vol. 4, #1, january february 2014, no....
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Advances Newsletter, January– February, 2014
1
Vol. 4, #1, January– February 2014, No. 35
“1 kWh per Night,” Midea’s Star Innovation
We interviewed Li Jinbo, the star of the R & D Department, who is responsible
for “1 kWh per Night” technology.
Advances Newsletter, January– February, 2014
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:
Mandy Wang
Kevin McGeary
Regular Correspondents:
Alex Cheng
Matthew Smith
Himani Joshi
Amber Liu
Crystal Lun
Blinda Li
Tony Miao
Peck Zhao
Sandra Sun
James Yu
Daniel Zhang
Sue Ou
NEWSLINE
MCJV Microwave Oven
Production Line Launched PAGE 3
Laundry Division Holds the
2014 Business Management
Conference PAGE 6
Midea All DC Inverter VRF
MDVX Series Off to a Flier PAGE 5
www.midea.com
The Future of “Made in Chi-
na”: A Seminar with Filipino
Partners PAGE 11
PAGE 17
FEATURE
SNAPSHOT
PEOPLE
The star behind Midea’s
innovation PAGE 13-16
Midea CAC Wins First
National “Engineering
Meritorious Suppliers’ Luban
Prize” PAGE 7
Four Midea Water Heater
Prototypes Win Prestigious iF
Design Awards PAGE 9
Midea Holds 2nd Air-
Conditioning Seminar in Cy-
prus PAGE 8
Midea AC Wins iF Product
Design Award 2014 PAGE 10
Little Swan Makes a Splash
in the Washing Machine In-
dustry PAGE 12 Beverly Front-Loading
Washing Machine Wins iF
Design Award PAGE 9
V5X Series Product Launch
Thailand PAGE 4
Advances Newsletter, January– February, 2014
3
MCJV Microwave Oven
Production Line Launched By James Yu
NEWSLINE
O n January 8, 2014, staff from the Midea
Kitchen Appliances Division visited the Midea Carrier
Joint Venture (MCJV) plant in Manaus, Brazil. They
were there to celebrate the opening of MCJV factory’s
microwave oven production line as well as the formal
launch of relevant products to the consumer.
Brazil is both one of the biggest consumer markets
and biggest growth markets in Latin America. It is there-
fore one of the key countries in which Midea hopes to
develop its brand. Since its entry into the Brazilian mar-
ket in 2007, Midea has achieved encouraging results in
residential air conditioning sales. The company ranks
first on the brand market share list ahead of other well
known international household appliance brands. Moreo-
ver, since the establishment of the joint venture with
Carrier, Midea has put a lot of effort into expanding its prod-
uct line beyond air conditioners and will continue to do so.
However, due to higher foreign trade barriers and higher
tariffs on imported goods imposed by the Brazilian govern-
ment, the company is facing challenges. In order to clear for-
midable regulatory hurdles and continue its development in the
Brazilian market, MCJV has decided to invest in a production
line of microwave ovens on the basis of the air conditioning
plant in 2012. After nearly a year of preparation and construc-
tion, the production line has finally been completed and put
into use.
The first phase of the microwave oven production line is
designed to carry production capacity of 600,000 units, and
500,000 units are expected to be put into production for the
whole year. Phase two, which is to be completed in 2015, is
designed to carry a capacity of one million units. This produc-
tion line makes Midea brand microwave ovens for the local
market.
Zhu Fengtao, General Manager of Midea Kitchen Appli-
ances Division, visited the Joint Venture and the microwave
production line in Manaus to get to know more
about the line’s development. Mr. Zhu also had a
long discussion with the JV sales and marketing
team in regard to the following three years’ pro-
motional strategies in the local market for Midea
brand kitchen appliances. He also discussed the
further development of a project known as Full
Kitchen, which is aimed at enhancing Midea’s
brand image and facilitating product sales. Zhu
expressed full confidence in the cooperation be-
tween Midea International Division and Kitchen
Appliances Division, and MCJV.
Advances Newsletter, January– February, 2014
4
V5X Series Product Launch 2014, Thailand
By Anggie Cai
M idea Central Air Conditioner Division held the
seminar “V5X Series New Product Launch 2014” in Chatrium
Hotel Riverside, Bangkok on Jan. 23. Nearly 100 people at-
tended the seminar and it was a huge success despite the ongo-
ing political turmoil in Thailand.
