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Tag: Midea

  • China’s Midea Doubles AC Production to Quench Heatwave-Driven Demand in Europe

    China’s Midea Doubles AC Production to Quench Heatwave-Driven Demand in Europe

    Midea, the Chinese home appliance heavyweight, recently revealed that it accelerated its production operations to deliver 20,000 air conditioning units to France in a span of seven days. This was in response to the escalating demand spurred by the severe heatwave that is engulfing Europe.

    In 2020, Midea led China’s air conditioning sector in terms of market share. It was able to double its production capacity to 6,000 portable units each day by initiating a fresh production line on July 7. As a result, the company managed to finish manufacturing all 20,000 units in just three and a half days. Midea prioritized the French order by designating additional labor and production capacity, even while its factories were operating at full tilt to satisfy local demand.

    Increased Demand for Chinese Home Appliances in Europe

    The ongoing heatwave in Europe has sparked a significant surge in demand for Chinese-made home appliances. Midea Group reported that sales of a portable split air conditioner, specifically designed for the European market, have exceeded 200,000 units this year, marking a twofold increase from the previous year. Furthermore, this particular model has sold out in Germany, France, the Netherlands, and the United Kingdom.

    Official data disclosed that more than 10,000 extra deaths were reported in European countries during the extraordinary heatwave that swarmed the western part of the continent in late June. The majority of these, over 9,000, were among individuals aged 65 and above.

    Surge in Online Sales of Air Conditioners and Fans

    Alibaba, the e-commerce juggernaut, has reported three-figure growth in sales of air conditioners and fans on its overseas platforms. On AliExpress, Alibaba’s international retail platform, warehouse inventory of a 2.35-kilowatt Midea air conditioner, which was released in Germany in June, was entirely sold out by Thursday.

    The trend was significantly evident in southern Europe as well. In Spain, fan sales skyrocketed by 94% between June 17 and 23 compared to the same period in May. Meanwhile, Italy witnessed a 100% month-on-month surge in sales of cooling appliances and sun-protection apparel in June.

    The rush by European consumers was also mirrored on Alibaba.com, the company’s business-to-business platform, displaying urgent procurement by local merchants. In June, air conditioner orders in Spain almost doubled from a year earlier. Simultaneously, wholesale fan orders saw a staggering increase of 378% in Sweden and 114% in Belgium.

    Questions & Answers

    What has been Midea’s response to the increased demand for air conditioners in Europe?
    Midea has ramped up production and shipped 20,000 air conditioners to France in just seven days to meet the increased demand due to the intense heatwave.

    What is the sales trend of the portable split air conditioner designed for Europe?
    Sales of the portable split air conditioner, specifically designed for the European market, have exceeded 200,000 units this year, marking a twofold increase from the previous year.

    How has the demand for cooling appliances and sun-protection apparel changed in Italy?
    In Italy, there has been a 100% month-on-month increase in sales of cooling appliances and sun-protection apparel in June due to the heatwave.

  • Chinese white goods company Midea announces Rs 1,350 crore new plant in India

    Chinese white goods company Midea announces Rs 1,350 crore new plant in India

    Chinese consumer durables firm Midea aims to manufacture its products locally in the country by next year and is setting up a new facility in Pune at an investment of Rs 1,350 crore. “India is a strategic growth market and we expect our investments in this market to yield good growth. Considering the potential of the market we have committed over Rs 1,350 crore investment for a new facility,” Krishan Sachdev, Managing Director of Carrier Midea India and also Midea Group India region, told PTI.

    “We have a manufacturing facility at Bawal in Haryana and we are strengthening our base here with a second plant in Pune. By next year, 100 percent of our products shall be manufactured locally,” he further told PTI.

    According to a report: He further said that the company is evaluating prospects of exports from India.

    The new facility near Pune, with a technology park, will have three manufacturing units for home appliances, HVAC products and compressors and will also include a manufacturing facility for Carrier Midea India, a 60:40 joint venture between Midea and Carrier.

    The complex is likely to begin commercial operations at the beginning of 2020 and the technology park is expected to generate employment opportunities for over 2,000 people, both directly and indirectly.

    Over a period of five years, the facility will produce refrigerators, room ACs, washing machines, water purifiers, water heaters, commercial ACs and compressors.

    The company, which has been growing at a CAGR of 25 per cent over the last five years, said plans for manufacturing other home appliances categories in a phased manner have been completed.

    Sachdev further said the rupee depreciation has had an impact on their business.

    “Even though we manufacture 70-80 per cent locally, production cost has gone up because some of the components are imported,” he said.

    The company is expecting a good festive season this year with 25 per cent growth and by next year it plans to have IoT enabled product solutions for this market.

    South and East are the leading markets for the company, contributing significantly to the business, while non-metros contribute 30-40 per cent of the overall revenue.

    Midea India plans to double its footprint across the country.

    “For the RAC, which is the refrigeration and air conditioning category, and which contributes 80 per cent of revenues), we are targeting to be in around 5,000 retail outlets before next summer apart from 800 plus sales and service dealers.

    We are constantly looking to expand our reach to consumers. We are already present in more than 400 cities and towns of India,” he further said.

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  • Electrolux Form JV to Introduce AEG

    Electrolux Form JV to Introduce AEG

    Home-appliance company Electrolux Group has formed a JV with Chinese smart-technology company Midea Group to introduce the AEG brand to China.

    The brand was officially launched at the Appliance & Electronics World Expo in Shanghai last week.

