the 2010 Asian Games, now

Midea Commercial Air Conditioning (CAC) has provided

equipment for major sporting events on two new continents.

CAC completed the installation of its equipment at the Olym-

pic village ahead of the All-Africa Games in Brazzaville, Con-

go from September 4-19. This was fresh on the heals of its

providing equipment to eleven of the thirteen venues at the

World Youth Olympics in Tbilisi, Georgia in July.

The All-Africa Games, which invite every country in

Africa to compete, are held every four years. This was the first

time Brazzaville held a major international sporting event

since the first All-Africa Games in 1965.

Brazzaville overcame competition from Ghana, Kenya

and Congo to host the games, at which 22 sports were played.

Midea provided the equipment to the national stadium in

Brazzaville, The Talangai Arena, and the entire Olympic vil-

lage. CAC took care of the whole process, from design and

manufacturing to installation and maintenance.

From airports to sports stadia, CAC continues to enter new

countries and continents. Enjoy the games.

The Youth Olympics, which are held every two years, are

for competitors aged 14-18. As well as track and field

events, there is swimming, cycling, basketball, gymnastics,

handball, judo, tennis and volleyball. CAC’s equipment

was used at the stadium for track and field events, the

swimming pool, the basketball court, the judo center, the

tennis court and the volleyball court, all venues with very

different needs.

This year’s Youth Olympics invited over 2,000 athletes

from 50 countries. Russia topped the medals table, with

Italy in second and France in third. Who knows who

many future Olympians took part?

NEWSLINE

A venue for the Youth Olympics in Tbilisi

The Olympic Village in Brazzaville

Page 10: A Beautiful Brand - Mideaimg1.midea.com/global/about_midea/publications/201509/P... · A Beautiful Brand Sponsoring China’s most glamorous sports stars and models. Advances Newsletter,

Advances Newsletter, August-September, 2015

10

Kitchen Appliances Division Wins Two Wal-

Mart Awards

M idea was the only home appliances manufacturer to

win awards at Wal-Mart's annual global supplier conference in

Shenzhen, China on September 3. The Kitchen Appliances Divi-

sion overcame hundreds of competitors to pick up the Supplier

of the Year Award and the Developing or Improving Innova-

tion Award. This is the second consecutive year the Kitchen

Appliances Division has picked up an award from Wal-Mart.

The Sup-

plier of the Year

award, given to

the division’s

exporter,

acknowledges

the Kitchen

Appliances Di-

vision’s achieve-

ments in model

upgrades, brand marketing, resource integration, product com-

petitiveness and other areas. The Developing or Improving

Innovation Award recognizes performance in efficiency, quality

control, inventory management, automated technology, and

cooperation with Wal-Mart.

It is reported that Wal-Mart has direct dealings with 5,000

factories of 2,000 suppliers. To have any association whatsoever

with the world’s largest supermarket chain is a proud moment

for a supplier. Only the crème de la crème are awarded as out-

standing ones.

NEWSLINE

By Kevin McGeary

Water Purifiers Win National Award

A national home appliances conference was held in

Beijing on August 19 at which Midea’s range of water purifiers

won The Most Popular Product Award. The conference was

organized by

the Chinese

Economic

Press, Beijing

Economic Dai-

ly, and All View

Cloud (AVC), a

big data com-

pany that pre-

sented the

award.

The award was granted

based on the water purifiers’ pop-

ularity and trustworthiness. The

vote was held over popular social

network WeChat and several

other online platforms.

Midea’s range of water puri-

fiers includes the POU which is

popular in government depart-

ments and meeting rooms due to its

stability and long life; the POE which is connected to the main

water pipe and can provide clean water to a whole house and

the Central which boasts convenient use and low operational

costs.

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Advances Newsletter, August-September, 2015

11

Named in Top 10 "Made in Vietnam" Brands

By Advances

M idea was named one of the top ten brands to man-

ufacture in Vietnam for the quality of its products and services

at The Best of Vietnam 2015. The ceremony, which was held in

Ho Chi Minh City on September 13, named the top 500 brands

in the country, placing Midea at number 2.

