www.midea.com Midea Advances Newsletter, May, 2013
1
VOL 3, #4, May 2013, No. 28
6σ: 99.99966%
Midea launches company-wide Six Sigma training
www.midea.com Midea Advances Newsletter, May, 2013
2
ADVANCES Newsletter
Contents
NEWSLINE
Midea Group to Issue A-
Shares for Exchange with GD
Midea Shareholders PAGE 4
CMI Hosts Visit to VRF Facto-
ry in China PAGE 3
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
Exclusive Channel Annual
Meeting in Brazil PAGE 6
Carrier Midea India Brings
Cool to ACREX PAGE 5
Six Sigma: Laundry Division
Completes Phase I of Black
Belt Training PAGE 8
CMI Introduces “Sparsh” PAGE 5
CAC New Product Promotion
Tour Hits 33 Cities Across Chi-
na PAGE 10
Adeus E Até Breve
PAGE 15-16
PAGE 18
Brazil JV Scores Football
Sponsorship PAGE 4
Dealers from Argentina Visit
Midea HQ PAGE 6
Laundry Division Introduces
Market Camp PAGE 7
Midea CAC Participates In
UAE Certification Standards
Development PAGE 7
Midea Only Appliances
Manufacturer in Top-10 Na-
tional Innovation Ranking PAGE 9
Midea Laundry Division
Launches “Washing Revolu-
tion” With Cross-China Tour PAGE 11
Midea Carrier Brazil Launch-
es Campaign for Mother's
Day PAGE 12
Midea Eco Air Conditioners
Pass National CQC Software
Appraisal PAGE 12
Midea Donates 10 Million
RMB to Ya’an Quake Relief,
Employee Donations to Fol-
low PAGE 17
FEATURE
PEOPLE
COMMUNITY
SNAPSHOT
www.midea.com Midea Advances Newsletter, May, 2013
CAC’s 18th Global Technical
Training Seminar PAGE 14
Myanmar’s Dealer Visit to
Midea HQ PAGE 13
www.midea.com Midea Advances Newsletter, May, 2013
3
CMI Hosts Visit to VRF Factory in China
C arrier Midea India (CMI) recently organised a visit to
Midea‟s VRF factory in Shunde, China. The visit included 10
leading HVAC consult-
ants, who specialize in
various applications like
hospitality, residence
and manufacturing.
Sanjay Mahajan, Vice
President of Sales &
Marketing at CMI, was
present at the occasion,
along with other key
company officials from
both CMI & Midea‟s
International Division.
Commenting on
the occasion, Mahajan
said, “The principal
strength of Midea lies in
its world-class product
quality and testing facilities. We work very closely with our con-
sultants and hence it was essential for us to familiarise them
with the Midea brand. We have received very encouraging feed-
back and look forward to receiving great support from everyone
as our business progresses.”
To engage the interests of the HVAC consultants, the
company organised a
three-day visit to Shun-
de, with an in-depth
and informative guided
tour of its light com-
mercial air conditioner
factory. The itinerary
included a visit to the
Midea museum, its
manufacturing lines,
testing and R&D cen-
tres followed by tech-
nical and product
presentations. The
guests appeared quite
impressed with the
manufacturing exper-
tise and sheer scale of
operations, which no doubt helped in creating a stronger, more
positive image of the Midea brand.
T he May Day holiday earlier this month typically
marks the beginning of the most competitive period in China‟s
home appliance market each year, and this time was no excep-
tion. Air conditioner sales in particular will spike when the
weather begins turning hot. Leading the way in this fierce com-
petition is the Midea Eco range of air conditioners, featuring
their 1 kWh per night efficiency, which has attracted lots of
attention in the market.
“Every customer dropping by is very interested in Midea
split range of 1 kWh per night units,” said a sales representative
in a local shopping mall. Statistics show that during the May
Day holiday, inverter-type air conditioners accounted for nearly
RAC’s 1 kWh/Night Units See Strong Sales
Over May Day Holiday By Crystal Lun
NEWSLINE
By Himani Joshi
70% of Midea‟s total sales in air conditioners in the China mar-
ket, and the full-DC inverters with the 1 kWh per night feature
made up half of all inverter unit sales.
To sustain its leading position in the market, Midea RAC
has made efforts with strategic transformation, research & de-
velopment, and quality enhancement. The 1 kWh/night feature
was first launched in October 2012, representing Midea‟s deter-
mination for creating excellent value for consumers.
