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Chinese Appliance Major Midea Enters Fortune 500 List

Midea Event

Midea has entered the “Top 500 of the World” for four consecutive years, and the most urgency is from overseas competitors.

In particular, Japanese and Korean companies, when they saw that the growth rate of the Midea exceeded expectations and the pace of globalization continued to accelerate, they were forced to accept this fact, but also gave them a sense of urgency. This sense of urgency is reflected in three aspects:

First, the R&D strength of the Midea continues to strengthen; second, the sales scale continues to create new highs; third, the globalization has achieved remarkable results. Moreover, the path taken by the Midea has somewhat tended to be the same as that of Japan and South Korea but has surpassed them and even led the industry.

This is the urgency that the Midea can bring to the opponents that cannot be ignored. The data of the authoritative organization once again confirms the remarkable achievements of the Midea.

“Fortune” released the list of “World Top 500” enterprises in 2019, the US group once again on the list, ranking the 312th in the 2019 “World Top 500” enterprises.

Midea 312
Midea 312

For four consecutive years, the “World Top 500” beauty has made others feel the urgency

The performance of measuring the globalization of beauty should be viewed dialectically by historical perspective. It is necessary to know that in 2016, Midea Group ranked 481st among the “Top 500”, and in 2017 it steadily increased to 450th. In 2018, Midea Group jumped to No. 323, and this year’s ranking rose by 11 places.

Four big steps in four years, this is the best answer given by the Midea. Always staying in the “Top 500 in the world”, what does the US do?

Hard power: Afford Revenue Indicators

Since 1996, Fortune has been the world’s top 500 list for the first time, it has been the benchmark for the true strength of enterprises. The Fortune 500 list is based on the annual revenue of major global companies as the main basis for assessment and ranking.

This year, Midea Group’s ranking jumped 11 more than in 2018, ranking 312th with a profit of 39.582 billion US dollars and a profit of 3.085 billion US dollars. The revenue performance was very strong.

The profit contribution of Midea Group is mainly in two categories, consumer electronics, and HVAC. On the other hand, compared with the scale of the performance of robots and automation systems in 2017, the profit share of this business has increased significantly in the past two years. Last year, the Midea proposed the development strategy of “human-machine new generation”, and opened the era of human-computer interaction with robots, industrial Internet and artificial intelligence. It is expected to become a new growth point of the US group in the later stage.

For four consecutive years, the “World Top 500” companies have made others feel the urgency

Soft Power: Black Technology Explosions Frequently

If the revenue indicator is one of the hard powers, then the soft power of the Midea is more hidden and unpredictable.

With the transformation of Midea Group into a technology enterprise, soft power has become one of the most reliant and fastest-growing weapons of the Midea.

Last year, Fang Hongbo, Chairman and President of Midea Group, made clear at the Group’s 50-year strategic conference that the future of the Midea would be transformed into a true technology-driven enterprise and continue to invest in research and development.

Under the framework of the technology-driven strategy of clearing the Midea, Midea’s R&D investment has grown rapidly. The data shows that from 2013 to 2018, the R&D investment exceeded 30 billion in 5 years. In 2018 alone, it reached nearly 10 billion, while the number of R&D personnel exceeded 10,000, and the number of foreign experts reached more than 500.

The investment in research and development provides a solid foundation and guarantee for the technological innovation drive of the enterprise. By the end of 2018, the cumulative domestic patent application volume of the Midea exceeded 94,000, and the authorized maintenance volume was 44,000, ranking first in the global home appliance industry for three consecutive years. Bit. The air space station, “cold water washing” water cube washing machine, microcrystalline refrigerator series products, embedded dishwasher, and other multi-category explosion products came out.

Midea Group has launched COLMO and Bugu New Brands last year and has achieved brand rejuvenation and high-end with the help of the “Dongfeng” of consumption upgrade. With the digital transformation, the end-to-end communication and coordination of the full value chain will be realized, and the operational efficiency of the full value chain will be comprehensively improved. These soft powers have become a solid backing for the Midea to enter the “Top 500 of the world” for four consecutive years.

Globalization: a new journey for the “old” brand

From hard power to soft power, from the home appliance group to the technology group, this is also the transformation of the Midea as an old brand to a new brand.

One of the carriers of change is the globalization of the Midea, and the old brands need to revitalize their lives. This is the foundation of the globalization of the Midea.

The Midea Group was founded in 1968 and is now a 51-year-old “old man”, but its pace of globalization has been moving forward. Up to now, there are 20 global R&D centers in 9 countries around the world. The overseas production bases are distributed in 15 countries and the products are exported to more than 200 countries and regions. Products and services are provided annually to more than 300 million users worldwide, as well as key customers and strategic partners in various fields.

Midea has beautiful brands such as Midea, Little Swan, Hualing, Fandi Luo, Beverly, COLMO, BUGU, KUKA, Toshiba and AEG. With the most complete small household appliance product group and kitchen appliance product group in China, overseas revenue increased by 6.21% year-on-year. As a globally operating technology group, it not only mobilizes global superior resources but also has better risk resilience when the world’s current pattern changes frequently.

The international influence of Midea Group is also gradually increasing. Brand Finance, the UK brand appraisal agency, recently released the “2019 Global Top 100 Technology Brands” (Brand Finance Tech 100 2019) list, also showing that “Beauty” has become the 22 technology brands on the list in China. One of them ranked 27th on the list, up 14 places from last year, ranking first in the domestic industry.

New challenge: smart life can be more beautiful

“The original life can be more beautiful.” A slogan has a beautiful brand, and it has become a well-known national brand. In recent years, the Midea has turned many times, from traditional home appliance companies to the global technology-based group, and is committed to the realization of the “science and technology to live a beautiful life” vision.

Midea is not only leveraging technology to shake the appliance business but more importantly, realizing the restructuring and empowerment of this billion-dollar giant from engines and systems to platforms. Focusing on the three strategic axes of “product leadership, efficiency-driven, global operation”, Midea has completed the implementation of “one beautiful system, one innovation engine, one industrial Internet platform”.

Today’s beauty, revenue has already exceeded 200 billion, and the market value has exceeded 300 billion, but this is only a staged result of the Midea.

Midea Group wants to achieve the goal of “re-creating a beautiful”, extending from the strategy of “product leadership, efficiency-driven, global operation”, through endogenous growth + extensional growth, and the transformation of the Midea into a technology enterprise group has already begun to bear fruit. This answer sheet is also the best gift from the Midea to the market and investors.

[Blue Technology] Xiaoqing

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