The seminar began with speeches followed
by a display of new products. Products on display
included the V4 Plus Series, Mini VRF& branch
box, VRF indoor units, IMM control system and
other controllers and branches. After the introduc-
tion and agenda briefing, Dennis Lee, director of
Asia Pacific & Africa of Midea CAC Overseas
Sales Company, delivered a welcome speech to all
attendees on behalf of Midea. During the seminar,
Midea CAC signed the Exclusive Distributor
Agreement for the Thailand market.
The unveiling of the new product V5X was
one of the highlights, creating a genuine buzz at
the seminar. Its appearance alone is noteworthy,
but the V5X also has a number of useful features.
Among these is its capacity range of 8HP to 88HP
and its industry-highest efficiency. Above all, it
utilizes All DC inverter technology, twelve
low-noise techniques and five oil-control
technologies to ensure high reliability.
After the seminar a banquet was
held accompanied by activities in which
attendees could get to know each other and
enjoy a brief cultural experience.
It was the first seminar of its kind in
Thailand and, as a testament to its success,
purchase orders were made there and then.
Significant moves were made during
the seminar. These included the appoint-
ment of the Exclusive Distributor in Thai-
land and the establishment of the spare part
center covering Southeast Asia. This is
Midea CAC’s first attempt to open a global
after-sales center. This will significantly
improve the delivery of spare parts and, by
extension, improve customer satisfaction. The spare part center
is the new attempt for Midea CAC in after-sales mode, and is
also an innovative measure. The spare part center covering oth-
er regions such as Europe, the United States, and the Middle
East. will be established to expand the coverage to fulfill cus-
tomers’ needs for promptly delivered spare parts.
NEWSLINE
Advances Newsletter, January– February, 2014
5
Midea All DC Inverter VRF MDVX Series
Off to a Flier By Anggie Cai
S ince it was first showcased at the 2013 Air
Conditioning, Heating and Refrigerating (AHR)
Show and a subsequent national product tour, the
Midea All DC Inverter VRF MDVX Series has been
causing a stir. In October 2013, the eagerly anticipat-
ed All DC inverter VRF MDVX series was put into
mass production in the domestic market and didn’t
take long to acquire a significant market share.
Guangzhou, close to the company’s headquarters,
was the first city to take to the trend with an offer of
300 sets of MDVX for the new campus of Guang-
zhou Medical College.
Situated in the city’s Panyu Area, the new cam-
pus of Guangzhou Medical College covers an area of
1500 acres and has received investment of 2.2 billion
RMB. The secured project will cover the teaching
building, laboratory building, administrative building,
library, students and staff activities center, assembly hall, and
dormitories. Apart from providing 300 sets of All DC inverter
VRF MDVX, the installation also includes Midea screw chiller
system, split system and central AC hot water system. The total
bidding value exceeds 25 million RMB.
For Midea CAC, the ALL DC inverter VRF MDVX series
is the flagship product of the year. This is due to three particu-
larly good features. First is the high IPLV(C) reaching 7.15; it
boasts the highest-efficiency Variable Refrigerant Flow (VRF)
nationwide. Furthermore, the maximum combination capacity is
88 HP, the highest in the industry. Last but not least, perfectly
blended with a diamond cutting technique and thread design,
the aesthetics figure has caught the eye of a
wide variety of customers.
Since the domestic launch of
MDVX, there has been a positive reaction
throughout the nation. Sichuan Province has
recorded a Public Security Bureau project
with total cooling capacity of 550HP. Hunan
and Hangzhou provinces have also reported
successful projects. The VRF MDVX has
already become the “Star” product for a
large percentage of the customer base. The
booming market for the VRF MDVX series
is expected to boost the new-round of
growth for Midea Central air conditioners.