Statistics by China Market Monitor show that Midea‟s new
range of 1 kWh per night units ranks as #1 in sales against all
other brands, and this momentum looks to continue beyond
May.
www.midea.com Midea Advances Newsletter, May, 2013
4
Midea Group to Issue A-Shares for
Exchange with GD Midea Shareholders
By Blinda Li
G D Midea Holding, the publicly-listed subsidiary of
Midea Group which manufactures air conditioners, refrigera-
tors, washing machines, and other major appliances, announced
on March 31st that Midea Group is intending to consolidate and
merge GD Midea Holding as part of its overall listing, by way of
issuing A-shares in exchange to GD Midea shareholders. The
plan is for Midea Group to make its offering price at 44.56
RMB per share. GD Midea Holding shareholders will receive a
stock-for-stock price of 15.96 RMB per share, taking the aver-
age trading price of 9.46 RMB per share on the day of an-
nouncement as the benchmark, resulting in a premium of
68.71% over the benchmark. Because it is a stock-for-stock
consolidation, every share of GD Midea Holding can be ex-
changed for 0.3582 shares of the new A-shares issued by Midea
Group.
As an A-share “blue chip” company, Midea has always
valued the interests of minority shareholders, offering cash divi-
dends annually since its listing. In 2011, it offered 4.5 RMB in
cash for every 10 shares, a total dividend up to 1.5 billion RMB,
and in 2012, it continued to increase dividends, offering 6 RMB
for every 10 shares, for a total of 2 billion RMB, a dividend yield
rate exceeding 6%. After the stock issue, Midea Group will con-
tinue its past tradition, by paying close attention to earnings and
returns for minority shareholders, and to continue to increase
the dividend payout ratio, with the annual cash dividend within
three years to be no less than 1/3 of the current year‟s allocable
profit. It is believed that the Midea Group share offering will be
well-received in the capital market.
Brazil JV Scores Football Sponsorship
guesa reinforces the marketing strategies of both Carrier and
Midea, which will be sponsors throughout the next season,
thereby increasing their visibility to the market. "The official
announcement of the new Portuguesa uniform was reported by
various media, such as Globo Esporte, The People, Official
Lance, IG Sports, among other important sports media outlets
in Brazil. This shows that our marketing strategies are in syner-
gy, aligned, and focused on demonstrating our company‟s grow-
ing excellence in the national media."
Midea and Carrier logos will also appear on tickets for
games in the stadium, panels on the field, and in the stands of
the stadium. "It's a great opportunity, because all of these rights
come with being the sponsors of the Portuguesa, which most
certainly generate a cycle of positive exposure," adds Mascaren-
has. The logos for Midea and Carrier will appear on the uniform
separately for half of the season.
T he Portuguese Association of Sports, a Brazilian
football team known more casually as “Portuguesa” or “Lusa”,
and based in São Paulo, inaugurated its new store earlier this
May, where it also presented uniforms for the new season. The
most remarkable aspect of the new shirt is the mark of its two
new sponsors announced at the time: STR and Midea Carrier
ABC JV.
"This action is associated with all the success that we are
seeing in our air conditioning projects relating to large stadiums
and arenas. After all, there is much reason to celebrate: Midea
Carrier ABC JV has already become the main choice for the
weatherizing stages in preparation for World Cup 2014,” said
Henrique Mascarenhas, Director of Marketing at Midea Carrier
Brazil. "Recently, the staff of Midea Carrier channel BSS
(Building System and Service) signed an agreement to provide
air conditioning equipment for construction of the Maracana
Arena, the latest in a series of work to represent the strength of
these two powerful brands across the entire country."
For Midea Carrier ABC JV, brand exposure with Portu-
By James Yu
NEWSLINE
www.midea.com Midea Advances Newsletter, May, 2013
5
Carrier Midea India Brings Cool to ACREX
By Himani Joshi
C arrier Midea India (CMI) showcased its product port-
folio both for Carrier- and Midea-brand air conditioners at
ACREX 2013, South Asia‟s largest and most prestigious conven-
tion for each of the air conditioning, heating and refrigeration
industries. Each year it‟s held in a different location, and this
year ACREX was in Mumbai.
During the three day exhibition, CMI showcased its resi-
dential and
light com-
mercial
range of air
condition-
ers for the
season. The
Midea
lineup was
displayed in
full glory
along with
Carrier‟s own split- and window-style air conditioners.
“Over the years, this platform has evolved immensely,
providing good exposure to the participants and visitors,” ex-
pressed Sanjay Mahajan, Vice President of Sales and Marketing
for CMI. “We‟ve received such a positive response on our prod-
ucts and keen interest was even shown by architects and con-
sultants, who were curious to know more about the joint ven-
ture, and
Midea in
particular.”