Over the many years it has operated there, Midea has be-

come a trusted brand for the Vietnamese consumer. As the

economy has grown and consumer sophistication has increased,

Midea has

consolidated

its place as a

leading appli-

ances provider.

The accolade

recognizes

brand, prod-

ucts, services

and corporate

strength. In-

dustries cov-

ered in the 500

range from

finance to ca-

tering to ser-

vices, to handi-

crafts, and

many more.

Vietnam

became the home of Midea’s first overseas production base in

2006. Since then market coverage for Midea’s own brand has

reached over 70 percent. Midea’s air conditioners, washing ma-

chines, refrigerators, rice cookers, hobs, fans, have done over

US $30 million in business.

Midea placing number 2 on the top 10 list is a vindication of the

products and the hard work being done in Vietnam to build the

brand’s image and profile. Yang Hui, President of Midea’s Vi-

etnam branch, took to the stage during the ceremony to

acknowledge this.

NEWSLINE

Peck Zhao

CAC Holds Elite Chile Camp

T he second annual MDV Elite Camp was held in San-

tiago, Chile on August 21st. The camp is organized by Midea

Commercial Air Conditioning (CAC) and

is aimed at sharing product knowledge,

development plans and market infor-

mation throughout Midea-Carrier’s Latin

America joint venture.

The camp can also help local dis-

tributors have a better understanding of

the brand. More than 50 dealers, installers

and HVAC experts were also in attendance.

The seminar elaborated on CAC’s products and services,

shared information of HVAC market trends, and encouraged

discussion between hosts and attendees. There were also Span-

ish-language introductions to the whole product range.

Midea’s flagship products like 3-pipe heat recovery V4

plus R series, V5X series VRF, Aqua Super series

scroll chiller, super high efficiency MC series cen-

trifugal chiller were presented during the seminar.

Those present will be all the more able to sell prod-

ucts that they are more familiar with.

After the seminar, Midea awarded the training cer-

tificate to all the participants, and some of them

won a special gift from the organizer. The luckiest

attendees will be invited to the MDV Elite Camp in

China in November with all expenses paid including accommo-

dation and travel cost.

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Advances Newsletter, August-September, 2015

12

MACC Holds Annual Sales Meeting

By Eli Glanzberg

M idea America and Canada Corp (MACC) held its

4th Annual National Sales Representative Conference at the

beginning of July, with close to 35 representatives coming

across the country to meet in New Jersey, at MACC’s head-

quarters.

The conference was useful for providing an important

explanation regarding new U.S. Federal Regulations that relate

to home appliance energy consumption, and how Midea and

its part-

ners can

remain

in full

compli-

ance

with

these

new

regula-

tions. In

addition,

Midea

also an-

nounced some improvements in the field of Logistics and

Finance. While also showing off new improved products with

state of the features. The new R&D center in Louisville, Ken-

tucky

initia-

tive

was

also

briefly

dis-

cussed

to

show

the

entire

sales

team

Midea’s

true commitment to innovation.

Representatives present said they were impressed by

MACC’s continued growth and increased product lines, but also

by its commitment to building a real presence in the U.S. The

overall feeling from those in attendance is that the conference

was extremely valuable in continuing the growth of the compa-

ny as well and a great opportunity for learning and team build-

ing.

NEWSLINE

Winston Sankey, General Manager of Engineering and Customer Support, speaks

Eli Glanzberg, President of MACC

Posing before the Parsippany skyline

Mingling at the new HQ in Parsippany

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Advances Newsletter, August-September, 2015

13

Happy Valentine's Day from New York City

A n ad appeared on an LED screen in New York City’s

Time Square to mark Chinese Val-

entine’s Day, courtesy of Midea’s

domestic marketing department.

The ad shows a couple kissing in

front of a Midea washing machine

over a Chinese-language message

about “enjoying the taste of love”

on the traditional festival which falls

on the seventh day of the seventh

month on the Chinese calendar.

The 60-second ad appeared

late on Wednesday night in one of

the city's busiest areas. Chinese con-

sumers on social media, enamored

with all things global and glamor-

ous, praised the ad.

Chinese Valentine’s Day, also

known as The Qixi Festival, cele-

brates the annual meeting of the cowherd and weaver girl in

Chinese mythology. It usually

falls in early to mid-August by

the Roman calendar. Like West-

ern Valentine’s Day, it is particu-

larly popular with women and is

hugely lucrative for anybody in

the flower business.