NEWSLINE
Advances Newsletter, January– February, 2014
6
Laundry Division Holds the 2014 Business
Management Conference By Blinda Li
M idea’s Laundry Division held its
2014 Business Management Conference from
January 2 to 4 in a bid to further deepen strategic
transformation, concentrate efforts on promot-
ing product competitiveness and innovation
competency and improve its overall execution. A
total of 170 representatives consisting of middle
and senior managers and outstanding employees
of the division were in attendance. The confer-
ence included brainstorming workshops, training
on transformation and execution, promotion and
implementation of the Division’s operating strat-
egies in 2014. There was also a panel discussion
during which product innovation and marketing was discussed.
On the first day of the meeting, senior managers conduct-
ed in-depth discussions on topics such as the problems that had
restricted the deeper transformation of the Division and sug-
gested solutions.
On January 3, all participants received training in
“transformation and execution”. Mr. Xu Zheng, Vice President
of GE China, talked about the classic example of IBM with par-
ticipants. He elaborated on the crises that the IT giant had faced
down the years, the nature of and the solutions to such crises,
pictured the modes and processes of enterprise transformation,
and analyzed and summed up how the company overcame its
problems. During the lecture, the participants held heated group
discussions on transformation and execution, presented and
exchanged viewpoints, and contributed valuable opinions on the
future development of the Division. After the
training session, the Chief Officer of the Opera-
tion and Human Resources Department intro-
duced the development plans of the Division in
the new year so that the management staff at the
lecture could better understand their targets and
responsibilities. Then all participants were divid-
ed into different groups to attend the panel dis-
cussions on 8 topics such as domestic sales com-
petency improvement and brainstorm solutions.
On January 4, the 13 department officers of the
Division each gave 15-minute unscripted speech-
es about the results made in the panel discussions
the previous night, focusing on the summariza-
tion of work, raising issues and proposing solu-
tions. To ensure the implementation of responsi-
bilities and the fulfillment of tasks, the General
Manager of the Division entered into the 2014
operating responsibility contracts with the department officers
on site. In addition, the Conference also witnessed the awarding
of the top 10 employees and top 5 outstanding teams in 2013.
This was aimed at inspiring and encouraging all participants.
NEWSLINE
Advances Newsletter, January– February, 2014
7
Midea CAC Wins First National “Engineering
Meritorious Suppliers’ Luban Prize” By Anggie Cai
T he Commercial Air Conditioner Technology and
Industry Application Seminar was recently held in Shunde. More
than 400 people attended the event, including leaders from
Heating Ventilation and Air-conditioning (HVAC) industry as-
sociations, industry experts, designers, distributors,
and academics. All witnessed the moment when
Midea CAC was presented the highest award in the
construction industry- the “Engineering Meritori-
ous Suppliers’ Luban Prize”
"China Constructional Engineering Luban
Prize" has long been recognized as the most pres-
tigious award in the Chinese construction industry.
This award was established in 1987 and the ap-
praisal and selection has since been organized and
conducted by the China Construction Industry
Association (CCIA). The Luban Prize is now rec-
ognized across the industry as a guaranteed mark
of quality.
In a bid to spread the Luban Prize spirit of
“quality first” and share advanced industry
knowledge, CCIA and The Asia Construction Sci-
ence and Technology Information Research Institute jointly set
up the HVAC application promotion center, and carried out the
appraisal.
Midea CAC has consistently been at the forefront of the
HVAC industry in technology, quality and service. Last year saw
Midea CAC launch two particularly important products - one
was the dual stage full falling film centrifugal chiller with COP 7
under AHRI condition, the other was the All DC inverter VRF
MDVX series. These products represent a significant step for
Midea CAC on the road of product development and innova-
tion.
In terms of customer service, Midea CAC has set up a one
-stop service system comprised of “prior-service”, ”ongoing-
service” and “after-service”. The service system is strong enough
to cover the entire nation with over 3000 Midea authorized serv-
ers. In the process of project scheming and design, Midea CAC
has assigned engineers to assist in the project proposal analysis
to ensure that the work goes smoothly. Before construction
begins, a Midea CAC technician coaches the installation compa-
ny to optimize the construction drawings through on-site in-
spection. During construction, a Midea CAC technician is on
site, offering technical support and instruction.
Moreover, a monitoring engineer oversees the whole pro-
cess to make sure everything is in order. After installation, the
technician helps the installer complete the commissioning and
acceptance inspection. The one-stop service system has received
highly praise nationwide and helped Midea CAC secure thou-
sands of good contracts.