The
theme of
the 14th
ACREX
was dedi-
cated to
promoting
a cleaner
environ-
ment and providing a platform for the presentation of the best
quality products, services and projects in the HVAC&R indus-
try, which aim at delivering functionality in an eco-friendly man-
ner. The event drew more than 450 exhibitors from 20 coun-
tries whose products and services were on display in the exhibi-
tion area at the Bombay Convention and Exhibition Centre in
Mumbai.
More than 40,000 visitors, comprised of exhibitors, part-
ners, HVAC consultants and engineering students, networked
amongst each other and learned more about coming technolo-
gies during this three-day event.
NEWSLINE
CMI Introduces “Sparsh”
By Himani Joshi
C arrier Midea India has just introduced a new quarterly
publication, officially known as “Sparsh”, which means “in
touch” in Hindi. Similar to Midea ADVANCES, Sparsh will
report on news and events in and out of India that relate to the
business of CMI.
With the start of an official publication at CMI, there will
be more opportunity for cooperation between Sparsh and AD-
VANCES, meaning greater coverage in the future of the most
interesting stories surrounding the growth of this new company.
www.midea.com Midea Advances Newsletter, May, 2013
6
Exclusive Channel Annual Meeting in Brazil By James Yu
On May 17th, Casa Carrier and Totaline, the largest fran-
chised networks in air conditioning and refrigeration respectively
in Brazil, met for two days in Manaus, Amazonas, for the first
annual meeting with Midea. This particular conference was re-
served for Midea
Carrier Brazil‟s
two exclusive
channel partners,
with the purpose
of celebrating the
success of these
partnerships, and
to plan strategies
for the future.
The meeting was
held at the Hotel
Tropical in Ma-
naus, where the 150 guests in attendance participated in stimu-
lating lectures and discussions, and enjoyed guided tours of the
factory and sightseeing in the capital.
"The meeting in Manaus also served to reiterate that these
exclusive channels are of great importance and remain important
to our business models, and our efforts toward optimization. It
was very valuable because we were able to share experiences,
and this contributes to the development of real competitive
advantage in the marketplace," expressed an executive in attend-
ance.
According to
Jocemar Costa, a
Commercial Di-
rector for one of
the exclusive
channels, suggest-
ed that more than
200 franchised
stores would be
part of an expan-
sion in 2013. "We
received a great
overview of the current market issues and were able to plan
with Midea and Carrier, in everything from commercial, finan-
cial, logistics, and product marketing. The balance here is very
good, because the momentum in the market is extremely posi-
tive right now."
Dealers from Argentina Visit Midea HQ By Min Chen
A group of 50 dealers from Argenti-
na visited Midea headquarters on May 10th,
and were warmly greeted by Coobie Zhang,
the General Manager of Midea International
Division.
The dealers are from Carrier S.A., the
joint venture between Midea and Carrier in
Argentina which distributes products with the
private label of Carrier S.A. The General Man-
ager of FMCC (Foshan Midea Carrier Compa-
ny), Jason Huang, gave a presentation about
production capacity, product quality and the
sales network of Midea Carrier joint venture
companies, as well as the cooperation history
of Midea and Carrier, followed by a current business overview
and the company‟s future prospects.
After that, the delegates visited Midea‟s prod-
uct showroom and historical museum, which
during which they were impressed with Midea‟s
front-line products, equipped with energy-
efficient, environmentally-friendly technology.
Many photos were taken throughout the tour.
Afterwards, the visiting dealers were given a
tour of the FMCC factory and the labs at the
Midea Research Institute. Daniel, one of the
delegates, said after the visit that it was a great
pleasure to know more about the company‟s
great scale, much larger than he had imagined
previously. His experiences during the visit
prompted strong emotions from him, and at
one point he stated, “Together we will win!”
NEWSLINE
www.midea.com Midea Advances Newsletter, May, 2013
7
By Peck Zhao
Following the Annual Middle East VRF Conference held
in February at Abu Dhabi, Midea CAC joined in the UAE‟s
VRF Standardization Program. During the VRF Conference,
most of the participants recognized the need to establish stand-
ards and regulations for VRF, in order to help drive VRF indus-
try growth.
VRF systems are relatively new in the UAE, and really the
entire Middle East region, overall. Because of this, there is cur-
rently no official standard covering VRF and multiple split
units. Additionally, the efficiency of VRF systems has not yet
been proven because of the lack of standards and testing meth-
ods for a certification process. Very few third-party certification
organizations cover the scope of VRF products, while other
categories such as chillers, split, rooftop packaged, terminals
and heat pumps have fully-standardized certification processes.
The UAE government is now determined to get involved in
developing these sorely-needed standards and regulations for
VRF systems.