The tale of The Weaver Girl and

the Cowherd has been celebrated

on this day since the Han Dynas-

ty (206 BC-220 AD). The earliest

-known reference to this famous

myth comes from a poem writ-

ten around 2600 years ago. The

Qixi festival inspired the Tana-

bata festival in Japan, the

Chilseok festival in Korea, and

the Thất Tịch festival in Vi-

etnam.

NEWSLINE

By Kevin McGeary

Water Heating Retains Malaysia Certification

M idea’s Water Heating Division passed an annual

onsite review by Standards and Industrial Research Institute of

Malaysia (SIRIM) this month. It first gained the qualification last

year, a mark of quality that vindicates the division’s international

ambitions.

This certification means that the division’s products will be

subject to shorter test times and the credibility of the brand will

be increased in and outside of Malaysia. The division’s products

will now no longer be individually unpacked and assessed upon

entering.

The stated purposes of SIRIM are to promote and undertake

scientific industrial research; boost industrial efficiency and de-

velopment; provide technology transfer and consultancy ser-

vices; develop Malaysian standards and to promote standardiza-

tion and quality assurance for greater competitiveness; and en-

hance public and industrial welfare, health and safety.

Formed in 1964, SIRIM is a corporate organisation owned

wholly by the Malaysian Government, under the Minister of

Finance Incorporated. It has been entrusted by the Malaysian

Government to be the national organisation for standards and

quality, and as a promoter of technological excellence in the

Malaysian industry.

The organization came into its current form on September

1, 1996 via corporatization scheme of standards and industrial

research institute. SIRIM is the government's mandated machin-

ery for research and technology development, playing a key role

in the growth of the country’s private sector.

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Advances Newsletter, August-September, 2015

14

CAC in National Bank of Portugal HQ

Via CAC

M idea’s air condition-

ing has had a faultless first sum-

mer after being installed in the

headquarters of Banco de Portu-

gal (National Bank of Portugal).

As well as being a big improve-

ment on the previous air condi-

tioning system, the electricity bill

for the building was reduced by

20 percent due to Midea’s energy

-saving technology.

The issuing bank of the

Iberian country is a member of

the World Bank but the air con-

ditioning system in its 150 year-

old headquarter building had long

been in decline. In 2011 bidding

began for the project of installing a

new system. After factory visits in 2012 and model selection in

2013, a distributor of CAC products won the bid to install the

equipment last year.

Products used under Midea

Group’s MDV brand included

the Mode Switch Box which

ensures that the temperature

can be controlled in every indi-

vidual room and dozens of

three pipe heat recovery varia-

ble refrigerant flow (VRF) units.

As a result, the headquarters of

one of the most prestigious and

pressurizing institutions in the

Mediterranean country has be-

come a more pleasant place to

work.

NEWSLINE

Via The Inquirer

Philippines Golf Tournament

C oncepcion Midea spon-

sored the 17th Annual Golf Tourna-

ment organized by Assumption

Alumni Association (AAA) in The

Philippines on Monday September

14. The tournament at the Sta. Elena

Golf Club in Cabuyao City, Laguna

Province will raise funds for the

Christian group’s professorial chairs,

scholarships, medical missions,

green projects and other activities of

the AAA.

Fashion designer, singer and socialite-philanthropist Tessa

Prieto-Valdes (pictured above), one of

the nation’s most glamorous women,

plugged the tournament in her column

in national paper The Inquirer, so this

year’s event was the biggest yet.

The primary mission of Assumption is

to provide a Christian education not

only for its students, but also for the

less fortunate members of Philippine

society. Towards this aim, the Assump-

tion, through its eight mission schools

throughout the country, provides basic

education and livelihood programs that

bring hope and self-reliance.

Sta Elena Golf Club

Banco de Portugal

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Advances Newsletter, August-September, 2015

15

Charitable Activities in Egypt

By Advances

D uring the recent Ramadan Festival, the China

Chamber of Commerce and China in Egypt Stone Material As-

sociation (CESMA) led a number of charitable activities in

Egypt to show

goodwill between

the two countries.

