family reunion - midea
TRANSCRIPT
www.midea.com Advances Newsletter, July, 2013
1
Vol. 3, #6, July 2013, No. 30
Family Reunion
Everyone was in town for Midea’s first company-wide global conference
www.midea.com Advances Newsletter, July, 2013
2
ADVANCES Newsletter
Contents
Midea Advances Newsletter is published monthly
by the International Strategy Department of
Midea Group. We welcome all comments,
suggestions and contribution of articles, as well as
requests for subscription to our newsletter. You
can reach us by email at: [email protected]
Address:
ADVANCES, International Strategy Department
Midea HQ
No. 6 Midea Road
Beijiao, Shunde, Foshan, Guangdong
P.R.C. 528311
Tel: +86-757-2360 4714
Web: www.midea.com
Managing Editors:
Matthew Smith
Mandy Wang
Regular Correspondents:
Himani Joshi
Amber Liu
Crystal Lun
Blinda Li
Tony Miao
Peck Zhao
Sandra Sun
James Yu
Daniel Zhang
Sue Ou
NEWSLINE
Chinese Manufacturers
Largest Players in AC,
Refrigerators, and Laundry PAGE 4
Midea Boasts its Extensive
Lineup of Home Appliances
at the Electrolar Expo PAGE 3
Toshio Murakami Honored
for his Contribution to
HVAC&R Industry in Brazil PAGE 3
Midea’s New Weapon:
Intelligent Power Module for
Inverters PAGE 5
Washing Machine Quality
Test Center Passed Two Im-
portant Certifications PAGE 4
www.midea.com
Midea’s First International
Business Conference Brings
Everyone Together PAGE 12
PAGE 19
FEATURE
COMMUNITY
SNAPSHOT
Midea Receives Gold
Award at the “Red Cup for
Relief” Event PAGE 18
PEOPLE
The Miraco Miracle PAGE 14
Laundry Division Donated
2,000 Washing Machines to
Help the Disabled PAGE 18
SIPO Commissioner Tian Lipu
Visits Midea’s New Industrial
Design Center PAGE 7
Midea Granted National
Exemption from Export
Inspection PAGE 5
CAC Latin America Strategy
Partner Training Seminar in
Miami PAGE 6
Midea’s National
Procurement Center Bid is
Successful PAGE 8
GMCC Invited to UN
International Climate
Protection Conference PAGE 8
2nd Annual Midea America
Corp National Sales Rep
Conference PAGE 9
Laundry Division Wins Top
Design Awards at 2013
Innovation Design Expo PAGE 10
CAC MDV Elite Camp #5 PAGE 11
www.midea.com Advances Newsletter, July, 2013
3
Midea Boasts its Extensive Lineup of Home
Appliances at the Electrolar Expo By James Yu
S ao Paulo‘s annual Electrolar Expo kicked off at the
Hotel Transamerica this past month, where Midea Carrier Brazil
put in a strong appearance with a comprehensive spread of
Midea and Springer home appliances, which follows the recent
launch of their small appliances business in Brazil.
The display
amounted
to no less
than 70
products,
of which
51 be-
longed to
Midea. The
selection
included
products already on shelves now, and others which are still not
official introduced in the market. Categories ranged from resi-
dential air conditioners, two-door refrigerators, wine coolers,
microwaves, dish washers, kettles, water dispensers, rice cook-
ers, and rotary fans.
Midea Carrier‘s display at the Expo easily counted as one
of the biggest, taking up to 300m2, in order to host not only the
Midea and Springer product lineups, but also a specially-
designed kitchen and bedroom for customers to better experi-
ence how Midea‘s range of products can combine to provide a
spectacular quality of life.
NEWSLINE
Toshio Murakami Honored for his Contribu-
tion to HVAC&R Industry in Brazil By James Yu
D uring this past June, Midea Carrier Brazil‘s GM for
Sales & Distribution, Toshio Murakami, was granted an award in
June in recognition for his 27 years of dedicated work to the
HVAC&R industry, by the Abrava Association for HVAC&R in
Brazil. The award was titled ―Industry Personality‖, which fits
Toshio very well.
With a long history in the field since joining the company
in 1985, a lot of experience across different functions in the
company, and then as the GM for Sales & Distribution, it is no
surprise that Toshio Murakami is receiving this honor. Upon
receiving the award, he had this to say: ―I am delighted to con-
tribute to the development of the HVAC-R sector alongside all
of the other profession-
als out there, who strive
daily to improve the
quality of life for all. I
dedicate this award to
all who believe and in-
vest in efficient HVAC
systems."
www.midea.com Advances Newsletter, July, 2013
4
Chinese Manufacturers Largest Players in
AC, Refrigerators, and Laundry By Blinda Li
T he Japanese business newspaper, Nikon Keizai
Shimbun, recently released its 2012 ―Global Principal Commod-
ities and Service Share Research‖, in which Chinese companies
are recognized collectively as holding dominant global market
share in 6 categories out of 50 surveyed (one more than last
year), consisting of white goods like refrigerators, washing ma-
chines and household air conditioners, in addition to solar pan-
els, shipbuilding and cigarette manufacturing.