ESMA, the Emirates Standardization and Metrology Au-
thority, announced its plan to start improving the energy star
ratings for existing air conditioners, and to implement a new
standard for VRF. Main HVAC industry figures such as Midea
were invited to participate in developing the new standard. Since
the end of the VRF conference in Abu Dhabi, three meetings
have been held in as many months, with Midea CAC and its
exclusive distributors in the UAE officiating at these meetings,
as well as two special bilateral meetings with ESMA. The plan is
for these new standards to apply to all GCC (Gulf Cooperation
Council) countries.
Midea, as one of the top three manufacturers in the air
conditioning industry, is dedicated to research & development
relating to energy-saving technologies and reliability. And after
only 14 years effort in the VRF industry, Midea is already one of
the top three in China and top ten in the world.
Midea‟s position in regards to the standardization effort is
that any certification process must focus on measuring energy
efficiency as accurately as possible, and on helping manufactur-
ers to continue improving.
For Midea and its partners, this process is a good oppor-
tunity to learn first-hand about the development of regulations
& environmental policy by GCC governments, to collect the
latest information from other manufacturers, and most im-
portantly, to build influence in GCC region.
NEWSLINE
Laundry Division Introduces Market Camp By Blinda Li
In order to aid their marketing strategy and planning,
Laundry Division launched their Market Camp
last month.
Select representatives from 4 product
nationwide centers (Shenzhen Product Man-
agement Center, Changsha Product Manage-
ment Center, Hebei Product Management
Center, Liaoning Product Management Cen-
ter) organized a group of technical staff from
across the Laundry Division for the 2 week
schedule of activities in the Market Camp.
The Market Camp activities focused on the occurrence of
defects in computer boards, electric motors,
suspenders, door switches and clutches, by
which the participants were able to learn to
determine the cause of the problems and put
forward ideal solutions. Besides this, the
Camp also focused on discovering technolog-
ical and operating problems which have no
solutions, on summarizing common problems
for subsequent improvement, on analyzing
the effect of earlier improvements made to factory quality.
Midea CAC Participates In UAE Certification
Standards Development
www.midea.com Midea Advances Newsletter, May, 2013
8
Six Sigma: Laundry Division Completes
Phase I of Black Belt Training
By Blinda Li
FEATURE
O ver the past few months, Midea has been launching
training seminars throughout the company‟s functional depart-
ments and divisions regarding something known as “Six Sigma”.
It consists of strategies and approaches by which processes in a
corporation can be improved by eliminating defects and nega-
tive variability, thereby ensuring consistently high rates of suc-
cess wherever these improvements are implemented.
Six
Sigma was
originally
developed by
Motorola and
then brought
to promi-
nence when
it was imple-
mented at
General
Electric. Its
origins lay
within manu-
facturing
process re-
finement.
The origin of
the name
“Six Sigma”
comes from
idea of
achieving a yield of production of six standard deviations be-
tween the mean of any process and specification limits. This
basically means a defect-free yield of 99.99966%, or a virtually
perfect process. In the field of statistics, standard deviations
have long been represented by the Greek symbol of Sigma (or
“σ” ), and thus the name of “Six Sigma” for this pursuit of pro-
cess improvement came to be.
From April 7-9th, the Laundry Division launched Phase I
of its Six Sigma Black Belt Training, with an attendance of 33
people. In this training session, the topic focused mainly on
knowledge about logic and tools in Phase D and Phase M. Over
3 days of study, Black Belt trainees reviewed the Six Sigma
knowledge they gained during the Green Belt training before, in
addition to building on established Six Sigma methodology. So
far, 33 Six Sigma improvement projects have been started,
where Six Sigma methods can be used to resolve most prob-
lems.
It has been expressed by many that, after participating in
Phase I of
the Six Sigma
training,
trainees feel
they have
corrected
their misun-
derstandings
through the
lectures given
be Mr. Yang
Binyu. They
have im-
proved their
knowledge
about Six
Sigma tools,
but also for
the reasoning
of these
tools, how to
analyze the
results of such implementation.
After the Black Belt session, the Laundry Division will
organize a Phase I Green Belt session, and a Phase II Black Belt
session. In the meantime, Laundry Division will organize follow
-up instruction seminars for trainees, in order to bring more
practical purpose to their studies. This will help improve the
trainees‟ ability to resolve problems by what they‟ve just learned,
to become a professional team with intimate knowledge of Six
Sigma methods and tools, so as to lay a solid foundation for the
Division‟s new culture.
www.midea.com Midea Advances Newsletter, May, 2013
9
By Blinda Li
O n April 18th, the 3rd China Independent
Innovation Conference was held at the Great Hall of the People
in Beijing, during which the organizers presented its Top 10
Innovative Enterprises of China ranking for 2013. Notably,
Midea Group was the only household appliance manufacturer
present on this list of honored Chinese companies.