Never ones to

be left behind,

Midea employees in

Cairo held activities

in which they gave

away free applianc-

es such as rice

cookers to the poor

during the festival,

according to Pan

Shaobin, a Midea

employee who is stationed in the North African country.

In Muslim culture, the month of Ramadan - which this

year ran from June 18 to July 17 - is for fasting during daylight

hours to purify the soul. It ends with the Eid al-Fitr, or Feast of

Breaking the Fast.

At last month's Midea Interna-

tional Business Conference,

Amr Said, Managing Director

for Egypt, said that Midea was

well on its way to becoming a

major brand in Africa.

By acquiring a 32.5% stake

from the Egyptian listed com-

pany Miraco, in 2010 Midea

became the second largest

shareholder of Egyptian-listed

company Miraco. The joint

venture company occupies

900,000 sq. meters of land

with sales revenue reaching

US$201million in 2011.

NEWSLINE

By Advances

LittleSwan Profit up 36% Year-on-Year

M idea-owned washing machine

brand LittleSwan posted its latest earnings

report on August 5, showing that revenue

for the first half of 2015 was US$982 mil-

lion. This was a 22.67 percent increase on

last year while profit saw an extraordinary

year-on-year increase of 36.14 percent.

Earnings per share were US$0.11, a year-on

-year increase of 36 percent.

In the first half of 2015, LittleSwan

focused on improving its domestic distribution channels and

increased its e-commerce and brand promotion activities. Do-

mestic sales revenue was US$706 million, a year-on-year increase

of 23.01 percent. Overseas, LittleSwan continued its shift from

original equipment manufacturing to its own brand and saw a

year-on-year increase in this area of 24.53 per-

cent.

In the first half of this year, LittleSwan standard-

ized its materials; made its design more modular;

and cut manufacturing costs and increased effi-

ciency with automated technology.

In the second half of 2015, LittleSwan will push

on with its embrace of Internet of Things tech-

nology, putting the user at the center of all of its

thinking. The four areas of “products”, “market”,

“manufacturing”, and “service” will be rethought for the new

age.

Products handed out during the festival

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Advances Newsletter, August-September, 2015

16

India Football Championship Builds Bridges

By Pankaj Cheney

NEWSLINE

Har-

yana,

Raja-

sthan,

Pun-

jab

and

New

Delhi

com-

peted for cash rewards. The winning team won 71000 INR

(US$1082) and the runner-up won 51000 INR.

Though its national sport is cricket, India has an unsung

football tradition. India were the best national team in Asia for

much of the

1950s and 60s

and qualified

for the 1950

World Cup in

Brazil, yet

was not al-

lowed to play

because its

team insisted

on playing

barefoot.

C arrier-Midea India (CMI) sponsored a football

tournament in Bawal in the northern state of Haryana begin-

ning September 11 involving factory workers, members of the

local community and a total of 22 teams from four states. The

oldest competitor was in his 90s. Pankaj Yadav, head of Hu-

man Resources at CMI’s nearby factory, helped mark the

opening.

This

was

part

of a

cam-

paign

to

build

good

rela-

tions

with

the

local community. It also cemented CMI’s place was one of the

leading employers in the area and a rapidly growing brand.

Local media also attended.

The championship lasted three days in which teams from

The oldest competitor was in his 90s (second from left)

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Advances Newsletter, August-September, 2015

17

A Little Notebook of Words: Friend or Foe

By John Baker

LANGUAGE

acquaintances, you may well find that, a few days later, you’ve

forgotten their names. However, if you meet one of those

people a few times again and they gradually become a friend or

important business contact, suddenly their name becomes easy

to remember. So it is with new vocabulary.

What about if you take your notebook and read through

it every morning when you get up or every night before going

to bed – will that help you remember words? In fact the an-

swer is no. Doing so might mean that you are encountering

those words multiple times. However, it’s a false construction

– your brain will be aware that you are not encountering those

words in daily life or work situations, so will not be convinced

that those words are worth committing to memory. In short,

you can’t scam your own brain in that way.

This is all good news. Reciting a list of vocabulary is one

of the most boring things you could do. If you do keep a little

notebook of vocabulary at your side, my advice is to

discard it. Not only will it not help you remember

the vocabulary – it will actually reduce your chances

of remembering those words.