From a national and regional perspective, the American
enterprise was found to be the dominant market share holder in
19 categories, closely followed by Japan, at 12. South Korea
claimed 3rd place with the lead in 8 categories (two more than
then previous year). China‘s performance places it in 4th.
By comparing earlier market share reports, it is quite clear
that Chinese enterprises have been making great strides in recent
years, across certain industries. White goods and PC businesses
are enjoying solid, continuous growth, while crude steel and
wind-driven generator enterprises have been slowing due to
Chinese economic deceleration, among other factors.
Chinese enterprises take advantage of opportunities, such
as when the Chinese government is offering trade-in subsidies
for used household appliances in return for buying new units
with satisfactory energy-saving performance, thus expanding
their sales. Midea‘s Laundry Division has been pushing to devel-
op in the mature overseas markets of Europe, North America
and Japan, while maintaining its positioning in its domestic mar-
ket of China. With 140,000 units of automatic washers exported
to Japan in 2012, the Laundry Division has been working hard
to follow Midea‘s global strategy of greater promotion of the
Midea brand name abroad.
NEWSLINE
Washing Machine Quality Test Center
Passed Two Important Certifications By Blinda Li
Q uality and reliability mean a great deal to any major
manufacturer, but especially so to Midea, which
is always pushing to redefine the meaning of
―Made in China‖ to the rest of the world. One
example of Midea‘s commitment to making
world-class appliances comes in the form of its
low-alloy steel testing process.
To improve its inspection techniques and
ensure the accuracy and reliability of test data,
the Laundry Division‘s Quality Management
Department recently submitted to two profi-
ciency tests, (NIL PT-0380 & NIL PT-0380)
which gauge the chemical composition of the
low-alloy steel chemical composition. The tests
are organized by the China National Accredita-
tion Center (CNAS) and implemented by the China NIL Re-
search Center for Proficiency Testing. Both tests resulted in full
passes.
The proficiency testing conducts quantitative
analysis of nine elements, namely carbon, sili-
con, manganese, phosphorus, sulfur, chromi-
um, nickel, copper, and molybdenum, within
the washing machine‘s low-alloy steel. The
measured values of sulfur, copper and molyb-
denum measured equal to specifications, and
while all others measured better than regulated
standards.
These results indicate that Laundry Division‘s
Chemical Lab has cultivated a team with superb
technical capabilities and competent manage-
ment practices.
www.midea.com Advances Newsletter, July, 2013
5
Midea’s New Weapon: Intelligent Power
Module for Inverters By Crystal Lun
T hree years ago, Midea established a special R&D task
force of just a few members, charged with figuring out how to
create a chip that would allow the components in its appliances
to work more efficiently. After much time and effort, this team
finally produced its own,
custom-made, Intelligent
Power Module (IPM)
chip.
Midea has attached
much importance to this
project, demonstrated by
the acquisition of excellent talent: experienced semiconductor
design experts, doctoral experts in metallics, plastics, and macro-
molecular materials, as well as engineers and technicians special-
ized in electrical and mechanical design.
In 2010, the first self-developed IPM chip was created and
successfully implemented in air conditioners. With confidence at
a high level, greater investment was made, allowing a new dust-
free workshop to be constructed at the Midea Research Insti-
tute, covering 2,000m2.
By June 2012, the IPM was put into mass production,
making Midea the first Chinese company to develop its own
IPM chips,
thereby
enhancing
its develop-
ment of
inverter-
based air
condition-
ing. Only a
few months
later, prod-
ucts with an advanced version of the original IPM were
launched, with sales volume of 150,000 units forecast for 2013.
The rapid pace of development seen with Midea‘s IPM
chip illustrates the company‘s enduring desire to transform its
products from being ―Made by Midea‖ to ―Designed by
Midea‖.
NEWSLINE
Midea Granted National Exemption from
Export Inspection By Crystal Lun
O n July 19th, the Guangdong Inspection and Guar-
antee Bureau finished its yearly review and audit of Midea‘s air
conditioning business, in their consid-
eration for granting the privilege of
the National Export Inspection Ex-
emption. The consensus of the ap-
praisal team was that Midea‘s quality
management system has consistently
stepped forward and complied with
all standards specified, and therefore,
they announced that Midea had
passed the review.