Experts, scholars, and leaders present in the annual
conference unanimously agreed that to shatter the development
bottleneck and resolve in-depth conflicts and problems,
innovation must be the fundamental solution, and in turn
technology should be the focus for everyone.
The 10 enterprises listed within the ranking were
commended after the initial announcement, with the intention
of inspiring those and others to continue in the pursuit of
original research and development, according to the event
organizer.
As a giant in white goods production, Midea has always
viewed technological innovation as a strategic priority and the
means by which steady development can be sustained. In the
face of the severe economic climate at home and abroad, and
the slowdown in the appliances industry overall last year, Midea
focused on three strategic keys: “Product First, Efficiency
Driven, and Worldwide Operation” as a means to further
develop business priorities such as “Concentrating on Core
Industry, Streamlining Product Structure, Assuring Quality, and
Improving Business Efficiency”.
From the end of 2012, Midea counted a total of 6,783
technical researchers and developers on staff, and its investment
in technical development accounted for 3.29% of its total
revenue from that year. Over the past five years, Midea Group‟s
total investment in R&D has amounted to more than 10 billion
RMB.
Abundant investment in R & D enables Midea to realize
brilliant achievements, and lays the foundation for future
competitive development.
By the end of 2012, Midea Group had applied for 16,460
patents, with the number of authorized patents reaching of
9,032. In addition, the company was responsible for formulating
208 national industrial standards, as of late 2012. Presently,
Midea is sponsoring the formulation and revision of IEC
international standards for electric pressure cooking saucepans,
electric fans, and microwave ovens. With respect to industrial
designs, Midea has won 10 German Red Dot Awards, 4
German IF awards, and 9 American IDEA awards, as of March,
2013. Midea has also won more than 100 internationally
recognized awards, such as the ROK GD Award, ROK PIN-
UP Award, Japan G-Mark Award, and the China Red Star
Award.
Over the next three years, “Midea will follow the „Value
Creation‟ route to concentrate on core industries and products,
in order to provide consumers with more innovative products
and meet their ever-changing demands,” according to a senior
executive of Midea Group.
FEATURE
Zhang Laiwu, Vice Minister of Science and Technology.
Lu Yongxiang, Academician of CAS and CAE.
Midea Only Appliances Manufacturer in
Top-10 National Innovation Ranking
www.midea.com Midea Advances Newsletter, May, 2013
10
CAC New Product Promotion Tour Hits 33
Cities Across China
C AC‟s New Product Promotion Tour for 2013 is al-
ready underway, having started back on May 7th and continuing
on until June 18th, with a theme of Technolo-
gy Inspires Possibilities. The tour covers 33 cities across China,
with the first stop in Guangzhou on May 7th, and the final city
being Ürümqi (Wulumuqi), on June 18th. There are four sepa-
rate regions which the tour will generally cover, those being
south-eastern, northern, eastern and mid-western areas of Chi-
na, which will include most of the country‟s major cities, includ-
ing Shenzhen, Shanghai, Beijing, Chongqing, Hangzhou, Nan-
jing, Hefei, Xi‟an, Harbin, Nanchang, and others. The tour pro-
motes three of CAC‟s newest key products: the Full-DC Invert-
er X-Series VRF System, the Super High Full Falling Film Cen-
trifugal Chiller, and the Air Source Heat Pump Water Heater
System.
The Full-DC Inverter X-Series VRF System is the first
VRF system featuring such energy-efficient technology that can
achieve a coefficient of performance (COP) record of 6.75, 90%
higher than the First Level Energy Efficiency Standard as de-
fined by the Chinese government. The modular design allows
for a maximum combination amounting to 88HP, currently the
top capacity for VRF systems in the world, and the eye-catching
appearance of the outdoor units are a perfect match for today‟s
modern architectural designs.
The Super High Full Falling Film Centrifugal Chiller has
been recognized as an significant achievement by international
standards by two academicians from the Chinese Academy of
Sciences and the Chinese Academy of Engineering, and by 7 of
the top Testing Institutions of Scientific Research and Industry.
The dual-stage falling film centrifugal chiller employs 20 patents
(5 invention patents and 15 utility patents), which include the
advanced full falling film technology, dual-stage compression
plus vapor injection technology, pre-whirl guide vane technolo-
gy, and intelligent control system technology. These impressive
patents all combine to make up the chiller‟s COP 7.06W/W
under AHRI-standard conditions, ushering in the new COP-7
era at CAC.