Like many people, when I was preparing for high

school and university exams, I often made and re-

vised notes. However, I found that, as soon as the

exam was over, I started to forget the information. Cramming

may help us remember information for a short time. Howev-

er, when we learn a language, we want to remember vocabu-

lary for the long-run.

If you find that reviewing your list of vocabulary is

something you have to summon up energy for and almost

force yourself to do, it’s worth pondering why that’s the case.

Could it be that a part of our brains – a subconscious part – is

aware that reviewing lists of vocabulary isn’t going to help us

towards our goal of learning a language? That would certainly

explain any feeling of reluctance you may experience when

opening your notebook to review its contents.

So if you’ve been feeling a little guilty that your notebook

spends most of its time stuck at the bottom of your rucksack,

you can stop feeling bad. In fact, not reading the list of vocab-

ulary is the right thing to do. How about taking the next step?

Let the notebook go to good use – chuck it in the recycling

bin.

T o get a really good understanding of the meaning of

a word, we need to hear or see that word used in several dif-

ferent contexts. A common tactic of language learners is to

buy a small notebook and keep lists of vocabulary met when

watching TV or reading newspapers. Does this help us re-

member words? To answer that question, we have to consider

why we usually write things down.

Before I go to the supermarket, I often look round my

apartment to see what things I need to buy and make a list.

When I get to the supermarket I refer to the list and buy the

things I need. Now, the key question is this: do I write a shop-

ping list because I want to remember the list of things I need

to buy, or because I don’t want to remember? It may at first

sound counter-intuitive, but the answer is the latter.

My point then, is that we usually write things down not

to help us remember, but because we’ve decided

not to remember. If this shopping list doesn’t

convince you, next time you find yourself mak-

ing a note of something, stop to think about

why you’ve done that. Sometimes we choose to

store information on paper, rather than in our

brains.

Another example is phone numbers. I can still remember

the landline phone numbers of several high school friends. In

the era of mobile phones, I couldn’t tell you the numbers of

any family or friends – I’ve stored them all in my mobile

phone, so my brain has no need to remember them.

This leads us on to another key point. When we write

something down, our brains are aware that we’ve stored the

information, so are aware that they (our brains) needn’t bother

remembering. That is, not only does writing something not

help us remember, it actually makes us less likely to remember.

So will those little notebooks of vocabulary help us re-

member the words we’ve encountered? No, in fact those lists

of words will make it more difficult to remember new words.

When I studied French in high school, I used to keep lists of

vocabulary, but now, as an adult studying a language, I don’t.

The first time I encounter a new word, I often find that

later, I’ve forgotten it. If that word is useful, I will definitely

encounter it again. If you go to a conference and meet new

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Advances Newsletter, August-September, 2015

18

Idea of the Month: Storytelling

By Kevin McGeary

IDEA

loan department; a poet may tell it as a human tragedy; a psy-

chiatrist may tell it as a story of low serotonin levels.

To forge an identity, one needs to create a compelling

story. Essential to any story is character. Who are the great

fictional characters? Don Quixote, Prince Hamlet, Ulysses,

James Bond, Daffy Duck, Homer Simpson, and Eric Cartman

are all candidates.

To make any sense whatsoever, a character must want

something that is out of their reach, even if that something is

to maintain the stability of their boring lives. A story involves

this character encountering forces of antagonism which could

include an evil clown (“Batman”), a giant shark (“Jaws”), or

something internal like an addiction (“The Lost Weekend”), or

a sense of frailty (“The Loneliness of the Long Distance Run-

ner”).

Because protagonists in stories are adventurers

on quests, fictional characters (see the list above)

tend to be imbalanced and irrational. Novelist

Isabel Allende said that stable, grounded people

who accept their lot and are comfortable in their

own skin are no good at being characters. They

are only good at being one thing – ex-spouses.

What has any of this got to do with promoting a brand?

Brands succeed by telling stories about themselves, stories that

hinge on decisions that made them who they are. HSBC is the

world’s local bank; George W Bush was a Texan everyman;

Britney Spears was a virgin pop star; Apple partly became what

it was through the redemption story of Steve Jobs.