With its adherence to the philosophy of “customer satis-
faction above all”, Midea CAC has held the Title of Commercial
AC Champion in the domestic market for years. As a model of
service in the HAVC industry, the quality assurance and sound
service system is one of the driving forces behind Midea CAC’s
globalization.
The speed reduction clutch is an important component of
any household washing machine, but lacks standardized specifi-
cations. After much study and analysis, Midea’s Laundry Divi-
sion developed its “Technical Specifications for Speed Reduc-
tion Clutches of Household Washing Machines”. This standard
details the design for speed reduction clutches for impeller-type
washing machines specified in “Household and Similar Electri-
cal Washing Machines” (GB/T4288), thereby filling the previ-
ous standards gap for this washing machine component.
This specification benefits appliance and component man-
ufacturers alike, by facilitating greater cooperation between
them, and allowing for more efficient and cost-effective mainte-
nance.
NEWSLINE
Advances Newsletter, January– February, 2014
8
Midea Holds 2nd Air Conditioning
Seminar in Cyprus By Alexander Zheng
T he 2nd Midea A/C Seminar was
held in Hilton Nicosia in Cyprus on Dec.
11, 2013 to showcase Midea’s new air-
conditioning products for 2014. The event
was jointly held by CED Electric, the
Midea Brand Distributor and Midea Resi-
dential A/C (RAC) and Commercial A/C
(CAC) Division.
Despite the inauspicious economic
situation in Cyprus, the event was a suc-
cess. Over 150 people attended including
distributors and local media.
Mr. Demos Xiourouppas, the Direc-
tor of CED Electric Distributor, which has
been co-operating with Midea Since 1997,
gave the opening speech, asserting his con-
fidence in the continued success of Midea
products and CED’s service.
“The 45-year growth pattern of Midea and CED’s tireless
efforts to become more professional will go along with your
experience and training will help cement Midea’s position in
the mind of the Cypriot consumer, ” Xiourouppas told the
crowd.
The new products on display in-
cluded the largest commercial air-
conditioning DC inverter on the product
line VRV/VRF –ATW and the split-
home air-conditioner with European
Energy Level - Premier and Fairwind
Series.
These were presented by Midea
RAC employees Kevin Lee and Alexan-
der Zheng and CAC colleague Melinda
Mel. The products received praise for
both their appearance and the features
that they have. However, some customers
commented that improvements can still
be made in the products’ ease of installa-
tion.
NEWSLINE
Advances Newsletter, January– February, 2014
9
Four Midea Water Heater Prototypes Win
Prestigious iF Design Awards By Matthew Smith
S ince 1954, the world-renowned International Forum
Design GmbH (iF), based in Hanover, Germany, has held an
annual design competition which honors the world’s best indus-
trial design. In its first entry of water heater designs to the An-
nual iF Design Competition, Midea came away with four sepa-
rate awards for its sleek and sophisticated concept designs. The
competition included Samsung, Panasonic, Philips and Electro-
lux.
Midea’s four designs, the electrical 50JL, and the gas-
powered HP4S, HZ2, and LE5Q, represent one more step for-
ward in the company’s quest to become recognized around the
world as a leading designer of household appliances.
The 50JL electrical storage heater boasts a unique modular
that allows a household to scale the system up and down for
cases in which the number of people living there increases or
decreases. Different tank sizes can be adapted to the base unit to
accommodate changes in a household’s needs.
The health-conscious consumer will feel a special appreci-
ation for the HP4S gas-powered instant heater, with its simpli-
fied, one-touch cleaning program, which flushes out and cleans
the entire system, drastically reducing any chance of internal
bacterial growth.
The LE5Q gas-powered instant heater presents an attrac-
tive main interface, which will be familiar to smartphone users.
Much like these phones, the interface of the LE5Q is bright and
interactive through an entirely touch-sensitive display.
The final winning design is another gas-powered instant
heater, but the HZ2 distinguishes itself by embracing the emerg-
ing “Internet of Things” trend, which typically includes
smartphone-controllable household appliances. This concept
design would allow a user to control temperature and receive
status updates using a phone, tablet, or other computer, from
any location.