Since being granted the National Export Inspection Ex-
emption by the General Administration of Quality Supervision,
Inspection and Quarantine (AQSIQ) in June 2012, Midea has
continued to improve its quality
management system through the
promotion of high quality manufac-
turing, advancement of quality con-
trol standards, further application of
automation, and the upgrading of IT
support tools, which leads to the
sustainable enhancement of product
quality and management.
www.midea.com Advances Newsletter, July, 2013
6
CAC Latin America Strategy Partner Training
Seminar in Miami By Tony Miao
L ast month, over the course of two days, Midea CAC
gathered together customers from 18 different companies from
across North and Latin America, for the ―2013 Midea CAC
Product Training Camp‖.
Training courses during the Camp mainly focused on new
products launched between 2012 and 2013. The flagship prod-
uct from CAC is the All-DC Inverter System, one of the most
cutting-edge products available in the VRF industry. The other
key product discussed at the Camp was the 4th-generation web
controller, also known as the IMM (Intelligent Manager of
Midea).
Steven Bo, Sales Director for Latin America, started the
Camp with an enthusiastic welcome speech for all the guests.
CAC Marketing Managers, Tony Miao and Amber Liu, carried
out detailed product training for CAC‘s product lineup, includ-
ing details on VRF technology, the newest chillers, and the lat-
est version of the IMM. Ivan Wong, Technical Executive from
the Technical Department, shared his experiences with VRFs
and chillers, such as system installation, wiring, commissioning,
and troubleshooting.
The air conditioning market in Latin America was about
7.2 million units in 2012, an increase of 20% over 2011. For
2013, it is estimated to be approximately 8.3 million units. Port-
able air conditioners, including VRFs, are estimated to have a
market of approximately 450,000 units. The VRF market was
approximately 20,000 units in 2012, a 25% increase over the
previous year. VRF capabilities have now increased significantly:
1. VRFs with DC inverters and digital scrolls, providing the
lower power consumption, especially when the system ex-
periences only partial load.
2. Fully effective at providing individual zone climate control,
with accurate room temperature control as specific as
±0.5˚C.
3. VRF systems have simpler designs, with installation and
after-sale service much easier than traditional chiller sys-
tems.
4. System reliability is greater by way of advanced backup
technology and cycle duty operation.
5. Now BMS compatible.
In 2012, Midea launched its all-DC inverter technology
onto the market. With 6 modes and flexible modularity, capacity
ranges from 8Hp to 72Hp, with COP reaching up to 4.39 and
IPLV (Integrated Part Load Value) up to 5.8, the highest in the
world.
NEWSLINE
www.midea.com Advances Newsletter, July, 2013
7
SIPO Commissioner Tian Lipu Visits Midea’s
New Industrial Design Center By Blinda Li
T his past May, on the eve of the 10th Wuxi Interna-
tional Industrial Design Expo, Tian Lipu, Commissioner of Chi-
na‘s State Intellectual Property Office (―SIPO‖), accompanied
by others from Wuxi‘s municipal government, accepted an invi-
tation to tour the new industrial design center belonging to
Midea‘s Laundry Division.
This new industrial design center, situated on the third
floor of the Design Park building, occupies an area of 1,000m2
and contains an array of capabilities, including workspaces, read-
ing areas, a CMF (Color Material Finish) area, UX (user experi-
ence) area, production exhibition area, and a leading TDR
(technical design report) area.
Over the
years,
Wuxi‘s
munici-
pal gov-
ernment
has of-
fered
support
and
funds to
Midea for the development of industrial design activities. In
2012, the Laundry Division was accredited as the ―Jiangsu In-
dustrial Design Demonstration Enterprise‖, one of ―Wuxi‘s Top
10 Enterprise R&D Centers‖, its Industrial Design Research
Institute was accredited as ―Wuxi‘s Major Scientific Research
Institution‖, and it received financial support from the govern-
ment totaling 5 million RMB. In order to encourage companies
to increase their investment into research and development, the
government has constructed a national industrial design park.
Thanks to its support, Midea‘s Laundry Division is now a tenant
of the highly modern Design Park building. It is widely held that
by taking advantage of these favorable conditions, Laundry Di-
vision will be able to improve the quality of its industrial design
tremendously.
NEWSLINE
www.midea.com Advances Newsletter, July, 2013
8
GMCC Invited to UN International Climate
Protection Conference By Crystal Lun
T he United Nations held its annual conference on
Advancing Ozone & Climate Protection Technologies in Bang-
kok, Thailand on the last days of June, in order to further the
discussion on how
to develop the
blueprint for the
future global envi-
ronment. On be-
half of Chinese
enterprises,
GMCC was invited
to attend the con-
ference, where it
presented its new
R290 and R32
compressors,
which are already
highly regarded in
the industry. The-
se new products from GMCC demonstrated for the conference
attendees the outstanding creativity of and strong social respon-
sibility embraced by Midea.