One of the most memorable fictional characters of the

past 25 years is Rowan Atkinson’s Johnny English. He is now

best known for being at the center of two movies, but he start-

ed life in an ad campaign for Barclay Card. For the reasons

mentioned above, many of the best advertisements are mini-

stories.

A character establishes a desire, encounters forces of

antagonism, makes a climactic decision and eventually does or

does not get what they deserve and does or does not learn

from it. Mastering story structure takes as much time, patience

and humility as mastering a new language or musical instru-

ment – but it is one of the most valuable tools in the world

today when it comes to winning hearts and minds.

S tories are everywhere, not just in novels, films and

barroom anecdotes but also in jokes, song lyrics, advertise-

ments and every other medium that tries to elicit feelings.

Screenwriting expert Robert McKee begins his book

“Story” by claiming that storytelling is the only medium we still

trust. From the Ancient Greeks we derive the four wisdoms of

philosophy, science, religion and art, yet today who reads Hegel

or Kant without an exam to pass? While science garbles us with

complexity and perplexity and religion has become an empty

ritual that masks hypocrisy, the art of story is the source we

most believe in, opines McKee.

If I were to tell you that during World War 1, 65,000 air-

craft were produced; there was one soldier for every four inch-

es of trench; 1.2 million men were lost during 1916’s Battle of

the Somme, and 110,000 tons of poison gas was

used, this may not elicit strong emotions.

However, if I were to show you the final

scene (pictured) of the 1930 Hollywood film

adaptation of Erich Maria Remarque’s novel

“All Quiet on the Western Front”, in which the

main character - the last of his friendship circle

to survive - reaches out for a butterfly while he

guards the trench, then you will have a greater appreciation of

the scale and poignancy of the loss. Stories have much more

ability than statistics to inspire.

What is a story? He died, then she died is not a story. He

died, and then she died of sadness, is a story. Although a story

may start with a coincidence, its conclusion can only have two

ingredients, human behavior and logic.

Story structure, like the twelve-note scale is hardwired

into our brain. If a quartet is playing in a restaurant and one of

the players has a string that is wildly out of tune, then everyone

will notice. Lay members of the audience will also notice when

a story does not quite work, for example the ending of “Jurassic

Park” (1993) hinges on a coincidence and not a climactic moral

decision by the hero.

How we tell a story sends out a message about what kind

of person we are. In “The Art of Thinking Clearly”, Rolf Do-

belli creates the following analogy. A man takes out a loan,

starts a business, goes bankrupt, falls into a depression and

commits suicide. A business analyst may tell this story as being

about a failing of strategy; a banker may tell it as an error in the

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Advances Newsletter, August-September, 2015

19

India’s Ancient Wisdom and Me

By Henry Hu

PEOPLE

I was not aware at that time that this was a momentous

day in the history of the discipline, so little prepared me for the

size and fervor of the crowd. There were seven instructors on

a stage and attendees included senior local officials. As the

only foreigner in attendance, I had an unexpected fuss made

over me, receiving a sash of fresh flowers to wear and personal

encouragement from the government officials.

Because of the size and variety of people who were

there, that day only the most basic poses were practiced. In

The author, who works in operation's management at Carrier-

Midea India in Haryana Province, has written a brief memoir of his expe-

rience of learning yoga, one of his adopted country's greatest exports.

Yoga is one of India’s greatest exports. Despite having

been here for two years, I have only seen yoga become ubiqui-

tous in the part of India where I live since June 21, when the

United Nations, announced that date as International Day of

Yoga. This has inspired millions of Indians, including my own

friends, neighbours and colleagues, to take a new pride in their

cultural heritage.

I like going for long walks in public places. It is a great

way of turning strangers into friends. One person who I have

met this way is Ravikant, someone

who is constantly enthusing about

the physical, emotional, mental and

spiritual benefits of yoga.

For months he was trying to

talk me into joining his 6 a.m. yoga

sessions on the grass outside my

apartment building. Though I would

promise to join, I always ended up

oversleeping. On the evening of June

20, I ran into Ravikant again, again

he invited me to the next morning’s

session. The following day was a

Sunday so it was mighty tempting to

ignore my alarm clock but I managed

to wipe the sleep out of my eyes and

stumble over.