NEWSLINE
Beverly Front-loading Washing Machine
Wins iF Product Design Award By Blinda Li
T he TD85-1406VID front-
loading washer, a product in the
Laundry Division’s Beverly Series,
beat thousands of competitors to the
2014 iF product design award. This
is a milestone for the laundry divi-
sion.
The winner will be permitted
to use the iF label, go into the iF
yearbook and have the APP promo-
tion opportunity, which will wield
significant and favorable influence
upon the buildup of the Midea
brand and the promotion of Midea
products internationally.
The TD85-1406VID touchscreen washing machine is a
product under the Little Swan Brand.
During the design of the product, the
developers paid particular consideration
to the consumer. Concepts it pioneered
include the automatic adding of deter-
gent. Its color touchscreen even brings a
little fun to the process of doing laundry.
Even the frailest and most immobile
users can open the door simply by touch-
ing a button. The inner tube design fea-
turing lifting ribs and water cube
(rubbing and mixing) delivers optimal
washing performance.
Advances Newsletter, January– February, 2014
10
Midea AC Wins iF Product
Design Award 2014 By Crystal Lun
T his year has started off with yet
more great news for Midea as the Midea AC
design model “ZL split” won the iF Product
design award 2014 for its innovative design.
iF design award was founded in Germany
in 1954. It is a highly competitive international
award. The appraisal takes into account a varie-
ty of perspectives including design quality, per-
formance, convenience, innovation and brand-
ing. Midea’s winning product was in competi-
tion with 4600 works from 55 countries.
The ZL split has a modern minimalistic
design with fine lines and a smooth outer body.
It is designed to be similar to its predecessors
yet even simpler. Its inverter control system
and intelligent technology make it even more
easy to use for customers.
The innovations and quality designs are the work of
Midea’s industrial design center. The award is a testament to the
good direction the center is going in and is a huge boost at the
start of 2014. Let’s demand Midea push itself and go from
strength to strength in the coming year.
Midea AC Certified with PIQ Mark
At the end of last year, the 2013 consumer electronics &
information technology index evaluation news conference and
the 15th national consumer electronics technology annual meet-
ing was held in Beijing. Two Midea air conditioners domestic
models were certified with PIQ
(Product Intelligence Quotient) mark,
one is the standing YA100 and the other
is the split range QA100. A product’s
PIQ comprehensively reflects its intel-
lectuality.
With the progress of science and
technology, especially with the develop-
ment of network information and cloud
technology, intelligent household appli-
ances products have become ubiquitous.
However, there are plenty of good and
bad examples of these products and
customers need help being able to dis-
cern. This PIQ mark will help students
figure out what quality really is.
NEWSLINE
Advances Newsletter, January– February, 2014
11
The future of “Made in China”: A Seminar
with Filipino Partners By Shine Li
C apping a process that began a little over a year ago,
Midea Group finally debuted on the Shenzhen Stock Exchange
(SZSE) on September 18th, becoming a fully public company.
Prior to this, Midea Group was privately-held, structured
with its most significant companies as subsidiaries directly un-
derneath it, the most notable of those being the SZSE-listed GD
Midea, which was responsible for the Group’s core business of
designing and manufacturing air conditioners, as well as refrige
“If you consider that 30 million Midea microwave ovens were
sold in one year, then you
will find that on average,
8,291 of them a day were
sold on the market. If you
consider that the working
day lasts 8 hours, you can
calculate that within this
time, an average of around 3
Midea microwave ovens were
sold every second. This gives
a good sense of the kind of
scale we’re talking about.” –
Rafael Hechanova Jr., Vice
President, Concepcion In-
dustrial Corp.
The above quote was
expressed to a group of over
200 dealers on January 21st at a seminar attended by over 200
dealers visiting Midea headquarters from the Philippines. Con-
cepcion and Midea have formed a new joint venture named
Concepcion Midea Inc. Philippines (CMIP) to help expand
Midea’s presence in the Southeast Asian country.
The seminar was held to introduce the joint venture’s pri-
mary brand to CMIP’s local channel partners, by a series of
presentations given by Midea executives and tours of Midea’s
head office, production facilities and research center.
Opening the seminar was Justin Liu of Midea’s Interna-
tional Division (MID), in charge of India and ASEAN markets,
who offered a warm welcome to the guests. Arthur Huang, the
Marketing Director of MID, gave the guests an introduction to
Midea’s current situation, and spoke of future company strategy.