The Air Source Heat Pump Water Heater System employs
an innovative “E+ Blue Diamond” enamel tank, which results
in energy savings of up to 75%, and a lifespan of at least 15
years. Another feature of this system is its water tank, which
features a super-adhesive coating, which can sustain impact of
800,000 times, and 480 hours of acid-resistance.
With these highly advanced products being shown on this
tour, the theme of inspiration through technology seems quite
appropriate.
FEATURE
By Leticia Zhou
Full Falling Film Centrifugal Chiller (left) and X-Series Full-DC Inverter.
Various air source heat pump water heater systems.
In Shanghai.
www.midea.com Midea Advances Newsletter, May, 2013
11
By Blinda Li
B eginning in March, Midea‟s Laundry division
launched its China-wide “Washing Revolution” tour, covering
23 key cities, to further promote its new iAdd intelligent wash-
ing machines in the China market. Some of these cities included
Beijing, Wuxi, Chongqing, Hefei, and Foshan. With such a visi-
ble campaign, the hope is that Laundry Division‟s efforts will
set off a new movement in energy conservation in the China
laundry appliances market.
The new launch of iAdd washing machines will surpass
the previous experiences of consumers, with the incorporation
of the technology into top-loading, front-loading and twin-tub
formats to open Little Swan‟s fourth generation of products.
Generally speaking, it is difficult for consumers correctly
determine the amount of detergent needed for each load, result-
ing in clothes which are not fully cleaned, or perhaps left with a
soapy residue. After almost 4 years of heavy research by 200 of
the best R&D engineers at Midea, consumers no longer need to
concern themselves with these problems when inserting deter-
gent into their machines.
The market for household appliances will eventually domi-
nated by consumer demand for greater technology. With in-
creasingly fierce global competition, Chinese home appliance
brands must rely on both key technology development (such as
iAdd) and superior quality assurance to achieve the necessary
edge against well-established brands.
Little Swan has been firmly pursuing integration of global
resources to build up a stringent “quality chain” by using the
most excellent core parts suppliers selected from around the
world, achieving the world‟s top certifications, and employing
world-standard product testing processes, all of which have pro-
vided the ability to produce laundry appliances which boasting
the best quality, the best performance and the longest service life
for consumers around the world.
FEATURE
Midea Laundry Division Launches “Washing
Revolution” With Cross-China Tour
www.midea.com Midea Advances Newsletter, May, 2013
12
Midea Carrier Brazil Launches Campaign
for Mother's Day By James Yu
M idea, one of the top producers of home appliances
all over the world, announced in April its "A Cake for Mom"
campaign, which debuted on Mother‟s Day this month. The
campaign offers to those purchasing Midea microwave and
electric ovens a free kit containing six tins for baking cupcake,
and a professional cookbook that teaches anyone how to pre-
pare and bake with Midea‟s kitchen appliances.
While the promotion focuses on the occasion of Mother‟s
Day itself, it will
last for a
month, and
include 50
stores across
the country. An
additional event
being planned
will involve
offering cupcakes in-store to consumers.
The overall purpose of this campaign is to express the
brand personality of a “creating a better life” for your family by
using Midea products.
"We want to arouse the interest of the consuming public,
showing in practice the possibilities offered by our range of
kitchen products in this segment," explains Midea Carrier ABC
JV‟s Director of Marketing, Henrique Mascarenhas.
FEATURE
R ecently in May, Midea ECO split-style air condi-
tioners, featuring the 1 kWh per night feature, have successful-
ly completed an appraisal conducted by the China Quality Cer-
tification Center (CQC), which is aimed at determining degree
of safety relating to its electrical operation. The certification
granted makes Midea the first brand in China to pass this safe-
ty appraisal.
In China, China Compulsory Certification (CCC) is a
similar example of another basic, yet important certification for
household appliances, constituted by three sub-certification
stages: CCEE, CCIB, EMC. (CCEE: China Commission for
Conformity Certification of Electrical Equipment; CCIB: Chi-
Midea Eco Air Conditioners Pass National
CQC Software Appraisal By Crystal Lun
na Commodity Inspection Bureau; EMC: Electro Magnetic
Compatibility)
With the increasing application of electrical control mod-
ules in air conditioners, the safety of electrical components has
become more important to the overall analysis, thus this new
CQC appraisal directed towards safety concerns is a necessity
for the air conditioner industry.
Experts from CQC had said that electrical safety certifica-
tion will soon become a mandatory standard in the industry.