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Advances Newsletter, August-September, 2015

20

India’s Ancient Wisdom and Me (Cont.)

By Henry Hu

PEOPLE

this so I have learned not to let it bother me. Despite the

statistical unlikelihood of this happening more than once or

twice in a lifetime, the pigeons in the sky have taken to

dropping little presents on me, something I must endure if

I am to master this discipline.

Experience and regular practice means that I now no

longer ache after practicing yoga. I am now a diehard yoga

practitioner, getting up at 6 every day to do it. It is increas-

ing the flexibility of my whole body and it is also exercising

my respiratory system. This is all contributing to making me

a more mindful, relaxed and happy person. And as we all

know, it takes more energy to frown than it does to smile,

something I am doing more of.

Now that I have a new found focus, I am clear as to

what my dream in life is. I want to shake the hand of India's

Prime Minister Narendra Modi, the man who is responsible

for selecting June 21 as International Day of Yoga. Friends I

have made as a result of practicing yoga have told me that if I

persevere, they can make this dream happen.

spite of this, I was aching from limb to limb for the rest of

the day. Yet because of how spoiled I had been, I felt I had

no choice but to endure the pain and continue attending

these morning sessions.

In the early stages, my favorite pose was the corpse.

It is a position of total relaxation so therefore quite diffi-

cult to accomplish. Lying there with the soft breeze on my

face and seeing an occasional leaf flutter before the vast

blue sky has helped me discover a spiritual side to myself

that I never knew I had.

There are a large number of flies among the grass. They

occasionally buzz all around me. People in India are used to

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Advances Newsletter, August-September, 2015

21

Brand Tops Table in Russia

By Kevin McGeary

FINA GAMES

Midea’s brand

logo was every-

where (around

the pool, on the

sportswear, on

specially

produced

trophies

for world

record

breakers,

and even

on Rus-

sia's most

popular

social net-

work), was

broadcast in over 200 countries and regions.

T he Midea-sponsored Chinese swimming and diving

team topped the medals table at the Midea-partnered 2015

FINA Games in Kazan, Russia. In becoming the first Asian to

win a medal in the 100-free at the championships, swimmer

Ning Zetao in particular displayed the kind of star power the

brand can benefit from just a month and a half after formally

launching in the world's largest country.

Ning, a lieutenant in the Chinese navy, quickly became a

popular figure on social media, his abs attracting a swath of

ogling admirers. Midea is proud to have its logo on the uniform

of the man who is fast becoming China's biggest international

sports star after tennis player Li Na retired last year.

Other gold medallists in the Chinese team, all of whom

have taken and will continue to take part in promotional activi-

ties for Midea, include divers Chen Ruolin, Liu Huixia, He

Chao, Kai Qin and Yue Li. These and many others helped the

team overcome the United States and the host nation to do

their

coun-

try

and

their

spon-

sor

proud.

The

games,

at

which

Ning Zetao, check the blue logo on his chest

The team posing with Midea products

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Advances Newsletter, August-September, 2015

22

Midea Trophy for World Record Breakers

By Kevin McGeary

FINA GAMES

M idea applied the

principle of putting things to-

gether for those who demand

the very best with its specially

crafted Midea Award for world

record breakers at the 16th

FINA games in the historic

Russian city of Kazan.

Swedish swimmer Sarah

Sjostrom claimed the gold med-

al in the 100m women’s butter-

fly event at the games by regis-

tering a world record 55.64s

yesterday, which beat the exist-

ing record of 55.74s, which she

had set herself at the previous

day’s semifinal.

The event also saw mem-

bers of the Chinese team do

Midea proud, Lu Ying finishing

third with 57.48s and Chen Xinyi

finishing sixth with 57.85s. However it was Sjostrom, along

with all other world record breakers at the games, who was

granted the Midea World Record Breakers’ Award by Lukyanov

Vladimir of Midea Group’s Russia branch.

Other winners included Hungarian swimmer Katinka

Hosszu.

Sarah Sjostrom with the award

A record is announced on the LED screen

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Advances Newsletter, August-September, 2015

23

SNAPSHOT

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