Also on hand to speak were Scott Fu, General Manager of
International Sales at Laundry Division, Pandy Pang, Head of
International Marketing at Kitchen Appliances Division, and
Simon Zhu, General Manager of International Sales at Small
Domestic Appliances Division.
Following the speeches, the guests were taken on a tour of
Midea’s Air Conditioning Research Institute and the microwave
oven factory. Many of them were visiting the company for the
first time and the feeling seemed to be unanimous: “The scale
on which Midea works and the technology it uses has far sur-
passed my expectations,” said one visitor.
CMIP officially began operating in December, and as part
of the bid to hurry its
entry into the Philippines
market, CIC was invited
to attend a series of ac-
tivities in Shunde and
Guangzhou, with the
purpose of this particular
seminar to outline plans
and strategies and culti-
vate collaboration be-
tween the companies.
The Philippines is coun-
try of 98 million consum-
ers, and a GDP that has
grown an average of 7%
over the past 10 years, so
it is very much one of
southeast Asia’s emerging economies. The past 10 years have
seen growth in the housing market and an increase in the in-
comes of the young. These factors have caused a surge in de-
mand for household appliances.
The Concepcion Midea joint venture was formed to seize
this opportunity by building an enduring brand in the Philip-
pines using the cutting-edge technology combined with its
knowledge of and familiarity with the market.
Jacqueline Ong, the CEO of Abenson, the largest home
appliances chain in the Philippines, had some words of encour-
agement for the joint venture: “Several decades ago, ‘Made in
Japan’ and ‘Made in Korea’ carried connotations of being low in
quality. Now those countries boast a large number of top
brands. China is on the same path in its exports to the Philip-
pines and the rest of the world.”
NEWSLINE
Advances Newsletter, January– February, 2014
12
Little Swan Makes a Splash in the Washing
Machine Industry By Blinda Li
L ast year was a particularly significant one for the
washing machine industry. The market saw rapidly increased
competition and diversified development trends. In this context,
quality alone is not enough to stay ahead of the pack. Innovation
and variety are needed to meet ever changing consumer demand.
To explore the way ahead, senior industry executives organized
the 2013 Summit Conference for the China Washing Machine
Industry themed “Change by Energy Efficiency, Way for Intelli-
gent Cleaning” in Beijing once in the middle of 2013 and again
at the end of the year.
According to data acquired through market surveys, the
sales volume of front-loading machines increased sharply as of
January 2013. Sources also said that the market share of front-
loading machines exceeded that of top-loading machines.
Against a backdrop in which foreign brands are trying to con-
quer the Chinese market, a change is silently taking place in Chi-
na’s washing machine industry, and the key trail blazer is Little
Swan, one of the leading domestic washing machine brands. Just
as these changes were taking place, Little Swan stepped up its
new product R & D by virtue of its inherent capacity in inde-
pendent innovation. Its “Pure Delight (Chunzhen) 2.0” made an
instant splash in the market.
In terms of performance, price, appearance, and energy
efficiency, the Pure Delight (Chunzhen) 2.0 Collection has
proved to be the right product at the right time. Its core func-
tion ATC is known in the industry as a “New Cleaning Hori-
zon”, as it blows traditional front-loading machines out of the
water.. Pure Delight (Chunzhen) 2.0 Collection’s intelligent
washing program can automatically sense the weight of a bundle
of clothes and regulate the washing time accordingly.
Not only does Pure Delight 2.0 (Chunzhen)
Collection manage the clothes cleaning intelligently, but
also enables consumers to purchase products of diversi-
fied functions and options (like frequency conversion or
constant frequency), in order to offer consumers deep-
cleaning, highly clean, energy-saving, environmentally-
friendly, low-carbon, and high-end products. It is worth
pointing out that at this Summit Conference, Little
Swan won the “Trustworthy Brand Prize” of the wash-
ing machine industry.
According to insiders, changes in the washing
machine market will continue. Competition is becoming
increasingly fierce. Only through investment and inno-
vations in R & D can the brand exert its advantages in
the market and in turn win over consumers.