    Combining Electrolux global brand expertise with Midea’s local market strength, the ambition is to make AEG the most popular premium home-appliance brand in China, drawing on its 130-year heritage of German craftsmanship and innovation.

    “I am confident AEG will be well received here,” says Electrolux CEO Jonas Samuelson.

    The first AEG store in China will open in June, with a flagship store to open in Guangzhou in August to be followed by a second wave of product launches in October.

    Electrolux also markets appliances in China under the Electrolux and Zanussi brands.

  • Rich Data and Midea Smart Home Partner to Improve the Lives of Customers

    Rich Data and Midea Smart Home Partner to Improve the Lives of Customers

    Global leaders in using data science and AI to solve real business problems and make a tangible difference to people, Rich Data Corporation (RDC) is now working with China-based Fortune 500 company Midea Smart Home to support its app development and drive more innovation around consumer data and artificial intelligence. This five-year partnership is set to positively impact the lives of millions through data and smart home technology.

    The promise of the smart home is finally ready to be realised in 2018, with connected devices now capable of monitoring our appliances to anticipate malfunctions, detecting utility usage patterns to provide energy-saving recommendations, and making a range of everyday appliances more fun and convenient to use. Market-leading researchers Ovum have predicted that 2018 will represent an inflection point for smart home technology, with many businesses already primed to explore the retail impact of the smart home.

    RDC is leveraging artificial intelligence (AI) to bolster Midea Smart Home services; in order to enrich the lives of consumers who increasingly demand a tech-enabled, smart home experience to match the digital lives they lead outside the home. Consumers in APAC are some of the most digitally-forward in the world – expecting convenient payment, shopping, and communication services at their fingertips, and increasingly looking for the same conveniences within their home.

    To preempt consumer needs and provide a holistic, tech-enabled lifestyle ecosystem, RDC has deployed an AI-based personalised recommendation engine within Midea Smart Home’s Meiju app. Now, consumers can enjoy compelling, proactive recommendations tailored to their dynamic smart home needs. This superior customer experience is made possible through advanced machine learning algorithms via RDC’s innovative platform.

    “The Midea Smart Home team is changing the conversation with our customers and providing them with products and services that are highly relevant for their daily life via our Meiju app,” stated Mr Qiang Li, General Manager of Midea Smart Home. “RDC’s ability to add intelligence to our deep reserves of consumer data, and their rapid deployment of AI technology enables us to service and engage our customers in a more personalised and meaningful way.”

    Ada Guan, CEO of Rich Data Corporation stated, “Our ultimate vision is to use our data skills to make a difference for people and business; helping enterprises unlock new opportunities while improving everyday life for consumers through data and AI smart home solutions. We are thrilled to be working with a prestigious, global brand like Midea Smart Home. This is the first step in an ongoing journey to leverage AI, consumer and household data in order to set smart living standards for millions of home globally.”

    The RDC Recommendation Engine is currently live for all 3 million Meiju app users within China. The partnership also marks RDC’s entry into the Chinese market, furthering the company’s expansion into the Asia region.

  • Massive O2O plan by Alibaba and Suning

    Massive O2O plan by Alibaba and Suning

    Alibaba and Suning, one of China’s largest electronics retailers, plan to fuel Chinese and international consumer electronics brands sales over the next three years by investing in an online-to-offline (O2O) retail initiative.

    The pair will work together to build out an O2O, or “omni-channel,” network combining the former’s online retailing assets with the latter’s physical stores and distribution facilities to make purchasing of consumer electronics and home appliances easier for consumers, officials for the companies said at a press conference in Beijing.

    The two companies expect to quadruple sales of major electronics brands – including Haier, Samsung, Xiaomi and Lenovo – over the next three years, using big data from both businesses, said Alibaba Group CEO Daniel Zhang.

    “This can be achieved by integrating the online and offline sales channels under a digitalisation process,” Zhang said.

    Alibaba and Suning began working together on omni-channel retailing last year after Alibaba agreed to invest RMB 28.3 billion (US$4.63 billion) for a near 20 per cent stake in the bricks-and-mortar retailer. Suning’s network of 1600 stores and 5500 after-sales service centers are linked with Alibaba’s online platforms, and Suning’s distribution network, which includes 4.55 million sqm of warehouse space, is used to deliver products purchased online by consumers via Alibaba’s Taobao Marketplace and Tmall.com shopping sites.

    Working with Alibaba’s logistics affiliate Cainiao, Suning and Alibaba currently offer 12-hour delivery of appliances and consumer electronics in Beijing, Shanghai, Guangzhou, Hangzhou, Shenzhen and Nanjing.

    Alibaba and Suning said they will also support electronics brands by allowing them to leverage consumer data on Alibaba’s 423 million annual active buyers and Suning’s 250 million members. Big data technology can enable more targeted sales and marketing campaigns and even provide insights that allow electronics manufacturers to make products that better meet consumer needs, the companies said. Using consumer data, German electronics company Siemens launched a refrigerator customised for Tmall users in March and Chinese appliance maker Midea in May began selling a rice cooker that was designed partly based on Tmall data.

    “We build a bridge between brands and consumers by leveraging data,” Zhang said.

    International and domestic brands joining the Alibaba-Suning support program, called the Super Brand Alliance, include Midea, Haier, Samsung, Hisense, Huawei, Xiaomi, Lenovo, Siemens, Sony, Skyworth and Canon.