Midea is just the first major manufacturer to have taken initia-
tive with these safety appraisals.
www.midea.com Midea Advances Newsletter, May, 2013
13
Myanmar’s Dealer Visit to Midea HQ
T oward the end of this past month, a group of 30
dealers from Myanmar paid a visit to the Midea headquarters in
Shunde. These dealers mainly manage Midea-brand products in
Myanmar, and most of them have a history of handling Midea
products for dozens of years now. Starting from directional fans
in the earliest days, they gradually enlarged their offerings to air
conditioning, microwave oven, induction
cooker, and rice cooker products. After a
brief introduction about Midea, the dealers
were taken on a tour of the headquarters,
including the product gallery and historical
museum, to give them a better familiarity
and confidence about the company, its
brand, and its products.
Ms. Shen, a second-generation Bur-
mese-Chinese originally descending from
Yunnan province, runs a home appliance
store in Myanmar. She explained that she
established a relationship with Midea dur-
ing the 1990s and had a strong bond with
the company. “Basically the price of Midea
products is more or less in the same range
of those Japanese and Korean products.
Since the quality is really good, Midea en-
joys a reputation for reliability among consumers in Myanmar.
Especially when it comes to fan products, once you mention
Midea, people immediately know this brand and will purchase it
without a second thought,” she said. She also noted that the
visit to Midea‟s headquarters was exciting in an educational way,
since most other dealer incentive trips focus mostly on tourist-
like sightseeing. “Throughout this visit, I have seen Midea‟s
magnificent headquarters, all of Midea‟s products and their de-
velopment path,
which all give
me a great im-
pression, “she
added.
Mr. He, a
young man in
his early 20s, is a
third-generation
Burmese-
Chinese. His
family store has
sold Midea
brand products ever since his parents‟ time. “Burmese all have
Chinese names, so there is a connection. Midea has impressed
us very much, and we are very happy be here in China to learn
more about this company,” he said. When asked about his im-
pression of Midea brand, he laughed: “When I was 8 years old, I
happened to ask my mom, „What is the
brand of this fan?‟ We had used it for sev-
eral years. My mom told me it was a Midea
fan and that it was almost as old as me.
This surprised me, giving me a sense of
the high quality of this fan. When I began
planning to deal in home appliances, the
first brand to come to my mind was
Midea.”
FEATURE
By Sandra Sun
Mr. He.
Ms. Shen and her husband.
MDV X VRF with transparent siding.
www.midea.com Midea Advances Newsletter, May, 2013
14
CAC’s 18th Global Technical
Training Seminar
By Amber Liu
C AC held its 18th global technical training seminar last
month at
Midea HQ.
Over 80 at-
tendees
throughout the
world attended
this seminar.
For those una-
ware of CAC‟s
training pro-
gram, this
event has been
held by them
twice a year
since 2004.
The train-
ing included
two phases,
according to
the training emphasis. The first phase focused on new products
in 2013 and product benefits against main competition. Popular
VRF products, V4 plus family products like V4 Plus, V4 Plus R
series (heat recovery type), V4 Plus W series (water-cooled
type), V4 Plus S series (super all-DC inverter type), V4 Plus I
series (individual DC inverter type), D4 plus and the 4G net-
work control
system (IMM)
are all included.
The 29 at-
tendees in this
phase were
made up of
project engi-
neers, sales
managers and
purchasing en-
gineers from
Asia, Africa and
Latin America.
Of this group,
80% had never
attended this
training before.
The second
phase of training focused on the installation and commissioning
of V4 plus, D4 plus, 4G network control systems, and air-cooled
modular chillers. After the presentation of technical points, the
engineers went to the CAC product sample room to do some
key trouble shootings by themselves, which helped
to apply theories to practice. For this phase, a total
of 56 technical engineers from Europe, Asia, Africa
and Middle East attended.
The 19th global training is scheduled to be held on
October, 2013. Midea CAC would like to remind its
distributors that they‟re always welcome to partici-
pate in these training seminars.
FEATURE
www.midea.com Midea Advances Newsletter, May, 2013
15
Adeus E Até Breve
By Matthew Smith
A lexandre Lengler
Finance Specialist
Introduction:
For the past year, Alex Lengler has been stationed at
the Midea headquarters in Shunde, China, in the
Finance Department of Midea’s International
Division. He is originally from the Midea-Carrier
South America JV head office in Brazil, with 7 years
of experience with the organization there. Next
month, he will be leaving Midea headquarters to
return to his work in Canoas, Brazil, but before he
leaves, he has agreed to sit down with ADVANCES
to discuss his experiences as a foreigner working in
China for the past year.