FEATURE
Advances Newsletter, January– February, 2014
13
The Star Behind Midea’s Innovation
By Mandy Wang & Kevin Mcgeary
Li Jinbo
Li Jinbo, the manager of Midea’s research &
development department
In air-conditioner manufacturing, Midea is always trying
to make the next step in efficiency and energy
conservation, especially in the ultra-competitive age of
inverter air conditioners. These attempts have led Midea
to break a number of records. This is made possible by the
company’s research and development (R & D)
department. Advances approached this department for an
interview to give its members their richly-deserved
moment in the spotlight.
The backbone of this department is Li Jinbo. Li
has been working in the department for 13 years and in
2012 received national level recognition as a “model
worker.” In 2011, Midea’s Full DC Inverter air conditioner
– the production of which he presided over – won a
national efficiency award.
Li Jinbo graduated in July 2000 from Huazhong
University of Science and Technology where he majored in
refrigeration technology and cryogenic equipment. He also
gained a qualification in Information Technology while he
was there. He entered the R & D team of Midea’s air
conditioner department shortly after graduating and has
been there ever since. This has led to the applications of 28
patents for inventions and 20 utility model patents.
Moreover, Li’s overall contribution in energy saving,
emissions reduction and lowering production costs have
been immeasurable.
ADV: Statistics released by China Market Monitor show that “1
kWh per night” models ranks in the “hot sale” list in China’s
retail market throughout first half year of 2013. It was also
unquestionably the star of the air conditioning industry when it
came to energy conservation. It won the “Appliance Prize” at
the China Household Appliances Expo and the “Product
Creation Prize” at the International Consumer Electronics
PEOPLE
Advances Newsletter, January– February, 2014
14
The Star Behind Midea’s Innovation (cont.)
PEOPLE
Show in Berlin. Moreover, Midea’s 35KB product and 35LB
product saw a 14.44% increase and 4.19% increase in sales
respectively. When you made these achievements, did the
department and team enjoy a celebration? What about you and
your family? Or did you just keep working as normal?
Li Jinbo: Our team had a modest celebration. After celebrating,
we all returned to our stations to do our jobs. Everybody did
the same.
ADV: Midea has reported that in the “technology month” of
October 2013, you guys won another prize. Can you tell us
about that?
Li Jinbo: At the 18th annual science and technology meeting
on Oct. 18, we were briefed on future strategies and priorities in
science and technology. We were also lauded for our
“outstanding” work in technological innovation in 2012-2013.
Our team was given a 5 million RMB award for the 1 kWh per
night technology.
ADV: Exactly how long was the project? Can you give us a
brief introduction to the whole process?
Li Jinbo: The project to bring the dream of 1kWh per night
technology to life officially began on Jan. 21, 2011. The
research and development work was completed on Aug. 20,
2012. We went through 15 changes in the process and the
whole thing took 572 days. After that it started to enter people’s
households, but the whole thing only really sunk in when the
China Light Industry Federation confirmed that the technology
had been appraised as an international leader.
ADV: To make this happen, Midea carefully selected its team.
Can you introduce the team, which departments and fields were
the members selected from?
Li Jinbo: Midea selected the members with the strongest
credentials. Their backgrounds included refrigeration
technology, control systems, ventilation systems and motor
By Mandy Wang & Kevin Mcgeary
Team responsible for “1kWh per Night” in front of the Research Center
Advances Newsletter, January– February, 2014
15
The Star Behind Midea’s Innovation (cont.)
PEOPLE
technology. There were 265 engineers, accounting for about a
third of the team. The cost of the R & D amounted to 80
million RMB.
ADV: What technological problems did you encounter? How
did you overcome them?
Li Jinbo: There really were a
lot of obstacles along the way.
The team had to just pull
together to get through them.
The hardest thing was
achieving the goal of 1 kWh
while maintaining the quality
of the cooling system. To do
this we had to conduct
numerous experiments and
the prototypes were tested
under various conditions
We used four factories and
100 different prototypes over
a period of nearly 2 months,
with different members of the
teams comparing their
findings. After we found that
there had been no machine
problems after 2 months, the
product could be released
onto the market in Sept. 2012.
There were a total of 8
products released onto the
market.