The new R290 refrigerant is considered by the industry to
have the most potential. As the first company to launch an R290
compressor, GMCC was chosen by the United Nations to sup-
ply the compressor for its Montreal Protocol demonstration
project. This year, the new R290 compressor is finally reaching
the point of mass production.
GMCC‘s new R32
compressor is also
receiving much
attention, with its
unique design for
fluorine-free and
low-carbon opera-
tion. The launch of
the R32 compres-
sor was another
industry first for
GMCC, and it has
already been in
mass production
since 2012.
Aside from being a
major supplier of its own China market, GMCC has also made
great strides into the global market, with its new refrigerant
compressors being sold around the world, from India and Aus-
tralia, to all over Europe.
NEWSLINE
Midea’s National Procurement Center Bid is
Successful By Crystal Lun
A ccording to the recently released notice regarding the
―2013-2014 National Central Procurement Project for Air Con-
ditioner‖, Midea‘s proposal for supplying residential air condi-
tioning in the central procurement project has been successful.
The Central Government Procurement Project, under the
jurisdiction of the Government Offices Administration of the
State Council, covers over 10,000 governmental bodies, and is
one of the highest level procurement projects organized by the
Chinese government. It is also considered to be a strong indica-
tor for provincial procurement decisions.
www.midea.com Advances Newsletter, July, 2013
9
2nd Annual Midea America Corp National
Sales Rep Conference By Jack Zheng
M idea America Corp. (MAC) held its 2nd Annual
National Sales Representative Conference two weeks ago, with
more than 30 representatives coming from across the United
States to meet together in New Jersey, at Midea‘s head office in
the country.
In addition to MAC President Isaac Xiao and his local
team, the conference was also attended by sales and engineering
teams from China, and members of the Kitchen Appliance Divi-
sion, who brought new product samples to be previewed by
conference attendees.
Isaac opened the
conference with a wel-
coming speech, in which
he gave his thanks to all
for making the trip to
New Jersey, and their
efforts in building the
Midea business in the
United States. He fol-
lowed by giving every-
one an outline on the new steps the company would be taking
within the next year, and then gave the spotlight to MAC de-
partment heads. Each head took the time to explain thoroughly
how their departments relate to the representatives and their
work.
The conference was also useful for providing an im-
portant explanation re-
garding new federal regu-
lations that will relate to
home appliance energy
consumption, and how
Midea and its partners
can remain in full com-
pliance with these new
regulations.
Representatives present
were said to be impressed
by the strong growth of
Midea in the United
States, but also by its
commitment to building
a real presence in North
America, characterized
by the improved Oracle
system and bigger ware-
house facility nearby the shipping port there. The overall feeling
from those in attendance is that the conference was very worth-
while, as a great opportunity for learning and team building.
NEWSLINE
www.midea.com Advances Newsletter, July, 2013
10
Laundry Division Wins Top Design Awards at
2013 Innovation Design Expo By Blinda Li
A t the end of May, the 10th Wuxi International Indus-
trial Design Expo concluded with Midea‘s Laundry Division
winning 4 awards in its category at the Design Competition: The
MD80-1407LIB(S) front-loader won the Best Innovation
Award, and the top design awards went to Little Swan‘s Chun
Zhen TD70-1411LPD(S) front-loader (first prize), Midea‘s
MB70-1411LDPC(S) front-loader, and Little Swan‘s TB70-
5188IDCL (SR) automatic dispensing machine (tied for third
prize).
Little Swan Chun Zhen 2.0-Version Front-loading Ma-
chine Won the 1st Prize in the Product Category at the 2nd
―Taihu Award‖ China Industrial Design Competition
With the theme of ―Innovative design for a better future‖,
the 10th iteration of the Expo received excellent design submis-
sions from over 20 countries and regions including the United
States, Japan, and Germany, from nearly 500 domestic and for-
eign design companies. Awards included the ―China Innovative
Design Award‖, ―Taihu Award‖ and the college and university
level ―NOC Award‖.
The exhibition featured a plethora of spectacularly imagi-
native designs, from new sports car concept designs to 3D
printer demonstrations. Nearby, in the exhibition hall dedicated
to household appliances, Midea‘s Laundry Division exhibited 30
of its best washing machines, featuring 4 of the division‘s most
impressive current technologies: iAdd automatic dispensing
technology, internet-accessible washers, heat pump dryers, and
one-touch washers.
NEWSLINE
www.midea.com Advances Newsletter, July, 2013
11
CAC MDV Elite Camp #5
By Peck Zhao
C AC recently wrapped up its latest MDV Elite Camp,
the fifth of this year‘s series. As many readers already know, the
Elite Camp is CAC‘s platform for sales engineers and managers
from Midea‘s many distributors to share experience and infor-
mation in one place, together. This 3-day session included 11
participants from five different countries across the Middle East
and Africa. As a bonus, some of the staff from Midea‘s Egyptian
JV, Miraco, made the trip as well.
