In July this year, Midea Group climbed the "Fortune" World Top 500 list and ranked 450th, up 31 places over last year. It became the only Chinese household appliance company that has been listed twice in a row, with a market value of over 300 billion yuan. As a private enterprise, how does Midea Group achieve simultaneous upgrade of production and operation when the overall development of the industry lags behind, and succeeds in the global market? In the process of pursuing the expansion and development of globalization, how has Midea integrated Germany, Japan, Italy and other companies with innovative ideas to realize cross-cultural and trans-regional globalization? “The truly global companies should have insights and strategies to understand global trends. What the United States needs to do is also constantly surpass the present. We believe that our society is moving toward an era of perfect human interaction.†December 7th, Midea Group Chairman Fang Hongbo gave the answer at the "Fortune" Forum "Globalization Strategy in Development: Cross-border Convergence, Partnerships, and Organic Growth." Human-computer interaction era "21st Century": The acquisition of Toshiba and KUKA is the US's two major moves in overseas mergers and acquisitions in recent years, after the United States mainly in the overseas market to adopt OEM processing strategy, especially in Europe and the United States market, rarely see the US's own brand, acquisition Toshiba is also more targeted at Southeast Asian and Asian markets. What specific plans do you have for U.S. home appliances entering the European and American markets? Fang Hongbo: We are not only a brand of the United States. At present, Midea has approximately 130,000 employees, approximately 200 subsidiaries, and 12 strategic business units worldwide. Nearly half of Midea’s total revenue comes from overseas markets. In the past five years, the Group has invested more than 20 billion in scientific research funds. At present, Midea Group has created a global R&D system covering 20 R&D bases in China, the United States, Japan, Italy, Germany, and Austria. In addition, the United States has also deployed a global brand matrix to achieve a balanced and long-term development of domestic and international markets. In the past two years, Midea has established strategic partnerships with brands such as KUKA, KoChuang, Carrier, and Toshiba Electric Appliances to open up the advantages of resources, technologies, and channels for both parties and gain access to mature market countries. Next, Midea will further integrate its internal resources to further enhance its endogenous growth. "21st Century": In 2013, Midea put forward three strategies of "Product Leading, Efficiency Driven, and Global Management" and stated that "in the next five years, the United States will still follow these three directions." The operation and exploration of this strategy is now approaching the fifth year. Do you have any new ideas in strategy? What are the specific strategies to lead the transformation of the United States into the "Global Technology Group"? Fang Hongbo: We believe that the society is moving toward an era in which man-machine interaction is perfect. The development of mobile internet, big data, and cloud computing is constantly giving rise to all aspects of social life. The future of manufacturing companies must also be the future of human-computer interaction. Machines will be more intelligent, affecting every minute of our lives. Therefore, from a few years ago, Midea began to explore the best interaction between man-machines in different scenes of life and production, and devoted itself to the creation of human-computer communion and symbiosis with organic products. Return to the nature of life focused on innovation and enjoyment. Therefore, the United States has always advocated "smart home + smart manufacturing" as its core dual-strategy strategy. "21st Century": At present, nearly half of Midea's business comes from outside China. Does this give you some new challenges in management? How does the company adjust to manage new challenges in the era of globalization? Fang Hongbo: Considering that the Midea Group has a short development time and has limited experience in coping with it, we also need to build a strong, international team to conduct a comprehensive assessment and pre-judgment of business development. This has contributed to the smooth progress of our project. Very big help. At the same time, Midea also respects the brand culture and management system of the acquiring company. It is believed that these high-quality old companies have their own advantages in the management system and brand culture. Global operation concept "21st Century": With the advancement of the Double Smart strategy, when can the robot business form the same weight as the home appliance industry? Before this, what are the points in the field of robotics in the United States? Fang Hongbo: For some time, Midea’s main business is still HVAC and consumer electronics, but the proportion of robots and automation systems will gradually increase. The dual intelligence strategy of the United States is not focused on the development of a single field, but is dedicated to creating an open, connected, integrated robot platform. In the past year, Midea Group has successively reached cooperation with leading companies at home and abroad: Yaskawa, KUKA, KoChuang, Huawei, GPHL, Country Garden, Tencent, Alibaba, JD.com.... Strive to extend the application of human-computer collaboration to life. , manufacturing, logistics, medical care and many other aspects. "21st Century": After the two major acquisitions of Toshiba and Kuka, does the United States have entered the "recovery and rejuvenation" stage now? Is there any plan for other overseas mergers and acquisitions in the near future? In the digestion and integration of mergers and acquisitions, does Midea have any experience to share? Fang Hongbo: Through cross-border mergers and acquisitions and cooperation, such as cooperation with giants such as KUKA, KoChuang, Yaskawa, etc., Midea harvested world-leading industrial and medical robot manufacturing and factory automation solutions, and at the same time, accumulated experience in the field of home appliances. Market resources will also produce significant synergies with the cooperative companies. At the same time, it will extend the upstream and downstream of the industrial chain and open it from B to C; different sections will also construct an ecosystem that includes R&D, manufacturing, supply chain, logistics, marketing, service, and promotion, so that the United States will no longer be limited. In the linear development of a certain product function or a certain link, but through the huge synergy effect, repeatedly takes advantage of the beauty of the entire value chain operational excellence, which is the United States of the global operating concept. "21st Century": China's manufacturing has been stuck at the low end of the industrial value chain for many years. Apart from innovation in science and technology, what changes should be made in the future? How to gain a foothold in the tide of globalization? Fang Hongbo: For Chinese home appliance companies, the "low-cost, large-scale" model is difficult to sustain. Competition in the global market will be the competition between core technologies and leading products. With the increase in the strength of scientific research and innovation, Chinese companies are using their strengths to reverse the past stereotypes of “low quality†and “low price†made by China’s domestic and overseas markets, and with the implementation of the series of favorable policies for technological innovation after the 19th National Congress of the Communist Party of China. , I believe that many Chinese companies' upgrade and transformation path is only the beginning. In the future, with the deep integration of the Internet, big data, artificial intelligence, and the real economy, the market position and competitiveness of home appliance companies from China will further increase, and more successes will be achieved. 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