ADV: Since September 2012,
Midea has been distributing products that boast the 1kWh per
night technology. Customers have been known to go into
stores and specifically request these products. How does this
success make you feel? How do you plan to build on it?
Li Jinbo: My teammates are awesome. Everybody has already
given so much to this project. The 5 million RMB award has
been divided across the team.
The need to innovate will never stop. Even more and even
greater products will enter the market, making life even better
for the consumer.
ADV: I’ve seen some articles about you. One said you and your
wife were trying to find time to take your daughter to Disney
World in Hong Kong. At
that time she had just started
Kindergarten, now she is
about to start primary
school. Now that the project
has been successfully
completed, have you fulfilled
your promise to your
daughter? Do you all carry
on as before?
Li Jinbo: The R & D work
is still very demanding. Much
to my shame, I still haven’t
fulfilled the promise. I am
waiting for a more relaxing
time to take her.
ADV: When working in R &
D, product innovation is
very important. How do you
stay creative?
Li Jinbo: Firstly, you have to
maintain a genuine interest
in technology; Secondly, you
have to be studious and keep
the customer in mind. When
they are using the product,
what problems, discomforts and inconveniences will they
encounter? You need to do your own research on customer
experiences and be sensitive to their needs.
ADV: As a technology professional, what qualities and abilities
do you think a person needs for the job?
By Mandy Wang & Kevin Mcgeary
Advances Newsletter, January– February, 2014
16
The Star Behind Midea’s Innovation (cont.)
PEOPLE
Li Jinbo: Number one, love what you do. Number two, follow
the latest developments. For example, I work in refrigeration
systems, but I keep on top of the news from other fields such
as IT. You don’t have to be highly proficient in these fields, but
you need to understand in outline what is going on in them.
You can’t allow yourself to stagnate. That is why I don’t
consider myself to be solely involved with refrigeration
systems.
ADV: The R & D department is divided between the domestic
one and the international one. How do the two departments
normally work? Do you cooperate? 1 kWh per night products
were first marketed in the domestic market, then only later in
overseas markets. How did the sharing process for this product
work?
Li Jinbo: The domestic and international R & D departments
exist independently of each other, but we sometimes cooperate.
We have one laboratory where a variety of experiments are
always taking place and different experiments – as well as the
two different departments – are generally kept apart.
ADV: What is your opinion on the future of your industry and
the products that will be released?
Li Jinbo: Future products will need to become even more
energy efficient, even more environmentally friendly, and even
more intelligent, increasing the comfort and convenience to the
consumer.
Product Introduction
In the December issue of ADVANCES, we told you
that the Midea Residential Air Conditioner “1 kWh per Night”
Won Marketing Award 2013. When the Midea “1 kWh per
night” air conditioner series firstly came out to market, doubts
were raised as to whether the “1kWh per night” technology
was really feasible. To ease concerns from customers, Midea
carried out a customer experience event in March. 500
consumers countrywide volunteered to participate in this event
to test and record the actual power consumption of the series
to be as low as 1 kWh per night. In this opening issue of
ADVANCES of 2014, we will dig into more details to
introduce the team behind this top sale product, but before
that, let us show you more about this star product.
Midea’s “1 kWh per Night” technology represents the
overcoming of some of the biggest puzzles in the tech industry.
It is an international leader in both speed and energy efficiency.
Statistics released by China Market Monitor show that models
with this feature topped in the “hot sale” list in China’s retail
market throughout first half year of 2013. During the “Golden
week” holiday period of 2013, the total retail volume of Midea
air conditioners was found to have increased on the previous
year by 80%, with all Midea air conditioner products seeing a
growth in sales volume.
Midea has been researching inverter air-conditioning
technology for over a decade. As far back as 1999, Midea
released the full DC inverter air conditioner - SY191B. Midea
continues to be committed to this the leading and most energy-
efficient air-conditioning technology in the domestic market
and particularly in developed countries.
In technological terms, Midea has gained certain
advantages in the field of inverter air conditioning technology
over the past decade and a half. More important than its
mastery of the technology is its complete industrial chain. In
market terms, Midea has been leading the domestic market for a
long time and its advantages in this area include the strength of
its market research.
By Mandy Wang & Kevin Mcgeary
Advances Newsletter, January– February, 2014
17
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