The core discussion focused on CAC sales points, especial-
ly regarding recently launched VRF products that boast greater
advantages in installation flexibility by way of their modular de-
sign, and enhanced control options through the powerful Intelli-
gent Manager (IMM) control system.
Dan Brown, Sales Manager, delivered a welcome speech,
sharing the highlights from CAC‘s 14-year history in the global
air conditioning industry, and explained how the market is now
trending from split systems to VRF.
CAC Marketing Manager Peck Zhao followed with a thor-
ough description of CAC‘s marketing strategy and support poli-
cies, also giving everyone an overview of the VRF market.
Zhao also presented CAC‘s full range of commercial
products, including the Digital Scroll and 3-Pipe Heat Recovery
VRFs. The new Digital Scroll D4 Plus VRF, designed for tropi-
cal environments, was the subject of much discussion.
The first MDV Elite Camp commenced little more than a
year ago, and since that time, over 110 guests from our distribu-
tors have visited the headquarters to observe firsthand Midea‘s
R&D and manufacturing capabilities, and implementation of
products in various reference projects.
NEWSLINE
www.midea.com Advances Newsletter, July, 2013
12
Midea’s First International Business
Conference Brings Everyone Together
By Matthew Smith
F or two days, from July 22nd to the 23rd, Midea held
its largest conference ever, aptly named the ―Midea Internation-
al Business Conference‖, with almost 300 attendees from
every office of Midea‘s around the world, representing 21
different countries. It was the most extensive and diverse
gathering of Midea employees in one place that the company
has ever organized.
On the first morn-
ing, guests were
welcomed with a
speech by Dr. Andy
Gu, Midea‘s Vice
President of Inter-
national Strategy.
He commented on
the theme of this
conference: ―One
Midea, One System,
One Standard‖ The
sentiment with this
motto is that Midea is
currently a company of
many different depart-
ments, divisions, and
subsidiaries, operated
by people from many
different
countries
and cultures, speaking different languages. In order
for Midea to truly realize the benefits of its global
components, it must become unified in a way where
everyone works together as a whole – one system,
one standard.
One by one, the Directors of each functional
department then took the stage, and thoroughly
explained their respective departments and how they
fit into the company, so that attendees might better
understand the structure of the company. In the
afternoon, the General Managers of each business
unit did the same, so that by the end of the first day, everyone
had a more complete understanding of the entire company. Be-
tween these presentations, a representative of Euromonitor also
gave an insightful presentation, detailing emerging trends in the
home appliance industry across the world.
The 23rd started off with very different schedule for at-
tendees. The first half of the morning offered attendees a series
of panel discussions relating to different matters of business,
such as finance, marketing, international trade, and business
FEATURE
Dr. Andy Gu, delivering the opening speech.
From left to right: Felipe Costa, Roberto Casarejos, Henrique Mascarenhas, Eduardo Wolff, and Claudio Ramoni.
www.midea.com Advances Newsletter, July, 2013
13
Midea’s First International Business
Conference Brings Everyone Together
By Matthew Smith
integration, to name only a handful. These panel discussions
were made up of key figures from different corners of the com-
pany with deep experience in their respective topics, and the
panelists were allowed to choose the specific sub-topics to base
their discussion on. The panelists each gave brief presentations
explaining their perspective on the matter at hand, after which
invigorating debate began between the panelists, and even some
of the audience members. More often than not, panelists and
audience members were hard-pressed to wrap up the debates
without taking extra time beyond the schedule. The second half
of the morning was much the same, with panel discussions fo-
cused instead on different regional markets, and the upcoming
challenges that Midea will face in each one. Perhaps unsurpris-
ingly, the topic of how to develop both OEM and Midea-brand
models of business was a very popular sub-topic chosen within
many of the panels, and this provoked some of the most spirit-
ed discussion at the conference. The final afternoon found each
of the panel Chairpersons presenting the results from each panel
to the entire conference. If there was an overall sentiment to the
panel summaries, it was that Midea is a very young company,
and like a young child, it is learning quickly, changing quickly,
but still very much in a transitional phase, where such develop-
ment cannot be rushed too much, and must be allowed to hap-
pen naturally.
By the end of the conference, attendees were still min-
gling, like the night before, catching up with colleagues from
other offices, some of whom hadn‘t seen each other since the
previous year‘s smaller conference. The ambiance was jovial,
with people comparing and contrasting their successes and mar-
ket-specific difficulties, discussing, joking, and sharing ideas
from all of the different countries represented there. The scene
really illustrated the benefit of such a gathering, and the major
challenge which global companies like Midea face - to remind
everyone that, regardless of the office or the country we happen
to work in, we are on the same team, with the same interests,
working towards the same goal; we are ―One Midea‖.