ADV: Alex, thank you for taking the time to sit down for
this talk. Can you start off by telling me a bit about your history
with Midea-Carrier?
Alex: Hi Matt, it‟s my pleasure. I first joined the company
in 2006,
through the
company's
internship
program
while I was
still studying
in college.
After
graduation, I
was hired
permanently
in 2007. I
have always
worked in
finance, but
I have very
strong
relationships
with many
people in
every
department. I like working in a place where I know people and
feel at home, and Midea Carrier is that kind of company.
ADV: How did this exchange opportunity first present
itself to you?
Alex: Well, my CEO, Berenice Hleap, informally
mentioned this to me, asking if I would be willing to work in
another country. My answer was yes, and after a few days she
presented the idea of this training program at Midea
headquarters in China, which I accepted with a lot of
excitement.
ADV: How would you compare your initial expectations
with what you encountered here in the first month or so?
Alex: My expectations were varied, but in fact, I really
didn‟t know what I would find in China. I talked with other,
more experienced visitors here, who gave me some very helpful
advice. I have to say, my initial and lasting impressions were
better than I expected and really, I was able to adapt without
any real problems.
ADV: So what kind of work do you engage in with your
Finance Department colleagues?
Alex: Basically, the focus of my work relates to the
reporting of Midea Carrier‟s financial figures to the head office
in China, a process that will continue to improve in the coming
months after my return to Brazil. I‟ve also been aiding people
here in China with questions relating to our processes in South
PEOPLE
Alex, holding my notebook hostage, until I arrange for $1 million dollars and a helicopter.
www.midea.com Midea Advances Newsletter, May, 2013
16
Adeus E Até Breve (cont.)
By Matthew Smith
America, and even questions relating to culture.
ADV: What are the biggest differences that you‟ve noticed
between the office here and yours
back in Brazil?
Alex: Ah, actually, finance
departments tend to be quite
similar, just the location is on the
other side of the world! [laughing]
There are some differences in the
behavioral and culture, because
the Chinese are different in some
aspects from Brazilians, however
the basic professional
characteristics in these two
countries are similar.
ADV: How do you think
your experiences here will help
you once you start working back in Canoas again?
Alex: Surely the biggest benefit will be in communication.
I now know the people here in China, and of course I also
know many in Brazil, so this will help with building the
relationships between both locations, and hopefully this will
help to increase speed and understanding when information
exchange is needed by either side.
ADV: Are there
going to be any
new exchange
personnel from
the ABC JV to
replace you here
once you return
home?
Alex: I haven‟t
heard anything
about that yet,
but I think it's a
good idea to
continue this
kind of exchange
program, because
it facilitates the building of communication between the
company‟s different employees, in addition to training its
professionals with useful international experience.
ADV: Finally, what do you think you will miss the most
about your life here after you‟ve left?
Alex: I'll leave behind the great friends I've made
throughout this past year, which will be difficult. I was very well
received by my colleagues at Midea China, and I look forward to
the opportunity to return this treatment when I receive any
visitors back in Brazil. I‟ll be waiting for you guys!
PEOPLE
www.midea.com Midea Advances Newsletter, May, 2013
17
Midea Donates 10 Million RMB to Ya’an
Quake Relief, Employee Donations to Follow By Blinda Li
O n the night of April 20th, shortly after news of the
Ya‟an City earthquake reached the world, Midea Group made an
immediate decision: it would donate 10 million RMB to the
relief efforts,
in addition to
advocating
support from
society to also
help with the
disaster, and
support one
another to get
through
difficulties
together.
Midea stated
its intention
to stay
focused on
the disaster
and make
additional
contributions
to the disaster
-stricken areas
with practical action. Meanwhile, many employees of Midea
expressed much sympathy through their Weibo accounts for
those suffering from the devastation.
Records show that 15 employees from Midea originate
from the quake-stricken areas, and the company announced
that any of those employees and their immediate family
members who have suffered from casualty or collapse of their
homes would
receive paid
leave and
travel
allowance to
return home.
Those
employees
suffering
from
extraordinary
loss will also
be eligible to
apply for
relief from
the Midea
Support
Fund.
By all
accounts,
Midea was
one of the
most immediate and substantial donor s amongst household
appliance manufacturers in China. Additionally, the functional
departments at Midea headquarters have been collecting
individual donations since April 22nd.
A lineup of employees depositing donations in the collection box for Ya‟an Earthquake Relief.
COMMUNITY
www.midea.com Midea Advances Newsletter, May, 2013
18
Midea Superstar China…what could Midea Superstar China…what could Midea Superstar China…what could
this be about…?this be about…?this be about…?
SNAPSHOT