FEATURE
The heads of Midea‘s functional departments, during the first morning‘s presentations.
From left to right: Cai Qiwu (Technology and Quality), Huang Xiaoming (Human Resources), Andy Gu (International Strategy), Li Feide (Strategy & Planning; speaking off frame), Zeng Qiao (Auditing), Gu Yunsong (IT), Su Qingjun (Legal Affairs), Xiao Mingguang (Finance), Dong Xiaohua (China Marketing).
www.midea.com Advances Newsletter, July, 2013
14
The Miraco Miracle
By Mandy Wang & Matthew Smith
Amr Said
Sales Director, Miraco
With all of the extremely packed schedules at this
time of the year, we were lucky to catch a very key figure
from Miraco, Midea’s joint venture with Carrier in Egypt.
Running any kind of a business in Egypt has been
challenging with the constantly changing political and
economic environment in the country. Nevertheless,
Miraco has done quite well for itself over the past year. We
sit down with Amr Said to see what he has to say on this,
and other topics.
ADV: Thanks for sitting down for this chat, Amr. Maybe
you can start with telling me how long you have been with
Miraco for?
Amr: Since May 2008.
ADV: And you‘ve been the Sales Director there since
joining?
Amr: First I joined as Carrier Africa Export Director,
then I took over the rest of the business units in 2010.
ADV: What was your feeling way back when you first
learned of the JV with Midea?
Amr: Of course in the beginning, it was a bit uncertain.
All through my career, I have been with multinational
companies. I eventually joined Carrier-Miraco, and then just
two years after, I find that we‘re being sold to a company which
I do not know! So it was uncertain then. But then it was really a
good period, going through this experience, knowing a new
culture, new people, in a big company will will become a giant
in the future. In the beginning, we didn‘t know about the
agreement between Carrier or Midea, but in the due diligence
period, with the new Midea people here, we enjoyed, and are
still enjoying our integration with Midea.
ADV: I remember at the International Business
Conference, during the presentation you gave, you mentioned
the new television commercial you have running in Egypt, and
how there are two different versions of it, in Arabic and
English.
Amr: Yes, we brainstormed quite thoroughly with
agencies, we changed the idea 4 or 5 times, until we reached this
theme, and I believe it was a successful one. The other thing is
with the slogans; Carrier is ―Turns to the Experts‖ and Midea is
―Beyond your expectations‖. In Egypt, we are building on the
experience of Carrier, it is number one in the Egyptian market,
so we also use in all the commercials and press ads, ―Nothing
exceeds experience, nothing exceeds Carrier‖. It is our theme in
everything. So we want to do the same for Midea, and we came
up with, ―It is produced to last‖. The secondary slogans sound
particularly good in Arabic, and they only complement the
official slogans,
they don‘t
replace them.
ADV: I
noticed that
both versions
use rhyming
between ‗Idea‘
and ‗Midea‘
which is a clever
way to help
people
remember how
to pronounce
the name, and it
sounds natural.
Amr: Yes,
we found this
was important,
as everyone, even the people here in the headquarters, cannot
seem to agree on a common pronunciation, which is what I was
saying during my presentation before.
ADV: You‘re right, and it‘s a very difficult to overcome
this kind of problem, with a name which looks fine, but that is
not so intuitive for people to pronounce. Nobody will guess the
correct way unless they‘re specifically told. I‘ve counted 4
different variations that I‘ve heard before.
Amr: Yes, 3 or even 4 variations are just too many. It is
understandable if there is a different way to say it in other
languages, but there must be only one way in each language.
ADV: This is why your commercial works so well. You
know, when this subject comes up, I always think of the Korean
PEOPLE
www.midea.com Advances Newsletter, July, 2013
15
The Miraco Miracle (cont.)
By Mandy Wang & Matthew Smith
car company, Hyundai [HUN-day].
Amr: ―I rely on Hyundai [HUN-die]!‖ The guys from
Brazil, they were saying that Hyundai spent a lot of money to
promote this. They also did in Egypt, but there, it is Hyundai
[HE-un-die].
ADV: I remember growing up in Canada, and people
went from calling it [HE-un-die] to [HUN-die] and now people
are just starting to call it [HUN-day], because of a commercial
they presented, with the specific purpose of telling everyone,
―It‘s Hyundai… like Sunday.‖ I think the idea of rhyming it
with something easy is good, because that will keep it stuck in
people‘s minds. But yours is even better, because you‘re not just
rhyming it with something arbitrary, as Hyundai did in North
America.
Amr: Yes, it took a lot of consideration, but we believe it
works very well.
ADV: Moving onto another topic – they were saying at
the conference, congratulating you really, on your performance
in Egypt recently, relative to that in other markets. All other
things being equal, it‘s impressive, but more so because Miraco
has faced some real adversity there, with the revolution in 2011,
and now, again! Can you tell me how you‘ve faced these
difficulties?
Amr: Before the 2011 revolution, as far back as I can
even remember, it was very safe in Egypt, no problem at all.
ADV: This is actually what we heard from from Lau Cai
as well, the Finance Manager from MID who was in your office
for 2 years – he said the same thing – totally safe.
Amr: Yes, totally safe. You could go out at any time of
day or night, men and women, both. No crime. No problem. It
was really… paradise. After the revolution of course… for the
first time in our lives, we couldn‘t really go out in the streets, for
the first 10, really 20 days, we stayed in our houses, because the
police… well, there were no police out there. It was all very
surreal to us. We saw robbery at some shops and factories… so
many problems… even the prisoners from the jails
were set free… so for us it was really horrific. But we
managed. We got numbers. They were not entirely
satisfactory at first, but in a time of revolution, they
were great. In 2012, the political situation was still not
good. The Muslim Brotherhood was not doing a
good job, on a political level. The Egyptian Pound
started to depreciate, security was not there, coming
and going between home and office did not feel safe.
At this time, we really focused on how to continue
doing business, despite what was going on around us.
I have to say here, I really appreciate the working
environment of this company. All of the management
was really working as a team, so every decision we
made, we saw the implications for the entire
company, not only for one area or another area. We
were, and are still now, working as a real team. How
an act on sales will impact finance or operations, and
vice-versa, instead of only focusing on the interests of our own
departments. Things became very successful, and even the first
half of 2013 was perfect for us. But then at the end of June, we
entered another period of great uncertainty, and even today,
there is a big demonstration happening there, with no certain
outcomes, because even now, the army is calling for
demonstrations. It is a little sad. People from outside, they only
see and understand what the media wants to say, not what the
reality is.
ADV: We heard many businesses and factories there
were forced to close, both in 2011 and now.
Amr: Many did close down. Huge numbers, I cannot
recall exactly, but great numbers. A lot of people were sent
home, so it was not good. But I believe. I believe. Once this is
solved, and it will be solved soon, we will see another miracle.
PEOPLE
―Hey Amr, check out my idea for a new Miraco TV commercial— starring me! ...what do you mean, ‗needs someone better looking‘?‖
www.midea.com Advances Newsletter, July, 2013
16
The Miraco Miracle (cont.)
By Mandy Wang & Matthew Smith
Not just as Miraco, but as Egyptians. Nobody can believe that
people through the internet, or through Facebook, the first
revolution there were millions in the street. This time, it was not
through Facebook – it was 3 people. They started an idea,
refusing what was going on in the country, and they went into
the streets, people joined them, signing their petition, that they
don‘t want this regime.
ADV: Just like that, no internet, just face to face.
Amr: Yes,
and surprisingly, it
was more effective
than the first
revolution, and
more than 30
million went to the
street.
ADV: I saw
the photos and it
was pretty
remarkable. Of
course, photos
probably pale in
comparison to
actually being there in person.
Amr: I was there, and the feeling was just impossible to
describe. I don‘t know what will happen in the next few weeks,
or even the rest of the year, it depends on the political and
economic situation, but I believe that we, as Miraco, we will
find a way to persevere. Surely, teamwork is the key.
ADV: Certainly, your track record shows that you and
the others at Miraco have handled it well before, and so I think
everyone here has a lot of confidence in Miraco, and they want
to help you.
Amr: I hope so, and as I told you, everyone is
contributing. Everyone at Miraco, Midea and Carrier. With all
of this, we still hope we can close the year better than last year.
ADV: Switching tracks again – with Midea‘s first
International Business Conference finally wrapped up, what are
your thoughts on it?
Amr: Really great, although perhaps a few areas that
could be improved. For the conference, in fact it is two pieces –
the Group-wide section, and the MID section. For the MID
part, we can make it different each time. Maybe more team-
building next time. Sitting around and listening to everyone‘s
experiences, this one time is OK, next time we can have it in
another location, maybe out of the office, in the field. Before,
with my previous company, I attended a few courses abroad,
and they were really, very effective. Here are some examples:
Once, we had a conference in Venice, Italy. After giving us one
day of instruction and notes, they split us into groups and said,
―We are in Venice, there is a film festival happening now, so
here is a camera
and some other
tools, go make a
short film in your
groups in the next
6-7 hours, as a
team‖. Everyone
from different
countries, all
contributing – it
was fun. It was
really fun. At first
we didn‘t know
what to do, but
then we quickly
started taking roles, cooperating, and we made our film. By the
end of the day, we met up at the festival, where they had a jury
there to judge all of the short films we made, and we took the
prize for the best film! It is something we will all remember
forever.
ADV: That‘s a unique sort of a team-building exercise,
very creative and inspiring!
Amr: Another time, we went to Turino, Italy, where it
was very, very cold. For the first two days, we gathered to
discuss the plan for the next year, and then, before going there,
they asked all of us about our clothing measurements, and when
we got to our rooms, we each found complete cold-weather
outfits perfectly sized for us, because it was freezing outside,
snow everywhere. We were based in a compound up on this
mountain there, in nice cabins with one other colleague, from
another country and culture, and we had to work together,
because for the next 4 days, we had tasks. For instance, on one
day, we had to set up a zipline between a tree above us and one
below, that we could ride down on. Now, there was also a team
from an external HR company. They were watching everyone,
PEOPLE
www.midea.com Advances Newsletter, July, 2013
17
The Miraco Miracle (cont.)
By Mandy Wang & Matthew Smith
how they contribute, how they cooperate, how they listen, if
you‘re open-minded about others, etc. and after 4 days of
different tasks, it‘s all evaluated at the end. The emphasis was
on team, at every retreat.
ADV: Those are both great examples of alternative
events that could be worth a lot to a company like Midea which
wants to bring its global workforce closer together.
Amr: Yes, these were organized externally by a British
company, for the people who are identified as high-potential by
their managers, and if you pass the assessment at these retreats,
you are promoted. Every 2-3 years, to be promoted, you must
go for another one. You are given a case with your colleagues,
talking with 4 of your colleagues, and they assess your reactions,
your ideas, your statistical thinking, everything. At the end, you
are given a report, which indicates your weak and strong points.
The weak points need to be worked on, to be enhanced, and
then you go back for another assessment. If you pass, you can
be promoted. If you don‘t, you remain staff forever. Two
chances after each promotion. It‘s a really memorable process.
ADV: That‘s fascinating – it sounds like a very holistic
approach to identifying future leaders for a global business. This
could be a development we see at Midea in the coming years.
PEOPLE
www.midea.com Advances Newsletter, July, 2013
18
Midea Receives Gold Award at the “Red
Cup for Relief” Event By Blinda Li
O n the last morning of June, the Guangdong Provin-
cial Party Committee and provincial government inaugurated the
―2013 Red Cup for Relief‖ event in Guangzhou. At the ceremo-
ny, Midea donated 15 million RMB and received the ―Gold
Award of the Red Cup‖ for poverty relief. Midea is known as a
major contributor at this event each year.
The event‘s theme of, ―Help the poor and devote our
love‖, was proposed by Guangdong Province for the purpose of
initiating far-reaching social programs. Over the years, ―Red Cup
for Relief‖ activities have received an enthusiastic response from
across the community. A large number of enterprises and indi-
viduals have emerged each year, displaying dedicated spirit while
accepting significant social responsibilities, such as those involv-
ing poverty relief.
During the activity, the leading contributors to poverty
relief (196 companies and individuals) were granted awards for
poverty relief, and 34 of those, including Midea, received the
Gold Award.
The contributions made to any community are a reflection
on how an enterprise perceives its own responsibilities to socie-
ty. This is why Midea has always been committed to public wel-
fare programs as a way of actively giving back to and pursuing
the most important needs of those who are ultimately responsi-
ble for the success of the company - the people.
COMMUNITY
Laundry Division Donated 2,000 Washing
Machines to Help the Disabled By Blinda Li
O n May 19, the National Day for the Disabled, Jiang-
su Province held its ―Happy Life Campaign for the Disabled" in
Nanjing. Midea‘s Laundry Division, eager to contribute to those
in need, donated 2,000 Little Swan washing machines, valued at
1.1 million
yuan. At the
donation
ceremony,
Jiangsu
province
Vice Gover-
nor Xu Jin-
rong pre-
sented an
official com-
mendation certificate for the donation to Laundry Division, and
Director-General Xu Qingxiang of the Jiangsu Disabled Welfare
Foundation also presented a plaque in recognition of the corpo-
rate contribution.
According to statistics, those in China who suffer from
disability currently total 85 million, which is the highest in the
world. Disability sufferers are as important as any other in our
community, thus Midea strives to do its best to take care of
them. Such
care should
not be lim-
ited to mere
expression
of pity; ra-
ther, it is
crucial to
help those
with disabili-
ties to pursue educational goals and employment, and enjoy
proper health care and transportation. The point of Midea‘s
donation is to facilitate not just living, but having a life. Midea
appreciates more than anyone that society has helped to build
its success, and so Midea enjoys every opportunity it gets to give
back to society.
www.midea.com Advances Newsletter, July, 2013
19
Congratulations, Toshio! Congratulations, Toshio! Congratulations, Toshio!
SNAPSHOT